Logistics Suppliers Face Increasing Pressure from Corporations to Reduce Emissions

To stay competitive, suppliers should consider zero-emissions vehicles and low carbon fuels

Jan 05, 2021

A new report from Guidehouse Insights examines the corporate trend toward climate action planning and provides recommendations for logistics suppliers to retain a competitive edge.

Corporations are responding to consumer and employee demands for more sustainable products and services with ambitious targets for greenhouse gas (GHG) emissions reductions. At the same time, zero emissions solutions in transportation are becoming more viable: EVs powered by renewables are poised to take over urban delivery markets and passenger transport, and fuel cell and battery electric truck makers are preparing solutions for long-haul trucking. A variety of other zero-emissions, low carbon, and even negative-emissions solutions are also emerging. Click to tweet: According to a new report from @WeAreGHInsights, logistics suppliers should expect corporate clients to push strongly for decarbonization—and be prepared to respond.

“Leading suppliers are expected to find innovative ways to deploy and use low carbon and zero-emissions technologies to meet new client demands related to decarbonizing supply chains,” says Scott Shepard, senior research analyst with Guidehouse Insights. “Slower-to-act suppliers risk losing business to the innovative suppliers or to more emissions-efficient modes of transportation, such as rail.”

For suppliers looking to meet client demands, Guidehouse Insights recommends planning for an all-electric fleet and increasing the visibility of fleet emissions performance data. Suppliers should also take an inventory of local biofuel options and identify untapped biofuel feedstocks. Additionally, Guidehouse Insights recommends investing gradually and sharing costs with stakeholders.

The report, Climate Action Plans Driving Logistics Decarbonization, covers the corporate trend toward climate action planning and the many ways in which logistics suppliers can respond to client demands. The report includes an assessment of methods for switching to non-diesel fuels, an evaluation of the fuels and vehicles best positioned for the switch, and recommendations for identifying emissions-savings opportunities with legacy vehicles and infrastructure. An executive summary of the report is available for free download on the Guidehouse Insights website.


Lindsay Funicello-Paul



*The information contained in this press release concerning the report, Climate Action Plans Driving Logistics Decarbonization, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.