What you need to know about carbon neutral logistics

Most business owners are constantly faced with two problems: 

• how can we grow faster in the short term?

• how can we ensure our business keeps operating long into the future?

For companies to answer the second question, it’s essential to understand the environmental effects of their supply chain. After all, supply chains are responsible for 90% of companies’ environmental impact. 

So how does logistics fit into a carbon neutral future — and what are the stakes? Read on to explore the industry outlook and how CBIP strives to lead by example.

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Carbon neutral vs. net zero shipping

One major reason for the increase in carbon emissions into the atmosphere is global transportation and shipping, plain and simple. Despite this fact, global shipping and its associated emissions aren’t going to disappear overnight. 

That’s why many firms aim to be carbon neutral. This means they purchase carbon offsets through accredited programs to completely offset the impact of their emissions.

So what does carbon offsetting look like in practice?  It involves a few steps. 

• A travel plan, shipment, or any action that contributes to increased carbon emissions takes place

• The business calculates the total emissions of their delivery or shipment

• With the help of an accredited carbon offsetting partner, they reinvest money into measures that fight climate change. 

Some popular carbon offsetting programs include Native Energy, 3Degrees, Sustainable Travel International, Terrapass, Myclimate, and Carbon Checkout. 

Carbon neutral differs from another popular term in the sustainability conversation: Net zero, Rather than utilizing offsets, net zero involves actually reducing emissions to their lowest possible amount. 

Reducing emissions at the individual level — all the way down to recycling and green commuting — is something companies can start doing right away. But achieving full net zero status is a serious, long-term endeavor.  Estimates from the World Resources Institute show achieving net zero would require most companies to reduce carbon dioxide emissions by 90% by 2050. Amid these challenges, the logistics sector has a unique opportunity to spur change by must be driving the transition to renewable energy sources (such as wind, solar, geothermal, and nuclear). 

Why carbon neutral matters — especially for logistics

According to the International Maritime Organization (IMO), worldwide shipping accounts for close to 3% of all greenhouse gas emissions today. Ships alone release nearly 1 billion metric tons of carbon dioxide into the atmosphere each year. As global trade keeps expanding, the steps companies take to become carbon neutral will only become more important.

But there’s another side to going green: It has a striking influence on how customers perceive your company. According to a report by the Economist Intelligence Unit, 85% of consumers are more likely to buy from a company with a reputation for sustainability.

That translates to a unique opportunity. Research from Unilever revealed that their Sustainable Living brands — which were determined to serve a strong social or environmental purpose — grew over 50% faster than those who didn’t take action on these issues.

A healthier environment, happier customers, and faster growth are just a few of the reasons why carbon neutral logistics matter more than ever.

Big business and the environment

It’s no secret that big businesses have made sustainability part of their marketing plans.  Per Yahoo Finance, Amazon, Apple, Ford, Microsoft, and Starbucks all issued pledges to go carbon neutral.

So how can you tell what these promises really amount to?

There has been plenty of criticism cast toward companies advertising their eco-friendly ethos without backing it up (a practice widely known as greenwashing). Making a pledge is one thing, but staying accountable is another. Still, the tide is shifting and there are already examples of corporations showing that achieving carbon neutral status isn’t just a far-fetched vision. 

General Motors is taking a science-based approach by transitioning to battery-powered electric vehicles and sourcing renewable energy for its U.S. operations while participating in carbon offsetting. Another example is the seventh largest airline in North America, Jet Blue. In 2020, they announced the results of their offset investment to reach carbon neutrality on domestic flights.

As for many other companies, only time will tell what level of action they will take to meet the guidelines outlined in their vision.

RELATED: Why Omnichannel Fulfillment Helps You Reach Customers

How CBIP is working to become carbon neutral

CBIP focuses on both the future success and sustainability of your business and on the environment we all share. 

We plan to lead by example and uphold the principles that adhere to global initiatives similar to the United Nations 17 Sustainable Development Goals (SDGs). These include promoting sustainable consumption and production patterns and taking urgent action to combat climate change and its effects.

That’s why we’re working to calculate our emissions and pinpoint where they’re the highest. Then, we’ll reinvest the dollar amount of our impact back into community-oriented programs ranging from reforestation to climate education in order to become carbon neutral.

Partner with a logistics provider that strives to leave our environment better off for the next generation. Learn more and schedule a free call with one of our experts today.