How a powerhouse of the logistics industry is decarbonising

With a global presence across road, air and sea, CEVA Logistics is mobilising both efficiency measures and alternative fuels on its journey to net-zero emissions.

How can we decarbonise while maintaining operational efficiency? This question lies at the core of the logistics industry's approach to decarbonisation

The IRU Green Compact’s “dual approach” to decarbonising road transport relies on both efficiency measures and alternative fuels.

Efficiency measures cover logistics (load and route optimisation), vehicles (lightweighting and advanced lubrication) and drivers (eco-driving).

The second level of action focuses on building a robust, practical and economic transition to alternative fuels. This means investing now in fossil-free alternative fuels, including electricity, hydrogen and biofuels, as well as the public and private infrastructure, vehicles and operational practices necessary to use them.

To understand how a leading logistics provider is decarbonising while continuing to maintain operational efficiency, we asked IRU member CEVA Logistics’ Benoît Tinetti (Global CSR & Sustainability Leader) and Pierre-Alain Saclier (Global Ground & Rail BD Leader) to break down their global approach for us.

How is CEVA decarbonising?

CEVA Logistics’ sustainability efforts focus on innovation and collaboration. We are committed to reducing our greenhouse gas emissions across our ground, sea and air operations, as well as in our contract logistics business. 

In 2023, CEVA’s CO₂ footprint decreased to 6.0 million tonnes, a reduction of 200,000 tonnes from 2022. Key near-term strategies target our warehouses, fleet and the low-carbon solutions we can develop and offer with our carrier partners.

For example, CEVA’s global ground fleet already includes over 520 electric vehicles. Additionally, we are heavily investing in alternative fuels to reduce our emissions. We have 153 vehicles running on hydrotreated vegetable oil fuel, which cuts carbon emissions by about 90% compared to diesel. We have a target to reach 1,450 low-carbon vehicles across our operations by 2025.

Low-carbon solutions also include alternative fuels like sustainable aviation fuel (an alternative fuel made from non-petroleum feedstock), methanol and biofuels, as well as efficiency measures, such as using AI for route optimisation. CEVA’s Sustainable Maritime Fuel and Sustainable Aviation Fuel reduces shipping and aviation emissions by up to 84% and 90%, respectively.

In our contract logistics operations, 34% of the electricity powering our 1,000 warehouses around the globe currently comes from low-carbon sources. They also have close to 800,000 square metres of solar panels. 

In 2023, we reduced our CO₂ emissions per square metre by 10% compared to 2022. We also have an 84% recycling rate. Our Reusable Packaging System cuts CO₂ emissions associated with packaging by 60%.

What challenges are you facing?

More than 95% of our emissions stem from transport purchased for our customers (Scope 3), which restricts our ability to directly reduce emissions. Additionally, there is a limited availability of low-carbon fuels, and they remain more expensive than traditional fossil fuels. Decarbonisation requires substantial investment and involves many stakeholders across different regions, each with their unique priorities and approaches. Collaboration is essential.

In 2023, the breakdown of CEVA's emissions by transport mode was 45% from air, 44% from road, 9% from sea and 2% from warehousing. Air transport is particularly carbon-intensive, emitting 100 times more CO₂ than maritime and 10 times more than road transport.

What role do different stakeholders play?

Since most of our emissions come from transport purchased for our customers, we are leveraging our global network and established relationships with carriers to develop new low-carbon solutions. We are also promoting the use of alternative fuels to our customers for ground, maritime and air freight to encourage demand for alternative fuels.

Decarbonisation efforts often require substantial investment, which can be challenging for different stakeholders to quantify and justify. CEVA has developed a new feature that gives its customers full visibility over the environmental impact of their shipments. This allows businesses to select the most sustainable option based on CO₂ emissions, cost and transit time.

Local and regional authorities also have a crucial role in backing the industry with the necessary infrastructure. CEVA looks to present a unified front in advancing decarbonisation efforts by collaborating with IRU and other key stakeholders.

As mentioned, we believe that decarbonisation is a collaborative industry-wide process, involving many stakeholders across the public and private spheres. For example, in 2023, CEVA, ENGIE and SANEF came together to create the European Clean Transport Network Alliance. The main objective is to develop a network of relay terminals for trucks strategically located along European motorways and to equip them with high-power electric chargers and pumps for biogas and green hydrogen. 

In 2023, we launched the project, covering 900km in France with four highway segments between five new relay stations. The Alliance is open to welcoming more partners across the transport industry – truck manufacturers, motorway operators, third-party logistics companies, etc – to encourage change and transformation in decarbonising long-distance road transport in Europe. 

What challenges are associated with CO₂ reporting?

The EU has made significant strides in emissions reporting through new regulations. Since early 2024, large companies operating in the EU must disclose their emissions under the Corporate Sustainability Reporting Directive. They need to track their own carbon emissions and account for those of their suppliers. This has elevated the importance of collaboration and data for meeting CO₂ reporting requirements.

Despite these advances, regional policies like those in the EU have a limited impact on logistics and supply chain management. The global nature of the industry means that efforts to reduce emissions and improve sustainability must extend beyond regional regulations.

Any final thoughts?

The logistics industry’s decarbonisation journey involves collaboration among customers, providers and institutions. No single actor can achieve meaningful progress alone. It requires combined efforts and coordination. This process should be approached as a long-term, dynamic initiative rather than a quick win.

Effective decarbonisation demands teamwork and innovation from all involved. Commitment and collaboration are crucial to making a substantial impact. A collective approach is the only way we can make significant progress, reduce our emissions and achieve our sustainability goals.