In 2020, global logistics firm Kuehne+Nagel began offering its clients solutions that actively reduce the carbon footprint of their supply chains. This is part of the organization’s wider efforts to reduce their carbon footprint and encourage their partners to do the same. We talked to the company’s general manager for sales and marketing in the Philippines, Elisha Camus, to learn more about their industry-first initiatives.

How is Kuehne+Nagel ensuring its networks operate on net-zero carbon emissions?

A single company with the courage to set ambitious climate targets, can move our entire industry. That’s why Kuehne+Nagel committed to the Science Based Targets Initiative, offering options to customers who want to start to decarbonize their transport with the use of low carbon sustainable fuels or avoid and reduce their emissions by providing alternative transport modes, routes and carrier options.

With our transition to a low carbon business model, we at Kuehne+Nagel are at the forefront of sustainable logistics. These initiatives are topped by local and regional programs to reinforce our commitment to the environment.

What additional investments did Kuehne+Nagel put in place to ensure it is able to follow its net-zero commitments?

We invest in technology such as big data and predictive analytics, like our seaexplorer platform which allows for real-time updates on port traffic and shipping routes, to give our customers access to the most updated information. Our myKN app similarly provides customers with information regarding multi-modal options for their shipments, and allows them to select more sustainable transport routes and modes, effectively cutting the environmental impact of their logistics activities.

Other investments would include our use of sustainable aviation fuel, which is a cleaner substitute for conventional jet fuel. Having similar characteristics to traditional jet fuel kerosene, SAF can be blended up to 50% with traditional kerosene safely and is already being used on many flights. In the same myKN platform, the customers have the option to choose SAF in their airfreight shipments.

Kuehne+Nagel’s partnership with Lufthansa Cargo is another milestone in our commitment to sustainable logistics and to maximise our use of renewable sources of energy. This is an initiative that we are very proud to be a part of, as this fuel is considered the fuel of the future, capable of bringing the CO2 footprint of aircraft engines to zero. It is not just beneficial to us and our customers, but to the logistics industry as a whole.

Similarly for sea freight shipments, we also put forward the use of biofuel. We are allocating fully traceable biofuel contingents to the cargo we move for our clients.

How about in the Philippines?

We measure and report plastic usage in our warehouse and distribution services, and partnering with local sustainable organisations to offset them using “plastic credits”. In 2021, we became the first local logistics company to be certified plastic-neutral. Our goal for 2022 is to become a plastic-negative organization.

Until carbon emissions similarly be reduced to zero, we are also empowering customers to fully offset their carbon emissions through investments in nature-based projects that help reduce greenhouse gas emissions by taking carbon dioxide out of the atmosphere. We see these as necessary steps in our serious commitment for the environment.

Companies would likely think adopting sustainable supply chain networks would cost more. How do you communicate to them the benefits, and ultimately get them on board?

Globally, everyone is responsible for the environment. You can see huge global brands setting their green targets and using these as a standard when choosing companies they work with. This is how the global market is shaping up. Hence, the sustainability angle will no longer be a luxury, but a factor to remain competitive in the market.

To overcome these challenges, Kuehne+Nagel has invested heavily in technologies to make our customers’ supply chain management more efficient, with load and route optimisation, multi-modal solutions, and full visibility of the entire supply chain process. When customers have the visual and quantitative tools to measure their environmental impact, they are more conscious of it, and are more empowered to make a change.

How do you think other shipping and logistics firms can begin their journey towards net-zero operations?

It’s critical to begin with visibility. To realize how much impact you’re causing the environment, you have to first be aware of the numbers. While logistics firms do not directly manufacture any item, the carbon emission from each freight service is significant. The logistics industry roughly accounts for 8% of the global annual CO2 emissions. By seeing the numbers, we can expect a certain level of realization that this is not a concept unrelated to the movement of cargo.

Once the reports are made, companies can start setting goals to reduce the numbers. This is where accountability comes in; this is my impact to the environment, hence it is my responsibility to address this.

We are far beyond the point that we can simply ignore this for future generations to look into. Companies have to realize that the pivot to save the environment is today, through them. However, we understand that saving the environment could be a tall order. But we want each company to know that once you take a step—no matter how small, they will realize that the journey will not be that difficult after all.

We must be mindful that achieving carbon neutrality is a huge undertaking, and will require more than new technology, innovative solutions and even fuel transformation. Making this change requires a shift in industry behaviour and culture, and companies who are ready to embrace this will be at an advantage. Kuehne+Nagel continues to work with such like-minded customers and partners to help them make a difference in building a more sustainable world.

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