Untangling Practical and Legal Hurdles to Sustainable Logistics

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.

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Navigating the supply chain crisis

 

Biggest Electric Truck Purchase

Global logistics company DSV has signed an agreement with Volvo Trucks to purchase 300 electric trucks, marking one of Volvo’s largest electric vehicle orders. This move is a significant step in DSV’s strategy to reduce emissions and align with industry trends toward greener transport solutions.

Expanding Sustainable Road Freight Solutions

With a focus on sustainability, DSV aims to transition more of its fleet to electric or renewable fuel-powered vehicles. The partnership with Volvo includes plans to deploy 300 zero-emission trucks across Europe, alongside 500 fuel-efficient diesel and gas models. This mirrors industry-wide efforts, with companies like DHL and Amazon also investing in electric fleets.

Why DSV Might Have Opted for Electric Trucks

DSV’s decision to invest in electric trucks is likely driven by three key factors:

  • Sustainability and Compliance: Electric trucks align with DSV’s environmental goals and help meet stricter emissions regulations being introduced globally.
  • Long-term Cost Efficiency: While electric trucks have higher upfront costs, they offer lower operating and maintenance expenses, providing long-term financial benefits.
  • Customer and Market Demand: There is growing demand from clients for greener logistics solutions, making electric trucks a strategic choice to attract environmentally conscious customers and enhance DSV’s competitive edge.

Industry Collaboration for Decarbonisation

Volvo Trucks President, Roger Alm, expressed pride in strengthening the collaboration with DSV, stating, “Collaboration and a strong commitment to making a difference are crucial to realizing sustainable transport and significant CO2 reductions. This order is a testament to DSV’s confidence in our solutions and demonstrates that zero-emission transport is achievable today.”

Søren Schmidt, CEO of DSV Road, echoed these sentiments: “Close collaboration across sectors is key for DSV to be a catalyst in decarbonising the industry. Extending our partnership with Volvo supports our mission to lead the green transition in logistics and bring scalable solutions to our customers.” The collaboration is in line with efforts seen across the transportation sector, where companies are increasingly forming partnerships to leverage expertise and share the investment costs associated with transitioning to cleaner technologies.

Scaling Green Trucking Infrastructure

The fleet supplied to DSV will feature the new Volvo FH Aero Electric, designed with enhanced aerodynamics for greater energy efficiency. DSV already operates electric trucks on routes in Sweden and Denmark, where it has established charging infrastructure powered by solar panels at its distribution centres in Landskrona and Horsens. This is consistent with broader industry trends, where companies are investing in both electric vehicles and the necessary infrastructure to support widespread adoption. For example, companies like Tesla, Nikola, and Daimler are all developing electric and hydrogen-powered trucks while also working to establish charging networks.

Commitment to Climate Targets

Both DSV and Volvo are committed to science-based climate goals, with plans to significantly cut emissions by 2030 and achieve net-zero by 2050. These commitments align with global efforts by major logistics and transport companies like Maersk and DB Schenker to drive industry-wide decarbonisation.

The DSV-Volvo deal is a clear example of how leading logistics and automotive companies are driving the evolution of the transport industry toward a more sustainable and low-emission future.

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What stops Logistics Companies Achieving Sustainability?

5 Ways to more Sustainable Logistics

Modern, sustainable logistics services involve many stakeholders. When the right amount of goods doesn’t arrive at the right time, it creates irritation, reflects on customer service, and incurs cost. That cost is not just to the value chain, it’s to our wider environment. When more goods are shipped more often than they need, they use up more valuable resources.

In the supply chain, the only way you can really know what happened is to see what happened. Intelligent Video and AI Services give companies true insight and the ability to lead fact-based improvement initiatives which improve each company’s efforts to become more sustainable.

Innovating where it matters

Intelligent video and AI Services give you the benefits of fact-based visual insights combined with real-time assistance to enable flawless logistics. “We collaborate with cutting-edge technology players in the fields of video, Cloud computing, Edge computing and AI to enable logistics providers to make significant gains throughout their operations,” says Stefan Borg (pictured), CEO at SiB Solutions. “We identified the processes that benefit from flawless logistics and the savings to be made, namely picking, receiving, transport, loading and packing. We see that companies are investing more and more in logistics technologies to become leaner, and especially more sustainable.”

Five steps towards a sustainable supply chain through flawless logistics

Stefan outlines five ways flawless logistics can make a real difference to a company’s sustainability efforts.

1: Leave nothing behind and avoid unnecessary shipments

“Most picking assignments revolve around putting items out of conveyors and into boxes. But it’s easy for items to be left behind,” says Stefan. “By using intelligent video and AI in critical processes it’s possible to verify if the conveyor is empty or not and give operators a window of time to correct a fault.”

2: Check for faults in Human Machine Interaction to improve working conditions
“Hiccups in the way a machine is set up can cause humans to make errors. For instance operators may get delayed information due to seconds of lag. Similarly, there may be something missing or unclear in the interface design. If you visually search for behaviour patterns, you can find them. And come down on the side of humans!”

3: Strive for better fill rates and avoid shipping air
“A simple visual test to measure to what extent a box is filled – and then fill it, makes sure you’re not using fuel to ship air,” says Stefan. “Intelligent Video and AI Services verifies output and gives an opportunity to correct master data used earlier in the process, enabling continuous improvement to optimize fill rates.”

4: Use visual evidence to improve circular goods flows
“One way to achieve circular goods flows is through reusable pallets, but where are they exactly?” Asks Stefan. “RFID scanning lets you know that the pallets have passed a certain checkpoint, but adding visual evidence lets you know exactly where they are, or were, pre-or post scanning, safeguarding the movement of valuable assets – the pallets, or even the goods themselves.

5: Use intelligent video and AI services to cut down resource use
“Energy is scarce, and becoming more so as more people chase fewer resources. Using flawless logistics throughout the supply chain, from guiding operators to put the right goods on the right pallets, to shipping the right goods to cut down on returns, to ensuring goods don’t go missing in transit; all means less use of scarce resources,” comments Stefan.

Flawless logistics isn’t just good for your brand and your bottom line. It’s good for people, and especially good for the planet. Stefan Borg is co-founder and CEO of SiB Solutions, possessing over 30 years’ experience in logistics and energy at management level.

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