Green Logistics: Envisioning a Sustainable Logistics Ecosystem

There is no blueprint for tomorrow but there is a footprint. The logistics sector, a cornerstone of global trade, leaves an undeniable footprint on our planet through escalating carbon emissions from buildings, transportation, and global freight channels. As one of the 13 major carbon emitters responsible for nearly 90% of global greenhouse gas emissions, India is experiencing its effects on the overall economic growth. To address this environmental impact, and bring about transformative change, there’s an urgent need to constantly assess and reassess our day-to-day operations and implement sustainable changes that make a difference.

India’s relatively low per capita greenhouse gas emissions of 2.8 tons, compared to the global average of 7.5 tons, offer a unique opportunity to transition from carbon-intensive operations to a sustainable model that prioritises environmental protection without compromising economic growth. Logistics, traditionally focused solely on efficiency and cost reduction, is now about creating value for stakeholders, customers, communities, and the planet. Creating this evolved world begins by prompting a shift to alternative fuels and energy efficiency. Today, India is uniquely positioned to lead the global charge in transportation electrification, and the Indian logistics industry is increasingly recognizing the environmental and economic benefits of adopting electric vehicles.

With scope for improvement in infrastructure development and battery technology, the EV market in India is witnessing exponential growth. This growth is fuelled by government incentives, technological advancements, and rising consumer awareness, necessitating alliances between policymakers, logistics providers, and technology innovators. As part of our decarbonisation strategy, we embrace carbon-neutral warehousing solutions, sustainable transportation practices, an EV fleet for last mile delivery, plantation initiatives, energy efficiency improvements, and pilot LNG and hydrogen fuels to accelerate the industry’s transition to cleaner, greener operations.

As India’s economy grows and consumer preferences evolve, there is a surge in demand for sustainable logistics facilities, creating a lucrative market for developers and operators. This trend is driving the rise of India’s green building movement. Sustainable infrastructures not only enhance operational efficiency but also reduce costs and attract environmentally conscious customers.

Warehouses and distribution centres, the backbone of the supply chain, have been significant energy consumers and carbon emitters. Today, the construction of environmentally responsible facilities, equipped with renewable energy sources, energy-efficient systems, and advanced waste management solutions, is seeing significant investments. At Mahindra Logistics, our network of green infrastructure aligns with our goal of becoming a planet-positive entity. We are rapidly advancing towards a greener operational infrastructure, spanning energy-efficient warehouses and offices, large-scale solar projects, EV charging infrastructure, and effective water management systems.

From an electric vehicle fleet covering over 27 million green kilometeres to over 3.6 million square feet of renewable energy-powered warehouses, and 80% of our multi-client warehousing infrastructure achieving IGBC Platinum or LEED certification – totalling approximately 3.5 million square feet – our commitment to sustainability is evident.

A green supply chain also requires a circular logistics ecosystem, as the traditional linear model of “take, make, dispose” is no longer rational. Today, the logistics sector must focus on waste reduction, material reuse, and resource recycling thereby, optimizing operations, minimizing environmental impact, and creating a sustainable value supply chain for stakeholders. Collaboration, a core element of implementing circular economy practices, unites the government, industry, and all stakeholders – from manufacturers to end consumers – ensuring efficient resource and waste minimization. At Mahindra Logistics, we pioneer circularity by prioritizing the use of recycled materials, reusable packaging, rainwater harvesting, and wastewater recycling.

While businesses are key to combating climate change, nations worldwide are setting net-zero targets. India, with its ambitious goal of achieving net-zero emissions by 2070 and reaching 500 GW of renewable energy capacity by 2030, is creating a favourable environment for sustainable business practices to help address global CO2 emissions, which total 34 billion tons annually. At Mahindra Logistics, we are committed to accelerate this energy transition and achieve carbon neutrality by 2040. Our strategy focuses on decarbonizing operations by investing heavily in electric and low-emission fleet technologies, developing nearly 7 million square feet of IGBC Platinum and Gold certified renewable energy-powered facilities, and implementing circular economy principles across our businesses.