Introduction
Sustainability came into existence as a part of company ethics to respond to the supposed public discontent through long term destruction that is led but the emphasis on short term returns. Sustainability entails being able to achieve the needs of the existing generation without bargaining the capability of the coming cohorts to achieve their wants (Piecyk et al., 2015). The sustainability concept comprises of three mainstays which are environmental, economic and social. DHL strategy is grounded upon corporate sustainability as well as responsibility. DHL has been committed not only in meeting the stakeholder’s interests but also ensuring that they address the issues of the community and the environment. DHL aims to be able to connect people as well as improve the lives to contribute to the economic development within their services and products through biding by the rules of the global standards as well as ensuring that they maintain the ethical business practices. DHL has remained committed to minimizing the environmental impacts to secure long term growth of the business.
Sustainability in Logistics
With the increase in the number of industry and population in the last two centuries, the need for green logistics has increased. The three factors that have increased the need for green logistics are categorized in three different ways: Improving financial performance and reducing risk of the supply chain, attracting consumers who value sustainable products and making the world a better place through making it more sustainable (Guiffrida et al 2011). Ideally, logistics have played a crucial part in the global economy thus industry can play a vital role in the environmental impact. For this reason, DHL has aimed at zero emissions in 2050. DHL has become a pioneer in sustainability giving and greener competition. They have also aimed at applying circular economy principles that have been essential in the eradication of waste and retaining more value in their products. Their logistics system is putting more emphasis on the strains on natural resources as well as the world’s environment.
Today leading companies such as DHL have aimed at ways to go green. They have been able to understand that if the world is to remain habitable for the generations to come they need to work together now to reduce as well as identify emission and make their businesses more sustainable and relatively move to a more circular economy (Marchet, Melacini, and Perotti, 2014). DHL was founded about 40 years ago as a small shipping company through the airline from Honolulu to San Francisco to a universal shipping company. DHL has been able to deliver vital shipments as well as merchandise and goods through rails, road, and sea. DHL has transported express shipments and courier through one of the world’s most widespread networks all over the world. DHL has offered several readily accessible solutions and services for its customers from the transportation of goods, parcels, and letters.
Environmental protection
According to the DHL 2018 sustainability report, it is apparent that DHL has focused on sustainability. As a sustainable business, it has been benefited the society as well as favorable for the construction of business success. As the business continues to focus on sustainability, it has reduced the energy use, waste, costs as well as other environmental influences. In 2018, the Urban quality was one of the main focus areas for sustainability (DHL, 2018). With regards to this, DHL focused on the expansion of City Hub solution which came to replace the delivery vans that were used for the delivery of goods and parcels as well as cargo bikes and they began using the electric scoters that replaced the motor scooters in the European cities. Considerably, the use of electric delivery vans that have now been deployed in Europe has increased the number of external customers.
As a logistics company, DHL believes that its business tends to impact the environment. Roughly about 14 percent of the greenhouse gas emissions are attributed to transportation systems. DHL has therefore set an ambitious target to lower the logistics linked emissions. Concerning this, DHL has had an environmental program, Go Green which includes several innovative solutions to lower air pollution and improve carbon efficiency (DHL, 2018). On the other hand, it has been important for them to improve air quality which has led to the need for local air pollution reduction initiatives that will allow them to continue conduction business in future generations that may regulate the use of vehicles that use fuels to run in the urban city areas. With the great focus on environmental protection, DHL will be able to attract more customer that value sustainability and protection of the environment. On the other hand, such environmental strategies which will be a vital success factor for the business.
Carbon Efficiency
DHL carbon efficiency has improved from 2007 to about 33 percent which has shown another great milestone for the mission of the company in 2050. With the increased use of green energy in the company from renewable energy sources such as hydropower, biomass, wind and solar have increased to about 77 percent. DHL has also improved a wide range of initiatives that are linked to increased energy efficiency and the reliance of alternative energy sources such as the electric drive trucks to the start of art aircraft and the green building technologies (DHL, 2018). DHL has also joined the environmental forest conservation target whereby they have been partners in planting over 1 million trees. Looking forward to becoming a green company, DHL believes that promoting t6he use of synthetic fuels centered on renewable energy sources is essential with regards to lowering the carbon footprint within logistics. In 2018, they have joined the Global Alliance Power fuels that will be important in improving the synthetic fuels market and encourage the development of other choices for aviation fuels.
DHL has been able to offer climate neutral shipment for their clients within the financial sectors. This business has resulted in a vital overnight direct shipment that hassled to significant emissions. The goal of this was to lead to climate-neutral international bank courier services that have been significant for the annual carbon savings as well as the improved brand image (DHL, 2018). The new distribution centers in the United States have led to a healthier environment for the workers and residents as well as the local community by minimizing the water and energy consumption reduced greenhouse emission gases and lowering costs.
Since 2006, DHL has been a participant of the UN Global compact and have sustained its Ten principles as well as the UN Sustainable Development Objectives that have offered a framework for the business. This shows that DHL is part of the large community that brings that improves lives and brings the world together. Considerably, this has been important in inspiring a lot of people to offer their talents and time as part of the Universal volunteer program to leverage the strengths and great goods of the communities in which people stay and conduct businesses. DHL has also continued to improve the employment of disadvantaged youths all over the world with a Go teach the program as well as the integration of refugee initiative. For instance, during 2018, they have signed contracts with over 4,000 refugees who are now employed by the company. In this way, they have been able to build for themselves through performing the various works within the company as well as strengthening and enriching their fabric society.
Sustainable Products
DHL brands have stood out for a wide-ranging portfolio of services and products. Inline to connect and improve people’s lives, these services and products have also benefited the community through areas such as global infrastructure, healthcare as well as the environment (DHL, 2018). In terms of healthcare, the global ocean freight network, global air and the transportation of sensitive devices and medical products have offered the clients with refined cold chain transportation services. This has been important in improving lives and patient safety all over the world. DHL is also expanding a range of environmentally friendly logistics and product solutions which have enabled the customer as well as the transportation that lowers the environmental impacts through value-added products. DHL has also enabled a universal flow of goods and mail even within the remote areas and offered secure digital communication.
Ecological and Ethical Standards
Ecological and ethical standards have been essential in the supply chain. Both at the local and international level, they have a dedicated team which has been working on empowering and educating the company’s supplier to ensure that they have high standards that are in line with the code of conduct for the supplier. Partnership with the suppliers has gone beyond just mere compliance to having relationships that have built strong values through awareness, education, and engagement for collaborative improvement (Cosimato and Troisi, 2015). DHL ensures that the environmental and ethical principles and values are anchored within the supply chain by making sure that the supplier code of conduct encourages the supplier to implement similar standards in the supply chain. For instance, they have been able to reduce child labor issue within the supply chain. This has been done through creating an awareness that the supplier should ensure that they do not employ children that are under the prevailing age of employment. Relatively, they have ensured that the suppliers have not used forced labor and that the employees working for the suppliers are paid as required. Other issues that DHL has paid attention to on the supply chain is the working hours and compensation hours as well as the freedom for collective bargaining and association. Through this, DHL has been able to place a safe working condition for these employees and ensuring that they are treated in the right way. In this way, they have ensured that their supply chain is effective through environmentally friendly and responsible products and services.
Acting legally and ethically in their dealings have been one of the major reasons for their success and reputation in the business. Respect and integrity of customers and employees, as well as the willingness to accept social responsibility, are among the shared values that DHL set in 2006 in their code of conduct. Among them are the key principles which include equal opportunity, respect for human rights, stand against corruption and transparency. These have been important in supporting environmental awareness and responsibility.
Discussion
Sustainability and sustainable practices are important in the success of the business. For the case of DHL, the fact that the business is a concern with the good of the environment, they will be able to rely on sustainable measures that will be enough for the motivation of adopting business practices that are sustainable (Oberhofer and Dieplinger, 2014). Cost reduction is mentioned along with improved sustainability in the business. For instance, through the use of innovative solutions and renewable energy sources, DHL is able to cut down cost which in turn will have a positive impact on their sustainability agenda as well as profitability. On the other hand, through sustainable management practices, such as shared values with the supplier, they will be able to attract more employees since most of the employees are a concern with sustainability. In connection with this, investors and clients are drawn by sustainable business practices. This is essential in creating a good reputation for the business. Through a good reputation, the business has been able to build a long term value through paying attention to how DHL operates in the social, ecological and environment. With the increase in expectations on sustainability and corporate responsibility and as transparency gets more predominant, firms need to recognize the need for sustainability.
Conclusion
In conclusion, sustainability encourages business to frame their decisions and consider more factors rather than just profitability. Usually, it is a routine for business to provide their sustainability objectives and to work on the road to them. These aims are considerably practical for businesses for them to achieve them and call themselves sustainable or green. These companies are able to accomplish their sustainable wants through reducing emissions, obtaining products from fair supplier firms, lowering energy use as well as ensuring that their physical waste has been disposed of properly.
References
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Cosimato, S., & Troisi, O. (2015). Green supply chain management: Practices and tools for logistics competitiveness and sustainability. The DHL case study. The TQM Journal, 27(2), 256-276.
DHL. (2018). DHL Corporate responsibility report 2018. Available at: https://www.dpdhl.com/content/dam/dpdhl/en/media-center/responsibility/dpdhl-corporate-responsibility-report-2018.pdf
Guiffrida, A. L., Datta, P., Dey, A., LaGuardia, P., & Srinivasan, M. (2011). Building sustainability in logistics operations: a research agenda. A management research review.
Marchet, G., Melacini, M., & Perotti, S. (2014). Environmental sustainability in logistics and freight transportation: A literature review and research agenda. Journal of Manufacturing Technology Management, 25(6), 775-811.
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Piecyk, M., Browne, M., Whiteing, A., & McKinnon, A. (Eds.). (2015). Green logistics: improving the environmental sustainability of logistics. Kogan Page Publishers.