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All eyes are on supply chain sustainability right now as governments, business partners, investors and individual consumers all place the responsibility for good environmental stewardship squarely on the shoulders of the organizations that they regulate and/or do business with.
The U.S. Security and Exchange Commission (SEC) recently began mandating environmental, social and governance (ESG) reporting for certain organizations; suppliers are being asked to provide Scope 3 emissions data that occurs outside of their direct control; and customers want to know what their favorite brands are doing to minimize their carbon footprints and other negative environmental impacts.
As the focus on sustainability continues to expand and include more aspects of the supply chain, a critical link that’s often overlooked is the plant, warehouse or distribution center (DC) yard. Companies are “greening” the area within their operation’s four walls, for example, and taking steps to help reduce greenhouse gas (GHG) emissions on the transportation front. They use warehouse management systems (WMS) to streamline the former and then transportation management systems (TMS) to orchestrate the latter.
This leaves a pretty big visibility gap out in the yard, where the vehicles and processes used can contribute greatly to GHG emissions, air pollution and resource consumption. A retailer that uses electric vehicles in its warehouses—but that still uses diesel-fuel trucks out in the yard—is missing out on a major opportunity to save money, operate more sustainably and meet broader ESG goals.
Slowing Down, Polluting More
There’s a hidden cost to low-speed driving that many companies don’t recognize or pay much attention to. The reality is that heavy-duty vehicles generate a high volume of emissions when they’re running at low speeds—just like they do in the typical warehouse or plant yard. These movements may seem innocuous enough as they run in the background outside of the facility’s four walls, but these statistics from the International Council on Clean Transportation (ICCT) tell a very different story:
- • Heavy-duty vehicles emit a disproportionately high volume of nitrogen oxide (NOx) emissions when operated at low speeds.
- • Vehicles operated at speeds of less than 25 miles per hour generate NOx emissions of more than five times the certification limit for the average heavy-duty vehicle.
- • At mid-speed driving conditions of between 25 and 50 miles per hour, the average NOx emissions from heavy-duty vehicles (HDVs) are 7 times the certification limit.
- • Only at highway speeds of 50 miles per hour or greater do HDVs present average NOx emissions at the certification limit.
So why the big focus on NOx, you ask? Well, NOx emissions are known to have adverse effects on human health. In fact, long-term exposure is associated with increased risk of premature death and myriad other problems in humans. Reducing NOx emissions creates substantial public health benefits that include improved air quality, fewer hospitalizations and lowered risk of premature death from cardiovascular, lung and kidney diseases. The ICCT sees these as the key reasons why companies should be focused on decreasing NOx emissions in their supply chains.
The yard is a good starting point for any company that has yet to consider its vehicles’ NOx emissions. Smart companies are rethinking their yard operations and adopting integrated solutions that incorporate software, equipment, technology and processes. Once in place, these systems help organizations optimize their yard operations, reduce their carbon footprints and improve overall efficiency.
Decarbonized Fleets Come into Clearer Focus
Clean technology is here to stay, but it has yet to make its official debut in the average plant or warehouse yard, which has historically been viewed as the “black hole” of the supply chain. With WMS and TMS platforms working on either side of it, and with little attention being paid to the GHGs being generated in it, the typical yard is ripe for improvement on several different fronts.
The State of Sustainable Fleets 2024 Market Brief explores the adoption of clean medium- and heavy-duty vehicle technologies and looks at how companies are using propane, compressed natural gas, electric batteries and hydrogen in lieu of traditional fuels like diesel and gas.
“Each passing year has ushered in new milestones and developments that signal clean technology is more than a passing trend,” the report states, noting that regulations like California’s Advanced Clean Fleets (ACF) rule, which require fleets to transition to zero-emission vehicles (ZEVs), and the U.S. Environmental Protection Agency’s (EPA) Clean Trucks Plan, which sets some emissions performance requirements higher than 80% below today’s levels for heavy-duty (HD) engines, are two of the key drivers of this trend.
According to the report, commercial battery-electric vehicle (BEV) deliveries nearly doubled across a growing number of applications and states over the last year. Adoption is expected to continue growing as more investment dollars are allocated to building out the infrastructure to support the use of greener fleet vehicles.
“While BEVs are the first zero-emission vehicle (ZEV) technology [used for] wider fleet adoption, fleet trials of hydrogen- powered vehicles are beginning to shape an adoption path,” the report states. “The breadth of innovation in commercial transportation is a telltale sign of progress towards a decarbonized industry.”
Don’t Get Caught on the Wrong End of the ESG Trend
The future of supply chain operations is undeniably green, sustainable and environmentally-friendly. As regulatory pressures mount, supply chain partners demand more transparency and end customers gravitate to more sustainable options, the yard remains a golden, untapped opportunity for many organizations.
Companies are prioritizing sustainability at every stage of the supply chain, and the yard should not be left out of these conversations. By adopting innovative solutions like yard management systems, electric vehicles and automated systems, companies can effectively reduce their environmental impacts, improve operational efficiency and help build a more sustainable future for the world.
