“The environment and the economy are really both two sides of the same coin. If we cannot sustain the environment, we cannot sustain ourselves.” – Wangari Maathai
For our #EarthDay2023 Series, we asked these industry leaders for their insights on sustainability in the logistics industry.
David Rose, Chief Transformation Officer, IAG Cargo believes that the only way to achieve net zero by 2050 is by using cleaner liquid fuels – Sustainable Aviation Fuels (SAF). Here are the excerpts –
What steps is your company taking to reduce its carbon footprint and promote sustainability in the cargo and logistics industry?
At IAG Cargo, we understand the need for and importance of sustainable aviation – and this is shared by International Airlines Group (IAG). In April 2021, IAG became the first European airline group to commit to using sustainable aviation fuel (SAF) for 10% of its flights by 2030. SAF can be produced from waste feedstocks, reducing CO2 net lifecycle emissions by more than 80%. While there are lots of small ways to cut emissions, the only way to achieve net zero by 2050 is by using cleaner liquid fuels – Sustainable Aviation Fuels (SAF).
In 2022, IAG Cargo worked with Kuehne+Nagel, Bolloré Logistics, and DB Schenker to purchase 12.5 million litres of Sustainable Aviation Fuel, reducing their supply chain emissions on a net lifecycle basis by approximately 29,600 tonnes of CO2. We have also implemented environmentally friendly changes across our entire operations – not just the fuel used in airplanes. We began testing the first electric cargo Terberg at London Heathrow last year, with the intention of eventually replacing all diesel terminal vehicles. We introduced a sustainable film for wrapping cargo that is 100% recyclable and biodegradable in landfills. This is beneficial on a global scale, where the receiving country of the goods will be able to effectively dispose of the film.
How is your company leveraging digitalization to promote sustainability in the cargo and logistics industry, and what impact has this had on your sustainability efforts?
We have launched our ‘Destination Digital’ strategy as part of our journey to become a digital first carrier. As an industry, air cargo has been slow to adopt digital practices, but we have seen a lot of innovation and progress over the last decade. Air cargo has historically relied heavily on paper for the contract of carriage between freight forwarders and airlines, processing more than 7,800 tons of paper documents a year, equivalent to 80 747 freighters full of paper.
We recently announced charges on paper airway billing (AWB) to encourage our customers to work with us to drive more digital change and sustainable practices across our industry. Our goal is to reach an industry-leading 100% eAWB by the end of 2023. It offers a more sustainable alternative, significantly reducing the number of paper documents processed year on year and indirectly limiting fuel burn of aircraft through a reduction in carriage of physical paper. Most significantly, it offers a more seamless end-to-end service for our customers, with improved messaging and data quality by reducing the chance of human error.
How does your company balance the need for speed and efficiency in delivering goods with the need to reduce emissions and promote sustainability?
Both efficiency and sustainability are priorities at IAG Cargo. Our “Destination Digital” journey is seeing us partner closely with our customers to adopt digital processes to support more sustainable operations whilst offering better user experience. As an industry with an unsustainable reliance on paper, IAG Cargo is supporting customers to transition to digital through initiatives such as eAWB.
Initiatives such as those aiming to increase the adoption of eAWB will provide a more seamless end-to-end service for our customers, with improved messaging and data quality by reducing the chance of human error, in addition to a reduction in the unsustainable use of paper documents. The introduction of biodegradable film for wrapping cargo and the trialling of an electric airside vehicle at London Heathrow also demonstrate IAG Cargo’s commitment to making air cargo more sustainable.
Ayesha Katgara, Head – Corporate Strategy, Jeena & Company believes that A long lasting change will come if the entire ecosystem takes conscious steps towards managing climate change and a collaboration between policymakers and stakeholders is possibly the first step. Here are the excerpts –
What steps is your company taking to reduce its carbon footprint and promote sustainability in the cargo and logistics industry?
Conversations about sustainability are pervasive, and it is imperative to prioritise them. However, it is essential to acknowledge that true change begins within our own businesses. Incorporating sustainability into our day-to-day operations is the first step towards making a meaningful impact. Through five generations our company has seen the need for sustainability grow and understands the importance of actively taking steps to reduce our carbon footprint in the cargo and logistics industry.
Businesses are beginning to recognise how incorporating greener strategies may help them save money by increasing efficiency and decreasing waste. At Jeena & Company, we too have taken measures to go green. Our green strategies have been deduced from fragmenting the term ‘GREEN’ wherein ‘G’ stands for generation of less waste, ‘R’ stands for recycling of everything that cannot be reused, ‘E’ stands for educating the community on eco-friendly options, another ‘E’ for evaluating the environment impact of actions, and ‘N’ for nourishing discussions and activities that integrate environmental education into training curriculum.
We promote multimodal and intermodal logistics for domestic movement of goods as they are an effective alternative for reduction of carbon footprint. Furthermore, we optimize our packaging to reduce waste, embrace digitalization and vouch for a ‘paperless’ environment, implement energy-efficient technologies in our facilities, and ensure the involvement of our employees in adoption of sustainability initiatives through training and awareness programmes.
How is your company leveraging digitalization to promote sustainability in the cargo and logistics industry, and what impact has this had on your sustainability efforts?
We have developed a number of measures to improve our sustainability efforts by embracing sophisticated digital technology. This involves utilising advanced route optimization software as well as deploying digital tracking and monitoring capabilities through mobile apps to guarantee effective resource use. Furthermore, digitization has allowed us to improve our documentation procedures, decrease paper waste, and convert to electronic documentation, all while reducing our environmental impact. Some of the digital transformations with respect to documentation are e-PSD including HBL copy, custom attested invoice, packing list, COC and e-billing such as Jeena invoice, shipping bill copy, principal ex-rate, and THC copy. These digital efforts have helped us achieve our sustainability goals by lowering emissions, decreasing waste, and enhancing operational efficiency.
How does your company balance the need for speed and efficiency in delivering goods with the need to reduce emissions and promote sustainability?
Our strategy includes utilising cutting-edge technology, optimising transportation routes, and reducing our environmental impacts while retaining operational efficiency. We prioritise collaborative partnerships with carriers, agents, and vendors who share our sustainability goals and practise sustainable business practices. Our system integration with customers, agent network, and customs aids us in striking the right balance between the need for speed and efficiency in delivering goods while of course keeping us aligned with our sustainability goals.
Furthermore, we invested in solar powered warehouses equipped with solar panels, skylights, low emitting paint and are actively monitoring our warehouse operations through WMS to discover opportunities for enhancement in operational speed and efficiency while simultaneously cutting down on emissions. Our dedication to sustainability is woven into our entire business approach, allowing us to achieve the much-needed balance.
How can the cargo and logistics industry work with policymakers and stakeholders to promote sustainability and mitigate the effects of climate change?
A long lasting change will come if the entire ecosystem takes conscious steps towards managing climate change and a collaboration between policymakers and stakeholders is possibly the first step.
Here are some ways we can work together:
Develop and implement sustainable transportation policies: The industry can work with policymakers to develop policies that promote the use of sustainable transportation methods, such as electric vehicles, biofuels, and hybrid technology. Such policies can also encourage the use of more efficient transportation routes and modes. As an organisational initiative, our stakeholders are promoting electric vehicles among employees by offering them fixed parking facilities and car charging infrastructure.
Encourage the use of sustainable packaging: Promote the use of sustainable packaging materials such as biodegradable plastics, recycled materials, and paper-based packaging. This can help reduce the carbon footprint of transportation and mitigate the negative effects of waste disposal. We have no printing/plastic policy at all our branches where one-sided printing and single use plastics are not permitted.
Collaborate with others in the ecosystem: The industry can collaborate with other stakeholders such as suppliers, customers, and NGOs to develop and implement sustainable practices. For example, companies can work with suppliers to source sustainable raw materials, and collaborate with customers to reduce waste. At Jeena, we partner with climate-conscious vendors who supply recycled stationeries to us. We educate our customers and agents on the sustainability initiatives we undertake so as to explore potential collaboration opportunities with them.
Embrace technological innovation: It might be prudent for the industry to invest in and adopt new technologies such as IoT, predictive analytics, and smart logistics systems that can help reduce emissions and improve the efficiency of transportation networks. At an organizational level, we make the best use of technology by making some conscious choices such as the usage of power down laptops, installation of motion sensors at our offices and energy efficient lighting besides heavily relying on cloud-based infrastructure and digital interfaces for our operational requirements.
Overall, the cargo and logistics industry can work with policymakers and stakeholders to promote sustainability and mitigate the effects of climate change by taking a proactive and collaborative approach, embracing innovation and sustainable practices, and investing in green infrastructure.
What is your vision for a sustainable future for the cargo and logistics industry, and how do you plan to contribute to achieving that vision?
Our vision for a sustainable future is to be the “eco-movers” of the industry. We intend to transform influence the industry by adopting cutting-edge technology that minimises carbon emissions, supporting sustainable supply chain practices while introducing innovative approaches. We intend to obtain a competitive edge through sustainability-driven innovation while also contributing to a more sustainable and lucrative future for our company and the industry as a whole.
Through all our sustainability initiatives, we have been able to reduce our carbon footprint to 33,000 Lbs/15,000 kgs in the year 2022-2023 which is equivalent to saving more than 700 trees in a year. We shall continue to work upon and enhance our sustainability initiatives in order to achieve our vision.
Vineet Malhotra, Director and Co-Founder, Kale Logistics Solutions, believes that people need to realise that digitisation as an element offers enormous benefits in terms of sustainability. Here are the excerpts –
What steps is your company taking to reduce its carbon footprint and promote sustainability in the cargo and logistics industry?
For Kale Logistics Solutions, since its inception in 2010, ensuring sustainability has been the number one cause. There has been a buzz around sustainable operations in the industry for a long time, but it just remained a buzz. It is against the backdrop of sustainable development goals set by the United Nations.
Kale designed, developed, and implemented Cargo Community Systems built with the intervention of Artificial Intelligence and Machine Learning to digitise documentation and automate some of the mundane processes in the Logistics ecosystem. In 2015, we implemented India’s first Airport Cargo Community System at Mumbai International Airport, facilitating paperless trade for the entire Airport ecosystem. Nearly 8 million physical paper copies are saved due to Kale’s Cargo Community System.
On the Maritime side, Kale’s Container Digital Exchange (CODEX), aka Port Community System, facilitated reduced fuel consumption by lowering truck wait time at the Port gate. Also, the reduction in physical paperwork reduces the complex manual process and enables savings of millions of paper copies.
Globally, Atlanta International Airport realised significant savings for the Cargo complex. In 18 months, 60,426 tonnes of carbon emissions were saved. Also, Atlanta Airport realised 105 minutes saved in truck wait time per truck annually and 2700 gallons of fuel saved.
Such numbers are affirming, and the community is excited to realise such transformations. Looking at this, some of the USA’s leading Airports have trialled our Cargo Community system and are discovering some significant carbon emission savings.
How is your company leveraging digitalization to promote sustainability in the cargo and logistics industry, and what impact has this had on your sustainability efforts?
Paperless trade and 100 per cent digitisation have been our motive since inception, and till now, we have diligently stuck to these principles and enabled the same across 100+ Airports and Ports worldwide. The resultant impact has been positive, with broader adoption in a given Airport environment, cost savings, efficiency improvement, and much more.
How does your company balance the need for speed and efficiency in delivering goods with the need to reduce emissions and promote sustainability?
There is always a misunderstanding that focusing on sustainability means returning to the stone age. However, people need to realise that digitisation as an element offers enormous benefits in terms of sustainability. While usually, cost savings is presumed to be the benefits; digitisation can also facilitate informed decision-making by studying demand-supply patterns.
For example, an untoward incident like the pandemic can be predicted very well. Similarly, there are various cases, including the import surge and the Suez Canal incident, to cite. All those happened due to a lack of communication between the stakeholders. A platform like the Cargo Community System can facilitate all these aspects in one frame.
How can the cargo and logistics industry work with policymakers and stakeholders to promote sustainability and mitigate the effects of climate change?
While some stakeholders are keen on ensuring 100 per cent technology adoption in specific or overall processes, some still need to be convinced due to various factors involved. Moreover, regulators come with some mandates that sometimes may not even reach the average stakeholder. Otherwise, even though they know a regulation, they may feel disconnected and need help understanding its need.
The mandate on Maritime Single Window is the best to quote. While some regions have understood and are adopting the system, many do not consider it part of their strategy. Here, policymakers and regulators must work closely to spread enough awareness of these regulations.
What is your vision for a sustainable future for the cargo and logistics industry, and how do you plan to contribute to achieving that vision?
Innovation, passion, expertise, and empathy are our core values. We have always worked tediously to ensure our offerings replicate these values. In the long run, we aim to digitise the logistics ecosystem worldwide. To achieve this long-term goal, we have set short-term milestones such as 100 per cent adoption in all Airports and Ports we work with. We are on track, and India’s e-AWB rank jumping to no. 6 is a testament to our commitment.
Vipin Vohra, Chairman, Continental Carriers Pvt. Ltd., believes that digitalization offers numerous opportunities to promote sustainability in the cargo and logistics industry and reduce their environmental impact. Here are the excerpts –
What steps is your company taking to reduce its carbon footprint and promote sustainability in the cargo and logistics industry?
Continental Carriers Pvt Ltd (CCPL) has taken several steps to reduce their carbon footprint and promote sustainability in the cargo and logistics industry which can ultimately benefit the environment, society, and the business.
It uses advanced technology to optimize the routing and scheduling processes to minimize the distance traveled by vehicles, reduce fuel consumption and lower carbon emissions.
CCPL uses vehicles with low-emission or zero-emission vehicles, to reduce their carbon footprint and ensures reduction in energy consumption by using energy-efficient lighting, heating and cooling systems in their offices and warehouses.
CCPL makes sure for reducing the waste and promote sustainability by using eco-friendly packaging materials and implementing efficient materials handling practices.
The working environment of CCPL makes sure that its employees, customers and suppliers are made aware of sustainability issues.
How is your company leveraging digitalization to promote sustainability in the cargo and logistics industry, and what impact has this had on your sustainability efforts?
Digitalization offers numerous opportunities to promote sustainability in the cargo and logistics industry and reduce their environmental impact. Continental Carriers Pvt Ltd (CCPL) leverages digitalization to promote sustainability and improve its environmental performance.
➢ Real-time tracking of cargo and vehicles helps CCPL optimize routes and reduce fuel consumption, leading to lower emissions and more sustainable operations.
➢ By analyzing data on shipping routes, fuel consumption, and other metrics, CCPL identifies areas for improvement and implement changes to make their operations more sustainable.
➢ Automating certain processes, such as inventory management and scheduling, can reduce the need for manual labour and, in turn, reduce emissions associated with transportation.
➢ Replacing paper-based documentation with electronic documentation can reduce paper waste and improve efficiency, as electronic documents can be easily shared and accessed.
How does your company balance the need for speed and efficiency in delivering goods with the need to reduce emissions and promote sustainability?
Continental Carriers Pvt Ltd (CCPL) balances the need for speed and efficiency in delivering goods with the need to reduce emissions and promote sustainability. This not only helps reduce the environmental impact but also enhances the brand reputation and create a competitive advantage in the marketplace.
➢ One of the most effective ways to reduce emissions and promote sustainability is by using sustainable modes of energy efficient transport. By reducing the reliance on diesel-powered trucks and other vehicles, CCPL plans to significantly reduce the carbon footprint.
➢ Another way to balance speed and efficiency with sustainability is by optimizing delivery routes. By using real-time data and advanced analytics, most efficient routes that require the least amount of fuel and produce the least emissions are identified.
➢ CCPL makes sure to reduce the environmental impact by adopting green packaging materials like recyclable, biodegradable, and reusable packaging which helps reduce waste and minimize the use of non-renewable resources.
➢ Warehouses are often a significant source of emissions due to their high energy consumption. By implementing green warehousing practices like, optimizing lighting, and installing energy-efficient equipment, CCPL makes sure to significantly reduce their environmental impact.
➢ Environmental impact can also be reduced by partnering with sustainable suppliers. By sourcing goods from suppliers that prioritize sustainability, logistics companies can help reduce the carbon footprint of the supply chain.
➢ CCPL encourages sustainable behavior by educating employees and customers on the importance of sustainability. This can help create a culture of sustainability that extends beyond the logistics company and into the wider community.
How can the cargo and logistics industry work with policymakers and stakeholders to promote sustainability and mitigate the effects of climate change?
The cargo and logistics industry plays a crucial role in promoting sustainability and mitigating the effects of climate change. To achieve this, collaboration with policymakers and stakeholders is essential. The cargo and logistics industry can work with policymakers to develop policies that incentivize sustainability. For example, they can advocate for tax incentives for companies that adopt sustainable practices, carbon pricing, or emissions reduction targets.
➢ The industry can adopt sustainable practices that reduce greenhouse gas emissions, such as using electric or hybrid vehicles, optimizing transport routes, reducing packaging materials, and promoting the use of renewable energy. Sustainable practices in the operations, such as optimizing shipping routes to reduce fuel consumption, and reducing packaging waste can also mitigate the climate change effects.
➢ The industry can engage in dialogue with policymakers and stakeholders to discuss the challenges and opportunities for promoting sustainability. This dialogue can help identify solutions, set goals, and develop policies that promote sustainability.
➢ The industry can invest in research and development and collaborate with technology providers to find innovative solutions to reduce emissions and increase sustainability. For example, they can explore the use of alternative fuels, such as hydrogen or electric vehicles, or develop new packaging materials that are more eco-friendly.
➢ The industry can participate in the development of policies that promote sustainability. By providing input on proposed policies, the industry can ensure that policies are practical, effective, and fair.
➢ The industry can work with other stakeholders, such as NGOs, academia, and industry associations, to promote sustainability. These partnerships can leverage different expertise and resources to achieve common sustainability goals.
➢ The industry can share best practices for promoting sustainability with other companies and organizations, including those outside the industry. This sharing can help accelerate the adoption of sustainable practices and technologies.
➢ The industry can educate stakeholders, including customers, suppliers, and employees, about the benefits of sustainability and encourage them to adopt sustainable practices.
Overall, collaboration between the cargo and logistics industry and policymakers and stakeholders is critical for promoting sustainability and mitigating the effects of climate change. By working together, the industry can achieve a more sustainable future for all.
What is your vision for a sustainable future for the cargo and logistics industry, and how do you plan to contribute to achieving that vision?
The vision for a sustainable future for the cargo and logistics industry is one that minimizes its impact on the environment while ensuring the efficient and timely movement of goods. This vision includes a shift towards cleaner and more efficient modes of transportation, the use of renewable energy sources, and the adoption of innovative technologies to optimize supply chain operations.
One of the key elements of this vision is a transition to low-carbon modes of transportation, such as electric and hybrid vehicles, as well as alternative fuels like biofuels and hydrogen. This shift is already underway, with many logistics companies investing in electric and hybrid fleets, as well as partnering with renewable energy providers to reduce their carbon footprint.
Another important aspect of the sustainable future for the cargo and logistics industry is the use of data-driven technologies to optimize operations and reduce waste. This includes the use of predictive analytics and artificial intelligence to optimize routing and delivery schedules, as well as the deployment of smart sensors and tracking devices to monitor the condition and location of goods in real-time.
In addition to these technological advances, there is also a growing emphasis on collaboration and partnerships within the industry to reduce waste and improve efficiency. This includes the sharing of resources and infrastructure, as well as the development of collaborative platforms to facilitate more efficient and sustainable supply chains.
Overall, achieving a sustainable future for the cargo and logistics industry will require a concerted effort from all stakeholders, including businesses, policymakers, and consumers for a comprehensive and integrated approach that addresses environmental, social, and economic concerns. By embracing new technologies, investing in renewable energy, and working together to reduce waste and optimize operations, the industry can play a critical role in building a more sustainable and resilient global economy.
Devanshi Patel, Manager, Manilal Patel, believes that use of SAF needs to be promoted. Here are the excerpts –
What steps is your company taking to reduce its carbon footprint and promote sustainability in the cargo and logistics industry?
We are freight forwarders so our impact is more on a personal level. We promote carpooling for employees which reduces time spent in trains and other public transports and increases security. We have reduced printing to only essential requirements…all paper is recycled. We have big Bisleri bottles to help reduce plastic. all disposable mugs have been replaced by reusable glass mugs
We asked our clients to use shipping lines with clear policies in CO2 reduction. We promote airlines with newer aircrafts that are more fuel efficient
How is your company leveraging digitalization to promote sustainability in the cargo and logistics industry, and what impact has this had on your sustainability efforts?
Since the past 10 years we have started implementing e-docs which has drastically reduced the number of documents printed and the exchange of mails with large attachments, since we can all log on and get any document pertaining to any shipment at any time. Technology like teams / Zoom has allowed us to reduce travel all the while remaining in touch with our teams.
How does your company balance the need for speed and efficiency in delivering goods with the need to reduce emissions and promote sustainability?
We try to group as many shipments and deliveries as possible (depending on the need of the clients), this allows us to give a more competitive rate as well as reduce the amount of trucks / containers.
How can the cargo and logistics industry work with policymakers and stakeholders to promote sustainability and mitigate the effects of climate change?
Ask for CO2 emissions so that we are aware of the CO2 impact. Getting information is the most important step. It will help make the correct move to ensure CO2 is reduced. Also need to promote the use of SAF
What is your vision for a sustainable future for the cargo and logistics industry, and how do you plan to contribute to achieving that vision?
We can contribute by offering CO2 emissions for each shipment and asking our clients to use shipping airlines / airlines actively working to reduce carbon emissions.
Keshav Tanna, Founder and Director, Links, believes that Sustainability is one of the most important factors the Air Cargo Industry as a whole has to work towards in an effort to meet the carbon zero target of 2050. here are the excerpts –
What steps is your company taking to reduce its carbon footprint and promote sustainability in the cargo and logistics industry?
Sustainability is one of the most important factors the Air Cargo Industry as a whole has to work towards in an effort to meet the carbon zero target of 2050. Some of the recent steps we are working towards it investing in green warehouses by installing solar panels for electricity; complete mandate of only EVs to be used going forward whether commercial or personal including forklifts for our warehouse operations and enlightening our staff and associates that we follow a zero print policy in terms of documentation and so on.
How is your company leveraging digitalization to promote sustainability in the cargo and logistics industry, and what impact has this had on your sustainability efforts?
We have taken a huge step here and upgraded our software which will be completed in the next few months which works towards more sustainable processes. We are sure that increased digitization will ensure that we will be more compliant in terms of sustainability.
How does your company balance the need for speed and efficiency in delivering goods with the need to reduce emissions and promote sustainability?
So this awareness is also spreading amongst our customers and in fact some of our international customers actually insist that we are able to indicate the kind of carbon footprint their shipments would be impacted with before we even bid for their tenders. So customer awareness is already there and spreading.
How can the cargo and logistics industry work with policymakers and stakeholders to promote sustainability and mitigate the effects of climate change?
The Industry is already working towards net zero carbon emissions by the year 2050. Fossil fuels are going to be a thing of the past and the Aviation Industry is working towards more Sustainable Aviation Fuel options going ahead.
