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“To reduce carbon footprint, we need to increase process and energy efficiency,” says Dachser CEO

CEO Burkhard Eling has revealed that Dachser's main approach to reducing its carbon footprint is to increase the efficiency of its processes and energy consumption, while also investing in R&D. In an editorial published on LinkedIn, Burkhard said that “every effort" Dachser makes will have “a direct impact".

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In the aforementioned write-up, Eling discusses the need for decarbonising logistics in the face of increasing environmental challenges.

Eling emphasises the significance of terms like ESG, net zero, and sustainability reporting, which have become crucial in corporate strategies due to the alarming environmental effects experienced worldwide, such as severe droughts and storms in Southern Europe and record-breaking droughts in Europe in 2022.

Eling also highlights the legal and constitutional responsibility for climate protection in Germany and stresses the need for immediate action rather than shifting the burden to future generations. He calls for turning ambitious sustainability projects into tangible actions.

The post acknowledges the environmental impact of logistics, responsible for about 8% (or 11% when including warehouses and ports) of global CO2 emissions, and explains the indispensable role logistics plays in the global economy.

In Eling’s view, the Sustainable Development Goals set by the United Nations are unattainable without logistics.

“Logistics causes emissions because our society thrives on the possibilities, convenience, and amenities offered by modern logistics. Yes, scaling back global logistics services could and would reduce carbon emissions. But is this a viable option? No: logistics is the backbone of our global, interconnected economy,” Eling stresses.

Eling also argues that carbon trading alone won’t solve the problem, and that decarbonising logistics requires a massive effort involving stakeholders from multiple industries.

“The challenge we face is a “bigger undertaking for mankind than flying to Mars,” as Bernhard Simon, Chairman of DACHSER’s Supervisory Board, recently put it. How can we decarbonise logistics when it’s estimated that road transport by truck will increase by 50 percent by 2050? Is decarbonisation even possible?” he asks. “Such an undertaking would involve the entire transport infrastructure, new policies and legislation, technologies, construction in real estate, the interaction of various industries, and diverse regulatory frameworks. There can be no doubt that the goal of decarbonised logistics can be achieved only if all stakeholders pull together.”

The article suggests that relying solely on CO2 offsetting is not a sustainable solution for making the logistics industry environmentally friendly.

Instead, Eling argues for a different strategy, one that Dachser supports: actively reducing emissions by increasing process and energy efficiency, collaborating with partners, and adopting sustainable practices.

“To reduce our carbon footprint, we need to increase process efficiency. We need to improve energy efficiency. We have to strengthen research and innovation. And we must maintain our social commitment beyond our sphere of business, assuming responsibility as a “Corporate Citizen+,” as we call it,” adds Dachser’s CEO.

To reduce its carbon footprint, Dachser primarily focuses on two main areas: process efficiency and energy efficiency.

When it comes to process efficiency, the company says it is focused on making the best use of existing logistics capacity, which includes maximising truck utilisation, including the use of larger trailers, minimising empty truck kilometres (reducing the number of journeys made without a load) and using multimodal transport (using several modes of transport such as trucks, trains, ships, etc.).

With regard to energy efficiency, Eling acknowledges that a significant part of Dachser’s carbon footprint is attributable to carriers and transport companies over which it has limited control. However, Dachser is taking steps to influence this aspect of its operations.

These include powering its logistics facilities with green electricity, installing solar panels to generate renewable energy, using energy-efficient LED lighting, deploying battery-powered ground conveyors and implementing heat recovery systems.

The company is also working with airlines to offer customers the option of reducing the carbon footprint of their air freight through the use of sustainable aviation fuels, and is exploring similar options for ocean freight.

At the same time, research and innovation are also essential to tackling carbon emissions in long-haul trucking, adds Eling, as Dachser tests zero-emission technologies and pilots electric trucks.

“At our three e-mobility sites in Freiburg, Hamburg, and Karlsruhe, we’re testing the use of zero-emission technologies in short- and long-distance transport as well as charging infrastructures and intelligent energy and load management. We’re also piloting a heavy-duty battery-electric truck with a gross vehicle weight of 37 tons, a 350-kWh battery that can be recharged in about 75 minutes, and a range of around 200 kilometers. And in the Czech Republic, we’re operating our first fully electric swap-body combination on a regular long-distance route,” lists Eling the company’s developments.

The post acknowledges that transitioning to fossil-free fuels will take time and collective effort, involving logistics providers, transportation partners, customers, and legislators.

“As things stand today, it will take 15 to 20 years to replace our current diesel trucks with zero-emission vehicles. We’re taking on an enormous task, one that requires action from many players: logistics providers, transportation partners, and carriers, as well as customers and legislators. As we move toward net zero logistics, we need to have a laser-like focus on efficiency, technical and financial feasibility, and the actual sustainability impact,” states Eling.

Finally, Eling expresses the importance of maintaining a focus on efficiency, feasibility, and sustainability:

“Unlike less carbon-intensive industries, every effort we make will have a direct impact,” says the CEO.

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