The latest edition of the “Green Last Mile Europe Report 2024” confirms that while greenwashing is evident, fleet renewal, more out-of-home deliveries, technological progress, and consumer purchasing preferences are contributing to a more sustainable last-mile sector. The report sheds more light on the extent to which delivery companies operating in the logistics sector are making progress in their decarbonization efforts.
The report notes that last-mile deliveries account for 40% of all e-commerce-related emissions, which is partly due to inefficient and traditional delivery methods. Furthermore, it highlights that despite widespread claims of green policies by logistics stakeholders, there remains a “pervasive issue of greenwashing” that exaggerates sustainable business actions. A positive aspect, however, is that some companies have shown genuine commitment by integrating more sustainable practices, such as increasing the use of parcel lockers, PUDO points, or eco-friendly vehicles. Regarding the latter, studies suggest that where efficient and dense OOH networks exist, shifting parcels to nearby lockers or PUDO points can significantly reduce CO2 emissions. The report’s authors also believe that it is necessary to explore how the sharing economy can promote a greener approach to last-mile deliveries.
Efficiency and Sustainability
Regarding investments in zero- and low-emission vehicles, the report states that DHL eCommerce in the Netherlands has already achieved 80% fossil-fuel-free last-mile deliveries using electric delivery vans. The company increased its electric vehicle fleet by 700 in 2023 and also utilized HVO biofuel to reduce emissions from diesel vehicles. Meanwhile, the Finnish parcel and postal delivery operator Posti has successfully converted one of its diesel trucks into an electric one, which has proven to be a cost-effective solution that will encourage other players to follow suit. According to Posti, the cost of converting a truck is currently about half the price of a new electric truck, and further increases in cost-efficiency are expected once conversions enter mass production.
Regarding last-mile infrastructure, the report proposes that the implementation of shared parcel lockers and shared transport organization among Courier, Express, and Parcel (CEP) service providers would increase reach and reduce waste. Moreover, it states that the sharing economy, while challenging, aligns well with environmental goals by promoting the efficient and collective use of resources. For example, implementing shared, open parcel lockers for all courier companies – so-called crowdshipping – “would be much better than the current, unhealthy situation where several carriers operate suboptimal networks side-by-side.”
Consolidation of Deliveries and Increasing Efficiency
The report shows that OOH deliveries, including parcel lockers and pick-up/drop-off (PUDO) points, significantly reduce carbon emissions by consolidating car deliveries and increasing delivery efficiency. A perfect example is Evri’s initiative of redirecting parcels to ParcelShops and lockers before the last mile, which reduces the carbon footprint by an average of 45%. Vinted Go also discovered that its deliveries to PUDO points have a significantly lower carbon footprint (1.1 kg CO2e) compared to home deliveries (1.77 kg CO2e). Furthermore, research conducted by SwipBox Kontaktfri showed that when SwipBox lockers are located near end-users and 12 parcels are delivered to a single point (compared to the typical number of just over 1 for home delivery), potential savings can reach 63%, while with 24 parcels, they can increase up to 82%.
Another conclusion from the report is that there is a noticeable contingent of consumers whose preferences are shifting toward more sustainable delivery options. In Poland, the vast majority of respondents in a 2023 survey indicated delivery to a parcel locker as the most eco-friendly option. Studies show that nearly 80% of customers choose eco-friendly delivery when they have the option. However, there is a small but very important detail here. The condition for such a choice is that they do not have to pay more for such an eco-delivery.
The report does not shy away from the topic of greenwashing. Last-mile delivery and packaging are responsible for about 40% of all emissions in e-commerce. It is necessary to use authentic and transparent sustainability practices that will earn consumer trust. Moreover, the report adds that regulations such as the CSRD (Corporate Sustainability Reporting Directive) mean that greenwashing practices will be treated similarly to falsifying financial statements. Therefore, e-commerce companies and other businesses guilty of such practices will be increasingly exposed to both reputational and business risks.
Source: Łukasz Łukasiewicz, Operations Manager, SwipBox Polska