The hum of delivery vans is a familiar soundtrack to modern life. Each day, millions of parcels travel from warehouses to doorsteps, creating a vast, interconnected delivery web spanning first-, middle- and last-mile stages. Behind this everyday convenience lies a growing challenge: making this network sustainable for our planet’s future.
Delivery companies face mounting pressure to reduce their environmental impact while meeting the ever-rising demand for fast, affordable shipping. It’s no small task: The logistics and transport sector contributes over a third of global carbon dioxide (CO2) emissions.
the logistics sector accounts for approximately 8% of global carbon emissions, with last-mile delivery contributing significantly to this figure. Yet across the industry, carriers are stepping up with innovative approaches to balance efficiency with sustainability.
To truly grasp the sustainability challenges in delivery networks, we must first understand how parcels move through the supply chain. As we explained in our article ‘What are first-, middle- and last-mile delivery stages?’, there are three distinct stages in the delivery journey.
From first to last mile
First-mile delivery involves moving goods from manufacturers or suppliers to distribution centres. This sets the foundation for the entire process. The middle-mile connects distribution centres with retail outlets or other hubs, serving as the backbone of the supply chain through bulk transportation. Last-mile delivery – the final step where goods reach customers – directly impacts customer experience and brand loyalty.
Each stage presents unique environmental challenges. According to Harvard Business Review, what makes sustainability particularly difficult is that many multinational corporations “don’t even know who their lower-tier suppliers are, let alone where they’re located or what capabilities they have” (Villena & Gioia, 2020). This lack of visibility throughout the supply chain makes monitoring and improving environmental practices extremely difficult.
Understanding the delivery footprint
When we track the environmental impact of parcel delivery, the journey breaks down into distinct segments. Most delivery companies divide their carbon emissions into three categories:
- Scope 1 (direct emissions from company vehicles and facilities)
- Scope 2 (indirect emissions from purchased electricity)
- and Scope 3 (all other indirect emissions, including transportation purchased from other providers).
For most carriers, transportation dominates the carbon equation. FedEx reports that approximately 65% of its emissions footprint comes from jet fuel usage, while road transportation accounts for the majority of PostNord’s climate impact at 93% of transportation emissions. This pattern repeats across the industry – vehicles on the road represent the largest slice of carriers’ carbon footprints.
Yodel’s data provides a clear illustration. Despite growing its parcel volumes by 34% over an eight-year period, the company has reduced its carbon footprint by 25%, with an impressive 44% decrease in carbon emissions per parcel. This showcases how operational efficiency can help companies grow their business while shrinking their environmental impact.
The industry has committed to ambitious targets. DHL aims to achieve carbon-neutral operations by 2050, FedEx is aiming for 2040, and carriers like Evri and Yodel are targeting carbon neutrality by 2035. PostNord is working toward fossil-free transportation by 2030. These goals align with global efforts to limit temperature increase to 1.5 degrees Celsius above pre-industrial levels, as outlined in the Paris Climate Agreement.
From diesel to electric and beyond
Transportation represents the greatest challenge (and opportunity) for sustainability in the delivery network. Across the sector, companies are transforming their fleets through a three-phase approach: transitioning from fossil-based to bio-based, and ultimately to fossil-free energy.
Electric vehicles lead this revolution across delivery networks. Evri has converted approximately 40% of its core van fleet to either electric power or hydrotreated vegetable oil. FedEx operates over 7,000 electric on- and off-road vehicles globally (2023 statistics), while Yodel has delivered over one million parcels via pedal power in final-mile operations (also 2023).
The rapid adoption of pedal power and e-bikes for urban deliveries is a particularly promising development. In January 2023, UK last-mile delivery start-up Fin acquired rival Urb-It to accelerate its cargo e-bike delivery network. As Fin’s founder Rich Pleeth explained: “The majority of vans are under half-full in London and that’s where these e-bikes come in. They have a small electric motor, we can put about 200 kilos (400lbs) in there and we can make cities more liveable by taking these vans off the road” (Forbes, 2023).
For heavier vehicles and longer routes, alternative fuels bridge the gap while battery technology evolves. PostNord uses advanced biofuels, primarily HVO, RME and biogas for 24% of its transportation fuel. Yodel has found success with HVO, noting potential carbon savings up to 90% compared to diesel for their shunter fleet. Both FedEx and Yodel are exploring Compressed Natural Gas (CNG) as an interim solution, with Yodel estimating a 15-20% reduction in emissions from CNG-powered vehicles.
Delivery companies aren’t waiting for perfect solutions before acting. FedEx Express is testing sustainable aviation fuel to address its significant air transport emissions. DHL has increased the use of sustainable aviation fuels in its fleet to 3.5%, despite limited availability – well above the industry average.
Innovation extends beyond the engine. Yodel has introduced 120 double-deck trailers equipped with solar panels to power ancillary systems, reducing fuel consumption. PostNord is optimising its logistics system to maximise efficiency regardless of power source, reducing unnecessary journeys and improving load factors.
Facilities, technology and operational excellence
Sustainability efforts extend well beyond vehicles themselves. Facilities represent another major opportunity for reducing environmental impact. FedEx has invested in Leadership in Energy and Environmental Design (LEED) certification for buildings, with 46 LEED-certified and 13 Building Research Establishment Environmental Assessment Method (BREEAM)-certified facilities in operation. Evri’s Barnsley “superhub” runs on 100% renewable energy and features a green roof and intelligent LED lighting.
Technology plays a crucial role in driving sustainability improvements. As OGL Software notes in its 2025 warehouse trends forecast: “Cloud technology will continue to revolutionise warehouse management… offering unprecedented flexibility, scalability and accessibility to critical business systems” (OGL, 2025). Machine learning and AI are enabling warehouses to analyse vast amounts of data to predict demand more accurately, optimise picking routes and reduce waste.
Energy efficiency initiatives deliver substantial savings. FedEx reports conserving 232 million kilowatt hours of electricity through energy management systems in 2023, and FedEx Office has reduced energy consumption at its stores by 43% since 2017 through energy management systems and LED lighting. PostNord generates some renewable energy on-site, with 2% of the electricity consumed in their buildings coming from self-generated solar electricity.
Packaging represents another frontier, with carriers seeking to minimise waste and increase recycling rates. FedEx’s branded cardboard packaging is almost 100% recyclable and composed of 9-23% recycled content, with 45% of FedEx-branded packaging third-party certified for sustainability. Yodel has introduced 100% recyclable post bags produced using oyster shells that would otherwise have been discarded.
Several carriers have achieved impressive waste diversion results. FedEx reports that 60% of its reported solid waste was diverted to recycling facilities across the enterprise in FY23. Yodel has implemented internal recycling stations with additional waste streams managed, increasing clean recyclable volume to target zero waste to landfill.
Operational excellence drives additional environmental benefits. Network optimisation reduces mileage while increasing parcel density per journey. According to Zetes, this is particularly important in the often-overlooked “middle mile” – the critical enabler for supply chain resilience. Optimising this segment can significantly reduce emissions while improving delivery performance, as “a first-class customer experience requires flawless process execution from first to last mile” (Zetes, 2024).
The rise of conscious consumers
The shift toward sustainability is also driven by changing consumer preferences. Despite cost-of-living pressures, Royal Mail reports that 55% of consumers would be more likely to shop with an online retailer that has made a clear commitment to sustainability. This figure rises to 69% among Gen Z consumers, suggesting that environmental considerations will only become more important to purchasing decisions over time.
Delivery companies are responding with customer-facing solutions. FedEx offers the Sustainability Insights tool, enabling customers to access estimated carbon emissions data associated with their shipments. This empowers businesses to make more informed supply chain decisions and measure progress toward their own sustainability goals. The tool is currently available in over 100 markets and translated into 34 languages.
Out-of-home delivery networks represent another customer-driven sustainability solution. Evri has expanded its network to include over 14,000 ParcelShops and Lockers, creating the UK’s largest out-of-home delivery network. These locations provide 45% reduction in CO2 compared to residential address delivery by consolidating multiple deliveries at a single location. Similarly, Yodel has developed over 6,500 stores and lockers nationwide, strategically chosen to encourage foot traffic.
What’s particularly compelling about these alternative delivery approaches is their natural fit with changing consumer behaviours. As more shoppers embrace pre-loved items through online marketplaces, Yodel reports that these circular economy parcels now make up around 25% of their volume, with the company’s consumer-to-consumer volumes more than doubling versus the previous year. These parcels frequently use out-of-home delivery options, creating a virtuous circle of lower-impact commerce.
Cross-industry collaboration and future directions
No single company can transform the industry alone. Collaboration across the sector and with adjacent industries is driving broader change. IBM notes that supply chain collaboration “allows companies and suppliers to work towards shared sustainability goals, such as reducing carbon emissions or minimising waste” (IBM, 2024). Several carriers participate in initiatives like the First Movers Coalition to accelerate the development of sustainable aviation fuels, and Evri has signed the Climate Pledge, committing to reaching the goals of the Paris Agreement 10 years early.
Supply chain partnerships extend the impact beyond the carriers themselves. According to Encor Advisors: “Supplier selection is a critical component of sustainable supply chain management. When choosing suppliers, companies may consider whether they share the same sustainability goals and environmental and social values” (Encor, 2024).
FedEx is working with suppliers to measure and reduce Scope 3 emissions, while Yodel has launched CSR Supplier Awards to recognise partners demonstrating excellence in environmental sustainability. Evri held its inaugural supplier decarbonisation event in 2023, bringing together its top 50 strategic suppliers to discuss upcoming expectations and share best practices.
Technology will play a crucial role in future developments. Yodel has partnered with what3words to improve delivery accuracy, reducing route mileage and redeliveries. FedEx is investing in artificial intelligence for network optimisation and route planning. These innovations promise to deliver both operational efficiency and environmental benefits.
(Listen to our discussion with Phoebe Parry-Crooke from what3words and Vickey Hill from Sorted about improving delivery accuracy in our podcast episode, ‘The what3words triple win, and how efficient deliveries benefit everyone’.)
As UPS CEO Carol B Tomé summarised in the company’s 2024 sustainability report: “At UPS, we don’t just deliver parcels – we deliver opportunities. We are driving innovation, advancing sustainability and investing in our workforce because we know that our organisation can be a catalyst for positive change” (UPS, 2024).
The ultimate destination is clear: a delivery network that serves customer needs while minimising environmental impact. The journey is well underway, with carriers making tangible progress through fleet electrification, renewable energy, operational efficiency and innovative delivery models. As technology advances and consumer preferences evolve, the sustainable delivery network of tomorrow is beginning to take shape today.
Now read part two: Smart city logistics for a sustainable future