Thank you for Subscribing to Retail Business Review Weekly Brief
Retail Business Review | Tuesday, April 19, 2022
Global freight movement accounts for approximately eight percent of greenhouse gas emissions in a year.
FREMONT, CA: Transportation adds to global carbon emissions, particularly last-mile deliveries. Global freight movement is responsible for about eight percent of annual greenhouse gas emissions. Traditionally, sustainability has been viewed through the producer's lens to figure out how to make industrial processes more environmentally friendly. Brands and retailers are now considering supply chains and sustainability from the perspective of consumers. Consumers demand speedier deliveries, but it has to be more efficient to assist the environment. As customers better understand supply chains and carbon footprint reduction, they are more likely to purchase from companies that they believe are environmentally friendly. According to a Capgemini Research Institute report, 60 percent of consumers are unwilling to buy from companies they believe are unsustainable.
Consumer behavior changed during the pandemic. Brands started leveraging stores as fulfillment hubs, shipping from them and allowing customers to pick up their packages curbside, reducing last-mile delivery emissions. According to a research published by Accenture in 2021 titled "The Sustainable Last Mile," micro-fulfillment centers could reduce emissions by 17 to 26 percent by 2025. During the market upheavals in 2020 and 2021, e-commerce sales increased. According to the United States Census Bureau, e-commerce sales accounted for 13.2 percent of total sales in 2021. Firms must consider sustainability in their last-mile deliveries as e-commerce grows to fulfill consumer demand and sentiment.
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
Consumers are concerned about what brands stand for and whether or not they are environmentally conscious. Almost six out of ten customers are willing to alter their purchasing habits to reduce their carbon footprint. Consumers may make decisions to promote sustainability and utilize their actions to help firms lower their carbon footprints after being educated about their supply chain position. Environmental concerns should be taken into account when making delivery choices. Consumer loyalty and overall revenue increase by 77 percent and 63 percent, respectively, when retailers address consumer sustainability issues, according to Capgemini Research Institute. Since more than half of consumers think about sustainability while making purchases, firms must also educate customers about how their delivery preferences affect sustainable last-mile delivery.
More in News