Logistics & Supply Chain Sustainability Report 2021
In partnership with the Foundation for Future Supply Chain
As we look to a new sustainable future it is critical that global supply chains commit to structural change. The Logistics & Supply Chain Sustainability Report 2021, in partnership with the Foundation for Future Supply Chain examines the complexities of achieving net zero emissions by 2050, and the role global supply chains will play in this challenge.
The report addresses the impact of Covid-19 on the race to decarbonise, how shippers are trying to become greener and the additional measures required to improve logistics efficiency. The report examines the current impact of road, air and sea freight on environmental targets, and the measures each market must adopt in order to reach net zero.
It is currently very unclear how best to reduce emissions and adopt sustainable and efficient logistics networks. There are political constraints, with large differences in the approach of different nations. There are also market specific challenges, such as phasing out diesel and petrol trucks and reducing freight demand. The report examines each of these challenges and sets out potential strategies for each market.
The report also contains a breakdown of the findings of the Ti and Foundation for Future Supply Chain’s 2021 Sustainability survey. The survey addresses current industry attitudes towards net-zero targets, motivating factors for environmental initiatives and the progress already made with regards to emissions measurements.
Finally, the report contains comparative environmental profiles for leading logistics providers.
This report contains:
- The real impact of air, sea and road freight on sustainability targets.
- Unique analysis from the 2021 Sustainability Survey, in partnership with the Foundation for Future Supply Chain.
- Carbon intensity figures for key logistics players.
- Analysis of the impact of current supply chain emissions on environmental targets.
- Ti’s Investment Tracker which provides in depth analysis of logistics sustainability targets.
- Environmental profiles for 10 leading LSPs, including sustainability strategies & targets.
- Analysis of the impact of Covid-19 on sustainability practices.
This report contains:
- The real impact of air, sea and road freight on sustainability targets.
- Unique analysis from the 2021 Sustainability Survey, in partnership with the Foundation for Future Supply Chain.
- Carbon intensity figures for key logistics players.
- Analysis of the impact of current supply chain emissions on environmental targets.
- Ti’s Investment Tracker which provides in depth analysis of logistics sustainability targets.
- Environmental profiles for 10 leading LSPs, including sustainability strategies & targets.
- Analysis of the impact of Covid-19 on sustainability practices.
Key questions the report asks and answers:
- Can net-zero targets really be achieved?
- What role will global supply chains play in the race to net-zero?
- Sustainability is increasingly taking a central position in corporate agendas, but is the industry moving fast enough?
- Are shippers ready to pay to offset CO2 emissions?
- What is the true impact of shipping on the environment?
- Which sustainability strategies are leading logistics players adopting? And what must they do to keep up with the race to net-zero?
- How much progress has been made in the european road freight market with regards to net-zero targets?
- What proportion of companies measure the impact of its business on the environment?
- What impact has Covid-19 had on environmental initiatives?
- Is it feasible to ban the sale of diesel engine trucks by 2040?
Exclusive highlights
- The logistics industry will need root-and-branch transformation over the next ten years if climate change targets are to be met
- There is some evidence of significant moves and heavy investment in green supply chains in 2021
- Establishing 2050 targets relies on a more coordinated approach, further investment and continued technological development
- Almost two fifths of logistics industry professionals believe that net-zero goals are unachievable
- Compliance is the main motivating factor for environmental initiatives
- In order to meet net-zero targets, the freight industry must adopt the so-called ‘avoid-shift-improve’ strategy
- There are currently no existing alternative fuels that can rival diesel engines
- Global transport emissions increased by less than 0.5% in 2019
- Shipping lines emissions data declined 3.1% and 4.4% on average between 2018 and 2020 respectively
Professor John Manners-Bell
John is Chief Executive of Ti, Honorary Visiting Professor at the London Metropolitan University’s Guildhall Faculty of Business and Law and an adviser to the World Economic Forum. He has over 25 years’ experience working in and analysing the global logistics sector.
Thomas Cullen
Thomas is a widely respected writer and has been analyzing the global logistics market for over 15 years. He has edited a number of international publications and written for most of the leading trade publications in Europe. He has written several in-depth reports on a variety of subjects including Automotive and Chemical logistics. Thomas has been vital in adding value to Ti’s Logistics Briefing service for the last 10 years and works on many global consultancy projects.
Viki Keckarovska
Viki is a research analyst with vast experience in the design, implementation and analysis of electronic and person-to-person surveys. Having worked across a number of sectors, including retail, luxury goods and FMCG, Violeta is experienced in gaining valuable insights across brand perception, voice of customer and strategic re-positioning intelligence campaigns for B-to-B and B-to-C clients. As a member of the Market Research Society, Violeta brings best practice in research, insight and analytics across Ti.
Nick Bailey
As Head of Research, Nick is responsible for all of Ti’s research products, including logistics market and vertical sector reports, as well as Ti’s flagship Global Supply Chain Intelligence (GSCi) market intelligence portal. Nick is actively involved in research for these product ranges, as well as in the development of new and existing research capabilities at Ti. Nick also coordinates the efforts of Ti’s team of researchers and analysts, and supports Ti’s consultancy offering for a global client base. Prior to joining Ti in 2013, he spent several successful years working in international trade and foreign direct investment, and has since developed specialisms in e-commerce, the road freight market and emerging market logistics working in Europe, Asia and the Middle East.
Julia Swales
Julia is Advisory Board Manager for the Foundation for Future Supply Chains and Content Curator at Ti. She has over 15 years of experience in business book publishing and was formerly Head of Publishing at Kogan Page, London, specialising in commissioning logistics books for academic and corporate markets. She researched hot topics in the field of supply chain and sourced authors for over 100 books. Julia has brought this knowledge and experience to Ti where she curates content for publication in the form of whitepapers and reports supported by surveys, is a ‘Thought Leader’ for the Sustainability stream within the Foundation and is involved in developing webinars and virtual events.
01 INTRODUCTION
02 COP26 AND NET-ZERO EMISSION TARGETS
03 THE CHALLENGE OF MEETING AND MEASURING CARBON EMISSIONS
04 THE IMPACT OF SHIPPING ON THE ENVIRONMENT
05 SHIPPING LINES AND DECARBONIZING
06 LSP SUSTAINABILITY INVESTMENTS
07 CARBON EMISSIONS DATA
08 SUSTAINABILITY SURVEY 2021
09 ENVIRONMENTAL PROFILES
Full table of contents is available in the report brochure
20th July, 2021, Bath, UK - No clear consensus on which technology will replace diesel; lack of charging network identified as biggest barrier to adoption of e-Fuels and government targets seen as unrealistic by a third of survey respondents.
A global survey of logistics and supply chain executives has found that there is still very little consensus on which alternative power system will replace diesel for the heavy duty truck sector over the coming years.
The survey, contained in the Logistics and Supply Chain Sustainability Report 2021, published jointly by Ti Insight and the Foundation for Future Supply Chain, found that 44% of respondents favoured hydrogen, 34% Liquid Natural Gas (LNG) and just under a fifth electric.
There was far more clarity about the future of the light commercial van sector. Almost four fifths (77%) said that battery electric would gain the widest adoption followed a long way behind by LNG and hydrogen (12% and 11% respectively).
When asked what the biggest barriers were to adopting new e-fuels, respondents returned a variety of issues with the lack of charging network being the most frequently cited. Cost of new vehicle acquisition and the range of electric batteries were also regularly cited.
It also seems that a sizeable minority believes that government targets to phase out the use of fossil fuels in engines are unrealistic. Over a third of executives were skeptical of plans to ban petrol and diesel engines by 2040 (many countries have earlier deadlines) suggesting that there will need to be considerable progress in e-Fuel technology if a significant proportion of the industry is to be convinced that a ban is workable.
According to John Manners-Bell, Director of the Foundation for Future Supply Chain, the fact that there is still no consensus on which technology will replace diesel, at least in the heavy duty sector, is very worrying. ‘We know that the all-round utility of diesel engines across a wide range of operational settings will make it difficult to replace. However, whilst demanding targets are being set by governments, the survey has found that there is still no clear vision on which technology to adopt. Given the investment time horizons for trucks, charging networks and the resources which go into creating a technology eco-system, it is unsurprising that such a large proportion of the industry thinks meeting these targets is unrealistic.’
This report is perfect for:
- Supply chain managers and directors
- Logistics procurement managers
- Global manufacturers
- Banks and financial institutions
- Marketing managers
- Knowledge managers
- Investors
- All C-level executives