Source: Sustainable Life Media
Published: Thursday, December 13, 2007

Companies that give high priority to green transport issues tend to make more money, according to a new study from logistics firm Eye for Transport. The survey of more than 500 large companies worldwide finds a strong correlation between those reporting the highest revenues and those emphasizing environmental performance in logistics operations.

More than half (59%) of respondents consider green issues either "important" or "very important" to their companies’ overall strategy, and nearly one in ten say green issues are likely to become the top priority for their transport and logistics operations within the next three years.

Key drivers for green transport initiatives vary from region to region, according to the report. In general, U.S. companies look for financial returns on investment, such as reduced fuel costs, as well as government compliance and improved customer and public relations. Middle Eastern and Asia-Pacific companies appear less interested in financial ROI, pointing to increased supply chain efficiency and larger corporate responsibility goals as key drivers. In Europe, corporate responsibility and public relations were the top reasons to go green.

The study also finds that while most companies point to supply chain efficiency as an expected benefit of green transport programs, two-thirds say they've experienced no impact — positive or negative — thus far. Yet overall, 27% of respondents see an improvement in efficiency and only 8% report a decrease of efficiency due to green programs.

The Middle East and Asia-Pacific regions report the greatest increase in supply chain efficiency due to green initiatives (41%). Interestingly, companies in these regions are also most likely to be working with a logistics firm to green their operations, the report shows. U.S. businesses are seeing the smallest increase in efficiency (27%), "perhaps because of initiatives that are still relatively new," according to the report.

Regardless of region, companies report three main approaches to greening transport operations: increasing energy efficiency, optimizing delivery routes, and locating (or relocating) distribution centers more strategically. Specific programs tend to focus on product and package redesign, load maximization and fuel monitoring, green facilities, and hybrid and electric fleets.

Download a summary of the report here (PDF).