Author: Paul Tessy, Senior Vice President, Purolator International
The rising call from consumers and business partners is increasingly clear: it is not only the right thing to do, but it is in fact the responsibility of companies to prioritize sustainable business practices.
When it comes to the shipping industry this responsibility takes on heightened importance. In fact, according to the World Economic Forum, if the shipping industry were a country, it would be considered the sixth largest emitter of greenhouse gas emissions in the world.
For businesses conducting cross-border commerce, finding partners that can provide both smart and sustainable solutions to meet supply chain demands is now an imperative. In a survey of over 500 consumers and shippers across Canada and the U.S. commissioned by Purolator, results showed that three-quarters of Canadians and nearly as many Americans say it’s important to them to purchase products and services from a sustainable business that has minimal negative impact on the global or local environment.
Furthermore, more than 60 percent feel it’s important to support a company that uses recycled products or that is actively pursuing energy reduction and renewable energy solutions within its operations. And while the pandemic may have spurred e-commerce and the subsequent need for flexible and faster delivery options, 55 percent of customers said they would support sustainability over speed when asked to choose one or the other.
That last point, sustainability over speed, is very telling about where we are collectively headed. Lack of shipment consolidation, wasteful packaging, unused truck space, inefficient delivery routes – there’s simply no room for such practices inside a sustainably responsible business.
A case study of sustainability
Sustainable practices require an awareness of your environmental, social and economic impact along the continuum of your supply chain – and that includes selecting partners who share your core values.
IKEA Canada is an example of one major distributor that is putting this in focus. It has an ambition to be 100% circular and climate positive in their own operations by 2030, a key component of which is providing 100 percent zero-emission home delivery by 2025.
To that end, they are working hard to align with suppliers that can provide zero emission deliveries in support of its corporate social responsibility program “IWAY.” This is based on internationally recognized standards and sets clear expectations for IKEA’s suppliers and partners that provide responsibly sourced products, services, materials and components.
Each year, the company reassesses and sets new targets to help move the needle forward to meet their 2025 target. To do this, IKEA consistently communicates its sustainability targets when liaising with existing or new service providers – and, in turn, providers must demonstrate that they have an achievable plan to move towards zero emissions. Not only have vendors embraced this challenge to meet IKEA’s standards, they have also been motivated to accelerate their own sustainability plans. Already, IKEA has launched their first zero-emissions home deliveries in Canada, which includes using Purolator’s electric cargo bikes.
Sidebar
How Customer Expectations are Shaping Sustainable Shipping Practices
Sustainability is influencing customer shipping preferences now more than ever as people prefer to support businesses that align with their values. Leading companies must respond to this evolving demand with concrete action plans to improve supply chain logistics – and that includes using courier services that offer both environmental and operational efficiencies.
Purolator polled over 500 consumers and shippers across Canada and the U.S. to uncover key insights into how customer expectations are shaping sustainable shipping practices. Some of the key highlights include:
Purolator’s commitment to people and planet
Like IKEA, Purolator has a deep commitment to our planet, as well as our people. We proudly support Vision 2045 – an initiativethat brings together businesses from around the world to make substantial progress on the U.N.’s 17 Sustainable Development Goals by 2045, the U.N’s 100-year anniversary.
As Canada’s leading integrated freight, package and logistics provider, we are leading the shipping industry forward toward a greener path. We have set a long-term goal of net-zero emissions by 2050, with near-term goals by 2030 that include slashing electricity emissions by 100 percent and electrifying 60 percent of our last-mile fleet.
In fact, we recently announced our plans to invest $1 billion to electrify more than 60 terminals across the country and purchase over 3,500 electric vehicles to service Canadians with zero-emissions last-mile deliveries – the single largest investment, environmental or otherwise, in our 63-year history.
By moving away from fossil fuels in 60 percent of our last-mile delivery fleet, we project to reduce emissions by 80,000 tonnes of CO2e each year. This year alone, we are investing more than $100 million in environmental sustainability initiatives that will bring us closer to achieving our 2030 goals.
The electric cargo bikes helping to fulfil IKEA’S needs are part of that electric fleet, which began rolling out in 2005 when we introduced more than 500 hybrid-electric vehicles onto our delivery routes to curb emissions. In 2021, we became the first Canadian courier to roll out all-electric delivery vehicles. Last year, we launched Urban Quick Stop mini hubs through which e-bikes serve sections of major urban centres, replacing trucks.
Our ambition is to bring sustainability to the forefront of everything we do – and in so doing, inspire others to likewise lay claim to this important responsibility. It takes ambition and resolve, particularly when it comes to reducing the carbon footprint of a nationwide transportation company. Yet it can be done, and must be done, and Purolator is well on its way to getting there.
Ultimately, achieving sustainability goals requires partnerships with industry leaders in various disciplines from engineering to logistics to manufacturing to project management. The best form of innovation requires collaboration, and learning from one another in overcoming obstacles, solving challenges, and maintaining momentum.
Building a reputation of sustainability
Ultimately, any brand’s reputation is at stake when it comes to sustainability. Companies are expected to demonstrate ESG principles. Not doing so injures reputation – and the bottom line. By the same token, it’s essential to choose delivery partners that take actionable steps toward decarbonization and other eco-pursuits.
Sustainability goals must be rooted in science, tied to global best practices, and not be arbitrarily set. In this industry, they are best focused on the segments of a company’s emissions where the biggest impact can be achieved. From here, it is about constructing a plan that includes the precise tactics that will be used to deliver the goods (so to speak).
Amidst a landscape demanding greener supply chains, this sustainability plan must begin at the top, touch team members at all levels, and be communicated to vendors and suppliers – who must be held to the same standards.
In this industry, strong delivery partners must not only have a diverse product portfolio to meet B2B and B2C needs, an expert solutions management team to design your optimal network, and a deep coverage model that can handle wide geographies. They must possess a sustainability mindset, and be acting on it. This is a modern differentiator, and the more ambitious a company is, the greater the trust.
For more information, please visit purolator.com and our online sustainability information center.
Paul Tessy, Senior Vice President, Purolator International
