How sustainable energy will help logistics sector?

How sustainable energy will help logistics sector?

Indian Market
by Shreya Anaokar Last Updated: 2022-08-25T16:17:41+05:30

Earlier this year, India made the commitment to achieve net zero emissions by 2070. The government's support for the idea and business initiatives centered on sustainable practices has seen a noticeable improvement in recent years. 
It is important to recognize that transportation is one of the major contributors to the overall pollution in the nation at a time when both small and large businesses are looking for ways to reduce their overall emissions by switching to alternative fuels. 

How the logistics sector is responsible for the increase in Air pollution?

According to a report, the logistics sector is responsible for more than 11% of the nation's total air pollution. According to a different study, the contribution might be much higher.

Therefore, it is imperative to note that only sustainable practices can control a business's contribution to pollutant emissions and carbon emissions, regardless of the type and scale of the enterprise. Large businesses using their system for supply chain management in a proactive manner would be a great first step in resolving this problem.

To reduce their companies' carbon footprints, business decision-makers now understand how crucial sustainability is to their operations. The recent inclusion of a sustainability report as part of annual reporting procedures by 20% of India Inc. is a positive step. Businesses have consciously incorporated renewable energy into logistics operations, and the central government is committed to converting supply chain and logistics chains to 100% green and sustainable energy resources. The public and private sectors have placed different emphases on embracing a sustainable supply chain in the commercial environment for various reasons.

Why Logistics sector should adopt Sustainable Energy?

1. Green energy is the safest source of energy:

Green energy sources have shown to be considerably safer in factories and workplaces around the world than fossil-based fuels. Any organization that wants to reduce accidents at manufacturing facilities (like explosions and spillovers) can start by substituting renewable energy sources for fossil fuels, where practical. According to a report, the introduction of green energy can significantly lower the likelihood of workplace accidents.

2. Sustainable fuels can reduce overall operating costs:

According to a Deloitte report, using sustainable fuels in supply chain management can benefit businesses financially because overall operating costs will drop significantly over time. This is due to the up to 30% lower cost of renewable energy sources compared to fossil fuels. If the entire supply chain and logistics process are powered by green energy, businesses can save money. The companies can adjust the higher initial investments in sustainable vehicles with the money saved on fuel.

Companies' contribution to the nation's transition to a gas-based economy will be to address the problem areas. Companies must prioritize implementing green energy and technological innovation in this situation. By choosing and announcing their net-zero emission targets, some major players have already begun to collaborate closely in order to achieve this goal. The key for businesses in achieving this goal will be transparency and commitment to environmental goals, and integrating green fuel into logistics will be a crucial step.

The time for debating whether climate change and global warming are real has passed. Now is the time to take action, and businesses from a variety of sectors have developed creative and successful strategies to ensure that emissions can be controlled. Implementing green fuels in supply chain management and logistics will be one of the most important and effective ways to address this issue. In the long run, this will not only help businesses and their partners in terms of business, but it will also help control pollution levels.

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About the Author

Shreya Anaokar is a Content Writer at 5paisa. She has completed her Master’s in Finance and Graduation in Statistics from the University of Mumbai. 


Investment/Trading is subject to market risk, past performance doesn’t guarantee future performance. The risk of trading/investment loss in securities markets can be substantial. Also, the above report is compiled from data available on public platforms.

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