How the Future of Supply Chains can be Truly Sustainable

As companies worldwide grapple with Scope 3 reduction targets on the road to net zero, green logistics are becoming increasingly crucial. 

McKinsey estimates that demand for green logistics in 2025 will reach approximately US$50bn, comprising roughly 2% of overall logistics spend, and US$350bn (15%) by 2030.

Green logistics encompasses a comprehensive approach to reducing the environmental footprint of logistics activities, including transportation, warehousing, packaging and distribution.

It integrates environmentally-conscious technologies and practices to balance economic performance with ecological responsibility. The ultimate goal is to create supply chains that are not only efficient but also sustainable, reducing greenhouse gas emissions, energy consumption and waste generation throughout the product lifecycle.

Read the full story in the August 2025 edition of Sustainability Magazine.

Making transportation more sustainable

Transportation remains the largest contributor to emissions within logistics, accounting for a significant share of global greenhouse gases. Consequently, green logistics strategies prioritise transitioning to cleaner transport modes and optimising routes to reduce fuel consumption.

Every day, Amazon’s 1.5 million-strong workforce ships and delivers approximately 1.6 million packages around the world. Each of these has an impact on the environment, from packaging to transportation and delivery.

"Decarbonising our transport network is key to helping us achieve our goal of reaching net zero carbon emissions across our operations by 2040,” explains Nicola Fyfe, EU VP of Amazon Logistics.

At the start of 2025, Amazon celebrated one billion packages delivered by an EV in the US, as Chief Sustainability Officer Kara Hurst explains. 

"It couldn't have happened without the incredible delivery associates and more than 20,000 electric vans now delivering to customers in thousands of cities from coast to coast," she celebrated. 

"Our one billionth delivery didn't arrive with a big red bow, so the customer probably didn't know the difference. But, that's the point. We want every customer to experience reliable and fast delivery, regardless of the changes we're making behind the scenes.

"Every new EV signals an important shift and we're on our way to hitting our goal of at least 100,000 electric delivery vans on the road by 2030."

In addition to contributing up to 90% less greenhouse gas emissions than their ICE counterparts, EVs can cut down fuel expenses by up to 80% and offer up to 70% lower maintenance costs.

Warehouse optimisation

Beyond transportation, warehousing represents a substantial opportunity for reducing environmental impact. Sustainable warehouses integrate energy-efficient designs, renewable energy sources and smart technologies to minimise waste and energy use.

With no fewer than 255 million customers visiting its stores every single week, Walmart must ensure its vast operations run as smoothly as possible.

It's why the retail giant is prioritising high-tech consolidation centres and warehouses within its supply chain infrastructure.

“We’ve made continued investments in our people, facilities and technology to ensure we have the right product, in the right place, at the right time,” says Mike Gray, Senior VP of Ambient Operations at Walmart.

Walmart's consolidation centres are crucial when it comes to moving products quickly along their journey to store shelves and to customers. Each has the capacity to receive general merchandise items from suppliers in smaller freight loads, known in the industry as less-than-truckload (LTL), and consolidate them into larger freight loads known as truckloads (TL). Products are then shipped to one of Walmart’s 42 regional distribution centres, sorted and sent to stores.

Packaging innovation and waste reduction

Packaging waste represents a significant environmental challenge in logistics, particularly with the growth of e-commerce. 

In response, many companies are adopting sustainable packaging materials, reducing excess packaging and promoting recycling and reuse.

When it comes to packaging, Unilever has a three-pronged approach: 

• Reduction – using less virgin plastic
• Circulation – more recyclable, reusable, compostable packaging
• Collaboration – a collective effort on plastic

The consumer goods giant – which looks after around 400 brands, including Dove, Knorr and Hellmann's – has enjoyed impressive results, reducing its use of virgin plastic by 23% since 2019. More than a fifth (21%) of its global product portfolio now uses recycled plastic.

Unilever is also a key advocate for the Global Plastics Treaty. It’s hoped the treaty will be finalised in 2025 after interested parties failed to reach an agreement last year. 

Rebecca Marmot, Chief Sustainability Officer at Unilever, said: "We were hoping — and have worked extensively — for an international legally binding instrument that would harmonise the policy landscape, strengthen national legislation and help businesses scale proven solutions for priority sectors, such as packaging.”

Leveraging technology for real-time visibility and efficiency

Elsewhere, advanced technologies such as AI, the Internet of Things (IoT) and cloud-based platforms are revolutionising logistics by providing real-time data and analytics to optimise supply chain operations.

"You can't predict disruption, but what you can do is be set up and work with a partner like Coupa who can help you react quickly," explains Bill Wardwell, General Manager and SVP of Payments, Treasury and Supplier Services at Coupa.

"It's all about how you react and react quickly. The tech we provide at Coupa makes customers both faster and better."

Coupa offers a multiagent AI portfolio of solutions packed full of new innovations that will enhance decision-making, streamline processes and boost productivity – giving teams more time for strategic work – along with powering faster insights and better outcomes.

"Coupa is transforming global trade by using multiagent AI capabilities to dynamically and autonomously match the needs of buyers and suppliers,” says Salvatore Lombardo, Coupa’s Chief Product and Technology Officer.

“Agentic AI will redefine our user experience, unlocking insights and amazing customer outcomes.”

The future of green logistics

Logistics is undoubtedly heading toward increasingly sophisticated, integrated and scalable solutions. Emerging technologies such as autonomous electric delivery vehicles, drone deliveries and blockchain for supply chain transparency promise to further enhance sustainability.

As companies continue to innovate, the alignment of sustainability with business strategy becomes more pronounced. Leaders across industries recognise that green logistics is not only an environmental imperative but also a driver of competitive advantage, customer loyalty and regulatory compliance.

As Rebecca says, “the sustainability landscape has changed”.

She adds: “Tackling complex challenges requires innovation, collaboration beyond our own value chains and aligning business growth with government priorities to build resilient, future-fit businesses and economies.”

Read the full story in the August 2025 edition of Sustainability Magazine.