Kathrin Brost Global Head of GoGreen, DHL Global Forwarding

HOW ARE YOU CREATING A SUSTAINABLE FUTURE FOR THE REGION?

DHL is committed to sustainability in the region and we have introduced a number of projects to reduce our carbon footprint. For example, we launched a new, more comprehensive Carbon Intelligence programme as part of our digital customer platform myDHLi where customers have more options to reduce, track and report their CO2 emissions (in setting and offsetting options).

Furthermore, we launched the GoGreen Plus service which is part of our worldwide environmental protection programme to reduce and avoid the emission of greenhouse gasses and local air pollutants. It offers sustainable alternatives to our core transport products, such as the usage of sustainable aviation or marine fuel for transport and contributes to our mid-term sustainability roadmap to have at least 30 percent of fuel requirements covered by sustainable fuels by 2030. The service is based on the displacement principle: the more customers book the service, the more alternative fuel or clean technology is used - making transport chains greener step by step.

In the UAE, we have partnered with Total Energies to fulfil our zero-emissions logistics ambition by 2050. This partnership will solarise eight of DHL’s sites in Dubai to cover the equivalent of over 46,000m² of photovoltaic panels, saving more than 6,000t of CO2 in the first year. The whole solar system will produce over 14,000 MWh per year, enough energy to power over 16,000 homes yearly in the UAE.

We have committed to installing eight electrical vehicle charging stations which contributes to our goal of electrifying 60% of our fleet by 2030. In addition, we are pioneering new green solutions in the region. For example, we have launched a new 23,500 -sqm EV Hub in Dubai South to drive the EV circular economy, where batteries can be stored, recycled, repaired, and processed at end of life, ensuring long-term sustainability.

We are also exploring strategic opportunities with the right government entities, business partners and markets around the world. Currently, we remain guided by our Strategy 2025, which focuses on harnessing globalization, e-commerce, digitalization and sustainability for the profitable long-term growth of our business.

WHAT ARE THE BIGGEST CHALLENGES YOU FACE?

Some of the biggest challenges are to do with pressures on global supply chains. Global lockdowns disrupted manufacturing and supply, which affected business over the last two years. The e-commerce boom also pushed shipping and freight rates to a record high. There was also an unprecedented rise in the prices of ocean freight owing to a container shortage, which affected the supply of primary commodities. Geo-political and economic risks are an ongoing challenge, as are labour shortages.

As far as sustainability goes, the unprecedented growth of e-commerce especially during and after the pandemic has come at a cost to the environment. Global freight transportation is currently responsible for 8% of global carbon emissions. Warehousing and logistics are also closely associated with a range of environmental impacts, like carbon dioxide emissions, noise and light pollution and even road safety.

Recent studies by the International Transport Forum forecast these global emissions to double by 2050 as demand is anticipated to grow threefold during this period. We are committed to mitigating these effects by investing in sustainable fuel, fleet renewal, engine retrofitting, and other practices that boost efficiency. Net zero-carbon ware- houses, environmentally friendly packaging, low-carbon freight delivery, and clean supply chain practices can also help the logistics sector meet its green goals.

HOW ARE YOU OVERCOMING THE ABOVE SAID CHALLENGES?

We are overcoming these challenges through future-proofed solutions and by building resilience through the automation of physical processes and facilities, reduced labour-intensive processes and technology investments, as well as the incorporation of work force flexibility.

As far as overcoming sustainability challenges, we have set a target of reducing greenhouse gas emissions to under 29 million tonnes by 2030, with the ultimate goal of net-zero emission logistics by 2050. To get there, we have committed to spending US$7 billion over the next 10 years in sustainable fuels and technology as well as climate-neutral logistics operations.

We are also offering customers a convenient option to neutralise their CO2 emissions through the myDHLi platform for ocean and air freight shipments via the usage of sustainable aviation and marine fuel with only one click. Further, we have launched a new 23,500 -sqm EV Hub in Dubai South in the UAE to drive the EV circular economy, where batteries can be stored, recycled, repaired, and processed at end of life, ensuring longterm sustainability.

In addition, we encourage ‘insetting’, which is a great way to channel carbon offset funds related to transportation emissions to actions within the logistics sector. It empowers transportation networks with lower carbon technologies, from sustainable fuels to fleet renewal or engine retrofits. Improving the efficiency of shipments leads to reduced fuel consumption and emissions.