MADRID, Spain, Sept. 15, 2022 – Transport optimization has always been mission critical for CHEP. CHEP has been transporting components throughout the global automotive supply chain since the 1960s, pioneering circularity before it became a buzzword. Clients can reduce their carbon footprint by offering a ‘share-and-reuse’ model that works with reusable, pooled plastic containers.
Approved by the Science Based Target Initiative (SBTi), Brambles, CHEP’s parent company, recently advanced by ten years its commitment to achieving net-zero greenhouse gas (GHG) emissions. The long-term net-zero target – now set for 2040 – encompasses 100% of the company’s Scope 1, 2 and relevant 3 emissions.
As CHEP lights the way towards a regenerative supply chain, its experience directly cascades to its automotive clients
To hit net-zero by 2050, according to International Energy Agency, transport sector CO2 emissions must fall by 20% to 5.7 Gt by 2030. And there is a significant government push. The Biden Administration recently announced support for the Bipartisan Infrastructure Framework – allocating $7.5 billion for charging stations and $7.5 billion for electric buses and transit – just as the EU’s “Fit for 55” package commits to cutting all GHG emissions by at least 55% by 2030.
With transportation representing a significant percentage of global GHG emissions, hopes are pinned on electrification and all eyes are on the automotive industry. The world is in a race to develop batteries, but if the supply chain powering that race is carbon-intensive, can we hit our goals?
What attention is being paid to the sustainability of this transitioning supply chain?
“The battery may be the most expensive part of an electric vehicle (EV) but let’s not forget that – even with fewer parts than an Internal Combustion Engine (ICE) vehicle – an EV still comprises numerous components, all of which must be transported from A to B. Sustainable transport initiatives have never been more important as we push towards 100% EVs on our roads,” says Murray Gilder, VP CHEP Automotive.
Sustainable transport optimization needs a sustainable supply chain, and the only way is to lead by example
CHEP develops not only pooled packaging solutions, but offers clients transport optimization services built on four pillars:
- Plant Network Optimization – where service centers are in optimal locations to capitalize on routes with the highest volume of platform exchange
- Transport Orchestration – facilitating the optimization of empty transport journeys between two or more customers
- Multi-modal – utilizing multiple transport modes such as rail and sea for the greatest cost and carbon efficiencies
- Transport Collaboration – creating collaborative partnerships by being a trusted non-competitive player
When it comes to the latter, nearly 300 companies are already benefiting from the Collaborative Transport Solutions proposed and CHEP seeks to double the number by 2025.