Clearly, organisations that seek to reduce their carbon footprint need to evaluate current practices in order to mitigate their environmental impact. To build a resilient and green supply chain ecosystem, technology applications like automation, smart distribution and packaging, and other smart logistics measures are poised to scale to even greater heights from this year onwards. Not only do these sustain the ongoing momentum in supporting technological innovations propelling the sector towards Industry 4.0, they also enable efficient logistics operations to phase out environmentally unsustainable practices.
Last year was a momentum driver as consumer confidence heightened. The e-commerce sector continued to flourish as consumers indulge in revenge spending across retail, travel, and leisure. However, the movement of cargo around the world is a carbon-intensive endeavour where the logistics and transport sector contributes more than a third of global carbon dioxide emissions —the largest emitting sector.
The environmental challenge is a real cause for concern. As a booming market with the biggest growth opportunities, Asia Pacific is forecasted to account for up to 90% of global e-commerce growth until 2026. To sustain high consumption rates and with packaging demand outpacing global packaging growth rates and waste-collection systems in Asia, significant shifts in production and consumption are required. As we saw at this year’s World Economic Forum, new guidance to support the sector’s long-term shift to a net-zero future is a clear signal of the criticality of the industry’s carbon reduction efforts.
