Logistics Emissions: What They Are and How to Reduce Them

The logistics industry is essential for global commerce, ensuring that goods move efficiently from production centers to consumers. However, this system comes at a steep environmental cost, with logistics emissions contributing significantly to climate change.

In this guide, we’ll break down the main sources of emissions in logistics—such as freight transportation, warehouse operations, and business facilities—and explore actionable ways to reduce your carbon footprint.

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Understanding logistics emissions

Logistics emissions refer to greenhouse gases (GHG) generated during the transportation, storage, and handling of goods. The primary sources include:

• Freight emissions from air, sea, rail, and truck transport
• Energy consumption in warehouses
• Operational emissions from offices and business processes

According to the United Nations, transportation alone accounts for 25% of global carbon emissions, with freight playing a major role due to its reliance on fossil fuels.

Where do logistics emissions come from?

Freight transportation

According to the United Nations, about 25% of global carbon emissions come from transportation. Since 95% of transportation is powered by fossil fuels, the emissions in this sector are high. The expansion of e-commerce and global trade markets keeps demand for freight and transportation services high. 

Planes, trains, trucks, and ocean vessels emit different amounts of carbon per ton-mile traveled. Air is the most emissions-intensive mode of transportation by far.

Here’s the breakdown, according to the US Congressional Budget Office:

Air freight remains the most carbon-intensive, while rail and sea freight offer more sustainable alternatives for long-distance shipments.

Opportunities for improvement in freight emissions

Given the heavy reliance on fossil fuels, reducing shipping emissions requires strategic investment in:

• Cleaner fuels (biofuels, electric, hydrogen, LNG)
• Fleet optimization and route planning tools
• Consolidated shipments to reduce empty miles

Governments and logistics providers are also offering incentives for eco-friendlier practices, helping e-commerce businesses make greener choices.

Inventory Emissions

Warehouses, especially those with temperature-controlled environments, contribute to logistics emissions via:

• Excess packaging and food waste in some sectors
• High electricity use for lighting and HVAC systems
• Energy loss through frequent door operations

Opportunities for improvement warehouse missions

Making small changes can be very effective for lowering bills and becoming more eco-friendly. For instance, you may be surprised to learn how much changing the lights from incandescent bulbs to LEDs can impact a warehouse’s emissions and utility bill. 

• Install LED lighting and smart thermostats
• Use renewable energy sources like solar panels
• Implement waste reduction programs

Company operations

Offices require computers, printers, paper, chairs, desks, electricity, heating, cooling, and employees who commute from home. Each one of these aspects contributes to GHG emissions. 

Electricity, heating, cooling, and employee commutes are also responsible for carbon emissions because they rely on energy largely sourced from fossil fuels.

Opportunities for improvement

Operational emissions vary greatly depending on the company. However, no matter how small or large your business is, you can make a difference by integrating sustainable practices into the model of your business.

Companies can implement recycling/composting campaigns, work-from-home policies, and renewable energy and efficiency projects to lower operational emissions. Providing public transportation passes and/or bike racks on-site can help reduce emissions from commuting.

Working with a logistics provider committed to greener logistics

Carbon emissions come from many sources in the logistics industry, which can seem daunting. However, this also means there are many different opportunities to lower emissions and make a difference.

As a global 4PL provider for e-commerce retailers, we at Wayfindr (Wayfindr Logistics) have many remote employees and do not directly produce any goods. We see our lack of direct impact as an opportunity to help our retail and logistics partners to lower their emissions.  

If you want to choose to offset your carbon emissions, we can provide these solutions to your logists programs.