SUSTAINABILITY & HUMANITARIAN GOALS IN SUPPLY CHAINS

Today's businesses increasingly recognise that their supply chains must not only be efficient and profitable, but also sustainable and ethically sound. This shift is fundamentally transforming how global commerce operates.

This chapter explores the critical intersection of sustainability and humanitarian goals within supply chain management, examining how these imperatives are reshaping industry practices from end to end.

We will look at the many ways companies are integrating decarbonisation strategies into their supply chain and logistics.

From greener fuels in shipping, and electric and biofuel-powered machinery at ports and terminals, to raising the temperature of the global cold supply chain by 3 degrees.

Meanwhile, Anna Craven, Engagement and Community Specialist at DP World Australia, explains how our project to plant a piece of coral for every DP World employee in Oceania is supporting the work of the Reef Restoration Foundation to protect the Great Barrier Reef.

By aligning operations with environmental and social objectives, businesses aren't just reducing their ecological footprints – they're driving innovation, gaining competitive advantages and fostering a more equitable global economy for the 21st century.

SUSTAINABILITY & HUMANITARIAN GOALS IN SUPPLY CHAINS

THE ROLE OF LOGISTICS IN ACHIEVING FUTURE CLIMATE GOALS – IN APAC AND BEYOND

The logistics sector, a significant emitter of CO₂, has a crucial role to play in global decarbonisation efforts – here's how we're working to reduce emissions.

The challenge of decarbonising the global logistics industry is becoming increasingly urgent as international efforts to phase out fossil fuels intensify. Achieving the goal of limiting global warming to 1.5°C will require a 43% reduction in global greenhouse gas emissions by 2030, compared to 2019 levels.

Our industry has a huge opportunity to make a significant contribution to the carbon reductions required.

According to the International Organization for Standardization, the logistics and transport sector is responsible for over a third of global carbon dioxide (CO₂) emissions, making it the biggest emitting sector in a number of developed countries. Meanwhile, recent statistics suggest that transport emissions are surging, particularly in Asia, largely driven by road transport.

Delivering on the carbon reduction potential will require emissions cuts across the entire supply chain ecosystem. This article explores some promising emission reduction options.

Does your company have a formal emissions reduction plan in place?

Yes – we have had one in place for more than two years
Yes – we have adopted one in the past 24 months
No – but we are in the process of creating one
No – this is not a business priority currently

PARTNERSHIPS FOR PROGRESS

Decarbonising global logistics presents the industry with a challenge so huge it can feel overwhelming. We’ll need a new mindset where rival businesses come together to overcome the many questions and obstacles encountered along the way. In a process where certainties are in short supply, the one thing we can agree on is that no company can do this alone.

We are working to form new partnerships and a whole-ecosystem approach that will transform our industry into one that connects continents and communities while protecting the planet. Several recent initiatives have set the stage for deepening partnerships, with decarbonisation as the key outcome.

As a fast-moving and vibrant region, many of these partnerships are being driven from Asia Pacific (APAC). For example, as part of our commitment to be carbon neutral by 2040, we are already working with partners to introduce greener fuels into the shipping industry.

Our partnership with Singapore-based Pacific International Lines (PIL) sees ships powered by a biofuel blend operating between Jebel Ali in Dubai and destinations along PIL’s routes.

The trial also includes biofuel bunkering and port operations such as container handling by machines running on renewable energy. We recognise that trials like this are currently at a small scale, but they are helping us identify which innovations to scale up for the greatest impact.

FUELLING GREEN LOGISTICS

Beyond APAC, the biofuel we’re using in our partnership with PIL is just one in a range of alternative fuels being developed for the global shipping fleet. Unifeeder Group, a subsidiary of DP World, will begin operating container vessels powered by methanol in 2026.

Ammonia is another promising fuel being tested in ocean vessels. A cross-sector collaboration between a leading fertiliser company and shipping operators will see the world’s first ammonia-powered container ship make its maiden voyage in 2026.

The Yara Eyde will operate between Norway and Germany, providing an almost emissions-free service to cargo owners.

DID YOU KNOW?

Ammonia is a carbon-free fuel, making it a key solution for reducing emissions in the shipping industry.

DECARBONISING LOGISTICS ECOSYSTEMS

Alternative fuels will play an increasing role in decarbonising global supply chains alongside a raft of innovations at sea and on land. The industry must come together to challenge long-held assumptions as we seek out opportunities for creating low-carbon economies.

One example is the approach to shipping frozen food products. For decades, frozen goods have been transported at -18°C, a standard temperature adopted almost a century ago.

We questioned this and discovered that -15°C is quite cold enough to protect frozen food products.

We are now urging our ecosystem partners to join our “Move To -15°C”. By raising the temperature of the global cold supply chain by 3°C, the industry could cut annual carbon emissions by 17.7 million tonnes a year. That’s the equivalent of taking 3.8 million cars off the road annually.

Likewise, the loading and unloading of ships and trucks in ports is another area where the industry can make significant reductions in carbon emissions. Increasingly, port operators are switching from diesel-powered vehicles and cranes to machinery powered by biofuels and electricity.

By raising the temperature of the global cold supply chain by 3°C, the industry could cut annual carbon emissions by 17.7 million tonnes a year."

GREENING THE ONWARD SUPPLY CHAIN

While shipping and port operations offer major carbon reduction opportunities, we must recognise that the industry’s challenge exists across every mode of the logistics value chain.

Leveraging new technologies is enabling us to reconfigure supply chains and introduce vital efficiencies, notably in APAC, where we now have more than 50 freight-forwarding offices across the region.

Our Batangas container terminal in the Philippines has deployed smart logistics tools, including an automated gate system, to boost operational efficiency making the port's processes more sustainable.

Again, switching up our own customs and practices can reap rewards. The port of Valencia in Spain has cut carbon emissions by more than 30% with a multimodal approach that shifts containers from trucks onto trains.

We’ve invested heavily in rail in India, where our operations in Gujarat have become a significant part of the state’s growth story. Our rail terminal at Hazira can handle 36,000 containers annually, while the inland rail terminal in Ahmedabad operates a double-stack train service to increase the number of containers that can be hauled in a single rail journey.

DID YOU KNOW?

At Yennora Intermodal Terminal in Australia, our port-rail service transports 160,000 20-foot cargo shipping containers each year, along a dedicated line to and from Botany Bay. That saves the equivalent of around 160 truck trips each day.

The last mile will always create a demand for trucks, so we must focus on moving away from polluting diesel to cleaner fuels. Electric trucks have the potential to replace last-mile delivery vehicles in congested cities, but hydrogen fuel-cell technology will likely emerge as the fuel of the future for long-haul heavy goods vehicles.

DELIVERING ON GREEN COMMITMENTS

The logistics industry is embarking on a transformative journey that will establish the green supply chains of the future. Our licence to operate depends on delivering our share of the carbon reductions the world needs to avoid the worst effects of climate change. Only by working together across entire ecosystems can we fulfil our obligations to the planet and the communities we operate in.

SUSTAINABILITY & HUMANITARIAN GOALS IN SUPPLY CHAINS

HOW DP WORLD’S CORAL RESTORATION PARTNERSHIP IS MAKING WAVES IN SUSTAINABILITY

“There was life in the reef after 18 months, where originally there had been nothing,” recalls Mark Ratcliffe, Vice President of People for DP World's Oceania cluster, reflecting on a partnership project to restore sections of Australia’s Great Barrier Reef.

Coral reefs worldwide have suffered multiple mass-bleaching events over recent decades as climate change increases ocean temperatures. Without urgent action to curb greenhouse gas emissions, scientists warn we could lose over 90% of our coral reefs by 2050. So there’s never been a more important time to align global trade with responsible environmental management.

Mark Ratcliffe is at the forefront of our sustainability journey, fostering employee engagement and community impact across operations.

At DP World in Australia, we are making great strides in supporting environmental stewardship in ways that extend far beyond our core logistics and supply chain operations. Our commitment to sustainability includes partnering with the Reef Restoration Foundation (RRF) since 2022 to help restore the Great Barrier Reef, a critical ecosystem for Australia, the Asia Pacific (APAC) region and the world.

SEA: THE LIFEBLOOD OF OCEANIA

While proud of DP World’s growing commitment to fostering sustainable partnerships throughout APAC, given the importance of the ocean to its operations, the RRF’s Barrier Reef Recovery Programme is particularly close to Ratcliffe’s heart.

Initiatives such as these are an important part of our drive towards sustainable water practices. DP World’s “source to sea” approach to water management, both within the company and beyond, acknowledges the interconnectedness of bodies of water and the need for consolidated efforts across the entire water cycle.

The RRF establishes coral nurseries, where healthy coral fragments are reintroduced to degraded reef sections, promoting resilience and accelerating natural regeneration processes. And it’s working.

I remember getting a call from Ryan Donnelly, the CEO of RRF, saying that actual fish are swimming in and around where the area had been bleached."

DP World’s support has enabled the foundation to plant coral deeper underwater, a necessary development given the increasing challenges posed by rising water temperatures and bleaching events, Ratcliffe says. It’s also helping them set up a remote office and education centre on nearby Fitzroy Island, significantly reducing travel time between RRF’s main lab and the reef planting sites.

DELIVERING ON KEY COMMITMENTS

Working with local communities and environmental organisations on projects like this is not only bolstering conservation efforts, explains Ratcliffe, but also inspiring a more engaged and environmentally conscious culture internally at DP World.

Collaboration is key, he says, adding that he’s always looking for ways to build relationships between DP World, and local businesses and groups – to the benefit of all parties – as part of the “Our World Our Future” sustainability strategy.

Ratcliffe’s colleague Anna Craven, Engagement and Community Specialist at DP World Australia agrees, emphasising the ripple effect of these efforts.

“Communities are not only your neighbours, but they are also your families and co-workers in your workplace,” she says.

“When you invest in your community, everyone wants to do better, it becomes something bigger. The goodwill becomes contagious.”

Relevance of these initiatives to DP World’s three legacy sustainability pillars – Women, Education and Water[1] – is critical. As Ratcliffe stresses, the work we do must feed into, and improve the issues, resources and lives of the people at the heart of them.

ACTION ACROSS THE REGION

Other DP World initiatives he has been involved in include ‘Roots and Shoots’, which empowers young people around the world to make positive change. Part of this involved supporting the Jane Goodall Institute by covering freight-forwarding costs, and helping to expand its conservation-based educational programmes across Australia, New Zealand and the South Pacific.

Ratcliffe has also supported our partnership with LiteHaus International, based in Townsville, which helps bridge the region’s digital divide by repurposing old computers and providing them to students in Papua New Guinea, the Philippines, Fiji, Samoa and regional Australia, promoting digital education and opportunity.

The project not only provides underserved APAC communities with access to essential technology but also helps reduce e-waste by diverting it from landfills.

In areas with limited hygiene and other facilities, girls often drop out of school at alarming rates, he explains. But computer access enables them to learn from home, improving their prospects.

These partnerships are about so much more than just donating, he says – it's about actively collaborating to make a tangible difference.

We've got old IT gear that ends up getting sent away to be recycled… but knowing that it's been redeployed to a good home, and might see life for another five years and make a meaningful change to a young girl’s life, that's the really positive stuff you want to be involved in."