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SDG Library - Sustainable urban logistics Module

Introduction

Logistics is an important industry for the world economy but unfortunately its degree of sustainability is quite low. It is estimated that 8% of global CO2 emissions come from logistics operations. In Europe, freight constitutes 6% of total CO2 emissions and 30% of transport CO2 emissions. To meet the goals of the Paris Agreement, the total emissions from freight need to be almost fully decarbonized by 2050 compared to 2015 levels.

At the same time the demand for freight transport is predicted to triple and associated CO2 emissions to more than double over the same period. This means that a transformational shift in the logistics industry is needed to meet our global climate targets. Sustainable supply chain strategies are a priority for many companies and green logistics is a term that has gained popularity in the recent years. As these issues attract more and more public attention, solutions in the field of sustainable and green logistics are expected to be in massive demand over the next several years. The Green Trends Survey, conducted by DHL, examined the expectations of two important stakeholder groups – business customers and end consumers – and revealed a great deal of readiness to make choices in favor of sustainability. The survey found that "..environmental concern today is shared by people in Europe, Asia and the Americas alike. An astonishing 70% of respondents from China and India see climate change as occupying a top position among the major world problems (followed by “poverty, lack of food and drinking water,” with 52%). This reveals that, rather than environmental concern being the “privilege” of 2 mature Western economies, there is a widespread awareness that sustainability is essential for every country, irrespective of its current position on the development path".

City logistics is an emerging field of research, brought on by the changing consumption patterns. The dramatic increase in deliveries that result from the continuing growth of e-commerce and online shopping leads to unsustainable traffic congestion, CO2 emissions, noise, and unhealthy air pollution levels within urban areas. Another aggravating factor is urbanization, which leads to increased demand for goods, services and construction works, bringing more and heavier vehicles on city streets. City logistics is becoming an urgent urban sustainability issue.

SDG’s can be impacted significantly by the actions of logistics and transportation companies. Logistics and transport are directly related to five SDG indicators (for SDGs 3, 9, 11 and 12):

3.6.1 Death rate due to traffic injuries

9.1.1 Proportion of the rural population who live within 2 km of an all-season road

9.1.2 Passenger and freight volumes, by mode of transport

11.2.1. Proportion of population that has convenient access to public transport, by sex, age and persons with disabilities

12.c.1 Amount of fossil-fuel subsidies per unit of GDP (production and consumption) and as a proportion of total national expenditure on fossil fuel

Videos

(coming soon)

Readings

Case Study

Quiz

Question 1: What is the difference between supply chain and logistics? (single choice)

a. No difference.

b. Logistics only deals with transportation.

c. Logistics specifically focuses on moving and storing goods

d. Logistics is mostly warehouse management.

(Anwer: c)

Questions 2: What is the reason for the increase in demand for transportation in recent years? (multiple choice)

a. Soaring e-commerce

b. Increasing relocation of population to rural areas

c. Globalization

d. Increase in consumption

(Answer: a, c & d)

Question 3: Why is last mile delivery the least efficient stage in supply chain? (Multiple choice)

a. Changing and often congested routes

b. Final destination often unknown

c. Individualized parcels (low volumes)

d. Lack of drivers and vehicles

(Answer: a & c)

Group Discussion

Reflect on and share with the group you thoughts on the following (choose at least 2 topics):

  1. After the initial euphoria about the use of alternative fuels, it is more and more often pointed out that not all alternative fuels are better for the environment that fossil fuels and a focus on bio-based crops for fuel may actually be doing more harm than good. Until alternative fuels become affordable and sustainable, what can be done with the existing vehicle fleet? How can its efficiency be increased, and harmful consequences lessened?
  2. How will logistics change in 30 years? Find information on the internet about some promising trends for the future (choose one and share it with others): drone delivery, 3D printing, driverless vehicles.
  3. What are the implications of the following factors for logistics: ageing population, urbanization, declining commodities prices?
  4. What is a more realistic approach to decreasing consumption and encouraging people to buy more from local suppliers – economic methods (increasing delivery prices via carbon tax, increase of taxes in imported goods etc,) or changing the way people think and behave through education and promotion of sustainable development? Explain why.
  5. Many environmentally concerned consumers tend to choose locally produced products to avoid transportation emissions. However, is not that simple: although transportation distance is important, other factors such as usage of greenhouses, emissions in the food lifecycle, pesticides and artificial irrigation also influence a product’s carbon footprint. What should be done to enable consumers to make informed decisions?


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