With cost reductions front of mind , it ’ s easy to see why investing in green infrastructure and solutions might not be a priority for many businesses . And , with the spiralling cost-of-living crisis , suppliers are understandably reticent to help reduce costs .
But the truth is , a drive to implement new efficiencies needn ’ t be a race to the bottom . In fact , it makes sense that a drive to cut costs in the supply chain should also be a drive to increase sustainability . The two can go handin-hand , and technology is the key to enabling this symbiotic and systematic relationship .
The world cannot wait
There are some innovators out there – like Henkel , P & G , and Zara – who are making bold progress on sustainability across their value chain . Henkel has committed to a 65 percent reduction in the carbon footprint of their factories by 2025 and intend to be ‘ climate-positive ’ by 2030 . An ambitious plan .
However , across the board , when it comes to the movement of freight , this is lagging quite far behind other initiatives . Even though getting products into stores is the single most important step before selling them . We see that manufacturers across the UK and Europe are floundering when it comes to finding ways to execute their sustainability wishes in their distribution and supply chains . But this doesn ’ t need to be .
Digital transformation is already making it easier for shippers to streamline their middle mile distribution . Freight management technology is eliminating intermediaries , increasing automation of repetitive tasks , and cutting out empty admin hours . Combine this with load optimization , route planning , new fuels , advanced telematics , and mobile logistics and there is also a significant impact on carbon emissions too .
Road freight is still the most significant generator of carbon emissions , even with the application of new technologies and efficiencies . Net Zero can only be achieved with zero emissions technology . However , HGVs based on battery electric or clean hydrogen still have a number of substantive hurdles to get over .
But the climate science is clear – the world cannot wait . And our economy cannot wait . Commitments made with the Paris Agreement need to be adhered to – and though COP27 was a restatement of this desire , there is evidence that we will exceed the 1.5-degree increase . In fact , according to the UN , current climate plans could lead to an increase of almost 11 percent in global greenhouse gas emissions by 2030 , not a reduction .
Governments need to play a bigger part than they do now – the private sector cannot do this alone . Unfortunately , the current approach is more stick than carrot , with potential fuel duty hikes and the phasing out of diesel vehicles overly clumsy and uncoordinated . This approach is shortsighted and could even stall infrastructure roll-out and vehicle development , as many companies opt for a ‘ wait and see ’ approach . Change is challenging , but there is a risk associated with leaving it too late : for the environment and for business .
However , it ’ s not all negative news . Investing in green technology , including electric HGVs , is a big commitment . But there is another way to make real reductions in CO2 emissions right now – HVO fuel . This drop-in replacement ‘ bio-diesel ’ is made from waste , is renewable , and can be used in any diesel truck or car straight away .
Other good news ? The production of it is not affected by fossil fuels or the war in Ukraine . Lab tests show that HVO can
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