DHL, Schneider Electric's New Eco-Friendly Shipping

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by KnowESG
KnowESG_DHL, Schneider Electric-s New Eco-Friendly Shipping | ESG news
Image courtesy of DHL

DHL Global Forwarding collaborated with Schneider Electric, a leader in energy management and automation digitalisation, to introduce an innovative multi-modal shipping approach that prioritises sustainability.

This model, a first in the industry, integrates sustainable aviation fuels (SAFs) to enhance supply chain agility while minimising environmental impact.

Teaming up with Schneider Electric, DHL Global Forwarding has successfully implemented two multi-modal shipping routes: one linking Singapore to North America, and the other connecting India to North America.

These initiatives aim to curtail Scope 3 carbon emissions associated with air freight. Schneider Electric plans to establish a total of eight global multi-modal bridges with logistics partners, providing flexible deployment as needed.

The utilisation of a blend of air and sea transport in these bridges is projected to slash carbon emissions in regional shipping lanes by up to 40% compared to traditional air freight methods. Since the pilot's inception in March 2023, both the Singapore-North America and India-North America bridges, operated alongside DHL Global Forwarding, have demonstrated a notable 20% reduction in carbon emissions.

While air freight remains integral to many supply chains despite its higher carbon footprint compared to sea freight, the adoption of SAF presents a viable solution. However, SAF comes at a premium compared to conventional jet fuel. Therefore, leveraging more cost-effective sea freight allows savings to be redirected towards purchasing SAF, further mitigating carbon emissions.

Although multi-modal shipping is common in supply chain operations, its primary use for reducing a company's Scope 3 carbon emissions is relatively novel. Schneider Electric and DHL Global Forwarding's pilot initiatives have paved the way for testing multi-modal shipping as a flexible and sustainable standard process.

Orders are fulfilled with agility and adaptability, employing either air freight or multi-modal shipping based on various factors such as capacity, surges in air transportation, margins, customer demands, and inventory availability.

Building upon this comprehensive capability, DHL Global Forwarding offers the option of using SAF through its GoGreen Plus service, resulting in deliveries with up to 90% fewer carbon emissions and achieving self-sustainability. This collaborative effort empowers Schneider Electric to efficiently plan, procure, execute, and govern its supply chain, fostering resilience and agility.

Aligned with its net-zero roadmap, validated by the Science Based Targets initiative, Schneider Electric aims to achieve net-zero readiness across its operations by 2030, with a target of reducing absolute carbon emissions by 25% across its entire value chain.

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Source: DHL


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