Ten years ago, being able to say that your business operated in a sustainable way was something that would set you apart and could be used as a selling point.
Today, customer expectations have changed. For many organisations, sustainability is now at the core of business strategy, and we are seeing technology used increasingly to underpin the evolution of sustainable business practices.
Time-critical logistics, by its nature, relies heavily on air travel to expedite global shipments.
Shipping and rail are more sustainable modes of transport than air and road, but they are relatively slow options, which is a luxury we don’t have in premium emergency freight.
Instead, we must focus on improving what we can control or influence within the suitable modes of transport.
We foster an approach where the customer, the forwarder and the carrier work together to find the best logistics solution while collaborating to mitigate each movement’s environmental impact.
Customer demand
Many of our core customers will only work with approved suppliers who, like us, carry the ISO 14001 (Environmental Management) certification.
This international standard specifies the requirements for an effective environmental management system (EMS) and provides a framework for organisations to follow.
Obtaining ISO 14001 gives our customers confidence that we adhere consistently to international standards and are independently audited several times a year.
It also underlines that we are a competent, trustworthy and reliable business partner.
We are often asked by customers to complete sustainability questionnaires and are always happy to do so if it helps to raise standards across the sector.
As well as completing self assessment sustainability questionnaires, we are audited frequently and visited by customers keen to uphold their Scope 3 emissions targets.
A small proportion request more detailed sustainability and emissions reports, which our Lead Analyst completes on a daily/weekly/monthly cycle, while other customers only need this on an ad hoc basis.
Despite the increasing frequency with which customers scrutinise our environmental credentials, we do not see a comparable rise in the requests for sustainable vehicle types in expedited freight.
However, as the infrastructure and technologies develop to support ‘greener’ forms of transport, we may see a change.
Industry standards
In 2014, the Global Logistics Emissions Council (GLEC) Framework was introduced as a universal method for reporting logistics emissions and environmental impacts, as well as defining a company’s approach to corporate social responsibility.
For those seeking a sustainable route ahead of industrywide adoption, adherence to this framework can help differentiate one logistics service provider from another.
Sustainability practices drive supply chain efficiency, and much focus is on how technology can aid its development.
For example, software that maximises vehicle optimisation to offer more efficient route planning eliminates empty mileage through co-loading and backloading, while CO2 monitoring systems help companies measure and improve their environmental impact.
The long-term target for the whole industry is to reach net zero by 2050, but each logistics provider will have its own approach and contribution to make in achieving this.
Action from providers
1) Operational considerations
To take any positive steps, we must first identify pain points and opportunities to improve.
The 2022 ‘Air Cargo Sustainability Report’ from The International Air Cargo Association (TIACA) stated that only 52% of companies have a team dedicated to sustainability practices – we are proud to be among that number.
As a leading expedited freight specialist, we are challenged to provide the most efficient, reliable and cost-effective service.
We acknowledge that there are inevitable environmental impacts associated with our daily operations, and we seek wherever possible to identify opportunities to deliver a net-positive impact.
We want to have the lightest touch on the environment, but we are a time-critical business whose customers rely on expedited movements, frequently necessitating movements by air.
Currently, sustainable aviation fuel (SAF) is cost prohibitive and will inevitably need global regulatory and legislative intervention to improve the cultivation process and reduce the production costs before it can become more widely available and priced appropriately.
Where possible, we send shipments by road rather than air, favouring transportation via Eurotunnel rather than by ferry as the carbon emissions are lower.
In 2022, Priority Freight saved over 111 tonnes of CO2 using this service.
To minimise the use of fuels, we have agreed on a vehicle replacement process with carriers to ensure that modern fleets have new Euro VI+ engines, which are more fuel efficient and produce fewer emissions.
2) Utilise technology
Priority Freight’s in-house IT development team has built a comprehensive cloud-based transportation management system, greatly assisting shipment optimisation and supporting clients’ efforts to maintain a taut supply chain with minimal inventory.
The system has been rolled out across all sites and is fully compatible with client Enterprise Resource Planning (ERP); this digital link reduces the requirement for letters and telephone calls, ensuring a cohesive strategy between both parties from the start, maximising efficiencies and cutting waste.
Staff members are encouraged to utilise video conferencing where possible to reduce travel for meetings, particularly where clients are overseas.
Where a journey is deemed essential, staff are encouraged to share transport, select meeting points for long trips, and attend more than one meeting where practicable.
3) Internal environmental policies
We have a dedicated environmental policy to clarify and promote our commitment to sustainable operations.
Various schemes and initiatives are in place for staff and suppliers to adhere to, and the company regularly reviews its policy to continually manage the impact of its operations and improve its environmental footprint.
All initiatives are measured, and our Environmental Management Committee meets regularly to identify objectives and monitor progress.
‘Green Champions’ within departments across the organisation are appointed to set an example, as well as educate and engage staff members to drive the adoption of initiatives.
Our Group Compliance Manager heads up a committee that communicates regularly to share successes, facts and figures (e.g. waste, water and energy costs and usage) to encourage staff.
We have a number of internal measurable targets at all levels – from reducing our utility usage in the office to cutting emissions.
Where environmental aspects are within our control, like waste or utility usage at our offices, we reduce impact through recycling and energy reduction measures.
At our UK Head Office site in Dover, nothing goes to landfill; all our waste is compressed into cubes and taken to a treatment centre, where it is processed into secondary raw materials for industry.
Our latest Environmental Management report shows a 7% reduction in water use during 2022 at our UK Head Office, despite a 17% increase in headcount.
We’ve also seen a 14% increase in recycling year to date, and we aim to improve this by a further 5% by the end of 2023.
Each of these small but significant actions serves to constantly remind staff, partners and customers that we take our sustainability obligations seriously and aim to fulfil our role in contributing to wider industry goals.
This article was published in the October 2023 issue of Air Logistics International, click here to read the digital edition and click here to subscribe.