Walmart, Amazon & FedEx: Sustainable Fleet Management
As concerns over global emissions peak, businesses and governments are pivoting towards sustainable fleet management as a critical strategy. Integrating eco-friendly vehicles and refining fuel efficiency not only reduces greenhouse gas emissions but also trims down operational costs.
Additionally, it boosts public perception and aligns with the increasing regulatory demands aimed at reducing carbon footprints.
Employing sustainable fleets that comprise electric, hybrid and alternative fuel vehicles fosters cleaner air quality, conserves natural resources and assists organisations in achieving their short and long-term environmental objectives.
Ever-developing technology and enhanced infrastructure make the adoption of sustainable fleets more feasible and impactful. This shift not only fosters long-term environmental stewardship but also promotes operational efficiency and resilience in the transportation sector.
With this backdrop, Sustainability Magazine and Supply Chain Digital cast a spotlight on some of the trailblazing companies in sustainable fleet management.
Siemens
Siemens boasts a revenue of US$83.1bn and a global workforce of 320,000. Since its inception in 1847, and now under the leadership of CEO Roland Busch, Siemens has made a commitment to electrify its entire vehicle fleet and establish a reliable charging infrastructure by 2030. This ambitious plan targets a 90% emission reduction from 2019 levels.
In 2021, Siemens pledged its support to the Climate Group’s EV100 initiative, vowing to convert all its sub-3.5-tonne vehicles to electric and ensure that 50% of its 3.5 to 7.5-tonne vehicles are electrified by 2030. This commitment also includes significant investments in charging infrastructure at Siemens locations.
Schneider Electric
Founded in 1836, Schneider Electric has US$38.7bn revenue and 150,000 employees globally, steered by CEO Olivier Blum. The core ethos of Schneider Electric revolves around sustainability, aiming for net-zero emissions by 2030.
The company is on track to electrify 14,000 vehicles worldwide by 2025, including 1,200 vehicles in the UK.
"Sustainability is at the heart of everything we do and, everyday, our employees have a crucial role to play in positively impacting climate," says David Hall, Vice President, Power Systems at Schneider Electric.
IKEA
With revenue of US$50.4bn and 219,000 employees, IKEA, led by CEO Jesper Brodin of the Ingka Group, charts a bold course towards achieving zero-emission deliveries by 2025.
Since 2017, the furniture titan has successfully doubled its EV fleet yearly, except for FY22.
IKEA has set precise emission reduction targets for its delivery fleet, adopted appropriate technologies and engaged deeply with local communities and authorities to foster environments conducive to zero-emission logistics. The company also maintains rigorous monitoring and transparency in reporting its sustainability progress.
DHL
DHL boasts a revenue of US$87.5bn with a massive employee base of 594,000, under the leadership of CEO Tobias Meyer. The company is dynamically enhancing its fleet by integrating electric vehicles and exploring alternative drive systems.
Presently, DHL operates around 30,000 electric vehicles globally and targets that by 2030, 60% of its pickups and deliveries will be conducted via EVs.
"Every major DHL region worldwide now operates electric vehicles in the last mile," says Ben Gesing, Director of Global Ground Operations at DHL Express.
"It’s truly an exciting time for all involved in ground operations and fleets."
UPS
UPS, with a revenue of US$91bn and a workforce of 500,000, has been a pioneer in the EV movement since the 1930s. CEO Carol B. Tomé guides the company through innovative transformations in its network, focusing on electric ground vehicles and eco-friendly facilities.
In 2022, UPS dramatically escalated the electrification of its fleet in China, ensuring almost all deliveries in Beijing and Xi’an were carried out by electric vehicles. By 2025, the company aims for 40% of its ground operation vehicles to utilise alternative fuels.
PepsiCo
PepsiCo, founded in 1965 and now led by CEO Ramon Laguarta, has grown into a global food and beverage giant with US$91.5bn in revenue and a workforce of 318,000 employees. The company is making significant strides in sustainability, particularly through its innovative approach to reducing greenhouse gas emissions in its transportation operations.
A prime example of this commitment is the company's increasing adoption of hydrotreated vegetable oil (HVO) diesel across its supply chain. This initiative is particularly visible in the UK, where PepsiCo is transforming the distribution of its popular Walkers crisps brand.
The company has implemented HVO-powered trucks to transport Walkers products from its Leicester distribution centre in the East Midlands to retailers nationwide. This strategic shift is projected to yield impressive environmental benefits, with an anticipated reduction of 13,000 tonnes in greenhouse gas emissions by the end of 2024 compared to conventional diesel usage over the same routes.
Walmart
Walmart, established in 1962 and currently led by CEO Doug McMillon, stands as one of the world's largest retailers with annual revenue of US$648bn and a massive workforce of 2.1 million employees.
The company has positioned itself at the forefront of sustainable transportation, setting an ambitious target to achieve zero emissions across its entire fleet by 2040, including all long-haul trucks in the United States and Canada.
The retailer's commitment to sustainability is backed by a proven track record of success. Between 2005 and 2015, Walmart achieved a remarkable milestone by doubling the efficiency of its truck fleet.
To reach its zero-emissions goal, the company maintains active collaborations with various stakeholders, including equipment manufacturers, policymakers, utilities and transportation working groups.
Walmart's leadership in sustainable transportation is further demonstrated through Project Gigaton, a comprehensive initiative aimed at reducing or avoiding one billion metric tons of greenhouse gas emissions from the global value chain by 2030. Through this project, Walmart extends its influence beyond its own operations by encouraging suppliers to establish and pursue their own meaningful sustainability targets, creating a ripple effect of positive environmental change throughout the industry.
Amazon
Amazon, founded in 1994 and now led by CEO Andy Jassy, has grown into a global e-commerce powerhouse with US$576bn in revenue and a workforce of over 1.5 million employees. The company has made decarbonising transportation a core priority, pursuing this goal through a multi-faceted approach that combines increased fleet efficiency, adoption of lower-carbon fuels and deployment of electric and alternative-fuel vehicles.
The company's commitment to sustainable transportation extends beyond its own operations, as it actively works to influence industry-wide change. Amazon engages with policymakers and key decision-makers to promote regulations and legislation that support transportation decarbonization efforts. Its dedication to this cause is backed by significant achievements and investments, including the delivery of 680 million packages by electric vehicles globally.
Amazon's commitment to sustainable transportation is further demonstrated by its substantial financial investments, including a €1 billion (US$1.07bn) commitment to double its European zero-tailpipe-emissions delivery fleet over the next five years.
Perhaps most notably, the company has placed the largest-ever order of its kind: 100,000 custom electric delivery vehicles from Rivian, marking a historic step forward in the electrification of commercial transportation.
XPO Logistics
XPO Logistics, founded in 2000 and currently led by CEO Mario Harik, has established itself as a major force in the logistics industry with annual revenue of US$7.7 billion and 39,000 employees.
As one of North America's largest providers of asset-based Less-Than-Load (LTL) freight transportation, the company has built an extensive network spanning 550 locations to serve approximately 50,000 customers with comprehensive supply chain solutions, including last-mile delivery and global forwarding services across both North America and Europe.
The company's commitment to sustainability is evident through its wide-ranging initiatives to reduce its carbon footprint, encompassing everything from sophisticated fleet management and route optimisation to enhanced facility energy efficiency. In a recent demonstration of this commitment, XPO has begun implementing hydrotreated vegetable oil (HVO) and electric-powered vehicles within its 4PL and transport control tower operations.
This strategic move was particularly endorsed by Paul Hayes, Director of Asset Light Solutions at XPO Logistics Europe, who characterised it as a "leap forward for our customers."
FedEx
FedEx, established in 1971 and currently led by CEO Raj Subramaniam, operates as a global shipping giant with US$87.7bn in revenue and a workforce exceeding 500,000 employees. The company has launched comprehensive sustainability initiatives that span multiple fronts, including widespread adoption of renewable energy in its facilities, electrification of its delivery fleet and investment in research exploring natural carbon capture methods for the transportation sector.
Throughout 2024, FedEx has significantly expanded its green vehicle fleet globally. The company has introduced electric vehicles and zero-emission motorcycles across multiple continents, with deployments in Brazil, Canada, Chile, Spain, the UK, the Netherlands and the UAE. A notable milestone in their electrification journey occurred in February when FedEx Express achieved a groundbreaking feat: the first-ever cross-border package delivery between Malaysia and Singapore using an electric vehicle.
This historic delivery was completed on a single charge in Johor and demonstrated impressive environmental benefits, reducing tailpipe CO2 emissions by 100kg compared to traditional diesel-powered vans.
These initiatives align with FedEx's ambitious environmental goal of achieving carbon neutrality in its operations by 2040, demonstrating the company's concrete commitment to sustainable transportation solutions.
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