Learn how e-commerce brands can reach net-zero fulfillment through carbon tracking, green transport, micro-fulfillment centers, and sustainable packaging.
E-commerce generates a large carbon footprint, with the number of online shoppers surging from less than 100 million to over 2 billion over the past two decades. The global e-commerce logistics sector is predicted to produce around 25 million metric tons of CO2 by 2030. In the US alone, transportation accounts for around 29% of the nation’s greenhouse gas emissions, with freight activity and last-mile delivery being particularly carbon-intensive. Companies wishing to achieve net-zero operations in e-commerce fulfillment face many obstacles, but they can be overcome. The goal is to reduce greenhouse gas emissions across the entire supply chain, from the warehouse stage to last-mile delivery. They must also take steps to offset any remaining emissions.
Measuring Carbon Footprints
Serious sustainability strategies must begin with measuring a company’s current footprint. Organizations can start with a Greenhouse Gas (GHG) inventory, a detailed accounting of all emissions generated by a company. The Greenhouse Gas Protocol defines three “scopes” to be vigilant of. The first involves direct emissions from sources that organizations own or control. The second is centered on indirect emissions produced by purchased energy, including electricity for lighting, HVAC, automation, and IT systems in warehouses. The third involves indirect emissions across the value chain, including third-party logistics, manufacturing of goods, packaging production, and customer returns.
Reducing the Carbon Footprint of Order Fulfillment
To boost sustainable order fulfillment, companies can pursue various efforts, including sustainable sourcing of materials, using sustainable packaging materials, educating customers on how to recycle sold goods, and relying on sustainable transport, such as zero-carbon ships. The latter sail along routes designated for emission-reduction programs, taking advantage of proximity to alternative fuel supply hubs and supportive economic or regulatory environments. More than 50 of these green routes are currently in operation, supported by groups such as the Getting to Zero Coalition and the Global Maritime Forum. Also called “Green Corridors,” these routes are the result of the combined efforts of shipping companies, fuel producers, ports, and governments. Companies wishing to boost their sustainability efforts can also set up small, automated micro-fulfillment centers near cities to reduce travel distance and enable low-emission delivery.
Reducing Warehouse Emissions
Warehouses consume a significant amount of energy, with lighting alone accounting for up to 30% of total energy use. Companies can reduce expenditure by upgrading to smart LED lighting, which features motion sensors and the ability to be scheduled, automated, and turned on or off remotely via Bluetooth. HVAC upgrades, meanwhile, can reduce total building energy use by up to 40%, as per the US Department of Energy. Retrofitting buildings with energy recovery ventilation and optimal insulation can also save a significant (up to 25%) percentage of total energy used by a facility. Finally, organizations can invest in rooftop solar installations, which can provide them with 100% clean energy.
Prioritizing Sustainable Packaging
Technologies such as artificial intelligence (AI) can be used to ensure that goods are placed in the right-sized package, to minimize void space. This simple strategy can reduce material use and shipping emissions by lowering parcel weight and volume. Companies should prioritize post-consumer recycled (PCR) cardboard, paper, and plastics. Research indicates that the greenhouse gas emissions from recycled cardboard boxes are 28.1% lower than those from virgin cardboard boxes. Online sellers can also take steps to reduce returns by providing clients with better product information, virtual try-ons, and virtual reality or AI sizing tools.
Companies wishing to reduce their greenhouse gas emissions need to begin by conducting a GHG inventory. Once direct and indirect sources of emissions are identified, they can proceed to embrace multiple strategies to reduce the impact of their operations. These strategies can include prioritizing green packaging, embracing green transport, and setting up micro-fulfillment centers.
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