Economy

Markets

Industries

Insights

Reports

Events

DHL introduces GoGreen service to China

(China Daily)
Updated: 2008-06-30 11:27

There's a new way to minimize the environmental impact of shipping goods around the world.

DHL, the German express and logistics company, will introduce its GoGreen Express service in 17 countries across the Asia-Pacific region this year. The service is created for customers who are looking for an eco-friendly shipping option. In China, the carbon-neutral service will begin in July.

A first in the logistics industry, DHL calculates the carbon emissions generated by transporting each specific customer shipment from the country of origin to destination, and offsets these emissions by reinvesting in certified carbon management programs such as alternative fuel vehicle technology, solar panels and reforestation projects.

These projects have been identified via DHL's dedicated carbon management function, with an aim to compensate for the emissions generated when transporting shipments across the globe.

Customers have the option to choose the GoGreen service when ordering international express shipments and pay a 3 percent "green premium" on top of standard delivery charges to ship "carbon neutral".

This money will go to the carbon management programs. The program is annually verified by an external certifying body, the Swiss based Societe Generale de Surveillance. Customers then receive an annual certificate from DHL stating the total amount of CO2, which was offset on their behalf during the year.

The GoGreen Express service was first launched in January 2007 in Europe at the World Economic Forum in Davos to help the forum achieve its carbon neutral commitment. Participants at the meeting were provided with the opportunity to ship event materials via the carbon-neutral package delivery service.

In addition to that, DHL is also stepping up its use of low emission and energy efficient vehicles for its pick-up and delivery services in China.

DHL-Sinotrans, a 50-50 joint venture between DHL and China National Foreign Trade Transportation (Group) Corp, has bought 43 delivery vans that meet the stringent Europe IV emission standard.

Over the past two decades, DHL-Sinotrans has developed the largest network of international express delivery firms in China by covering more than 400 cities. It operates over 1,800 vehicles.

"Our target is to change all our vehicles in China- to meet the Europe IV standard in three years," says Jerry Hsu, DHL Express' Greater China president.

"We are excited to be the first international logistics and express company to bring the carbon-neutral service to China. It shows our commitment to sustainable development in China, where the government has placed environmental protection and emission reduction high on its agenda."

China is one of DHL's fastest growing markets by contributing 25 percent of its revenues in Asia Pacific and 10 percent of the global sales. DHL maintained annual growth rate of 35-45 percent in China in the past years.

At the beginning of 2007 DHL announced it would invest $110 million in China in the next few years to maintain its leading position in the country and to capitalize on the continued trade growth.

It also plans to build its North Asia express transferring hub at Shanghai Pudong International Airport. The hub, scheduled to be completed in the second half of 2010, will serve China and the North Asia region, which will contribute 30 percent of the global express volume by 2015.

The GoGreen Express service is part of a series of environmental protection initiatives by DHL. The company has set strict targets for reducing emissions per package sent, tons transported and square meters of real estate used by 10 percent by 2012 and by 30 percent by 2020, as compared to 2007 levels. DHL is the first express and logistics company to set specific carbon efficiency targets.

DHL plans to adopt a range of initiatives to achieve the targets. For example, it will replace 90 percent of its air fleet with more fuel-efficient aircraft by 2020. It plans to cut CO2 emissions of its ground fleet through the use of cleaner technologies. It will also improve its energy efficiency in its real estate assets, such as hubs, warehouses and offices.

In India, DHL is operating over 200 compressed natural gas vehicles. In Japan, it is encouraging "green logistics" through a combined use of hybrid vehicles, fuel-cell cars and bicycles in its operation network.

DHL is not alone. Its US rivals, FedEx and UPS, are also trying to green up their fleets.

FedEx operates over 170 hybrid vehicles around the world. UPS announced in May that it had ordered 200 hybrid electric vehicles, the largest commercial order of such trucks by any company, in addition to another 300 compressed natural gas vehicles for its US delivery fleet.