Green Logistics - A Strategic Lever for Market Expansion

The European Union has officially activated a new “rules of the game” with the Carbon Border Adjustment Mechanism (CBAM), turning carbon reduction from a voluntary action into a mandatory requirement for exporters. Combined with the trend that 89% of global consumers now prioritize sustainable products and a projected sustainable market worth USD 692 billion by 2033 this is a golden moment for businesses to leverage green logistics as a competitive edge. From optimizing transport and upgrading smart warehouses to transforming packaging, green logistics is opening new doors for businesses aiming to conquer international markets.

1. Logistics Operations: A major emission source and an urgent challenge

1.1 The need for urgent transformation in logistics

Logistics including transportation, warehousing, and port operations has long been the backbone of global supply chains. For manufacturers, traders, exporters, and e-commerce players, logistics is not merely a support function, but a core capability that directly affects market reach, cost efficiency, and overall competitiveness.

However, this critical role also makes logistics a major source of greenhouse gas (GHG) emissions. Basic transportation alone accounts for around 8% of global emissions, and when warehousing and ports are included, the number rises to 11–12%. Altogether when packaging, storage, and delivery are factored in logistics contributes up to 25% of total global CO₂ emissions. Transport-related emissions increased by an average of 1.7% per year between 1990 and 2022, faster than any other energy-using sector except industry.

According to the European Environment Agency, without urgent intervention, this 25% share could surge to 40% by 2050. To prevent that outcome and reach net-zero emissions by mid-century, the logistics sector must undergo a “green revolution,” cutting CO₂ emissions from transport by over 3% annually until 2030.

The challenge is even more complex given the sector’s deep reliance on fossil fuels. Today, roughly 91% of final energy use in transportation still comes from petroleum-based sources a figure that has only declined slightly since the 1970s. This underscores that improving fuel efficiency alone is not enough. A complete shift toward alternative energy such as electricity, hydrogen, and biofuels is essential, alongside large-scale investments in new infrastructure and cleaner vehicle fleets.

This transition is even more crucial when considering the broader environmental footprint of logistics. Studies show that over 90% of a company’s environmental impact comes from its supply chain, with logistics being a key driver of Scope 3 emissions. This means that no matter how much a company improves its direct operations (Scope 1 and 2), it cannot meet net-zero targets without tackling emissions from logistics.

In this context, green logistics is no longer a “nice to have” or a communication tool it has become a business-critical strategy for companies to maintain competitiveness and meet the stricter carbon standards of major global markets such as the EU, the U.S., and Japan.

Overview of emissions scopes and scope 3 emissions (Source: Internet)

The challenge becomes more complex as many companies continue to underestimate the environmental impact of transportation, simply because they do not directly own trucks, ships, or other transport assets. However, outsourcing logistics does not exempt them from environmental responsibility.

Today, growing pressure from investors and customers is forcing businesses to disclose their full carbon footprint including indirect emissions in sustainability reporting. This requires a new approach: instead of focusing solely on what they can directly control, companies must shift toward driving positive change across the entire supply chain. That means measuring, managing, and actively collaborating with logistics partners to implement a green transition together.

To better illustrate the scale and structure of emissions, the following table presents greenhouse gas (GHG) emissions from logistics activities, broken down by key components and modes of transport.

1.2 Logistics emissions: The invisible burden in a company’s value chain

In traditional supply chains, environmental and social costs such as ecosystem degradation or public health impacts are often overlooked, as they are not directly accounted for in financial reporting. However, under growing pressure from climate policies, emission disclosure requirements, sustainable consumption trends, and ESG criteria from investors, these so-called “externalities” are increasingly being internalized. Environmental concerns are no longer just a societal issue they have become a tangible business risk, directly affecting competitiveness and brand reputation.

Degraded ecosystems – A consequence of unsustainable logistics

Logistics activities across supply chains contribute significantly to the overexploitation of resources such as water, minerals, and fossil fuels leading to deforestation, water pollution, and biodiversity loss. At the same time, manufacturing and transportation generate greenhouse gases and pollutants that accelerate climate change and harm public health.

Operational risks and hidden costs from inefficiency

Partnering with suppliers who fail to meet environmental standards poses reputational risks especially in a market where consumers increasingly favor sustainable products. On the flip side, strong environmental performance helps build trust and enhance brand value an intangible asset that is becoming increasingly measurable. Additionally, fuel price volatility and unstable supply chains, often caused by high logistics emissions, are putting significant pressure on operations and costs.

Hidden costs: A double burden on both finances and the environment

Inefficient supply chains often lead to overproduction, which brings a host of hidden costs: inventory buildup, storage expenses, disposal of obsolete products (which adds to pollution), equipment wear and tear, employee burnout, product defects, and tied-up cash flow. Data shows that unsustainable practices are frequently associated with higher costs even if those costs don’t show up explicitly in financial statements. This reinforces the idea that green logistics is not just an ethical option, but a financially sound and operationally efficient long-term strategy.

This causal link strengthens the business case for green logistics: improving environmental performance is not only an ethical imperative it is a practical strategy to enhance long-term financial health and operational efficiency.

2. Green logistics: A new passport for businesses

2.1 How is Green Logistics Different from Traditional Logistics?

Green logistics also known as sustainable logistics is defined as a set of strategies and supply chain management approaches aimed at minimizing energy consumption and reducing the environmental impact of goods distribution.

Green logistics implementation process (Source: Internet)

The core goal of Green Logistics is to strike a balance between economic efficiency and environmental responsibility, based on the principles of 2E - 3R:

• Efficiency: Optimize the use of resources and energy across the entire supply chain to minimize waste and enhance operational efficiency.

• Environmentally Friendly: Apply green solutions in transportation, warehousing, and packaging to reduce negative environmental impacts and support sustainable development.

• Reduce: Minimize the use of raw materials, waste generation, and pollution such as CO₂ emissions and noise.

• Reuse: Extend the life cycle of products and materials without recycling, such as reusable packaging or refurbished goods.

• Recycle: Convert waste into new materials or products by selecting recyclable materials and implementing effective recycling programs.

Defining green logistics merely as using electric vehicles is far too narrow. A truly green logistics system must encompass the entire process from planning and operations to product return, recycling, or end-of-life treatment. This requires a comprehensive and systemic transformation across all supply chain functions, along with close collaboration between governments, businesses, and communities.

2.2 Why green logistics is no longer just the logistics industry's concern

Today, green logistics is no longer just a matter for the transportation sector it has become an essential part of the sustainable development strategy for most businesses involved in the supply chain, whether directly or indirectly. This shift is being driven by a powerful combination of pressures: increasingly stringent regulations, rising consumer expectations, and growing demands from investors and supply chain partners.

From a regulatory perspective, governments around the world are accelerating environmental policies such as carbon taxes, mandatory sustainability reporting, and Extended Producer Responsibility (EPR) schemes. These policies compel companies to account for environmental costs in their business operations. Studies show that regulatory pressure is one of the strongest drivers of green logistics adoption. Companies that lead in compliance not only mitigate legal risks but also transform compliance costs into long-term competitive advantages.

At the same time, consumers are increasingly prioritizing products with transparent origins and lower environmental impact. In fact, 73% are willing to change their consumption habits for the sake of the environment, and 88% are more loyal to sustainable brands.

Why move toward green transformation (Source: Internet)

At the same time, investors are placing increasing emphasis on ESG performance. According to a McKinsey study, companies with high ESG ratings outperformed the market average by 19.7% over five years. This has elevated ESG from a “nice-to-have” to a prerequisite for accessing capital and enhancing enterprise value.

Pressure from supply chain partners is also becoming more pronounced. Major corporations are now selecting suppliers based on sustainability performance and requiring transparency on greenhouse gas (GHG) emissions.

A company’s “green” reputation is the product of its entire supply chain not just its own actions. If any link in the chain be it a supplier, transportation provider, or manufacturing partner fails to meet sustainability standards, the company’s entire green transformation effort can be significantly undermined. This can damage brand image, trigger legal risks, reduce customer trust, and weaken investor confidence.

Moreover, market competition and technological advancements such as electric transport, digitalized supply chains, and renewable energy are making green logistics more feasible and cost-effective.

The convergence of these forces has created a “golden triangle” of pressure: regulation, customer expectations, and investor demands. Together, they are reshaping business strategies and compelling all companies to act or risk being left behind.

2.3 Green Logistics: Untapped practical benefits

Green logistics represents a dual-profit opportunity for businesses—not only helping protect the environment but also offering a pathway to reduced operating costs, easier access to markets and capital, and enhanced brand reputation.

2.3.1 Reducing direct operating costs

Implementing green logistics solutions not only contributes to environmental protection but also yields tangible financial benefits by reducing operational expenses across multiple areas.

First and foremost, optimizing transportation routes, using high-efficiency vehicles, and minimizing empty return trips are practical measures that significantly cut fuel costs. In Vietnam, up to 50% of trucks return empty after deliveries, highlighting a major opportunity to reduce transportation expenses through smarter logistics optimization.

In addition, implementing energy-saving technologies such as LED lighting, natural ventilation systems, and renewable energy sources (e.g., solar power) can help businesses reduce electricity costs by over 10%, while also cutting CO₂ emissions by up to 2,000 tons per year.

Moreover, using recycled packaging and minimizing warehouse waste reduces the amount of waste that needs to be treated, thereby lowering waste management and disposal costs.

A recent report shows that Vietnamese businesses adopting Industry 4.0 technologies in logistics have reduced logistics costs by an average of 23%. This clearly demonstrates that investing in green logistics is not merely an environmental action, but a smart financial strategy offering measurable returns on investment and debunking the myth that sustainability always comes at a cost.

The green logistics wave is not driven only by large corporations; it is also led by innovative startups. One example is NetZero Pallet, a startup supported by the Towards Zero Waste (TZW) accelerator program co-hosted by BambuUP. NetZero Pallet transforms agricultural waste such as coconut husks, rice husks, and coffee shells into sustainable pallets helping businesses cut costs, optimize storage space, and enhance supply chain efficiency. You can learn more about this solution [here].

2.2.2 Easier Market Entry and Export Expansion

Adopting green logistics not only helps businesses reduce costs but also serves as a strategic solution to overcome technical barriers and increasingly stringent environmental regulations in major export markets.

Mechanisms such as the EU and UK’s Carbon Border Adjustment Mechanism (CBAM), and the EU’s Packaging and Packaging Waste Regulation (PPWR), are imposing strict requirements on emissions and sustainability across the supply chain.
Failure to comply with these regulations could result in exclusion from global supply chains. Therefore, meeting green standards is quickly shifting from being a “competitive advantage” to becoming a “prerequisite for market access.”

For Vietnamese exporters, green logistics is increasingly becoming a “license to operate” in demanding markets such as the EU, the US, Japan, and South Korea. It is not only a ‘defensive’ strategy to protect existing market share but also an ‘offensive’ one to access new, high-value markets.

Green Logistics Market (Source: Internet)

Products with a “green passport” those that transparently demonstrate sustainability throughout the entire supply chain are increasingly favored by consumers and international buyers. This is especially critical as multinational corporations such as Unilever, Walmart, and IKEA are actively integrating sustainability standards into their supplier selection processes.

Businesses that fail to meet environmental, emissions, and traceability requirements will find it difficult to establish or maintain long-term strategic partnerships.

In this context, environmental performance is gradually becoming a key factor on par with cost and quality in supplier evaluations. Green logistics capabilities not only help businesses retain their position in global value chains, but also create opportunities to upgrade their role from low-tier suppliers to long-term strategic partners.

2.2.3 Enhancing Brand Reputation

As green consumer trends gain traction, 77% of businesses report that sustainability initiatives have increased customer loyalty. A brand image associated with sustainability not only drives immediate revenue but also builds long-term intangible assets such as trust and loyalty. These assets form a strong foundation that helps businesses retain market share and withstand competitive pressure something that competitors find difficult to replicate in the short term.

A prime example is Vinamilk, Vietnam’s leading dairy company, which has solidified its market position not only through product quality but also through a comprehensive sustainability strategy. This approach is embedded across all aspects of its operations from production and logistics to distribution.

Top 10 Most sustainable dairy brands globally (Source: Internet)

Although Vinamilk does not single out Green Logistics as a standalone communication strategy, its efforts in building a sustainable supply chain have played a key role in reinforcing its reputation and elevating brand perception both domestically and internationally.

This commitment goes beyond declarations Vinamilk is on a clear path toward Net Zero by 2050. The company has already translated this vision into concrete actions, including achieving carbon neutrality certification (PAS 2060) for two factories and one farm, along with implementing regular greenhouse gas inventories at 100% of its factories and farms.

Since 2013, all Vinamilk factories have adopted the ISO 50001 energy management system, aiming for at least 3% energy savings every five years. In 2023, the company reached an impressive 86% rate of green energy use, signaling a strong shift toward green production and resource efficiency. This not only reduces the carbon footprint of manufacturing but also significantly cuts emissions during transport and distribution, as products are made more energy-efficiently.

Vinamilk’s sustainable development strategy is also reflected in its end-to-end supply chain management from farm to consumer. Its “Green Farm” system meets Global GAP standards, ensuring environmental protection, animal welfare, and biodiversity conservation.

These ongoing efforts have brought Vinamilk substantial value, most notably in strengthening brand equity and credibility. According to Brand Finance, Vinamilk ranks among the Top 5 most sustainable dairy brands globally and leads the Vietnamese market, with high consumer awareness around its sustainability practices.

While Green Logistics may not be promoted as a separate initiative, Vinamilk’s integration of sustainability throughout the entire value chain has become a solid foundation for consumer trust and a key force aligning the brand with global green growth trends.

2.4 Which Sectors Face the Greatest Pressure to Transition to Green Logistics?

While green logistics offers benefits for all businesses, the urgency and scale of implementation vary significantly depending on the industry, operational scope, competitive pressures, and each organization’s sustainability strategy. There is no one-size-fits-all roadmap, every enterprise must design its own green logistics strategy based on its specific context and objectives.

Among the sectors leading this transition, retail and e-commerce are undergoing the most dramatic transformations, accounting for 30.8% of global green logistics revenue in 2024. The rapid rise of omnichannel commerce, combined with growing consumer expectations for sustainable supply chains, has placed considerable pressure on companies like Amazon and Walmart to invest heavily in electric and hydrogen-powered fleets, as well as warehouses powered by renewable energy.

In addition, the manufacturing sector is projected to experience the fastest growth within the green logistics market, driven by increasingly stringent requirements for energy efficiency and emissions reduction throughout the supply chain.

Green Logistics Market (Source: Internet)

In addition to the leading sectors, industries such as healthcare, automotive, banking, and financial services are also realizing tangible benefits from green logistics. As demand rises for precise delivery timelines, especially for sensitive goods like pharmaceuticals and electronics, low-emission transportation methods are increasingly prioritized.

In terms of scale, major corporations such as Amazon, Walmart, Maersk, FedEx, UPS, and DHL are at the forefront of the green logistics race. Backed by strong financial resources and under intense scrutiny from the public and shareholders, these companies are deploying a wide range of advanced technologies, including zero-emission vehicles and smart warehouse systems. For instance, DHL Group has pledged to invest around USD 7.5 billion (EUR 7 billion) to achieve carbon-neutral logistics by 2030.

Meanwhile, small and medium-sized enterprises (SMEs), despite initial cost barriers, can also reap long-term benefits. Solutions like route optimization, enhanced warehouse management, and the use of sustainable packaging can significantly reduce fuel, energy consumption, and waste management costs.

From a competitive and strategic standpoint, green logistics is becoming a top priority for businesses operating in fiercely competitive markets, where customers and partners increasingly favor companies committed to sustainability.

Notably, companies that have announced net-zero targets or are pursuing comprehensive ESG strategies such as Amazon, Walmart, and Alibaba view green logistics as an integral part of their long-term vision. Initiatives such as renewable-powered logistics centers and AI-powered route optimization are helping them move steadily toward their sustainability goals.

3. Practical roadmap for “Greening” logistics operations in businesses

Transitioning to green logistics doesn’t have to involve a massive or costly overhaul. Instead, companies can begin with small, practical steps that gradually build momentum and deliver visible success. Large-scale, abrupt changes often disrupt operations, increase error rates, and meet internal resistance. In contrast, a phased and adaptive approach tends to be more effective and sustainable.

3.1 Energy-Efficient and smart warehouse management

Warehousing is a vital part of the supply chain that can be “greened” to generate both environmental and economic benefits. Businesses should regularly monitor energy consumption in warehouses to identify inefficiencies and opportunities for improvement.

Replacing traditional lighting with LED systems and installing motion sensors can reduce energy costs by up to 80% while extending equipment lifespan. Solutions like thermal insulation, airtight industrial doors, HVLS fans, and smart HVAC systems can cut heating and cooling costs by as much as 26%.

Incorporating renewable energy, such as rooftop solar panels, can reduce dependence on the electricity grid by 20–50%. In parallel, adopting warehouse management systems (WMS), automation, IoT sensors, and automated picking technologies can optimize space utilization, reduce excess inventory, and lower overall energy consumption.

While certain solutions like solar panels or insulated doors require initial investment, studies show they result in long-term savings and operational efficiency. This underlines the importance of a strategic mindset: short-term costs should be evaluated across the entire asset lifecycle, where sustainability yields clear financial benefits.

Renewable energy in Green warehouse operations (Source: Internet)

Kennecott Utah Copper Refinery, a leading company in the mining and production sector, has achieved significant energy efficiency improvements at its refinery by installing an advanced combined heat and power (CHP) system.

This 6-megawatt system was designed to replace coal-powered electricity from the grid, supplying over half of the refinery’s total power needs. A key feature of this technology is its ability to recycle waste heat to generate steam for turbines, maximizing energy utilization.

These efforts have delivered clear environmental benefits, including a reduction of 36,000 tons of CO2 emissions, supporting the company’s broader sustainability goals.

3.2 A “Green Layer” for Products

• Reduce: Optimizing design and using lightweight materials helps reduce both raw material and transportation costs. For instance, Walmart has required its suppliers to optimize packaging weight and volume.

• Reuse: Reusable transport packaging, such as plastic crates or standardized wooden pallets, extends product life cycles and reduces waste.

• Recycle: Prioritizing recyclable materials (such as paper or cardboard) and designing packaging to be recycling-friendly has become a mandatory requirement in the supply chains of major corporations like Walmart.

Trends in green packaging consumption (Source: Internet)

Compliance with regulations such as the EU’s Packaging and Packaging Waste Regulation (PPWR) has become mandatory for exporters, compelling companies to invest in environmentally friendly materials like bioplastics, recycled cardboard, and plant-based alternatives made from corn, mushrooms, and natural fibers.

Beyond technical compliance, green packaging has evolved into a powerful brand communication tool. Consumers are increasingly prioritizing environmentally friendly packaging and are willing to pay more for products that use it. They also expect a reduction in unnecessary packaging.

Optimizing packaging involves an integrated approach across design, materials, and logistics. Compact and lightweight designs reduce transportation costs and fuel consumption. The use of reusable packaging and the implementation of waste management systems including sorting, recycling, and safe disposal not only cut long-term costs but also contribute to building a circular economy, replacing the traditional linear “produce - use - dispose” model.

This highlights that green packaging is not just a logistical detail, but a strategic lever where environmental, financial, and brand value converge.

Commitments and tangible actions from major corporations underscore this trend. For example, Unilever aims to ensure that by 2025, 100% of its plastic packaging will be reusable, recyclable, or compostable. Notably, since 2020, the company has achieved zero hazardous waste sent to landfill across all its global production sites.

In pursuit of similar sustainability goals, Walmart has updated its secondary packaging standards for 2025 through a “sustainability playbook,” focusing on design optimization, material innovation, and enhanced recyclability. The aim is to surpass the current consumer recycling rate of around 30%, with suppliers required to improve every aspect of packaging from size and structure to material to enhance recyclability and replace non-recyclable components with environmentally friendly alternatives.

On another front, Lego Vietnam stands out as a pioneer, becoming the first facility in the world to replace plastic pre-packed bags with paper-based alternatives part of its broader ambition to eliminate landfill-bound waste from all its factories.

3.3 Green Transport and Route Optimization

Transportation is the most impactful sector within green logistics. Businesses should prioritize the use of low-emission vehicles such as electric vehicles (EVs), hybrids, and those powered by alternative fuels like bioethanol, hydrogen, or synthetic fuels derived from CO₂.

In parallel, route optimization using AI and planning software can significantly reduce unnecessary mileage, conserve fuel, and cut emissions by up to 20%. Consolidating shipments, maximizing vehicle capacity, and minimizing empty runs offer dual benefits lower emissions and reduced operating costs.

Additionally, shifting from road transport to more energy-efficient modes such as rail and waterways (e.g., barges and ships) can substantially reduce environmental impact.

Green Logistics Solutions for Emissions Reduction

Optimizing routes and consolidating cargo loads not only lowers emissions but also directly reduces operational costs such as fuel, maintenance, and labor. This serves as a prime example of how “being green” can also mean being “lean.”

However, the pace of green transport adoption is still limited by infrastructure constraints, such as the availability of charging stations and refueling networks. This highlights that implementing green logistics is not solely the responsibility of businesses it also requires investment from governments and the private sector to build a supportive ecosystem.

It's not just logistics corporations many companies across various industries are also taking the lead in adopting green transportation. For example, Genentech, a biotechnology company, launched 10 electric shuttle buses (GenenBuses) in 2018 to transport employees at its San Francisco headquarters. The company is currently converting nearly half of its 60+ employee buses to electric, with a commitment to transition 100% of its 1,200-vehicle sales fleet to electric or plug-in hybrid vehicles by 2030.

In another sector, Wren Kitchens a leading kitchen manufacturer and retailer converted 94% of its heavy goods vehicle (HGV) fleet to run on HVO (Hydrotreated Vegetable Oil) after just a three-month trial. HVO is a renewable diesel alternative that can fully replace traditional diesel without requiring engine modifications and can reduce greenhouse gas emissions by up to 90%. Lee Holmes, Director of Transport and Logistics at Wren Kitchens, emphasized that adopting HVO marks a major milestone in the company’s sustainability roadmap and contributes to the government’s decarbonization goals.

3.4 Reverse logistics in the circular economy

Reverse logistics is a key pillar of Green Logistics and a core driver of the circular economy. Unlike traditional logistics, which focuses on one-way product flows, reverse logistics manages the flow of products from the point of consumption back to the point of origin in order to recover value or ensure sustainable disposal.

Reverse Logistics Model (Source: Internet)

 Core activities in reverse logistics include reuse, repair, refurbishment, recycling, and reselling of end-of-life or returned goods. These processes help extend product lifecycles, reduce reliance on raw materials, and minimize landfill waste delivering clear environmental benefits.

From an economic perspective, reverse logistics helps reduce waste management costs, recapture value from reusable materials, and create new revenue streams from refurbished goods.

More importantly, reverse logistics plays a central role in the shift from a linear model ("produce–use–dispose") to a circular economy where resources are reused and recycled continuously rather than depleted. It also redefines the traditional concept of a product “lifecycle” from a finite loop to one of “continuous value.” This transformation requires products to be designed for easy repair, disassembly, and recycling from the outset, thereby encouraging innovation in materials and sustainable business models.

While often perceived as a cost center, reverse logistics when executed effectively can become a strategic asset. It enables companies to save significantly on resource use and waste processing, while also enhancing competitive advantage. Organizations with strong reverse logistics capabilities can demonstrate superior resource management, attract environmentally conscious consumers, and turn returned goods into strategic value.

For instance, Pfizer, a global pharmaceutical leader, has shown a strong commitment to reverse logistics through its “Product Return Program.” This initiative allows healthcare providers and patients to return unused or expired medications for proper disposal. The program not only ensures patient safety but also supports Pfizer’s regulatory compliance and environmental responsibility.

3.5 Leveraging AI, IoT, and Big Data to Optimize Green Logistics

In previous sections, we explored concrete initiatives to "green" warehouses, packaging, transportation, and reverse logistics. However, to fully unlock the potential of these efforts and achieve comprehensive sustainability goals, the integration of advanced technologies is essential.

Artificial Intelligence (AI), the Internet of Things (IoT), Big Data, and Blockchain are becoming key "enablers," reshaping how emissions are reduced and efficiency is maximized across the supply chain.

• AI and machine learning support route optimization, demand forecasting, inventory optimization, and reduction of fuel costs and overproduction. When integrated into automated warehouses, AI and robotics also enhance operational efficiency and conserve energy. According to one survey, applying AI in logistics can reduce last-mile delivery costs by 14% and increase annual deliveries by 13%.
• IoT enables real-time monitoring from temperature and humidity in storage to route tracking helping cut energy usage and improve end-to-end supply chain visibility, which is essential for ESG compliance.
• Big Data analytics provide actionable insights to optimize operations and reduce emissions. Blockchain enhances transparency and traceability, supporting sustainable sourcing and ESG reporting.

Integrated digital platforms further enable synchronized, real-time monitoring and optimization of logistics activities, contributing to a smarter, greener, and more resilient supply chain.

AI in Sustainable Logistics (Source: Internet)

The ability of these technologies to collect, analyze, and report data on emissions, energy use, waste, and performance allows businesses to transform sustainability from a qualitative goal into quantifiable, auditable metrics. This is a critical enabler for ESG compliance and transparency, building investor trust and supporting continuous improvement.

Technology not only helps "green" the supply chain, but also fosters a smart green logistics ecosystem where data serves as a “certificate of value” that validates sustainability commitments, enhances transparency, and informs long-term strategic decisions.

3.6 Partnerships and internal awareness for Green Logistics

For green logistics to be effective and sustainable, collaboration and internal awareness are essential. Businesses must proactively partner with suppliers who prioritize environmentally friendly materials and ethical production practices. This includes setting shared environmental goals, exchanging green technologies and methods, and jointly reducing waste and measuring impact across the supply chain.

Raising internal awareness and providing training are also critical for cultivating a sustainability-conscious workforce. Training programs focused on green practices highlighting benefits for both the business and the environment can strengthen commitment among employees, partners, and communities.

Building strong partnerships and engaging all stakeholders employees, customers, investors, local communities, and governments fosters a sustainability culture and secures alignment around green initiatives. Transparent communication of sustainability efforts through CSR reports, third-party certifications, and environmental programs is key to enhancing credibility and trust.

Moreover, close collaboration between governments, businesses, and communities provides the foundation for a supportive environment and the achievement of broad sustainability goals.

Green logistics cannot thrive in isolation it requires an ecosystem approach, where sustainability is embedded across the entire value chain, from raw materials to end consumers. This demands that businesses cultivate a culture of shared responsibility and mutual benefit with partners.

Successful implementation of green logistics also depends on strong leadership that can clearly articulate benefits, weigh costs, and build both internal and external support networks. Human factors and organizational culture are just as important as technological investments. Leaders must champion cultural change and transform resistance into collective commitment by demonstrating long-term value and fostering a shared sense of purpose.

Adidas, the globally recognized sportswear brand, exemplifies a strong commitment to sustainability especially in waste management and circular product design. One of its standout initiatives is the partnership with Parley for the Oceans, through which it develops footwear made from recycled ocean plastics.

From plastic waste to product: The journey of an Adidas x Parley Item

 (Source: Internet)

This initiative is not only aimed at environmentally conscious consumers but also reflects Adidas's broader commitment to reducing its contribution to global waste. Since 1998, Adidas has focused on responsible sourcing throughout its global supply chain and has spent years working to minimize its environmental footprint.

4. Conclusion

Green logistics is no longer optional it is a prerequisite. Those slow to adapt risk losing market opportunities and, in some cases, being excluded from global supply chains altogether.

Embracing green logistics offers a dual advantage: it reduces operational costs while enhancing access to demanding markets. In an era of increasingly stringent international regulations, growing consumer preference for eco-friendly products, and intensifying competition, transitioning to green logistics is not just advisable it is a strategic imperative.

Businesses must begin now, with tangible and practical actions. Green logistics is the key to expanding market reach and achieving long-term sustainable growth.