On the path towards green logistics

Green Logistics

Green Logistics is a collective term for a range of tools that enable us to reduce the negative environmental impact of supply chain operations. At DSV, green logistics encompasses:

• CO2 Emission Monitoring – Without understanding where, what kind, and how much emissions are generated, planning an effective decarbonization strategy is impossible.
• Supply Chain Optimization – Based on expert analysis, we advise on how to change inventory management and transportation solutions to achieve greater efficiency in both business operations and emissions reduction.
• Sustainable Warehousing – Focuses on improving the conditions of carrying out logistics operations and reducing the negative environmental impact of these processes. Activities in this area primarily focus on reducing energy consumption by choosing certified sites and modernizing existing ones, as well as reducing waste production.
• Biofuels – HVO and SAF, which are part of DSV's offering, can help reduce emissions from sea, road, and air transport by up to 90%.
• CO2 Emissions Compensation – DSV mediates the purchase of high-quality carbon credits for interested customers, offsetting emissions that cannot be eliminated in other ways.

Decarbonizing Warehousing Logistics

Warehouses are a crucial element of supply chains –every shipment begins and ends its journey at a warehouse. At the same time, it is in warehouse facilities that DSV has the greatest freedom to implement technologies that help reduce CO2 emissions in customer operations.

We have identified three main areas that – through the application of Green Logistics tools in warehouse operations – will allow us to reduce emissions by at least 9% by the end of 2024:

• Warehouse Technology and Process Optimization – By electrifying the equipment used to handle your goods and continuously collaborating with our employees to improve processes, we are gradually reducing consumption of materials and resources.
• Warehouse Energy Efficiency – DSV actively negotiates with building owners to modernize systems such as lighting, building management, and temperature control, so that even older facilities emit as low levels of CO2 as possible. When selecting new facilities, sustainability criteria are among the most important factors in building's evaluation.
• Investments – DSV aspires to lead the energy transition in the TSL sector. That's why we are engaged in building new warehouse facilities that meet the technological criteria set at the Group level. One such investment is a new location in Łódź, more details can be found here: [LINK]
• Energy Sources - Given Poland's energy mix, which relies heavily on coal, sourcing clean energy for powering warehouse operations is vital to reducing our emissions, which also contribute to your Scope 3emissions. How does DSV tackle this challenge?

Goal: DSV as an Energy Producer

Achieving energy self-sufficiency for every new DSV facility is a priority for us. It's both a matter of caring for our planet and a tangible business value. Today, energy costs are among the most volatile – by extensively switching to the green energy, we aim to protect both you and our organization from this uncertainty.

The key tool for achieving this goal will be the installation of photovoltaic panels on the roofs of warehouses built directly by DSV. Renewable energy will power not only the equipment needed for warehouse operations but also offices, transshipment terminals, and infrastructure critical to the development of electromobility – especially charging stations. All these actions are supported by the DSV Energy team, a dedicated unit established within the Group. Transforming our organization from a consumer to a producer of energy means that we will not only reduce emissions reported in Scope 1 and 2. We expect to generate more energy than our own needs require: these surpluses will be made available to our partners and subcontractors to power their electric vehicles. In this way, we will reduce emissions reported in Scope 3 – and the emissions of your supply chain as well.

Unfortunately, in some existing warehouses, it is not possible to modernize and install photovoltaic panels or build energy storage systems. In such cases, DSV uses bridge solutions, i.e., we purchase electricity with a Guarantee of Origin. Guarantees are special certificates issued by the President of the Polish Energy Regulatory Office, confirming that a specified amount of energy, indicated in the document, was produced using renewable energy sources and fed into the transmission or distribution grid in that quantity. As a result, the certificate allows for a "virtual" transition to renewables – similar to how the purchase of biofuels reduces a customer's transportation emissions, even though a particular plane or truck may not necessarily be fueled with sustainable fuel.

This year, DSV Solutions' Facility and Maintenance Department defined in Poland 42 initiatives to reduce CO2 emissions, most of which have already been implemented. Currently, over half of the Polish warehouse sites are powered by renewable energy with guarantees of origin. In 2025, DSV Solutions will implement projects involving the use of electricity generated from local renewable energy sources. This will allow us to exceed our CO2 reduction targets well above the 9% threshold. We estimate that by the end of next year, nearly 60% of our facilities will be powered by clean energy.