Nov 18 2024
How a powerhouse of the logistics industry is decarbonising
With a global presence across road, air and sea, CEVA Logistics is mobilising both efficiency measures and alternative fuels on its journey to net-zero emissions.
How can we decarbonise while maintaining operational efficiency?
This question lies at the core of the logistics industry's approach to decarbonisation
The IRU Green Compact’s “dual approach” to decarbonising road transport relies on both efficiency measures and alternative fuels.
Efficiency measures cover logistics (load and route optimisation), vehicles (lightweighting and advanced lubrication) and drivers (eco-driving).
The second level of action focuses on building a robust, practical and economic transition to alternative fuels. This means investing now in fossil-free alternative fuels, including electricity, hydrogen and biofuels, as well as the public and private infrastructure, vehicles and operational practices necessary to use them.
To understand how a leading logistics provider is decarbonising while continuing to maintain operational efficiency, we asked IRU member CEVA Logistics’ Benoît Tinetti (Global CSR & Sustainability Leader) and Pierre-Alain Saclier (Global Ground & Rail BD Leader) to break down their global approach for us.
How is CEVA decarbonising?
CEVA Logistics’ sustainability efforts focus on innovation and collaboration. We are committed to reducing our greenhouse gas emissions across our ground, sea and air operations, as well as in our contract logistics business.
In 2023, CEVA’s CO₂ footprint decreased to 6.0 million tonnes, a reduction of 200,000 tonnes from 2022. Key near-term strategies target our warehouses, fleet and the low-carbon solutions we can develop and offer with our carrier partners.
For example, CEVA’s global ground fleet already includes over 520 electric vehicles. Additionally, we are heavily investing in alternative fuels to reduce our emissions. We have 153 vehicles running on hydrotreated vegetable oil fuel, which cuts carbon emissions by about 90% compared to diesel. We have a target to reach 1,450 low-carbon vehicles across our operations by 2025.
Low-carbon solutions also include alternative fuels like sustainable aviation fuel (an alternative fuel made from non-petroleum feedstock), methanol and biofuels, as well as efficiency measures, such as using AI for route optimisation. CEVA’s Sustainable Maritime Fuel and Sustainable Aviation Fuel reduces shipping and aviation emissions by up to 84% and 90%, respectively.
In our contract logistics operations, 34% of the electricity powering our 1,000 warehouses around the globe currently comes from low-carbon sources. They also have close to 800,000 square metres of solar panels.
In 2023, we reduced our CO₂ emissions per square metre by 10% compared to 2022. We also have an 84% recycling rate. Our Reusable Packaging System cuts CO₂ emissions associated with packaging by 60%.
What challenges are you facing?
More than 95% of our emissions stem from transport purchased for our customers (Scope 3), which restricts our ability to directly reduce emissions. Additionally, there is a limited availability of low-carbon fuels, and they remain more expensive than traditional fossil fuels. Decarbonisation requires substantial investment and involves many stakeholders across different regions, each with their unique priorities and approaches. Collaboration is essential.
In 2023, the breakdown of CEVA's emissions by transport mode was 45% from air, 44% from road, 9% from sea and 2% from warehousing. Air transport is particularly carbon-intensive, emitting 100 times more CO₂ than maritime and 10 times more than road transport. Read more
Source: IRU