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SPARX: Transforming Logistics with Sustainable Solutions
We build the future by creating tools to help to reduce our client’s carbon emissions, reimagine supply chains, and pave the way for a better bottom line.
At SPARX we have placed sustainable logistics at the heart of our operations. As the future of logistics impacts our planet, we are committed to reducing our carbon footprint and helping our clients achieve their Net Zero goals. Through green supply chain management, innovative sustainable supply chain software, and strategic partnerships, we’re dedicated to making logistics more environmentally friendly.
What is Green Logistics?
Green logistics, or sustainable logistics, focuses on minimizing the environmental impact of logistics operations. This involves green supply chain management strategies and technologies that reduce non-renewable energy use, CO2 emissions, and waste. As demand for green supply chains grows, logistics companies face challenges, including high costs, limited infrastructure, and lack of collaboration among key actors.
Partnering for a Greener Future
According to the World Bank, in 2020, the logistics sector was responsible for 25% of Co2 emissions globally. Land transport is the least sustainable mode, emitting approximately 72% of Co2, followed by ocean transport with 20.5%. Comparatively, air transport is more sustainable with 7% of Co2 (although, on average per kilometer, Co2 emissions from jet fuel are 8-9 times more polluting than ocean emissions). Finally, rail transport, which only emits 0.5% of Co2, is currently the most sustainable. It should be noted that the calculation measure is one ton transported per kilometer traveled.
Goals of Sustainable Supply Chain Management
Measurement
Achieving transparency across the supply chain—from raw material procurement to final distribution—is essential. This involves gathering data at each stage to make informed, sustainable decisions that align with green supply chain goals.
Reduction
Green supply chain management emphasizes efficiency in transportation, optimized routing, and the use of low-emission technologies. Collaborating with suppliers and clients helps lower emissions across every stage of the supply chain.
Storage and Elimination
The elimination of emissions through carbon offsetting has been explored, which means:
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Investing in sustainability projects with the mission of tracking Co2 emissions closely and reducing Co2 in other parts of the world.
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Carbon capture and storage, which consists of capturing emissions and burying them underground.
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While offsetting is better than nothing, it is not a long-term solution to sustainability .
Europe’s Path to a Sustainable Supply Chain
On April 25, 2024, the Zero Emissions Industry Act issued by the European Parliament came into force, with the aim of increasing production capacity to meet 40% of the demand of the shipping transformation by 2030. The technologies to achieve this are: renewable technologies, nuclear, industrial decarbonization, electrical grids, energy storage and biotechnology, in addition to the need to implement clean fuels in ocean transportation. As a background to this last demand, in July 2023, the FuelEU Maritime regulation was adopted with the aim of promoting clean fuels in maritime transport.
By 2030, it is estimated that 60% of zero-emission ships will be delivered. Sea-web data show that LNG carriers comprise 33.3% of the order book, followed by 21.1% of ships which will run on methanol. However, 45.6% of ships on order are expected to utilize traditional fuel sources.
CO2 Emissions in the Logistics Sector
All modes of transport share the same challenges:
The transition to greener logistics is quite costly. Introducing sustainable technologies, fuels and alternative energy sources increase a carrier’s financial burden, which typically trickles down to higher rates for its clients.
Infrastructure and facilities for production, distribution, storage and unloading also need to be modernized, although alternatives are not always available.
Environmental regulations are complex and fragmented, which can make it difficult for airlines, ocean and overland lines to comply with all applicable standards.
Customer demand for sustainable travel options is still developing.
This can lead to a lack of the means to effectively assess, implement and execute sustainable practices.
Technology in Sustainable Logistics
Technology is essential to improve supply chain efficiency. Some options are:
Collects performance data in real-time, enhancing green supply chain visibility.
Analyzes large datasets to reduce environmental impact by optimizing routes and processes.
Provides a secure and transparent record of each step in the green supply chain, ensuring accountability.
These platforms offer tools to manage and measure environmental impacts, supporting supply chain sustainability.
SPARX is committed to being at the forefront of green logistics, providing sustainable solutions across all stages of the supply chain. From sustainable supply chain software to innovative green logistics practices, our goal is to help companies reduce their environmental footprint and contribute to a sustainable future in logistics.