In the fast-paced realm of global logistics, DHL Express has long been synonymous with efficiency and reliability. Now, they're stepping up as a frontrunner in redefining sustainability itself. TheCSRUniverse presents an exclusive interview with Mr. R. S. Subramanian, Senior Vice President, South Asia, DHL Express, where he unveils the groundbreaking GoGreen Plus service – a paradigm shift in the pursuit of eco-conscious logistics.
This riveting interview delves deep into the core of GoGreen Plus, dissecting its revolutionary approach that goes beyond traditional sustainability initiatives. Mr. Subramanian explains how GoGreen Plus utilizes Sustainable Aviation Fuel (SAF) and the pioneering concept of 'insetting' to achieve tangible results. We explore the transformative impact on the logistics landscape, including the successful pilot partnership with Aragen Life Sciences.
But the conversation doesn't stop at carbon metrics. We uncover DHL's holistic vision for sustainability, anchored in a comprehensive roadmap towards net-zero emissions by 2050. Join us as we unpack GoGreen Plus, its impact, and DHL's broader sustainability vision. This interview isn't just about reducing emissions; it's about forging a path towards a greener future for logistics.
Dive into the conversation with DHL Express and discover how sustainability can become more than a goal, but a way of life.
Q&A
Q. Can you elaborate on the key features and benefits of the GoGreen Plus service, and how it differs from traditional sustainability initiatives in the logistics industry?
A. More commonly, when we speak about traditional sustainability initiatives, the focus is more on offsetting than insetting. Insetting is when an organization invests in sustainable practices to reduce or avoid greenhouse gas emissions directly related to its activities (e.g. use of sustainable aviation fuel). On the other hand, if an organization brings down emission counts by investing in carbon-reduction projects outside of its business (e.g. tree planting), it is offsetting its carbon emissions. That is the key difference between other sustainability initiatives and GoGreen Plus.
DHL’s GoGreen Plus targets the reduction of Scope 3 emissions associated with the international delivery of shipments leveraging Sustainable Aviation Fuel (SAF). SAF is key to green shipping as using it can reduce traditional jet fuels’ lifecycle emissions by up to 80%. This is because they are produced from alternative feedstock with a better sustainable energy profile, such as used cooking oil, corn, waste, hydrogen or CO2 synthesis. While GoGreen Plus is the first-of-its-kind service in the industry, we also are amongst the largest users of SAF. While in 2022, DHL led the aviation (both commercial as well as cargo) industry in its use of SAF (buying 37 million litres), in 2023, the usage increased to 94 million litres.
At DHL, when we think of GoGreen Plus we think of the phrase ‘Now More Than Ever’. Now more than ever, it is time to focus on creating a better environment and reduced CO₂ emissions to safeguard our planet for future generations. The GoGreen Plus service is also the only method available in the global express logistics industry that enables customers to utilize SAF to reduce emissions related to their shipments. Therein lies the benefit of using GoGreen Plus. For customers, unlike offsetting initiatives, GoGreen Plus (insetting) reduces emissions within the logistics sector and therewith can be used for DHL customers’ own voluntary emission reporting and follows the Science Based Target Initiative (SBTi) philosophy.
Q. How does DHL Express India ensure the reliability and availability of sustainable aviation fuel (SAF) for its GoGreen Plus service?
A. The GoGreen Plus service is not only a DHL Express India initiative but it is an important part of our global sustainability roadmap. At the global level, we have collaborated with trusted partners who specialise in the production of SAF - bp, Neste, and World Energy. These suppliers produce SAF from alternative raw materials with sustainable energy profiles, ensuring a consistent supply of SAF to support carbon emission reduction efforts.
Q. Can you quantify the projected carbon footprint reduction expected from Aragen's utilization of GoGreen Plus compared to traditional fuel options?
A. The GoGreen Plus service supports Aragen’s goal to reduce the carbon emissions of its international shipments by 90 percent year-on-year, accelerating its commitment of achieving net zero greenhouse gas emissions by 2050.
Q. Can you elaborate on the insetting methodology utilized by GoGreen Plus? How does it ensure the carbon emission reductions are measurable, verifiable, and additional (not already happening elsewhere)?
A. Our goal is to remain as ‘insanely customer centric’ as possible. Therefore, the right of choice remains with the customer. While booking a shipment, customers will have two options to select the GoGreen Plus service with DHL Express: either on a contractual basis, or when choosing shipping service through MyDHL+, DHL Express’ online shipping and tracking platform.
Via the contractual model, the customer decides how much they would like to reduce their CO2e and how much to invest in Sustainable Aviation Fuel. Full flexibility is offered in this case. DHL Express uses the contribution to invest in SAF. An independent auditor will annually verify the emission reduction value of the purchased SAF, as well as verifying that all investments have been exclusively used for SAF.
Our customer’s company then receives a certificate verified by the external auditor SGS (Société Générale de Surveillance) with the emission reduction value. This can be used to reduce their own Scope 3 footprint. DHL will invoice this to them via their preference of a lump sum or a per kg. charge, along with a complimentary Carbon Footprint report. For individual customers, via the MyDHL+ option, they can select GoGreen Plus on an individual shipment level, which comes with a standard CO2e reduction of ~30%.
A great way to understand this is the ‘book and claim’ method i.e. ‘book’ the fuel and ‘claim’ the benefits. SAF is transported along existing supply chains and blended with fossil-based fuels therefore, there is no way to track how much of it goes into one vehicle. The buyer therefore, ‘books’ a specific quantity of sustainable fuel with DHL at the time of purchase and then ‘claims’ the emission reduction toward their sustainability targets. As a result, the buyer owns the environmental benefits without physically possessing the fuel. They receive an independently verified certificate to certify their claim.
Q. How does this partnership with AragenLifeSciences act as a pilot for GoGreen Plus, and what key learnings do you expect to gain that will inform future expansion?
A.The GoGreen Plus service was launched globally in February 2023 and over the last year, over 12,000 customers have signed up for the service across the APeC region alone. In India, since its launch, over 1,500 customers have already been onboarded. Therefore, while Aragen is our first SBTi customer, the GoGreen Plus service is already gaining ground across our customer base.
Q. How will DHL Express India measure the success of GoGreen Plus beyond carbon emission reductions? Are there key performance indicators (KPIs) established to track its broader environmental and economic impact?
A.GoGreen Plus falls under a part of our ‘Sustainability Roadmap’. The roadmap details our three major commitments, one of which is ‘Clean Operations for climate protection’. With our mission to achieve net-zero emissions by 2050, we strive for clean operations for climate protection. We are doing this by committing ourselves to a set greenhouse gas (GHG) emissions target by 2030 in line with the Paris Agreement through the Science-Based Targets initiative (SBTi). We will increase the proportion of sustainable aviation fuels to 30 percent and the proportion of electric vehicles in our first and last mile delivery fleet to 60 percent, all our new buildings will be designed to be climate-neutral and we will offer customers a comprehensive portfolio of sustainable products.
We have already made great progress across these KPIs. Our decarbonization targets are not a nice to have but a must. Based on our sustainability roadmap, we invest in sustainable solutions ahead of customer demand. We are already observing the signs of our strategy paying off.
Q. What specific measures does DHL Express India take to track and report on the reduction of Scope 3 emissions associated with freight transportation?
A. We track and report on the reduction of Scope 3 emissions associated with the delivery through specific measures such as monitoring of fuel consumption, implementing fuel-efficient technologies, optimizing route planning, and leveraging fuel alternatives like Sustainable Aviation Fuel (SAF). These efforts contribute to the overall reduction of carbon emissions within DHL's operations.
Q. How does DHL Express India plan to support other companies in setting and achieving science-based emission reduction targets within their supply chains?
A. The response is two pronged.
The first is to understand that there is a dire need for multinationals to become a part of the sustainability agenda. Noticeable change can only be seen if we, as MNCs, pool together our resources, actively practise and advocate for the difference we wish to see for our future generations. Now more than ever, we have to prioritize sustainability. This in itself should be a big enough reason for companies to join us in this battle against negative environmental impact.
However, from a business standpoint, multiple reports which studied consumer perceptions on sustainability markers across various age groups say it is evident that today’s shoppers are taking a stand. Nine out of 10 (93%) purchased more or maintained green purchase habits over the past year. Almost eight out of 10 (77%) found sustainability as an integral factor when shopping online and 44% purchase green products to help save the environment. Sustainable products sell 2.7 times faster online. Gen Zs and millennials are more likely to explore sustainable products than older generations too, with 32% choosing retailers that carry such products.
Having pioneered the GoGreen Plus service and being the first in the industry to adopt insetting as opposed to offsetting, we are happy to report that our customers are also joining our movement towards zero carbon emissions by 2050. We are witnessing the change we wish to see. Several customers have already signed up for the service, pledging their commitment to reducing their CO2e.
DHL Express India plans to support other companies in setting and achieving science-based emission reduction targets within their supply chains through collaborative initiatives and knowledge sharing. By leveraging our expertise and experience in sustainable logistics, DHL aims to empower businesses to adopt best practices, implement innovative solutions, and contribute to global efforts to combat climate change.
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