DSV, a freight company, has launched a solution to assist clients in reducing transportation emissions.

Published on: 7 December 2021 07:29 AM
by KnowESG

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DSV Panalpina CEO Jens Bjoern Andersen is seen during a news conference in Basel, Switzerland, April 1, 2019
DSV Panalpina CEO Jens Bjoern Andersen is seen during a news conference in Basel, Switzerland, April 1, 2019

DSV, a Danish freight forwarder, announced on Tuesday that it will begin offering services that will allow customers to measure their supply-chain emissions and identify areas where reductions can be made.

According to the OECD's International Transport Forum, the global freight industry is on course to increase greenhouse gas emissions by approximately a fifth by 2050, with demand more than doubling over the next three decades.

According to DSV, large corporations are increasingly seeking assistance to reduce their emissions when shipping goods throughout the world.

"We have always optimised our clients' supply chains, for example, in terms of how much inventory they retain," Jens Bjorn Andersen, the company's CEO told. "Now we can design it with CO2 reduction as a goal."

Programs to track CO2 emissions and optimise supply chains to reduce them, as well as access to sustainable fuels and carbon offsetting, are among DSV's new services.

"We have a lot of demand from our consumers, so it's a competitive parameter," Andersen said, declining to say how much the additional services would cost.

DSV handles everything from turf pallets to resurfacing football pitches to complete supply chains for international firms, with 20,000 long-haul trucks on European roads every day and millions of warehouse square metres throughout the globe.

The reduction of road emissions, which account for about 65 percent of overall freight emissions, will be a major issue.

While electric trucks would be suitable for shorter routes, Andersen believes that green hydrogen, which is produced by flowing renewable electricity through water to divide the element from oxygen, would be the best option for long-haul transportation.

"This was far-fetched five years ago, but today it's ready within a couple of years," he said, adding that he expects the first hydrogen truck test drives within two years.

Daimler, Man, Volvo, Ford, and Scania, a unit of Volkswagen AG's commercial vehicle arm Traton SE, all vowed last year to phase out traditional diesel trucks by 2040.