Sustainability in the Logistics industry.pptx

Sustainability in the Logistics industry.pptx

1. "Sustainability in the Logistics Industry: A Path to a Greener Future in India"

2. Prepared by:Mansing Uthale

3. Indian Logistics Industry Overview: In 2022, the size of the Indian logistics market was around $274 billion. Contribution to GDP: The logistics industry accounts for 13-14% of the country's GDP. Global ranking: India's logistics industry is currently ranked 44 globally based on the Logistics Performance Index. Growth potential: The sector is expected to reach USD 530 billion by 2025. Role in economy: The sector plays a critical role in the development of industries, infrastructure, and economy at large. Employe 22 million people

4. New Logistics Policy: The targets of the National Logistics Policy (NLP) are to: Reduce cost of logistics in India Improve the Logistics Performance Index ranking Create data driven decision support mechanism for an efficient logistics ecosystem

5. Why Sustainable Logistics: India's logistics industry emits 2.3 gigatonnes of carbon dioxide (CO2) each year. This is due to the country's transportation sector, which covers 2.2 trillion tonne-kilometers of freight annually. Road transportation is responsible for almost 12% of India's energy-related CO2 emissions. The logistics industry is expected to become the largest emitter of carbon dioxide by 2050. Warehouses, ports, and freight are responsible for 11% of global greenhouse gas emissions. The transportation sector in India contributes 13.5% of total energy-related emissions. This ranks third after the industrial and residential sectors. The CAGR in Indian CO2 emissions from the transport sector is around 4.5%. This is due to fossil fuel combustion.

6. “Sustainable logistics” refers to the practices and processes aimed at improving the sustainability of supply-chain activities ranging from the supply of raw materials to the transformation processes, the storage, the packaging, the distribution and the management of the end of the lifecycle of products. Sustainable logistics, also known as green logistics, refers to the various actions taken to minimize the environmental impact of companies in the supply chain, from processing raw materials to delivering the final product to the consumer. The concept was developed in the early 1990s as social awareness about ecological problems, particularly global warming, started to grow. Today, more and more companies in different sectors are adopting better logistical measures aimed toward sustainability. Introduction:

7. Sustainable logistics can help businesses reduce their environmental impact, operating costs, and improve efficiency. It can also help create a balance between financial growth and environmental care. Sustainable logistics can help reduce the environmental footprint of shipping by reducing CO2 emissions, Noise pollution, Material waste etc., Aligns with regulations,Improves customer relations,Increases profits in long run . Transport, the top requirement in logistics, is one of the biggest causes of carbon dioxide emissions . But it isn’t the only driving force of greenhouse gas production in this industry. Because the environmental consequences are much too grave for everyone if left unchecked, sustainable logistics and supply chain management should be a top priority. I mportance of Sustainability in India:

8. Environmental Conservation: The logistics industry is a significant contributor to environmental pollution, including air and water pollution, as well as greenhouse gas emissions. Embracing sustainable practices helps reduce the industry's negative impact on the environment, conserving valuable natural resources and preserving biodiversity. Compliance and Regulations: Governments worldwide are imposing stricter environmental regulations. Adhering to these regulations is not just a legal requirement but also crucial for maintaining a positive public image. Sustainable practices ensure compliance with environmental laws, avoiding penalties and legal complications. Resource Efficiency: Sustainable logistics practices, such as efficient route planning, reduce fuel consumption and minimize wastage, leading to improved resource efficiency. This translates into cost savings for logistics companies in the long run, making their operations more economically viable. Customer Expectations: Modern consumers are environmentally conscious and prefer companies that demonstrate social responsibility. Businesses that adopt sustainable logistics practices gain a competitive edge by meeting customer expectations, enhancing brand reputation, and attracting environmentally aware consumers. I mportance of Sustainability in India:

9. Supply Chain Resilience: Climate change and environmental degradation pose significant risks to supply chains. Sustainable logistics practices, such as responsible sourcing and efficient transportation, enhance supply chain resilience by reducing vulnerabilities to climate-related disruptions and ensuring business continuity. Innovation and Technological Advancements: Embracing sustainability encourages innovation within the industry. Companies invest in research and development to create eco-friendly technologies, leading to the development of efficient, clean energy vehicles, advanced tracking systems, and green packaging solutions. Social Responsibility: By adopting sustainable practices, the logistics industry fulfills its social responsibility by contributing to the overall well-being of society. This includes promoting clean air and water, improving public health, and creating job opportunities in the renewable energy sector. Long-Term Viability: Sustainable logistics practices ensure the long-term viability of the industry. As natural resources become scarcer and environmental concerns intensify, companies that invest in sustainability are better positioned to adapt to changing market demands and secure their future operations. I mportance of Sustainability in India:

10. In the context of India, a rapidly growing economy with a large and complex logistics network, embracing sustainability is not just a choice but a necessity. Sustainable logistics practices can help India address its environmental challenges, comply with international standards, attract foreign investments, and foster economic growth while preserving the country's natural resources for future generations. I mportance of Sustainability in India:

11. Why Sustainability :

12. Economic Social Environmental Sustainability 3. Pillars of Sustainability:

13. Environmental Challenges in Indian Logistics: Air and water pollution: Greenhouse gas emissions: Energy consumption: Traffic congestion and its impact on the environment: Generation of waste: Manufacturing and Supply chain: Packaging

14. Economic and Social Challenges Economic cost of environmental degradation Social impact on communities and workers Importance of sustainable practices for long-term economic growth

15. Economic cost of environmental degradation: The links between the economy and the environment are manifold: the environment provides resources to the economy, and acts as a sink for emissions and waste. Natural resources are essential inputs for production in many sectors, while production and consumption also lead to pollution and other pressures on the environment. Poor environmental quality in turn affects economic growth and wellbeing by lowering the quantity and quality of resources or due to health impacts. These long-lasting challenges have significant impacts on the economy and on human health. As estimated in the National Environmental Action Plans of countries in the region, the annual cost of environmental damages ranges from 2.1-7.4 percent of GDP

16. Social impact on communities and workers: Health, Food and water insecurity, Housing damage, Income disruption, Asset depletion, Resource conflicts, Unemployment, Mental distress, Social network loss, Family separation. Some specific impacts include: Pollution,Global warming Water and food shortages,Fresh water Depletion Floods and droughts Respiratory diseases Heart disease Some types of cancer Environmental degradation can also lead to: Increased poverty Overcrowding Famine Weather extremes Species loss Acute and chronic medical illnesses War Human rights abuses

17. Importance of sustainable practices for long-term economic growth: Sustainable practices are important for long-term economic growth because they protect natural resources. Sustainable development should not damage the environment or compromise the needs of future generations. Some benefits of sustainable economic growth include: Quality of life Environment preservation Optimal productivity Reduced carbon footprint Mitigated climate change Eradicated poverty Promoted social inclusivity Some sustainable practices include: Recycling Reducing waste Using renewable energy sources Investing in renewable energy sources like solar, wind, and hydropower Sustainable agriculture

18. Sustainable Logistics Practices: Promote Promote Intermodal Transportation Combine different modes of transportation for long-distance shipments, utilizing each mode's strengths for efficiency and reducing emissions Adopt Adopt Green Transportation Invest in fuel-efficient vehicles, such as hybrid or electric trucks, which produce fewer emissions Explore alternative fuels like biodiesel or compressed natural gas for vehicles Optimize Optimize Transportation Routes Use route optimization software to plan the most efficient routes, reducing mileage and fuel consumption Consolidate shipments to minimize the number of vehicles on the road, maximizing each trip's efficiency

19. Sustainable Logistics Practices: 1 Improve Warehouse and Distribution Center Efficiency Implement energy-efficient lighting, heating, and cooling systems in warehouses Use automated systems to minimize energy usage and improve productivity Adopt smart technologies like IoT sensors to optimize inventory management and reduce waste 2 Reduce Idle Time Encourage drivers to turn off their engines during long stops or waiting periods to minimize unnecessary fuel consumption and emissions Embrace Sustainable Packaging Use eco-friendly packaging materials that are biodegradable, recyclable, or made from renewable sources Minimize packaging wherever possible to reduce waste and transportation volume

20. Sustainable Logistics Practices: Improve Supply Chain Visibility Implement real-time tracking and monitoring systems to enhance supply chain visibility Improve Encourage Modal Shift Encourage the shift from air and road freight to more eco-friendly modes like rail and sea, especially for long-distance transportation Encourage Invest in Renewable Energy Use renewable energy sources to power warehouses, distribution centers, and offices Invest in Green Partnerships and Certification Collaborate with logistics partners who have a strong commitment to sustainability Obtain certifications such as ISO 14001 for environmental management to showcase the company’s dedication to reducing its environmental impact Green

21. Regulatory Landscape Overview of existing sustainability regulations in the Indian logistics industry Government initiatives and incentives for sustainable practices Compliance requirements for logistics companies

22. Government initiatives and incentives for sustainable practices Some other government initiatives for sustainable practices include: Swachh Bharat mission Beti Bacho Beti Padhao Pradhan Mantri AwasYojana Smart Cities Pradhan Mantri Jan Dhan Yojana Deen Dayal Upadhyay Gram Jyoti Yojana Pradhan Mantri UjjwalaYojana Some examples of government incentives for green businesses include: Tax breaks Tax credits for using renewable energy Sustainable practices can result in: Competitive advantage for firms Enhanced self-esteem for employees Cost-savings through decreased utility bills and wastage Improved employee morale and health Demonstrated environmental and social responsibility to customers and partners

23. Government initiatives and incentives for sustainable practices Tax benefits: The Indian government offers tax benefits to developers of LEED-certified buildings through the Income Tax Act. Developers can claim up to 100% depreciation on the cost of green building assets, such as solar panels, rainwater harvesting systems and waste management systems. Loans: The Indian government provides low-interest loans through the Indian Renewable Energy Development Agency (IREDA) for building projects with green certifications. Public procurement: The Indian government has implemented a policy that requires all government buildings to be certified green and meet green building standards. State-level incentives: Many states in India have their own policies and plans to promote green building certification, such as providing subsidies and tax exemptions to promote energy-efficient buildings and renewable energy projects. Fast-track approvals: Buildings that are certified green are eligible for incentives such as fast-track approvals, expedited inspections and reduced building fees. Promotion of renewable energy: The government also provides subsidies and tax benefits to promote renewable energy in the country; this can indirectly promote LEED-certified buildings.

24. Case Studies

25. Green logistics in practice Distribution strategies and transportation Warehousing and green building Reverse logistics Packaging management Internal management Collaboration with customers and others DHL Electric/ hybrid vehicles, al. fuels * Carbon report * Online Carbon Dashboard “Go green program” with customers DB Schenker Logistics Intermodal (Δ+train capacity), route planning, efficient vehicles, eco-driving, e-freight, consignments consolidation Hydroelectricity, wind energy, solar power Discarded office equipment (computers, fax) EcoTransitIT (calculator) Procurement based on eco-efficiency GEODIS Ecofriendly vehicles, multimodal transport Energy-saving buildings * Geodis Mag * Teaching green practices UPS Use of alternative fuels (CNG, LNG, electric) Packsize On Demand Packaging ORION (GPS) Assist customers

26. Green logistics, useful? DHL Renewable energy allows a reduction of 450,000 tonnes of GHG gas emissions and allows a 2.4 % reduction in total energy consumption in its buildings and facilities. DB Schenker Logistics The introduction of 835 m long trains cuts carbon emissions from rail freight transportation by 350 tonnes of CO₂ per annum. GEODIS Transportation by train results in 7,031 fewer tonnes of CO 2 than were released by trucks on parallel routes. UPS The replacement of 32 kg pilot flight bags with iPads reduces fuel consumption by 473,000 litres, reduces CO 2 emissions by 1,200 tonnes, and cuts paper usage by 5.7 million pages per annum.

27. The green initiatives mentioned above, through the use of environment calculators, allow companies to quantify the ecological impact of their interventions on environment sustainability. Given the amount of environmental initiatives deployed by firms, green logistics seems to be more than just a fashion. However, customers may not be willing to spend more for more sustainable logistics services. This constitutes a barrier to long-term environmental initiatives. Green logistics also imposes a financial burden on firms, particularly for small enterprises. Governmental support in the form of subsidies or tax breaks has proven to be helpful in this regard. Carrying out green logistics initiatives becomes harder with heterogeneous environmental regulations between and within countries. Conclusion

28. Technology and Innovation: IoT and its role in optimizing logistics operations AI for predictive analytics and demand forecasting Blockchain for supply chain transparency and accountability

29. Benefits of Sustainable Logistics Environmental benefits Economic benefits Social benefits

30. Environmental benefits: Sustainable logistics can have many environmental benefits, including: Reduced emissions: Sustainable logistics can reduce greenhouse gas emissions by up to 50%. Improved efficiency: Sustainable logistics can improve efficiency by up to 30%. Reduced waste: Reducing waste can create a more efficient and cost-effective supply chain. Improved air and water quality: Sustainable practices can make a difference for climate change. Wise use of resources: Sustainable practices can make wise use of the Earth's resources. Some ways to make logistics more environmentally friendly include: Using biodegradable or reusable packaging Using paper tapes, recycled materials, newspapers, air peanuts, and seaweed packaging Using cardboard instead of wood pallets Using reusable plastic film

31. Economic benefits: Sustainable logistics can have several economic benefits for businesses, including: Reduced operating costs Improved efficiency Reduced environmental impact Reduced risk Avoided reputational damage Here are some ways sustainable logistics can reduce costs: Reduced waste Reduced emissions and energy usage Reduced distance traveled for order picking Sustainable logistics can also mitigate risks associated with environmental and social issues, such as: Climate change Water scarcity Human rights violations

32. Social benefits: Sustainable logistics can have social benefits such as: Employment, Education, Goodwill, Relationships with stakeholders, Brand perception.

33. Challenges and Solutions: Challenges faced by the logistics industry in adopting sustainable practices Solutions and strategies to overcome these challenges

34. Challenges faced by the logistics industry in adopting sustainable practices: The logistics industry faces several challenges in adopting sustainable practices, including: Cost: The cost of sustainable measures can be high, especially for small and medium-sized businesses. Lack of support: There may be a lack of support networks for sustainable logistics. Lack of infrastructure: There may be a lack of infrastructure for sustainable logistics. Lack of awareness: There may be a lack of awareness of the benefits of sustainability.Green Freight. Lack of regulations: There may be a lack of regulations and enforcement of environmental standards. Some other challenges include: Inefficient shipping methods,Fragmentation Difficulty making the switch Picking suitable suppliers Dependence on fossil fuels Impact of last mile deliveries on urban traffic

35. Solutions and strategies to overcome these challenges 1. Include eco-friendly criteria in your procurement policies 2. Optimize transport fleet management. Modal shift to rail transport 3. Have a warehouse that follows sustainable construction and management standards 4. Enable measures to reduce and recycle the waste produced in your warehouse.green Warehousing. 5. Improve stock management and reverse logistics processes.Circular economy. Some other solutions and strategies are as follows: Using alternative fuels Reducing emissions Reducing packaging Using reusable containers Streamlining the supply chain Implementing a recycling program Supporting local businesses Recycling waste Green Technologies Green policies and incentives collaboration and transparency Circular economy

36. Future Outlook: Emerging trends in sustainable logistics Predictions for the future of the industry in India The role of innovation and collaboration in shaping a sustainable future

37. Emerging trends in sustainable logistics: 1. Green Technology and Electric Vehicles 2. Alternative Fuels and Energy Efficiency 3. Supply Chain Transparency and Sustainability Reporting 4. Circular Logistics and Packaging Innovation 5.Automation 6.AI tools 7.Digitalization

38. Predictions for the future of the industry in India The Indian logistics market is expected to grow from $ 43 5 .43 billion in 2023 to $650.52 billion by 2028. This is a compound annual growth rate (CAGR) of 8.36%. The market was estimated to be around $274 billion in 2022. Some predictions for the future of the logistics industry in India include: Technology: Technological advancements are changing how shipping businesses operate. Big data analytics: Big data analytics will lead to better supply chain planning and optimization. National Logistics Policy: The National Logistics Policy (NLP) aims to create a cost-effective, sustainable, and efficient logistics network. The demand for logistics services in India is largely driven by the economy.

39. The role of innovation and collaboration in shaping a sustainable future Innovation and collaboration can play a critical role in shaping a sustainable future. Innovation: Sustainable development: Innovation can help address some of the most significant environmental, social, and economic challenges. Sustainable Development Goals (SDGs): Innovation can contribute to the fulfillment of different SDGs. Technology: Technology can contribute to environmental preservation through the adoption of renewable energy sources. Collaboration: Sustainable challenges: Collaboration can help tackle common sustainability challenges by pooling resources, expertise, and networks. Transformative change: Collaboration can drive transformative change and innovation by establishing open dialogue and shared goals. SDGs: Collaboration can contribute to the fulfillment of different SDGs.

40. Conclusion: The green initiatives mentioned above, through the use of environment calculators, allow companies to quantify the ecological impact of their interventions on environment sustainability. Given the amount of environmental initiatives deployed by firms, green logistics seems to be more than just a fashion. However, customers may not be willing to spend more for more sustainable logistics services. This constitutes a barrier to long-term environmental initiatives. Green logistics also imposes a financial burden on firms, particularly for small enterprises. Governmental support in the form of subsidies or tax breaks has proven to be helpful in this regard. Carrying out green logistics initiatives becomes harder with heterogeneous environmental regulations between and within countries.

41. Q&A