Creating a sustainable future in logistics
Sustainability within businesses is no longer a nice thing but necessary. By 2025, sustainability will evolve from a compliance requirement to an integral part of business strategy and, therefore, logistical operations.
2024 saw the implementation of new laws, the introduction of carbon reduction, and carbon insetting taking the helm for better sustainable logistics practices—yet 2025 could see an even greater shift in business’ commitment to sustainability.
We only have 25 years until countries such as the UK, France and Germany will realise success or failure in their net-zero 2050 targets. With global temperatures continuing to rise and the promises of the 1.5°C Paris Agreement seemingly disappearing, there is certainly a lot of work to be done if net-zero targets are to be attained and sustainability goals reached.
You may be sitting there thinking – “Net zero in 25 years! That is net my problem!”
Unfortunately, this is not the case. The rate at which our climate is changing is putting countries under further pressure to introduce greater intermediatory targets. Both the EU and the UK have set themselves a target of over 50% to reduce greenhouse gas emissions by 2030 (relative to 1990 levels). The astute amongst you can see that this is only 5 years away… That means 5 years for our governing bodies to set new legislation to reach a goal which will affect both our home and business lives.
The logistics industry will be no different. The third largest sector for producing greenhouse gas emissions will be under the same legislative pressure to comply with pressing government targets. Let’s explore what change these targets will bring to our industry during 2025.
Here are some Sustainability trends to expect from 2025 in Logistics:
Power to the Customer
The most important part of logistics is ultimately the end customer, to deliver their desired products as effectively as possible. In the past ‘effectively’ has been associated with speed – however – because of government policies, media narratives and a broader social awareness of our energy consumption, it is becoming fashionable that the most effective delivery methods are a sustainable solution.
80% of the worldwide consumer market is willing to pay more for eco-friendly products, with the American sustainability retail market growing 85.3% faster than its conventional counterpart.
This shows that consumers are becoming more conscious towards sustainable practices encouraging businesses across supply chains to uphold the demands of the customer. We can expect this to continue moving into 2025 and put more pressure on the logistics industry to evolve for the long term.
Development of Infrastructure and Road Technology
Our industry is the third largest producer of greenhouse gases for good reason. Carbon-based fuels have supported logistics for over a century, without them the world would simply not be as connected as it is today. However, we are in a new world, one which has cracked the conundrum of zero-emission transport with the adoption of electric, hydrogen vehicles and logistics solutions like alternative fuels such as HVO.
There are many promising initiatives, both from the UK and EU, which will drive development in zero-emission transport methods through 2025 and beyond. The EU are aiming to have 3 million charge points in the EU by 2030 – currently 500,000. Further, the UK have reserved £31.8 million to fund a network of hydrogen trucks and refill points.
Not only the availability but the nature of the zero-emission transport technology is progressing. In the Norwegian city of Trondheim, they have developed wireless charging electrolyzed roads. The large-scale rollout of such technology would bring the diesel and EV truck experience close to homonymous.
Carbon Crediting
2025 will see the growth of Carbon Crediting.
However encouraging the last trends are, there is an apparent problem sitting between the two of them… the demand for zero-emission transport is of far greater size than the resources that are currently available. The time it takes to invest and progress these projects only exacerbates the deficit, as end consumers demand lower footprints on their goods.
So, what will be the bridge of this canyon? How will we cross into a zero-emission future?
The answer to these questions is carbon crediting. Legitimate, numerically balanced carbon crediting.
Carbon crediting represents a reduction of Carbon Dioxide equivalent (CO2e) from the atmosphere. This can be achieved in numerous ways and allows organisations to compensate for their own emissions. Generating carbon credits can be done by reducing emissions, removing pre-existing greenhouse gas emissions, or avoiding releasing emissions altogether.
2025 will see market demand and new legislation put so much pressure on businesses that they must fund the adoption of low-carbon fuels in supply chains worldwide, to neutralise the carbon in their own logistics.
On first hearing this concept you may think this is dangerous territory. Corporate sustainability has been stung before with concepts of planting trees to balance out deliveries. Do not be afraid, carbon crediting is the much more credible cousin of planting trees. When the market sees companies claiming zero emission logistics using carbon crediting, we can be confident that the numerical equivalent of CO2 produced in their deliveries, has been removed from consumption in another supply chain around the world.
Once full faith is put into this technology, my thesis is that 2025 will be looked back on as the year of carbon crediting. The year that enabled a bridge to be built from the heavy fossil fuel-reliant industry to the zero-emission future our governments are targeting. Carbon crediting provides both financial relief and a real means of reducing footprints, whilst the facilitation of zero-emission logistics is being built.
This is certainly the focus of Baxter Freight’s Sustainable Freight Network. Our mission this year is to show customers how much CO2e they are producing on each shipment through sustainability reports, offer consultation into how to reduce that number and then facilitate carbon crediting to balance the movement entirely.
Want to know more?
We are committed to understanding the complexity of the sustainable challenge ahead and work with thousands of suppliers and customers to navigate their way through reducing carbon emissions and upholding sustainability strategies.
If you are interested in getting ahead of 2025 and learning how our logistics company can support customers in their journey to sustainability contact our Sustainable Freight Network today!
