How to secure both profitability and sustainability in logistics

Adapting to sustainability in logistics 

Investing in sustainability has become more essential than ever for the long-term success of logistics operations, whether your company is the one doing the transporting or your business works closely with a logistics partner to deliver services or products. Whilst it may seem like a daunting task initially, government bodies around the world are mounting increasing pressure for fleets to go green where possible – freight transport is one of the largest contributors to global CO₂ emissions after passenger vehicles, and businesses must act quickly to ensure their operations are compliant in line with sustainability targets like the UK’s Net Zero by 2050. Fortunately, there are quick wins to be had for logistics companies by embracing smarter planning, optimising operations wherever possible, and engaging in meaningful industry initiatives. These sustainable investments will also pay off in the long-term by helping your business to avoid any potential sanctions or delays that may arise as a result of noncompliancy. 

At Ningbo, we recognise our responsibility to drive positive change in the industry. From improving the work experience to reducing carbon footprints, we know that sustainability in logistics is about balancing efficiency with responsibility to create a transport fleet that’s both profitable and environmentally friendly. 

Why it matters: the benefits of sustainable logistics 

According to information gathered in 2025 by the International Council on Clean Transportation (ICCT), it turns out that freight transport is responsible for roughly 30% of all CO₂ emissions from the transport sector, and about 7% of global CO₂ emissions overall.

Transport sector	% of total transport CO2 emissions
Passenger road vehicles	45.1%
Road freight vehicles	29.4%
Aviation	11.6%
Shipping	10.6%
Rail	1%
Other	2.2%

With climate awareness growing wider-spread and governments applying pressure upon key polluting industries to embrace greener initiatives, the benefits of adopting sustainable logistics have become increasingly apparent. 

• Better brand reputation and competitive edge: Customers, investors, and stakeholders care about sustainability, and are more likely to buy from a company that uses EVs than one that does not at the same price point. A sustainable logistics strategy ensures that eco-conscious customers will pick you over your less green competitors. 
• Sustainability breeds efficiency: Many of the sustainable measures companies can easily implement in their logistics operations, such as fewer empty miles, smarter route planning, and optimised packaging, also result in increased efficiency. Cost savings, lower fuel burn, and reduced waste are additional wins for both your company coffers and the environment! 
• Operational resilience: When handled expertly, an operational shift to sustainable logistics measures promotes resilience and adaptability in both your workforce and your supply chain. 
• Employee motivation: Knowing that they work for a logistics company that values sustainability and protecting our shared future can help to engage and motivate employees who value working for a responsible business. 

Key strategies for implementing sustainability in logistics with a profitable outcome 

As champions of sustainability in logistics (check out our additional blogs on this topic), we’ve compiled a list of some of the simplest and most effective ways companies can go green without forfeiting profits – and how a business like Ningbo can help to implement them. 

1. Load consolidation 

Known in the industry as load consolidation, this technique involves combining multiple smaller shipments from the same sender into a single, larger shipment (combining smaller shipments from different senders is called groupage or LCL). By reducing the amount of trips taken to deliver the same load, vehicle utilisation is maximised, empty capacity is cut, and both costs and emissions are reduced. Working with a logistics partner like Ningbo that offers services like cross-docking, warehouse consolidation, and smart scheduling can help your logistics business to make immediate gains. 

2. Route optimisation & smart planning 

Taking advantage of new digital tools like AI, GPS, and real-time traffic data allow you to minimise dead-mileage, avoid congestion, choose fuel-efficient routes, and combine back-loads. The fewer miles your vehicles travel for the cargo that you move, the lower the emissions – resulting in better profits margins as well as being kinder to the environment. 

3. Shift modes of transportation

The statistics don’t lie; air and road travel are much higher in CO2 emissions than their rail and sea counterparts. Switching from primarily using high-emissions modes of travel to much lower ones makes a big environmental difference – according to research reported in 2023 by UK-based Rail Partners, a single freight train can remove up to 129 HGV movements, and the average diesel-hauled rail freight service produces 79% less CO2 per tonne than road transport. 

4. Warehouse & 3PL sustainability 

Sustainability in logistics doesn’t start and end on the road – warehousing operations are just as important, whether you’re a logistics operations yourself or work closely alongside a partner. A shared 3PL (3rd-party logistics) warehouse for smaller businesses with less stock (rather than each business building and running its own) enables increased energy efficiency through sharing of resources (heating, lighting, staffing) and improved space utilisation, resulting in money saved as well as being better for the environment. Here at Ningbo, for example, we offer temperature-regulated warehousing facilities, pick-&-pack services, and strategic locations in and around London with good connectivity to support your operations.  

5. Compliance & carbon regulation awareness 

Regulations are increasingly impacting operations within the logistics sector, such as emissions trading schemes (ETS) – a market-based ‘cap and trade’ policy that set limits on total emissions from industries covered by the scheme – and the Carbon Border Adjustment Mechanism (CBAM) – legislation that attaches a fee onto carbon-intensive goods imported into the country so that prices are comparable to if they had been produced in the UK. Business should be constantly monitoring changing rules and regulations as well as working with knowledgeable partners that will keep them informed, such as Ningbo. 

6. Collaboration and continuous improvement 

Sustainability in logistics isn’t a one-and-done exercise. It requires ongoing learning, innovation, and partnerships across the supply chain, whether that involves sharing freight capacity, investing in sustainable technologies, or engaging with meaningful industry initiatives. 

How Ningbo supports sustainability in logistics 

At Ningbo, we don’t just talk about sustainability in logistics – we make it happen. Here’s how we embody forward-thinking, eco-friendly principles in our everyday operations: 

• Our London warehousing & fulfilment facilities are designed for maximum efficiency and the least amount of waste, offering ambient, chilled, or otherwise temperature-sensitive storage with high connectivity to major UK motorways, ports, and airports. 
• We hold industry-leading accreditations such as FORS Silver certification through our parent Kings Group, reflecting our commitment to environmental, safety, and operational standards. 
• We provide flexible, scalable solutions (from 10 pallets up to thousands) so that your business can adapt without over-investing in inefficient assets. 
• We handle hazardous goods with full ADR certification and are a member of the Hazchem Network, meaning we do the heavy lifting of compliance so that you don’t have to. 
• Because we combine warehousing, transport, pick-&-pack, and distribution services, there’s potential for optimisation across the end-to-end chain – meaning fewer hand-offs, less duplication, and lower emissions overall. 

Practical tips for businesses (especially SMEs) 

You don’t need to be a large-scale corporation to make a difference. Here are some actionable steps your business can take to engage with sustainability in logistics: 

• If you work with a logistics partner, ask them about their emissions profile and sustainability credentials – e.g. accreditations, fuel-efficient vehicles or EVs, optimisation tools, etc. 
• Consolidate shipments wherever possible – group orders, use fuller trucks, share space with other shipments (load consolidation) or even other sellers (groupage). 
• Use effective route optimisation and plan for fewer, but fuller, deliveries. 
• Use correctly-sized packaging to reduce waste and empty space in your delivery vehicles. This is especially important for hazardous goods, where sustainable packaging also enhances safety and compliance – learn more in our blog on this subject. 
• Choose a logistics partner whose warehousing and transport solutions adapt to your volume, and avoid under-utilised assets. 
• Stay informed about regulatory changes (e.g. ETS, CBAM) and ensure any partners are also well aware. 
• Train your staff (or ensure that your partner has trained theirs) to understand the sustainability imperative. 
• Be open to collaborative models, as sharing logistics infrastructure or pooling shipments can deliver cost and carbon savings. 

The importance of sustainability in logistics 

Sustainability in logistics isn’t just an empty promise – for all forward-thinking logistics operations, it’s about being smart, efficient, and future-focussed. By embracing key strategies – from load consolidation and route optimisation to model shifts and efficient warehousing – businesses of all sizes can reduce their footprint without impacting profitability, whether your company is the one doing the transporting or working alongside a logistics partner. 

At Ningbo, we’re proud to be at the forefront of this transformation. Our combined service offering (transport, warehousing, fulfilment) plus our commitment to environmental and operational standards means that when you partner with us, you’re partnering with a logistics provider who cares about both performance and planet.

Ready to take the next step? Explore Ningbo’s services and let us help you transform your supply chain into one that’s not only cost-effective and reliable, but also a champion of sustainability in logistics.

FAQs 

Q: What does sustainable logistics mean? 

Sustainability in logistics isn’t just a trend but a necessity, driven by changing regulations, rising customer expectation, and the need to future-proof operations. For a deeper look at how sustainable logistics is reshaping global supply chains, see our blog How Sustainable Logistics Is Transforming the Future of Global Supply Chains. 

Q: Why is sustainable goods packaging so important in hazardous goods transportation? 

Sustainable packaging plays a crucial role in hazardous goods transportation for several key reasons, enhancing safety by minimising the risk of leaks, spills, or contamination during transit, reducing waste by using eco-friendly materials, and cutting down on empty ‘dead’ space in delivery vehicles, reducing the carbon footprint of hazardous goods deliveries. For more information, read our guide to hazardous goods transportation. 

Q: How is sustainable logistics transforming the future of global supply chains?

Sustainable logistics is fundamentally reshaping global supply chains by moving away from the traditional “take-make-dispose” linear model toward circular, resource-efficient systems. The rise of sustainable practices and green logistics is revolutionising the supply chain industry, with companies adopting environmentally friendly practices driven by both consumer demand and growing awareness of logistics’ environmental impact. 

Q: How can a small business implement sustainable logistics?

Small businesses can take practical, actionable steps to implement sustainable logistics without requiring massive investments. Some key strategies include:

• Partner wisely: Ask your logistics provider about their emissions profile, sustainability credentials, and whether they have accreditations like FORS certification, fuel-efficient vehicles or EVs, and optimization tools. At Ningbo, we hold FORS Silver certification through our parent Kings Group.
• Consolidate shipments: Group orders together, use fuller trucks, and share space through load consolidation or groupage with other sellers to maximise vehicle utilisation and reduce trips.
• Optimise routes: Plan for fewer but fuller deliveries using route optimisation tools to reduce fuel consumption and emissions.
• Right-size packaging: Use correctly-sized packaging to reduce waste and empty space in vehicles, which is especially important for hazardous goods where sustainable packaging also enhances safety.
• Choose scalable solutions: Select a logistics partner whose warehousing and transport solutions adapt to your volume, avoiding under-utilised assets. 
• Stay informed: Keep up to date with regulatory changes like emissions trading schemes (ETS) and the Carbon Border Adjustment Mechanism (CBAM), and ensure your partners are also well-informed.
• Embrace collaboration: Consider collaborative models like sharing logistics infrastructure or pooling shipments, which can deliver both cost and carbon savings.

Q: What is the difference between “green logistics” and “sustainability in logistics”?

While traditional logistics focuses primarily on operational efficiency and cost reduction, green logistics adds an additional dimension: environmental responsibility. Green logistics specifically emphasises reducing the environmental impact of logistics operations through practices like using cleaner fuels, optimising routes to reduce emissions, and adopting eco-friendly technologies. Sustainability in logistics, however, is a broader concept that encompasses not just environmental concerns but also social and economic dimensions.

Q: What are the “4 A’s” of sustainable logistics?

The 4 A’s of sustainable logistics are: Awareness, Avoidance, Act and Shift, and Anticipation (or Achievement): 

• Awareness: Cultivating awareness among stakeholders in the transport and logistics sector about the profound influence their operations have on the environment. This involves understanding the carbon footprint and environmental impact of logistics activities.
• Avoidance (also called Assessment): Evaluating the carbon footprint and overall environmental impact of logistics activities is paramount, offering insights into tools and methodologies that assist in quantifying environmental impacts.
• Act and Shift (Action): Actionable strategies for reducing emissions and minimising waste within the logistics chain, from optimising route planning to embracing alternative fuels. This includes modal shifts from high-emission to low-emission transport modes.
• Anticipation/Achievement: Measuring the effectiveness of adopted practices is pivotal for continual improvement, utilising key performance indicators (KPIs) and metrics to gauge the success of sustainability initiatives.

Q: What are the “7 C’s” of logistics?

The 7 C’s of Logistics are: Connect, Create, Customise, Coordinate, Consolidate, Collaborate, and Contribute: 

• Connect: Building strong relationships among stakeholders like suppliers, customers, and partners is vital for effective supply chain management, with the rise of digital technology enabling real-time communication and collaboration.
• Create: Innovation and value creation through implementing new technologies and processes to improve efficiency and develop solutions that add value to the supply chain.
• Customise: Understanding customers’ specific requirements and providing tailored services accordingly, which may include delivery schedules, dangerous goods, specific timelines, and special projects.
• Coordinate: Smooth logistics movement of consignment through various stages until they reach the end customer, requiring impeccable planning and an advanced management system to manage operations effectively.
• Consolidate: Streamlining processes and reducing costs by integrating resources like transportation, warehousing, and labour to optimise operations, a practice central to Ningbo’s sustainable approach. 
• Collaborate: Working closely with partners to share resources, reduce risks, and innovate processes for mutual benefit.
• Contribute: Making a positive contribution by addressing complex regulatory standards and adhering to import and export laws, environmental regulations, and industry-specific requirements crucial for smooth logistics operations

Q: What are the “5 P’s” of logistics?

The 5 P’s of Logistics are: People, Products, Processes, Partnerships, and Performance: 

• People: At the core of logistics operations are skilled and motivated professionals, with roles like warehouse managers and supply chain analysts crucial in inventory control and transportation planning functions. Investing in workforce training helps teams address unexpected issues proactively.
• Products: The goods being transported from one place to another, including raw materials, finished goods, and other products, with effective logistics management requiring comprehensive understanding to ensure they are handled correctly and transported safely.
• Processes: Efficient methods for smooth movement, storage, and tracking of goods, with optimising order picking, packaging, and shipping processes significantly enhancing efficiency while cutting costs and errors.
• Partnerships: Relationships between logistics providers, suppliers, and customers, with effective logistics management requiring strong partnerships based on trust, transparency, and accountability.
• Performance: Measurement of key performance indicators (KPIs) to determine effectiveness and efficiency of logistics operations, with KPIs including metrics such as delivery time, cost per unit, and inventory turnover.

Q: What are the five elements of sustainable transport?

• Fuel Economy: Improving fuel economy has a direct impact on reducing carbon emissions, achieved by making engines more efficient, vehicles lighter and bodies more aerodynamic. However, this is increasingly seen as a transitional measure toward more sustainable solutions.
• Occupancy: The cheapest and simplest way to lower the carbon intensity of a passenger mile is to stick more people in the vehicle. Higher vehicle occupancy rates dramatically reduce emissions per person transported.
• Electrification: Electric cars using low carbon power have footprints less than half that of the best hybrid, even after accounting for their larger manufacturing footprint. Electrification of rail, motorbikes, scooters, and bikes also contributes significantly to sustainability.
• Pedal Power: When it comes to carbon emissions bicycles are cutting edge. Even when accounting for the footprint of excess energy used when cycling, the humble bike is incredibly low carbon.
• Urbanisation: People who live in cities have lower transport emissions; fuel economy may be lower in city traffic, but that is more than made up for by the fact that city dwellers drive far less, with electrification of public transport more economic and practical in cities. 

Q: How does reverse logistics contribute to sustainability?

Reverse logistics plays a vital role in achieving sustainability by enabling the circular economy and reducing waste throughout the supply chain. It contributes to a circular economy in multiple ways: it allows firms to develop circular product design; the combination of reverse flow with forward flow consolidates high volume of products thus mitigating waste; use of innovative tools like robots and autonomous bikes increases used products’ return rate thereby enhancing recycling; and technological advances like big data and IoT help trace products, thus reducing waste. Reverse logistics ensures products are reused, repaired, or recycled instead of discarded.