Road to Net-Zero, For a Sustainable Future

The conference, themed "Green Development, Net-Zero Future", was held in Ordos, Inner Mongolia. Acting as a platform to discuss pathways towards green development and new avenues for sustainable growth, the conference is spearheading the green industrial revolution.

Mr. Vishal Sharma, CEO of DB SCHENKER Greater China, was invited to deliver a speech titled "Road to Net Zero, For a Sustainable Future". 

According to a report from Climate Watch, transportation emissions contributed 15% of global greenhouse gas emissions in 2020. However, considering the pandemic's impact on the transportation network, DB SCHENKER believes that carbon emissions generated in the supply chain far exceeded this figure. Carbon reduction in the transportation sector cannot be overlooked. As a logistics and freight industry service provider, DB SCHENKER holds the responsibility to make efforts in reducing carbon emissions. Adhering to the Science Based Target initiative aiming to limit global warming to 1.5°C, DB SCHENKER set an ambitious goal to achieve carbon neutrality by 2040.
To realize these medium and long-term objectives, DB SCHENKER implemented strategic measures and has already achieved some milestones. In 2022, the company procured over 10,000 tons of sustainable aviation fuel to reduce absolute carbon emissions in the transportation sector. In 2023, DB SCHENKER increased its investment in sustainable transportation fuels, purchasing over 17,000 tons of sustainable maritime biofuels. Globally, the company deployed more than 450 trucks powered by alternative energy sources.

Additionally, to achieve emission-free city distribution by 2030, DB SCHENKER Greater China initiated a green logistics solution in early 2022, utilizing new energy vehicles for inner and near city distribution. Within 2022, DB SCHENKER had 45 new energy vehicles on the road. In 2023, in collaboration with suppliers, the company plans to introduce 80 more new energy trucks in Tier 1 cities, aiming for net-zero emission operations. DB SCHENKER intends to continue investing and expanding its green fleet, with the goal that 75% of inner and near city deliveries will be carried out by their green fleet by 2025.

Mr. Vishal Sharma said:“There is little doubt that in our sustainable transformation journey, we have encountered challenges. For instance, current lithium batteries used by new energy vehicles have limitations in terms of range and charging time, affecting operational efficiency. Hydrogen-powered trucks are in use, but we recognize that hydrogen production generates carbon emissions. To address these challenges, contributions from enterprises alone are insufficient. The success of sustainability relies on the participation of all stakeholders and achieving a balance between the planet, people, and profit. This includes the need for more charging station infrastructure for renewable electricity and hydrogen, policy support to remove constraints on new energy vehicle city distributions, and integrating transportation emissions into carbon trading markets. Governments play a vital role in driving this forward. I am delighted to be invited to this conference and to witness the remarkable efforts of the Ordos Municipal Government in this direction. Of course, besides government support, joint efforts from cargo owners are also essential. When enterprises set their carbon emission goals, they should consider not only direct emissions from operations but also indirect emissions from cargo transportations. A report shows that as of 2020, only 360 companies worldwide have set carbon emission reduction targets which including their transportation emissions. Carbon reduction across the entire value chain can only be achieved when transportation emissions are prioritized as a key area for emissions reduction by more enterprises. We hope that more enterprises and institutions with whom we share this vision will join us on this net zero journey. Let’s work together towards a sustainable future.”