How eCommerce companies can reduce their carbon footprint

Reducing carbon emissions is a challenge that all eCommerce companies face. How can you reduce your digital carbon footprint? Let us show you how!

Over the past few years, the eCommerce sector has experienced huge growth. Online sales have soared worldwide, accelerated by health restrictions during 2020, leading to an increase in the number of home deliveries and parcels delivered every day. Retailers need to be aware of the impact this is having on the planet's carbon footprint. Consumers, especially the younger ones, are increasingly concerned about sustainability and the need to build a greener world.

With the expansion of eCommerce, buyers have also gained new advantages, such as lightning-fast delivery and hassle-free returns. Companies that can provide top-notch services while remaining environmentally friendly are becoming the go-to option for consumers. There is a growing demand for sustainable products and packaging that are environmentally conscious.

Here are five ways eCommerce companies can reduce their carbon footprint and contribute to a healthier planet.

How to apply green logistics in your eCommerce?

Backhaul. When planning your logistics route or outsourcing it, you must implement a backhaul strategy. By this, we mean that the means of transport we use optimises its routes to avoid going empty (known as air transport). The journey will be used to deliver and collect. A good backhaul strategy will allow you to have shorter routes, improving delivery times and thus service, and directly reducing your carbon footprint. It is one of the most valuable and applicable tools for freight transport today, as it reduces emissions and optimises delivery times. This is a double benefit for the company and the customer, who can opt for a "last mile" with less environmental impact.

Using environmentally friendly vehicles. Reducing emissions, noise ... and costs! Renewal of shipping fleets must be geared towards the use of environmentally friendly vehicles. Especially since most countries have already passed laws that will ban the sale of combustion vehicles by 2035. This shows the direction in which the logistics industry should be heading. Among the different types of environmentally friendly vehicles, the most popular are e-vehicle and rechargeable bicycles or scooters. Their use also brings an extra benefit, as they can enter areas with eco-restrictions or more congested areas, improving delivery times compared to combustion vehicles.

Sustainable packaging. Recycled, biodegradable and environmentally friendly materials. All of these are already part of our daily lives, are in the consumer's mind, and are valued in their purchasing decisions. The brand image has a solid link to the packaging we use and the fact that it is sustainable undoubtedly creates added value for the planet. Nowadays, the price difference between one type of material and another is lower than it was years ago, so the entry barrier for opting for this type of material disappears. Within green packaging we differentiate between various types:
- Recyclable and recycled packaging: these are made from materials that are already recycled or can be recycled to produce new products. They are the most common and are made from materials such as cardboard, aluminium, recycled plastic...
- Biodegradable packaging: these are becoming increasingly popular and there is continuous innovation in this sector. We already have options such as wood pulp or corn and even cotton paper. Their originality means that many brands are opting for them. The storytelling behind the use of this type of packaging is very powerful, so let's make the most of it!
- Compostable packaging: These are those that decompose and subsequently produce organic fertiliser. For example, biodegradable bags or packaging made from sugar cane bagasse.
- Minimalist packaging: This is a key point. We are often unaware that by using tighter packaging we avoid "sending air". This has a double impact both in terms of costs for the company and environmental costs. We must measure very well and study in depth the size of our packaging to reduce our carbon footprint and improve our variable cost structure.
- Reusable packaging: this is another of the most common types of packaging and one that consumers have already taken on board as an additional added value. Being able to use them more times helps a lot to generate brand awareness while protecting the planet at the same time.

2. Warehouse and logistics centre energy optimisation: What is Fulfilment?

To ensure the reduction of the carbon footprint in eCommerce, we must also think very carefully about the type of storage of our products. There are several solutions that we are all familiar with in terms of optimising and using green energy resources. Energy efficiency is already a reality both at the company level and in our homes.

But we must bear in mind new solutions such as the use of fulfilment centres. This solution was created with the aim of optimising resources and reducing the carbon footprint of eCommerce. These are facilities where shipments are prepared for orders from different online shops. They receive the goods centrally and prepare them for their final arrival to the consumer. They are usually located near large cities because of their proximity to the end customer. This speeds up deliveries and improves stock rotation.

The acceleration that is being created in delivery times is also one more reason why fulfilment centres make more sense as an effective option for eCommerce companies. Customers are becoming accustomed to receiving their orders in a very short period. So the proximity that fulfilment centres allow helps to meet these demands while reducing the carbon footprint at the same time.

3. Green marketing: how to promote sustainability to consumers

We can promote sustainable consumer behaviour from within the company. Both communication and sustainability teams in companies are already developing creative solutions to encourage responsible consumption. Measures that are gaining more and more weight include:

Delivery method we all want our product to arrive as soon as possible. The immediacy and acceleration of the last mile are a reality. But consumers can be given eco alternatives at no additional cost. These solutions often involve longer delivery times. But if they are offered at no cost and under the "eco" label, it's a win-win situation.
Reward plans for responsible product selection: discounts on future purchases for selecting local or sustainable options. Let's bear in mind that 43% of consumers now actively choose products with environmental values. Even more so if we differentiate ourselves and incentivise them with future or direct discounts.
Raise awareness: highlight and differentiate products on your website. Your product description should highlight and reward products with sustainable ISO seals.
Make it possible to support social and ecological causes. The well-known Green Marketing that allows us at the time of purchase to make contributions to associations related to the care of our environment is a way to help, raise awareness and position our brand in a powerful way compared to the company.

4. Measuring and tracking the impact of your carbon footprint

By understanding and measuring our carbon footprint, we can continue to reduce our emissions as an eCommerce business. Tracking your carbon footprint is essential to know where to take action to reduce it.

What is the carbon footprint? How is the carbon footprint measured?

It is an environmental metric that will tell us the total GHG emissions generated. Either directly or indirectly. In other words, the mass of CO2 we produce throughout our supply chain. There are three types of scope:

SCOPE 1: that which is produced directly. In other words, the CO2 that we produce as a result of our activity. In eCommerce companies, this is mainly related to production and, above all, to transport.
SCOPE 2: These are derived from the electricity we use. Mainly by computers or large servers. That is why the selection of responsible equipment is essential to reduce it.
SCOPE 3: these are the emissions generated as a consequence of our activity. They are beyond our control. But we can act on them through measures such as direct collaboration with associations dedicated to reducing environmental impact in general.

It is measured with software tools developed for this purpose, which collect data from each of these categories and convert it into objective and measurable data. The data required will include, for example, the number of kilometres travelled by our products or the number of hours used by our IT systems.

5. Working with partners

So, from all the points discussed above, one conclusion is very clear: working with sustainable partners is key to reducing your digital carbon footprint. If we include this variable in our selection of suppliers, we will be reducing the carbon footprint of our value chain. Creating a social commitment and an eco-friendly brand that is well-valued by the consumer.

In addition, we must break the myth that directly correlates ecology with increased costs. In most cases, the relationship is the inverse, as efficiency is improved. Especially in terms of transport and the use of energy resources.

Finally, we must assess the relationship between reducing the digital carbon footprint and the brand awareness created by the consumer. If we are environmentally friendly, we will also be friendly to our customers. We should also remember that legislative changes are aimed at improving the ecological viability of businesses. So with new strategies to reduce our digital carbon footprint, we will be ahead of the curve and adapting our operating systems to future imperative needs.

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