Sustainably delivered? Sobering up Canada for decarbonizing transportation

That jug of maple syrup did not magically appear on your table. Conveniently bought from a store, the availability of that product involves intertwined logistical operations, from sourcing to manufacturing, to distribution to retailing. A packaged consumer good like maple syrup is but one example of what we consumers purchase, use, or throw away. Almost all products come to us via supply chains that involve all the stages in fulfilling a customer’s order. In a global marketplace with constantly changing demands and supplies, effective and efficient management of supply chains is necessary but not sufficient for curbing mega problems like climate change. We need sustainable, resilient supply chains that are robust and reliable. The COVID-19 pandemic highly emphasized the value of resiliency—the capacity to bounce back to “normal” in a turbulent and uncertain world. Logistics—a combination of storing (inventory) and moving (transportation) activities, is the lifeblood of supply chains. The utility of the product will start to materialize only when the product reaches the hands of the customer at the right price, time, and quality: stock waiting at the warehouse or the lack of it, is costly. Because 30 to 50 per cent of the price of a product is due to transportation which is an infamous emitting sector, it is imperative to focus efforts on decarbonizing transportation. How does Canada fare with low-carbon transportation? According to the Government of Canada’s Environment and Climate Change, the most recently available statistics indicate that in 2019 alone, Canada produced an estimated 730 megatons (Mt) of greenhouse gases (measured as carbon dioxide equivalent, CO2e). With 186 Mt CO2e, transportation is the second most emitting (25 per cent) economic sector, slightly below that of oil and gas (26 per cent). Because transportation in Canada still mostly runs on non-renewable energy sources, and because the pandemic has put further strain on transportation (e.g., more home deliveries), there is no sign of a decline in emissions from transport. Transportation 2030, the federal government’s latest strategic plan, emphasized five general themes: the traveller; green and innovative transportation; trade corridors to global markets; waterways, coasts and the North; and safer transportation. Although good on paper, let alone, collecting freight and passenger data, measuring progress on these goals is quite a challenge. Hence, collecting and utilizing transportation data and its related emissions is the first step. However, an intricate and complex problem, decarbonizing transportation in isolation will not work and suffice for the net-zero goals. A cohesive and holistic supply chain approach is crucial; a quadruple bottom line approach that considers the four fundamental pillars (economic, environmental, social, and cultural) of sustainability. Possibly due to the pandemic and growing social and political tensions in the world, commitments for the Paris Agreement have been sidetracked. Yet, the climate crisis is right in front of us. Attempts to reach net-zero by offsetting emissions and technological interventions, as the last couple of decades have proven, do not seem to work. Because business is driven by consumption, and transportation is driven by consumer demand, the onus falls on consumers: We need to change our lifestyles. According to a study the globally unified targets for lifestyle carbon footprints are 2.5 and 0.5 C02e tonnes/capita/year for 2030 and 2050, respectively. An estimate for 2019, showed that an average Canadian’s carbon footprint is 14.2 C02e tonnes/capita/year, among the highest in the world, of which five is due to transportation. To compare, it is 9.7 in Finland, and 4.9 in Turkey. That is, we as Canadians, are not doing our fair share towards a global effort in reducing emissions. As it stands, reaching the required levels of carbon emissions per capita for net-zero seems a faraway dream for us Canadians; time to sober up. While the federal government sets targets and regulates emissions for transportation, it should also incentivize companies to transition to greener fuel, vehicle, and logistics policies such as shipment consolidation to eliminate empty miles and encourage sustainable consumption. Particularly, with increasing online shopping behaviour and product returns, unsustainable urbanization rates, and as the distances between points of production and consumption increase (thanks to globalization), more concrete actions need to be taken for sustainable city logistics and modal shifts towards greener transportation. Unlike the chaotic ones we have experienced during the COVID-19, planned transitions with determined and well-monitored actions will enable the increased supply chain fluidity and sustainability that Canada needs. Disruptions due to disease breakouts and the rampant effect of climate change have again showed that supply chains should not only be pandemic-proof but also be climate-change-proofed. And as consumers, we should not only ask for sustainably sourced and manufactured but also sustainably delivered products. Ali Ülkü, PhD, is a full professor and the director of CRSSCA: The Centre for Research in Sustainable Supply Chain Analytics, in the Rowe School of Business at Dalhousie University, Canada. His research is on sustainable and circular supply chain and logistics management, product returns and consumer behaviour, and analytical decision models. The Hill Times