Preparing for COP29: EVs, PUDO locations and greener delivery options for sustainable last-mile delivery in retail

While April saw a boost in environmental awareness with Earth Month, sustainability is not a one and done focus. Looking ahead, in November the United Nations Climate Change Conference (COP29) will bring together diplomats, heads of state, and climate advocates to discuss an international response to the climate crisis. This will only intensify the focus on tackling climate change across all industries.

The retail industry has a pivotal role to play in driving sustainable change and is in position to make a huge difference. At present, the industry is one of the top 10 most carbon-intensive, responsible for a quarter (25%) of global greenhouse gases (GHGs).

To keep the momentum going on sustainability year-round, and better prepare for the outcome of COP29, retailers must look for ways to limit their contribution to rising emissions. As online shopping continues to rise in popularity, one approach is offering more sustainable delivery options to reduce the GHGs released from countless home deliveries.

The Carbon Footprint in Retail

The number of vehicles involved in getting deliveries into the hands of consumers is high, and so are the consequent vehicle emissions. According to a report by the World Economic Forum, without any intervention the number of delivery vehicles in the top 100 cities worldwide will increase by 36% by 2030. Consequently, emissions from delivery traffic will increase by 32%, and congestion by over 21%.

Factors like inefficient routing, multiple stops, and rush ‘next day’ deliveries all play their part in contributing to emissions. In fact, the growth of ‘same day’ and ‘next day’ delivery services, while convenient to consumers, often result in more frequent, shorter, and ultimately less environmentally friendly delivery trips. Where possible, retailers must attempt to mitigate these emissions.

Making Carbon Conscious Choices

Embracing alternative options will help retailers demonstrate their commitment to tackling the climate crisis. Three carbon conscious choices are:

• Transitioning away from petrol and diesel: By embracing electric vehicles (EVs) and alternative fuels, such as hydrotreated vegetable oil, retailers can reduce their carbon footprint, decrease air pollution, and contribute to mitigating climate change. Just one electric car on the roads can save an average of 1.5 million grams of CO2 – the equivalent of four return flights from London to Barcelona. Among others, DPD plans to transition to a 40% electric fleet this year, adding to the more than 3,600 electric vehicles it currently runs. Partnering with couriers with electric fleets can help create a more sustainable last-mile delivery.
• Promote green delivery options: Faster shipping can increase the total carbon emission from vehicles by up to 15%. Retailers should encourage consumers to choose more eco-conscious delivery services, instead of honing ‘next-day’ delivery options. While items might take longer to arrive with consumers – as orders and deliveries are bundled together onto one courier over a specific area – this delivery option reduces the number of vehicles on the road and subsequently carbon emissions.
• Pick-up drop-off (PUDO) locations: Another option is using out of home PUDO locations, such as over the counter collection at local newsagents and parcel lockers, in last-mile deliveries. By doing so, retailers don’t only reduce their own emissions through the reduced need for home deliveries. There is a positive knock-on effect on consumer’s emissions, as PUDO locations encourage consumers to ‘trip chain’ – combining collecting parcels with other daily activities. According to research, consumers would replace on average 47 parcel deliveries or pickups a year by trip-chaining – the equivalent of 1.4 billion courier-miles a year.

Driving Sustainability in last-mile delivery

Through embracing more sustainable last-mile delivery options like EV, PUDO locations, and green delivery options, retailers can not only minimise their carbon emissions but also meet the demand from eco-conscious consumers.

As consumers increasingly prioritise sustainability in their purchasing decisions, retailers who lead the charge in implementing these measures will hold a competitive advantage. By doing so, they can also contribute to a greener planet, and position themselves as industry leaders – better preparing them for the outcome of COP29.