DHL Global Forwarding and Hapag-Lloyd have achieved a major milestone in their joint efforts to decarbonize supply chains. The two companies have signed a three-year framework agreement for Scope 3 greenhouse gas (GHG) emission reductions resulting from the use of sustainable marine fuels within Hapag-Lloyd’s fleet. As part of this agreement, the first order of 25,000 tons CO2e well-to-wake (WTW) emission reduction was successfully executed in July 2025. The biofuels are second-generation biofuels produced from waste and residue feedstock, demonstrating the companies’ unwavering commitment to reducing greenhouse gas emissions.
“The signing of this three-year framework agreement marks a crucial step toward realizing our shared vision of a decarbonized shipping industry,” said Casper Ellerbaek, Head of Global Ocean Freight at DHL Global Forwarding. “We are thrilled to partner with Hapag-Lloyd in driving the adoption of sustainable marine fuels and the book and claim mechanism, ultimately empowering our customers to achieve their climate goals.”
The agreement showcases the effective application of the ‘book and claim’ chain of custody mechanism, enabling customers to claim Scope 3 emission reduction for their transport separately from the physical use of the fuel. By decoupling decarbonization from the physical transportation, sustainable marine fuel enabled by book and claim is emerging as a vital tool to drive early action in the shipping industry, particularly given that the supply of sustainable marine fuels is currently limited globally and of higher cost.
“We are delighted to have completed this order with DHL, demonstrating the feasibility and effectiveness of using sustainable marine fuels to reduce Scope 3 emissions through our Ship Green product,” said Danny Smolders, Managing Director Global Sales at Hapag-Lloyd, adding: “Partnering with DHL shows how powerful collaboration can be. Together, we are creating real momentum in further decarbonizing supply chains, one bold step at a time.”
Both companies are committed to ambitious decarbonization targets, with Hapag-Lloyd aiming to achieve net-zero fleet emissions by 2045 and DHL striving to reach net-zero GHG emissions by 2050. Offering more sustainable logistics solutions to customers is a key lever to achieve these goals.
DHL’s GoGreen Plus products provide decarbonized solutions across DHL’s core offerings by leveraging sustainable fuels and low carbon technology. GoGreen Plus products are based on true value chain decarbonization, enabled by the ‘book & claim’ approach. GoGreen Plus allows customers to reduce their indirect Scope 3 emissions in their value chain arising from upstream and downstream transportation and distribution. It also helps customers with voluntary reporting of greenhouse gas (GHG) emissions and progress against their decarbonization targets.
Hapag-Lloyd has been deploying second-generation biofuels since 2020. Since 2023, it has been offering its customers the possibility to claim the resulting emission reductions through ‘Ship Green’, its emission-reduced ocean transport product utilizing biofuel blends instead of traditional fossil marine fuel oil (MFO).
From compliance to competitive edge, how can supply chain pressure drive decarbonisation? Jack Goodson (pictured, below), Senior Business Development Manager of Equity Energies, answers a key question.
When it comes to decarbonisation, for many in transport and logistics the convergence of regulation and customer expectations can feel like yet another operational headache, with the conversation often framed in terms of cost and complexity. But there is another way to look at it: as a catalyst for innovation and long-term competitiveness.
In today’s market, delivering at greater speed but at lower cost is no longer enough. Clients and supply chain partners increasingly expect operators to deliver cleaner too. Sustainability has shifted from being a ‘nice-to-have’ to a non-negotiable when winning and retaining contracts. That shift, driven by both regulation and the demands of downstream customers, is already reshaping the competitive landscape, and for those ready to adapt, it’s also opening the door to new opportunities.
Regulation and customer demand are aligned
The demand to reduce supply chain emissions is coming from two directions: top-down through government regulation, and bottom-up through supply chain pressure. Large UK companies are now required to disclose relevant Scope 3 emissions, the indirect emissions that occur in their value chains. That means the carbon footprint of a transport service provider is increasingly visible in the environmental performance of its customers. In addition, regulation requires suppliers on large public contracts to commit to Net Zero by 2050, while also presenting credible carbon reduction plans.
In parallel, major private sector buyers, everyone from retailers to manufacturers, are building sustainability criteria into their tenders, and in some cases deselecting suppliers who don’t align with their own Net Zero commitments.
However, rather than viewing this as a compliance burden, operators should treat these pressures as market signals. The demand for decarbonisation is real and growing, and the companies that can demonstrate credible progress will be first in line for the next wave of contracts. Indeed, as previously reported, every element of the supply and logistics chain is ultimately up for inspection.
A strategic, systems-led approach
The key is to avoid scattergun initiatives and piecemeal action. Isolated initiatives, like switching to a few electric vehicles or installing LED lighting in one estate location, can help, but to gain real traction, organisations need a systems-led approach that addresses multiple points of carbon impact and builds towards long-term targets.
That starts with understanding the baseline. Accurate data on current energy use, fuel consumption, and emissions across fleet and facilities, makes it possible to prioritise effectively. Once the baseline is set, companies can identify and act on the ‘low-hanging fruit’ first; measures that deliver quick wins from both a cost and carbon perspective. This might include reducing energy consumption across warehouses and depots, procuring better energy contracts, and switching to renewable electricity through green tariffs.
DPD made significant progress on its own Net Zero pathway through its warehouse estate, rapidly opening 16 new depots in just six months at the height of the pandemic. Working together, we future-proofed its sites for electric fleet integration, secured competitive energy contracts, and identified over £1.2 million in potential savings through energy capacity analysis. This not only enabled DPD to meet a surge in demand but also laid the groundwork for long-term carbon reduction, proving that operational growth and decarbonisation can go hand in hand.
All these efforts can further cut emissions while freeing up funds. The savings generated can then be channelled into the more capital-intensive parts of the transition, such as fleet electrification or investment in hydrogen-ready HGVs. Supplementary measures, such as advanced lubricants designed to improve EV efficiency and reduce maintenance requirements, can help maximise the return on these larger investments.
Innovation in fleet and facilities
Fleet decarbonisation remains a headline issue for the sector. While electric and hydrogen trucks are still in the early stages of adoption in the UK, targeted trials can identify where they fit best into operations; for example, shorter regional routes that can be reliably serviced by current EV ranges. Interim solutions such as biomethane or hydrotreated vegetable oil (HVO) can cut lifecycle emissions by up to 90% compared to diesel, offering a credible bridge technology while zero-emission fleets scale (source: Zemo Partnership).
At the same time, greener facilities are becoming a competitive advantage. Energy-efficient lighting, improved HVAC controls, automation, and on-site renewable generation not only reduce Scope 1 and 2 emissions but also lower operating costs. With customers increasingly looking for full supply chain visibility, being able to report improvements in facility emissions can strengthen your position in tenders.
In a market where environmental credentials are scrutinised as closely as delivery times, data is perhaps the most powerful differentiator. Tracking emissions per tonne-kilometre, fuel efficiency, and energy use, and being able to present that information clearly, allows operators to demonstrate progress, benchmark performance, and collaborate with customers on joint improvement plans.
Real-time monitoring can also identify inefficiencies, from under-utilised vehicles to energy waste in depots, enabling operators to make operational changes that deliver immediate savings. In competitive bids, the ability to provide accurate, verifiable environmental data can be the deciding factor.
Balancing cost and carbon
There’s no avoiding the fact that decarbonisation requires investment. The challenge is to integrate it into a sustainable commercial model. Grants such as the UK Plug-in Truck Grant can help offset upfront costs for zero-emission vehicles, and green finance options are expanding, offering preferential rates for low-carbon projects. In some cases, customers themselves may be willing to co-fund pilots or infrastructure if it helps them meet their own Scope 3 targets.
By sequencing investments; tackling efficiency and energy procurement first, then scaling into fleet transition, operators can spread costs over time while maintaining service competitiveness.
The direction of travel is clear: sustainability performance is becoming a prerequisite for participation in high-value supply chains. Taking action now will build a track record that not only meets regulatory requirements but also strengthens position as a preferred partner for environmentally conscious customers. Delaying progress risks being locked out of tenders, paying more for finance and insurance, and facing a steeper, more expensive transition later on.
By reframing decarbonisation as an opportunity rather than a burden, and by taking a strategic, data-driven approach, transport and logistics companies can use current market pressures as the push they need to innovate. The winners in this transition will be those who view supply chain demand for sustainability not as a box to tick, but as a catalyst for long-term resilience and competitive strength.
Electric vehicle charging infrastructure and easing highways laws could help logistics providers to innovate and decarbonise their operations, write Tim Jones, director of marketing, communications and sustainability at DPD, and Ben Standing, partner in planning and environment at UK and Ireland law firm Browne Jacobson.
The UK’s logistics industry stands at the heart of the nation’s net zero ambitions, moving everything from manufacturing components to finished goods across complex supply chains that underpin the economy. As the government pursues its 2050 net zero targets, the role of logistics has never been more critical.
However, the environmental gains achieved in production risk being undermined if the carbon footprint is simply transferred to the delivery process – known as Scope 3 emissions, which are embedded in supply chains and account for the vast majority of a company’s carbon footprint. This interconnectedness means logistics companies are not merely participants in the green transition, but enablers of broader economic decarbonisation across multiple industries.
Management consultancy McKinsey & Company estimates the global logistics industry accounts for about 7% of the world’s greenhouse gas emissions, with 80% of these emissions related to transportation. While there are already some exciting advances in the green logistics revolution, a number of practical, legal and regulatory hurdles remain.
Innovation driving change
A successful sustainability transition requires more than simply swapping diesel vehicles for electric alternatives. Innovation must address practical challenges including payload considerations, driver route optimisation, vehicle range limitations, and the development of both on-site and public charging infrastructure.
As part of its commitment to net zero by 2040, DPD has developed smart charging systems that allow drivers to book charging slots and join virtual queues, reducing anxiety about charger availability. It is also trialling fully-electric, autonomous robot deliveries in Milton Keynes, navigating the city’s traffic-free Redway network to access nearby residential neighbourhoods.
Practical and legal hurdles slowing progress
Despite technological advances, significant practical obstacles remain. Effective government support for a green transition within the logistics industry is therefore required via co-ordinated action across multiple policy areas. There are now about 80,000 charging points in the UK, but there is some way to go for the Department for Transport to meet its target of at least 300,000 points by 2030. A Public Accounts Committee report published in March 2025 found the government has been slow to address gaps in charge point provision, with regional divides and inequalities across the rollout.
The legal landscape surrounding emerging logistics technologies presents a complex web of regulatory requirements that are still evolving. The deployment of autonomous delivery robots on public highways raises novel legal questions about liability, insurance requirements, safety standards, and the interaction between automated systems and existing traffic regulations.
Current legislation was not designed to accommodate delivery robots, drones and other autonomous systems operating in shared public spaces. This creates uncertainty for logistics companies seeking to invest in these technologies while ensuring compliance with existing laws and regulations. Establishing regulatory sandboxes would allow for safe testing and deployment of innovative technologies.
Insurance and liability frameworks require careful consideration when deploying new technologies. Questions arise about responsibility in the event of accidents involving autonomous systems, the adequacy of existing insurance products and the development of new risk assessment methodologies for novel technologies.
Collaborative pathways forward
McKinsey estimates worldwide demand for green logistics will reach £350bn by 2030, comprising 15% of total global logistics spend. This shows the prize for success is substantial: a logistics industry that not only reduces its own environmental impact, but enables broader economic decarbonisation while maintaining the efficient goods movement that underpins modern life.
The green logistics transformation, however, requires collaboration between industry, government and other stakeholders to untangle the various practical and legal challenges.
Girteka, the European transport company, has announced its new Alternative Fuel Programme (AFP), a key initiative in the company’s drive to decarbonize logistics operations by integrating HVO fuel into daily operations. This innovative program is designed to help customers reduce their Scope 3 emissions from road transportation by up to 90% compared to traditional diesel.
How the Alternative Fuel Program Works
The AFP is specifically tailored for companies with long-term contracts that are committed to sustainability and looking to significantly reduce their transport emissions. The process is simple – when customers opt for transportation services using HVO (Hydrotreated Vegetable Oil), Girteka utilizes trucks in areas with the necessary infrastructure to refuel with this alternative fuel. The amount of fuel required for the customer’s transport is matched, even if it’s used by another truck in the network. Customers then receive a detailed report showing the emissions reductions achieved through their participation. The program is available to customers with dedicated lanes, excluding spot market services.
“Sustainability is becoming now a core part of corporate strategies,” said Viktorija Terekė, Head of Sustainability at Girteka. “With the Alternative Fuel Programme, we offer our customers a reliable and transparent way to reduce emissions, without requiring them to redesign their existing supply chains.”
Benefits for Customers
Participating in the Alternative Fuel Programme brings several benefits:
• Emissions Reduction: Up to a 90% reduction in emissions compared to diesel, helping customers meet EU climate goals.
• Transparency: All transport is traceable, with fuel and emissions data available for audits and sustainability reporting.
• Certification: The fuel used is certified by suppliers, ensuring full traceability and transparency.
• Corporate Reputation: Companies benefit from enhanced public perception, as consumers increasingly prioritize products transported with lower emissions.
At the core of Girteka’s Alternative Fuel Programme is a rigorous emissions calculation methodology based on the GLEC framework. This ensures that emissions reductions are accurately measured, making the data trustworthy and audit-ready.
“Our calculations are directly tied to each transported load,” said Terekė, “We can show our customers exactly which truck was used, when it was refueled, and with what kind of fuel. Each refueling transaction is fully certified by our fuel suppliers, so there’s no room for guesswork.”
A Transparent and Scalable Approach to Emissions Reduction
Unlike Book & Claim programs or mass balancing, Girteka’s AFP is an intermediate solution that offers both the traceability of direct emissions reductions and the scalability needed for larger operations. Similar initiatives in the aviation and ocean freight sectors focus on balancing emissions without the same level of direct impact.
One of Girteka’s strategic partners has already integrated the AFP into its operations. “We were looking for ways to reduce our transport emissions without disrupting our supply chain, and Girteka’s AFP provided exactly what we needed. The transparency, traceability and reporting of the program gave us confidence, and we’ve been able to significantly improve our sustainability reporting,” said a company representative.
Since its launch, the program has already attracted dozens of similar strategic partners, with interest continuing to grow as more companies recognize the tangible benefits of reducing emissions in a traceable, transparent way. Alternative Fuel Programme is designed to help businesses achieve their sustainability goals while reducing emissions in a practical and transparent way. As the demand for cleaner transport solutions grows, the AFP offers a viable alternative to traditional fuel methods, helping companies make a real impact in decarbonizing the logistics sector.
