Logistics Suppliers Face Increasing Pressure from Corporations to Reduce Emissions

Corporations are responding to consumer and employee demands for more sustainable products and services with ambitious targets for greenhouse gas (GHG) emissions reductions. At the same time, zero emissions solutions in transportation are becoming more viable: EVs powered by renewables are poised to take over urban delivery markets and passenger transport, and fuel cell and battery electric truck makers are preparing solutions for long-haul trucking.

A variety of other zero-emissions, low carbon, and even negative-emissions solutions are also emerging. According to a new report, logistics suppliers should expect corporate clients to push strongly for decarbonization—and be prepared to respond.

“Leading suppliers are expected to find innovative ways to deploy and use low carbon and zero-emissions technologies to meet new client demands related to decarbonizing supply chains,” says Scott Shepard, senior research analyst with Guidehouse Insights. “Slower-to-act suppliers risk losing business to the innovative suppliers or to more emissions-efficient modes of transportation, such as rail.”

For suppliers looking to meet client demands, Guidehouse Insights recommends planning for an all-electric fleet and increasing the visibility of fleet emissions performance data. Suppliers should also take an inventory of local biofuel options and identify untapped biofuel feedstocks. Additionally, Guidehouse Insights recommends investing gradually and sharing costs with stakeholders.

The report, Climate Action Plans Driving Logistics Decarbonization, covers the corporate trend toward climate action planning and the many ways in which logistics suppliers can respond to client demands. The report includes an assessment of methods for switching to non-diesel fuels, an evaluation of the fuels and vehicles best positioned for the switch, and recommendations for identifying emissions-savings opportunities with legacy vehicles and infrastructure.