Companies of all sizes and across all industry sectors are looking for new ways to reduce their carbon dioxide (CO2) and other emissions, with the goal of minimizing their respective impacts on climate change. Most of these moves have been made on a voluntary basis with the goal of attracting “like minded” customer, partners, investors and other stakeholders that have their own green priorities in place.
Up until recently, there were very few governmental regulations for C02 emissions, although that could be changing. For example, the Warehouse Actions and Investments to Reduce Emissions (WAIRE) was recently put in place to help reduce nitrous oxides (NOx) and diesel emissions associated with warehouses and help meet federal standards and improve public health, especially in communities located near warehouses in a specific region in California. There, owners and operators of warehouses that have 100,000 square feet or more of indoor floor space in a single building must comply with the new rule.
WAIRE is just one of several regulations that are currently being considered that may impact companies’ warehousing, transportation and yard operations. There are also various local regulations either currently in effect or under consideration, and address both NOx and sulfur dioxides (SOx). These local air pollutants create myriad health issues, including lung problems for the drivers and workers who use or work around the pollutant-spewing vehicles all day.
The current warehousing boom also comes into play here, and is forcing many local governments to more carefully assess how these expansive, transportation-dependent facilities impact the health of the communities that surround them. The yard is one key area of concern for several reasons, not the least of them being the fact that 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, the ICCT reports.
Overall, heavy-duty vehicles emit a disproportionately high volume of NOx emissions when operated at low speeds. And at mid-speed driving conditions of between 25 and 50 miles per hour, the average NOx emissions from heavy-duty vehicles are 2.7 times the certification limit. These are just some of the key reasons why organizations should make their warehouse or DC yards a focal point for their broader supply chain sustainability programs.
Your Customers are Demanding More Sustainability
If your company isn’t already putting ESG programs in place to create a “greener” yard, its competitors are probably already making these moves. And despite popular belief, these programs don’t have to be cost centers. In fact, they can be a significant source of cost savings and competitive advantage in a world where more customers want to work with companies that are respecting the environment.
According to a recent McKinsey & Co., study, for example, 66% of all respondents and 75% of millennial respondents consider sustainability when making purchases. “Customers now align themselves with brands that are compatible with their values and priorities,” Business News Daily reports. “With environmental stability as a high priority for many people, it’s important that businesses do their part to lower their carbon footprint.”
And as if that wasn’t reason enough to start viewing your warehouse or DC yard as a hotbed for sustainability initiatives, the efforts can also help companies reap substantial savings over time. By deploying a complete yard management solution that incorporates advanced EVs, for example, companies will no longer need diesel fuel and can reduce maintenance while also minimizing downtime. These “wins” translate into substantial, immediate savings that really add up when compounded over time.
The stakes are even higher for yards that have high utilization rates, such as those that run anywhere from 16 to 20 hours per day for five, six or seven days per week. “These are locations where it just makes financial sense to switch to EVs,” says Erin Mitchell, COO at YMX. “And because regulations are now mandating reductions in emissions across the operational spectrum, your yard can serve as a great starting point that creates cost reductions while you prepare to comply with those regulations.”
Put simply, if you’re being asked to reduce emissions anyway, either by organizational or regulatory mandate, wouldn't you rather do something that actually saves you money in the process? When you price it out, whether you're using a third-party provider like YMX Logistics or handling it in-house, a high-utilization yard will reap substantial cost savings by replacing diesel yard tractors with electric ones.
“Despite popular belief, you don't have to spend extra money to upgrade your yard; in fact you can save money in the process,” concludes, Mitchell. “Over time, you’ll achieve scale while also running a yard operation in a substantially more cost-effective way than any legacy options can provide.”
Don’t Get Caught Flatfooted
Regardless of where your company is on its current ESG journey, at some point it’s going to have to assess its current supply chain operations and ferret out new ways to operate in a more sustainable manner. The mandate may be handed down by a government agency, a key supplier, or an end customer, but it’s going to happen in the near future.
Why not prepare now for the inevitable? Rather than getting caught flatfooted as your competitors embrace sustainability and put their own initiatives into action, you can start taking the first steps to compliance now. Your journey can start out in the yard, where an integrated management system that includes EVs can get you on the path to a more sustainable operation today.
By embracing sustainability as a core business strategy, you’ll not only reduce your organization’s environmental impact but you can also enhance its brand reputation, attract even more environmentally-conscious customers and ultimately improve its bottom line.