Environmental impact of
logistics
Patricia van Loon
Docent Supply and Operations Management
About me
Patricia van Loon – Associate professor / Docent SOM
• Industrial Engineering & Operations Management and Logistics, Technical
University Eindhoven, Netherlands (2005-2010)
• PhD in green logistics, Heriot-Watt University / Procter & Gamble, UK /
Belgium (2010-2013)
• Postdoc Closed-Loop Supply Chains, INSEAD, France (2014-2017)
• Circular economy, RISE / Chalmers industriteknik, Sweden (2016-2020)
• Supply and Operations Management, Chalmers (2020-…)
• Teaching: Production Logistics, Logistics, Operations Planning & Control
• Research: Closed-Loop Supply Chains
2025-01-22
Learning outcomes
• Account for the logistics system from an environmental perspective
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2025-01-22
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2025-01-22
Transport ≈ 25% of
EU’s total CO2-eq
90% reduction by
2050 compared to
1990 to reach
climate neutrality
5
Source: EC 2024
https://www.europarl.europa.eu/topics/en/ar
ticle/20190313STO31218/co2-emissionsfrom-cars-facts-and-figures-infographics
2025-01-22
Road transport ≈
20% of EU’s total
CO2-eq
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2025-01-22
Not only global warming
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2025-01-22
Demand for
transport is
coupled with
economic
development
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2025-01-22
Logistics in the news
9
DN.se
2025-01-22
Logistics that affects environment
Dagenslogistik.se
10
2025-01-22
Trends in logistics that affect
environment
Globalization
E-Commerce
Technology / Electrification / Automated driving
Digitalisation / Traceability
Lean / just-in-time deliveries
Circular economy
….
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2025-01-22
Another reason
ISO14001: international certification to measure and improve
environmental impact
EMAS: Voluntary Eco-Management and Audit Schema in EU
ESRS: European Sustainability Reporting Standards to be used in
Corporate Sustainability Reporting – first time mandatory 2025
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https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-andauditing/company-reporting/corporate-sustainability-reporting_en#legislation
2025-01-22
What causes environmental impact related to logistics?
Example: online shopping
•
•
•
What contributes to GHG emissions in the logistics
system of retailing?
Environmental impact online versus offline shopping –
what is better, how to compare?
Measures to reduce GHG emissions?
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Shahmohammadi, Steinmann,
Tambjerg, van Loon, King, Huijbregts
(2020) Comparative greenhouse gas
footprinting of online versus traditional
shopping for FMCG: a stochastic
approach
2025-01-22
E-fulfilment Models
PP1
PP2
PP3
B&C1
B&C2
D2C1
B&M
Centralised
pure player
with van
delivery
Centralised
pure player
through parcel
delivery
network
Drop-shipping
from supplier
through parcel
delivery
network
Van delivery
from local
shops (Brick
and Click)
Click and
Collect in
local stores
Bypass
retailer and
use parcel
delivery
network
Conventional
retailing in
local
supermarkets
2025-01-22
E-fulfilment Models
PP1
PP2
PP3
B&C1
B&C2
D2C1
B&M
Centralised
pure player
with van
delivery
Centralised
pure player
through parcel
delivery
network
Drop-shipping
from supplier
through parcel
delivery
network
Van delivery
from local
shops (Brick
and Click)
Click and
Collect in
local stores
Bypass
retailer and
use parcel
delivery
network
Conventional
retailing in
local
supermarkets
2025-01-22
E-fulfilment Models
PP1
PP2
PP3
B&C1
B&C2
D2C1
B&M
Centralised
pure player
with van
delivery
Centralised
pure player
through parcel
delivery
network
Drop-shipping
from supplier
through parcel
delivery
network
Van delivery
from local
shops (Brick
and Click)
Click and
Collect in
local stores
Bypass
retailer and
use parcel
delivery
network
Conventional
retailing in
local
supermarkets
2025-01-22
E-fulfilment Models
PP1
PP2
PP3
B&C1
B&C2
D2C1
B&M
Centralised
pure player
with van
delivery
Centralised
pure player
through parcel
delivery
network
Drop-shipping
from supplier
through parcel
delivery
network
Van delivery
from local
shops (Brick
and Click)
Click and
Collect in
local stores
Bypass
retailer and
use parcel
delivery
network
Conventional
retailing in
local
supermarkets
2025-01-22
E-fulfilment Models
PP1
PP2
PP3
B&C1
B&C2
D2C1
B&M
Centralised
pure player
with van
delivery
Centralised
pure player
through parcel
delivery
network
Drop-shipping
from supplier
through parcel
delivery
network
Van delivery
from local
shops (Brick
and Click)
Click and
Collect in
local stores
Bypass
retailer and
use parcel
delivery
network
Conventional
retailing in
local
supermarkets
Summer bike traffic-4-4
2025-01-22
Framework LCA model for online retail
2025-01-22
Summer bike traffic-4-4
2025-01-22
Up to 50% of CO2 impacts
in last mile
Pure play van
lowest due to
efficient DC
and large
basket size
Small basket
Avoidance of
consumer trip offers
potential for B&C1
2025-01-22
Centralized home
delivery (long
distance) fully
Buying
attributed
to one item1 item
Full consumer trip
segment impact
attributed to one
item
Parcel network
consolidation
efficiently reduces
van delivery
footprint
Efficiency of
short distance of
decentralized
van delivery
2025-01-22
Shahmohammadi, Steinmann,
Tambjerg, van Loon, King,
Huijbregts (2020) Comparative
greenhouse gas footprinting of
online versus traditional shopping
for FMCG: a stochastic approach
2025-01-22
What can we do to reduce
the environmental impact?
Green slots
• 75% want to wait
longer for delivery if
this leads to less
emissions but 58%
is unaware that
faster delivery
means more
emissions
• No discount
needed, telling
customers that it
will save emissions
almost as effective
Agatz, 2008
2025-01-22
Failed deliveries
B2C Europe (2018) The future of
ecommerce lies in its sustainability
and sociality.
2025-01-22
Returns Information
2025-01-22
100% or
only part
of money
back
Return policy
Money
back or
voucher
30 or
60 days
to
return
Picking up
returns on
delivery
rounds
Effort
needed
in return
process
Return
in store
or
online
2025-01-22
Green
transport
2025-01-22
Unattended
delivery
2025-01-22
Will it substitute physical
shopping trips?
World Economic Forum (2020) The future of the Last-Mile Ecosystem
2025-01-22
Research at Chalmers - Greenturn
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2025-01-22
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A more detailed look at
transport
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2025-01-22
To put in perspective
0.8-3.3K roundtrip
Goteborg-Phuket
Average individual in
Sweden generates
between 3 – 10 metric
tons GHG per year.
0.8 - 1.3K
Need to become
below 1 to 2 ton to
keep global
temperature below
1.5-2 ֯C
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1 - 1.5K
>2.3K from transportation
1.2K
https://www.sei.org/perspectives/sweden-low-carbon-footprint/
2025-01-22
How to measure environmental
impact of transport?
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2025-01-22
Case: Should we establish a central
collection center?
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2025-01-22
Emissions
• CO2 – Carbon dioxide
• SOx – Sulfur oxides
• NOx – Nitrogen oxides
• HC – Hydrocarbons
• CO – Carbon monoxide
• PM – Particulate matter
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2025-01-22
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2025-01-22
Collect information
about the shipment
• Shipment weight
• Shipment volume
• Vehicle type
• Load capacity utilisation
• Vehicle operations distance
• Road types
• Fuel type
• Emission factors and energy content of fuel
• Filters and catalyst used
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NTM: Network for Transport and Environment
2025-01-22
Calculate (1): Fuel consumption
Fuel consumption in litre per km
Differs for:
• Road type (motorway, rural, urban)
For voluminous products, full weight
utilization will not be reached.
• Road condition (hilly/alpine, congested areas)
• Efficiency vehicle/engine
• Driver behavior
• Load:
FCccu = FCempty + (FCfull – FCempty) * CCU weight(phys).
FCccu = Fuel consumption at capacity utilization CCU
CCU = Cargo capacity utilization,
defined as cargo physical weight / max weight capacity.
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2025-01-22
Calculate (2): Emissions per litre fuel
Emissions per kg fuel [e.g kg CO2 / kg fuel] x Fuel density [kg / l]
Impacted by:
• Fuel characteristics, e.g. bio-contents
3.16 kg CO2-eq per kg fuel
• Manufacturing process
1 litre diesel = 0.818
• Production location
bio content = 5%
0.818 x 3.16 x 0.95 = 2.46 kg CO2-eq
Electric vehicles:
• Emissions in generation of electricity
• Large difference coal, gas, wind, solar, nuclear
• Electricity mix per country. In Sweden:
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2025-01-22
GHG emissions intensity of
electricity generation
https://www.eea.europa.eu/en/analysis/indicators/gree
nhouse-gas-emission-intensity-of-1
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2025-01-22
Calculate (3): Distance
1000 km
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500 km
2025-01-22
1000 km
500 km
Calculate (3): Distance
Prepositioning & empty running: account for getting the empty truck in place
Part loads: first pick-up of C1 then C2. C1 travels further and has higher emissions?
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2025-01-22
1000 km
500 km
Calculate (3): Distance
Milk run
On average:
Total distance of
milk round / total
parcels
delivered/picked-up
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2025-01-22
Calculate (3): Distance
1000 km
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500 km
2025-01-22
Exercise
Load factor = actual load / max load
FCccu = FCempty + (FCfull – FCempty) *
CCU weight(phys).
Milk round delivering goods.
• Truck 30 tonne loading capacity. Starting full.
22 km
6t
6t
28 km
• Fuel consumption empty = 3.5 l/10km
• Fuel consumption full = 3.9 l /10km
15 km
• 2400 g CO2/litre diesel
12t
1. Calculate the load factor for each link
2. How much fuel is used?
3. Which of the links have the highest emissions per
tonkm?
53
6t
12 km
Start/
finish
32 km
2025-01-22
Exercise – answer
12/30 = 40%
22 km
Milk round delivering goods.
6t
• Truck 30 tonne loading capacity. Starting full.
• Fuel consumption empty = 3.5 l/10km
• Fuel consumption full = 3.9 l /10km
(30-12)/30
= 60%
6t
28 km
15 km
• 2400 g CO2/litre diesel
12t
1. Calculate the load factor for each link
2. How much fuel is used?
3. Which of the links have the highest emissions per
tonkm?
54
6t
12 km
Start/
finish
32 km
0/30 = 0%
2025-01-22
Fuel consumption =
3.5 + (3.9-3.5) x load factor / 100
Exercise - answer
3.66l/10km
22 km
Milk round delivering goods.
6t
• Truck 30 tonne loading capacity. Starting full.
• Fuel consumption empty = 3.5 l/10km
• Fuel consumption full = 3.9 l /10km
6t
3.58l/10km
28 km
3.74l/10km
15 km
• 2400 g CO2/litre diesel
12t
1. Calculate the load factor for each link
2. How much fuel is used?
12 km
3.5+0.4x100/100
=3.9l/10km
3. Which of the links have the highest emissions per
tonkm?
55
6t
Start/
finish
32 km
3.5l/10km
2025-01-22
Exercise - answer
22x12 =
264 tonkm
22 km
Milk round delivering goods.
6t
• Truck 30 tonne loading capacity. Starting full.
• Fuel consumption empty = 3.5 l/10km
• Fuel consumption full = 3.9 l /10km
15x18 =
270 tonkm
6t
28x6 = 168
tonkm
28 km
15 km
• 2400 g CO2/litre diesel
12t
1. Calculate the load factor for each link
2. How much fuel is used?
3. Which of the links have the highest emissions per
tonkm?
56
6t
12 km
12x30 =
360 tonkm
Start/
finish
32 km
32x0 = 0
tonkm
2025-01-22
Exercise - answer
Milk round delivering goods.
• Truck 30 tonne loading capacity. Starting full.
22 km
6t
• Fuel consumption empty = 3.5 l/10km
2400x3.58x2.8=
24057.6 g CO2
• Fuel consumption full = 3.9 l /10km
15 km
• 2400 g CO2/litre diesel
12t
1. Calculate the load factor for each link
2. How much fuel is used?
3. Which of the links have the highest emissions per
tonkm?
57
6t
24057.6 / 168 =
143.2 g
CO2/tonkm
28 km
6t
12 km
Start/
finish
32 km
2025-01-22
Vehicle-km easy to measure
Tonne-km more difficult
Exercise - answer
73.2 g
CO2/tonkm
22 km
Milk round delivering goods.
6t
• Truck 30 tonne loading capacity. Starting full.
143.2 g
CO2/tonkm
28 km
• Fuel consumption empty = 3.5 l/10km
• Fuel consumption full = 3.9 l /10km
6t
49.9 g
CO2/tonkm 15 km
• 2400 g CO2/litre diesel
12t
1. Calculate the load factor for each link
2. How much fuel is used?
3. Which of the links have the highest emissions per
tonkm?
58
6t
12 km
31.2 g
CO2/tonkm
Start/
finish
32 km
0 g CO2/tonkm
2025-01-22
Should we establish a central
collection center?
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2025-01-22
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2025-01-22
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2025-01-22
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2025-01-22
Typical picture: pros and cons for each scenario
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2025-01-22
Ways to reduce
environmental impact of
logistics
Use less energy
• Driver behavior
• Powertrain technology
• Footprinting
• Vehicle design
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2025-01-22
Use alternative energy sources
• Powertrain technology
• Fuel availability
• Fuel cost
• Environmental gain?
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2025-01-22
Choosing fuel
• Low environmental impact
• Tailpipe emissions
• Direct running cost per km
• Upstream emissions of fuel
• Investment cost
• Embedded emissions of production/disposal
• Supply options
• Toxicity
• Infrastructure
• Displacement effects (raw material needed
elsewhere)
• Maintenance costs
• Local environmental effects
• Economic lifespan of vehicle
• Noise
• Leakages and spills
• Renewable
• Sufficient volumes
• Accessible
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• Costs
• Second-hand value of vehicle
• Recharging/fueling costs
• Ethics
• Location of production & raw materials
• ….
→ Complex question, system perspective
needed
2025-01-22
Increase transport efficiency
• Vehicle utilization
• Transport planning
• Choice of transport mode
• Consolidation
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2025-01-22
Reduce demand
• Discourage consumption
• Reduce globalization: Local sourcing and decentralized inventory
• Digitalization of physical products, e.g. music, books
• 3d printing
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Project Sparsam:
RISE, Chalmers
Volvo trucks, Alfa Laval, Ericsson
2025-01-22
Combination needed
• Use more efficient vehicles
• Use better energy sources
• Increase transport efficiency
• Reduce demand
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2025-01-22
Summary
• Transportation and logistics
has a major impact on the
environment
• Environmental impact from
transport, warehousing,
packaging
• Demand for transport will likely
grow
• Electrification big step in right
direction, but problems and
challenges remain:
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Source: https://www.eea.europa.eu/publications/electric-vehicles-from-lifecycle/at_download/file
2025-01-22