Green logistics – an important point for sustainable development

“Greening” the logistics industry and implementing logistics protecting the environment in business can help companies meet the environmental standards, improving competitiveness, and sustainable growth…

• Solar power is greening plastic factories
• Green lifestyle: When the customer behavior change, the business change
• Green hydrogen – a clean energy storage solution

A stage in the “green supply chain”

Building a protecting environment supply chain (green supply chain) is an important factor in the sustainable development strategy and the transition to a greener economy. The “greening” of the supply chain is regarded by businesses as part of a green investment strategy, helping businesses in making better use of natural, environmentally and improving competitiveness and business performance.

A green supply chain must go through many stages, one of them is green logistics. Businesses will start to find the supply which has eco-friendly material to build a green supply chain. Then, come up with green designs and “greening” manufacturing with synchronized solutions such as using clean energy, energy-saving production, waste recycling… while also using green packaging and green improving in warehouse management and operation. Green logistics is the next stage; businesses build and apply saving resources transportation systems to deliver green products to customers.

Businesses use clean energy to “greening” production

Green logistics is an important point in both “greening” the supply chain and the roadmap for sustainable growth. When customers are increasingly selecting eco-friendly products and the worldwide trend of transition to a greener economy is taking place, green logistics is increasingly being paid attention to and professionally invested.

Opportunities for developing green logistics

Building green supply chains is a worldwide trend that has been pioneered by significant organizations and enterprises throughout the world. The issue of climate change, as well as the competitiveness to attract consumers to choose a green lifestyle, has motivated both manufacturers and logistics service providers to change together. A number of global brands have made commitments and implemented action plans to develop a green supply chain, decreasing the carbon throughout the supply chain towards sustainable growth, reducing climate-related stresses. For example, Nike has committed to decreasing greenhouse gas emissions by 65% where it owns or operates and 30% across its supply chain by 2030; Hitachi, a prominent Japanese technology company, has committed to eliminating carbon emissions from its operations by 2050 and will collaborate with over 30,000 suppliers to achieve this aim. Kuehne + Nagel (K+N), the world’s top logistics business, has likewise committed to becoming carbon neutral in all of its activities by 2020; they proactively address the carbon of their suppliers’ transportation services, such as airlines, shipping lines, and trucking businesses… beginning in the year 2030. As a result, developing green logistics and green production will help manufacturing businesses in improving their competitiveness to join the global supply chain as well as their ability to reach customers.

Green logistics is becoming a global trend (Internet Photo)

Besides, the logistics industry is rapidly growing. The worldwide logistics market is expected to reach USD 3,215 billion in 2021, representing a 17.6 percent increase over 2020. The Vietnamese logistics industry is also growing fast, at a rate of 14-16 percent each year on average. According to Agility’s (the world’s leading logistics service provider) report on the Emerging Market Logistics Index 2021, Vietnam is presently ranked 8th in the Top 10 nations, up to three places from 2020. In the context of Vietnam’s increasing international integration and rapid growth of e-commerce, developing green logistics would increase competitiveness for businesses operating in this industry right in the domestic market, while also opening up many opportunities in foreign markets.

In addition, “greening” logistics will help reduce CO2 emissions and minimize the impact of logistics on the environment, so contributing to the creation of a sustainable environment. This is something that the entire world, including Vietnam, is actively working on. “Vietnam would develop and implement stronger measures to reduce greenhouse gas emission by using its resources, as well as the cooperation and support of the international community, along with nations with high emitting economies, in terms of both finance and technology transfer, particularly the implementation of mechanisms under the Paris Agreement, to reach “zero” net emissions by 2050” (Mr. Chinh, Pham Minh, Vietnam’s current Prime Minister, opined at COP26 Climate Summit, November 1, 2021).

Vũ Phong Energy Group