DHL Supply Chain has made a significant stride in its sustainability efforts by integrating hydrotreated vegetable oil (HVO) fuel across its UK fueling stations, marking a major shift from diesel to a more eco-friendly alternative. This move has seen the company distribute over 6 million tonnes of HVO fuel to its operations, initiating a transition in 20 locations throughout the UK. This initiative is a part of DHL’s broader commitment to reducing its carbon footprint and enhancing the sustainability of its logistics operations.
The logistics giant is now set to evaluate the efficiency and performance of HVO within its fleet, alongside expanding the availability of this green fuel by installing additional fuel bunkers across its network in 2024. This expansion is expected to increase DHL’s HVO fuel usage to over 24 million litres. The company anticipates this switch to HVO will result in a dramatic 80-90% reduction in carbon emissions compared to traditional diesel, with an estimated 15,000 tonnes of carbon dioxide equivalent (CO2e) savings.
HVO fuel, produced from renewable sources like waste cooking oils and food manufacturing waste, offers a sustainable alternative that can be used in existing diesel engines without any modifications. This compatibility underscores HVO’s potential to facilitate a seamless transition to lower-carbon fuels without necessitating significant reinvestment in new vehicles or infrastructure.
This initiative is part of DHL’s comprehensive Green Transport Policy, launched with the aim of setting a global benchmark for adopting the most suitable green alternatives in different markets. The company’s dedication to this cause is further evidenced by its substantial investment of approximately €200 million in alternative technologies and fuels. These efforts are projected to cut nearly 300,000 tons of CO2 emissions over the next three years, in collaboration with its customers. For instance, DHL’s introduction of eight bio-LNG trucks for Aston Martin logistics operations is expected to reduce carbon emissions by about 800 tonnes annually.
Furthermore, DHL’s partnership with Jaguar Land Rover (JLR) is another testament to its commitment to sustainability. The extended freight services contract with JLR includes a significant sustainability component, with DHL transitioning its entire UK core fleet involved in JLR operations to alternative fuels by April 2024. JLR is also adopting alternative fuels for its own UK fleet, aligning with its Science Based Targets initiative (SBTi) to significantly reduce its carbon emissions by 2030.
These initiatives underscore the logistics sector’s evolving focus on sustainability and the critical role of alternative fuels like HVO in achieving significant environmental benefits. With companies like DHL leading the way, the transition to greener logistics practices is set to accelerate, contributing to broader efforts to combat climate change and reduce the environmental impact of global supply chains.