case study on green logistics

• Global South

Report | 2023

The green logistics playbook, sustainable supply chain best practices for g20 leaders.

The logistics sector serves as a crucial catalyst for economic activity, fulfilling the requirements of businesses and consumers globally. The sector is projected to undergo exponential growth in this decade, from US$8.9 trillion in 2023 to US$18.2 trillion by 2030. While the logistics sector is essential for trade and supply chains, it’s also a major source of carbon emissions and air pollution. The sector is responsible for a tenth of global emissions, underscoring the need for adopting sustainable strategies to reduce emissions.

This urgency is particularly pronounced within the Group of Twenty (G20), which consists of the EU and 19 individual countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the UK, and the United States). Collectively, the G20 nations are home to two-thirds of the world’s population and account for 85 percent of the global Gross Domestic Product (GDP). The G20 nations are also responsible for nearly 80 percent of global greenhouse gas emissions, a significant portion of which comes from the logistics sector.

The Green Logistics Playbook provides an actionable toolkit for G20 leaders, offering concrete solutions and successful case studies on sustainable logistics practices across G20 nations that can address climate change, enhance livelihoods, improve public health, and foster economic growth. The solutions presented in the report are divided across four key strategies:

• Logistics operations: Driving robust innovation, research and development, and on-the-ground deployment of sustainable logistics measures.
• Policy drivers: Incentivizing the adoption of efficient logistics practices and conveying potent market signals to prioritize sustainability within the sector.
• Infrastructure development : Strategically planning and deploying a network of physical facilities for storing and transporting goods.
• Financial investments : Facilitating public–private partnerships to mobilize finance for infrastructure and projects geared toward sustainability.

The report outlines system-level changes that the G20, as a global collaborative forum, can achieve by partnering with the participating nations.

Our vision is a world thriving, verdant, and secure, for all, forever.

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Green Logistics: Meaning, Tips, and Challenges

The transportation industry stands at a pivotal crossroads. With increasing concerns about environmental issues, green logistics emerged as a potential solution to tackle rising carbon emissions, waste management, and other challenges associated with conventional logistics operations.

This article offers insights into green logistics and its importance in fostering sustainable solutions in the industry and how it impacts the supply chain. Understand how companies, influenced by customer demand and eco-conscious values, prioritize sustainability for a brighter, cleaner future.

How Green Logistics Works in the Supply Chain

Green logistics involves implementing sustainable practices in logistics operations to reduce the environmental impact. By incorporating green logistics strategies, businesses can contribute to environmental sustainability and find ways to save money and boost their brand image. 

These strategies focus on reducing waste, fuel consumption, greenhouse gas emissions, and energy consumption while ensuring efficient supply chain management. A shining example is UPS, which adopted route optimization for its delivery vehicles, resulting in fewer shipments and lower fuel consumption. Such successes show how a shift toward sustainable logistics benefits the planet and the company’s bottom line.

As a logistics company explores sustainable options, harnessing new technological advances plays a significant role. Integrating AI technology offers predictive analytics that utilizes the optimization of supply routes and inventory management. 

Similarly, blockchain technology allows transparent and efficient supply chain tracking and builds confidence in stakeholders by maintaining environmentally friendly practices. Thus, leveraging these technologies expedites the shift toward more sustainable logistics operations.

Regenerating a Supply Chain by Reducing Greenhouse Gas Emissions

The global concern about rising greenhouse gas emissions pushed logistics providers to consider eco-friendly practices.

Challenges: High upfront investment in sustainable materials and alternative fuels, resistance to change within traditional supply chains, and the pressure of competitive advantage in logistics processes can create barriers.

Benefits: Reduced carbon dioxide emissions, improved brand reputation, and potential cost savings in the long run.

Deterrent or Duty?: While some see it as a hefty investment, the long-term advantages and the growing customer demand for environmentally conscious businesses make it an essential duty.

The emergence of digital platforms and software applications aids in tracking a company’s carbon footprint in real time and offers invaluable insights into logistics processes. Such tools enable businesses to develop action plans, target specific areas, and track the progress of their carbon footprint.

Importance of Collecting CO2 Data

Accurate collection and analysis of CO2 data is paramount in the logistics industry.

Challenges: The accuracy of tools to measure carbon footprint and other metrics across the industry and costs associated with data collection systems.

Benefits: Understanding a company’s environmental footprint allows for targeted sustainability efforts and showcases transparency in the supply chain to customers.

Deterrent or Duty?: With increasing regulations and growing awareness of climate change, CO2 data collection is becoming a requisite for businesses.

With the adoption of IoT (Internet of Things) devices, companies have an unprecedented level of granular data. Combined with analytics, this data provides actionable insights for better fleet management, load optimization, and route planning, ensuring the least environmental impact possible.

Carbon Offsetting Tactics Make a Difference

Companies are considering carbon offsetting as essential to their green logistics strategy.

Challenges: Identifying genuine offset projects and understanding the real-world impact of these projects and the potential cost of investing in these initiatives.

Benefits: Directly contributes to reducing the impact of carbon emissions on the environment and enhances brand image.

Deterrent or Duty?: As the detrimental effects of carbon emissions become more evident, carbon offsetting transforms from a good-to-have initiative to a necessary business practice.

Collaborations with environmental NGOs and agencies can offer insights and support for companies venturing into carbon offsetting. Such collaborations also provide a credible front to the company’s efforts, as these agencies are often recognized for their work in environmental conservation.

Alternate Fuel Choices and Environmental Impact

Alternative fuels, such as biofuels and hydrogen, present opportunities for the logistics sector.

Challenges: Infrastructure for alternative fuel vehicles, initial investment costs, and the time to see a return on investment.

Benefits: Significant reductions in greenhouse gas emissions, lower transportation costs, and a shift away from reliance on fossil fuels.

Deterrent or Duty?: As fossil fuel reserves deplete and their impact on the environment becomes clearer, turning to alternative fuels isn’t just an option but a pressing need.

In the realm of biofuels, advancements in algae-based fuels present exciting possibilities. 

Algae-derived biofuels are more sustainable, don’t compete with food sources, and can be grown in diverse environments. Thus, their integration into the logistics sector could be transformative.

Electric Delivery Methods

The advent of electric vehicles (EVs) is reshaping the logistics industry.

Challenges: High initial costs, limited battery range, and a lack of charging infrastructure affect the supply chain.

Benefits: Drastic reduction in carbon emissions, energy savings, and reduced noise pollution.

Deterrent or Duty?: The push towards EVs is undeniable. With the dual benefits of environmental conservation and potential long-term savings, electric delivery methods are replacing the industry standard.

Innovation in battery technology, such as solid-state batteries, promises longer battery life and faster charging times. Coupled with solar charging stations and renewable energy sources, the future of electric transportation in the logistics sector seems brighter than ever.

Green Logistics and Reducing Carbon Footprints

In an era dominated by global discussions around climate change, the shipping industry is under intense scrutiny. Transport vessels emit significant greenhouse gasses and impact our environment. Consequently, the ripple effect of this pollution is extensive. 

It negatively affects the environment and a company’s brand image, customer relationships, and operational costs.

Adopting green logistics becomes an environmental imperative and a strategic move for businesses seeking long-term viability and growth.

Create Customer Awareness

Engaging customers in the sustainability journey is paramount. By raising awareness about a company’s eco-logistics efforts, businesses can fortify trust and loyalty among existing customers while attracting a new, environmentally-conscious clientele. Transparent communication about sustainability can reinvigorate old relations and set the foundation for future partnerships.

Leveraging digital platforms and social media can amplify the message. Companies can foster a community of eco-conscious consumers and stakeholders by sharing behind-the-scenes glimpses of sustainable initiatives, stories of successful green transitions, or even educational content about the environment.

Regenerating Route Maps and Capturing Energy Savings

Switching to efficient route maps and delivery methods sets companies on a new growth trajectory. Through optimized route planning, companies minimize fuel consumption and thereby reduce carbon emissions. Furthermore, by exploring alternative energy-saving delivery methods, businesses can diminish their environmental footprint while capturing significant energy and cost savings.

Reduce, Recycle, and Promote Green Logistics

Embracing the reduction, recycling, and reuse principles can profoundly transform logistics practices. By reducing waste, especially in packaging and recycling materials, companies significantly diminish their environmental footprint. Promoting alternative delivery methods and integrating them into the core logistics network is the future of sustainable and eco-friendly operations.

Challenges Facing Green Logistics Industry

Transitioning to green logistics has its challenges. Companies depend on high upfront investments, struggle with resistance within their operations, and battle a labyrinth of regulations and standards that are challenging to navigate.

Cost of Going Green

Embracing sustainable practices demands a generous upfront investment. From overhauling fleets with eco-friendly vehicles to implementing sophisticated tracking systems for carbon emissions, the initial costs are daunting and make businesses hesitant to convert to green solutions.

Partnering With Green Solution Companies

Building partnerships with green logistics providers can be a catalyst for sustainable transformation. These collaborations offer access to cutting-edge technologies, shared expertise, and best practices. However, fostering such relationships requires trustworthy alignment regarding values, goals, and long-term vision.

Benefits of Switching

Opting for green logistics solutions transcends environmental benefits. In the long run, companies will harvest significant cost savings through energy efficiency and waste reduction. Additionally, adopting eco-friendly practices enhances brand reputation within a growing segment of environmentally-conscious consumers and positions the business as a forward-thinking industry leader.

Top Tips for Going to Green Logistics

While the transition to green logistics encompasses many challenges, exciting, innovative tools and strategies continually emerge to facilitate this shift. By harnessing these resources, companies can mitigate environmental impact while optimizing their operations.

Alternative Green Shipping Materials

Sustainable packaging materials like biodegradable plastics or reused cardboard significantly reduce waste. Websites like the Sustainable Packaging Coalition offer insights and guidelines on choosing eco-friendly alternatives for shipping needs.

Impact of Shipping Full-Loads and Space-Saving Tips

Maximizing load capacity reduces the trip cost by reducing fuel consumption and emissions. Resources like the National Industrial Transportation League provide guidelines on efficient load planning and space optimization.

Reducing Customer Returns Effectively

Implementing robust quality checks and accurate product descriptions can minimize return rates. Reverse logistics strategies and best practices reduce and manage returns sustainably.

Strategies for No-Fail Deliveries

Leveraging technology for real-time tracking, route optimization, and predictive analytics can ensure timely and accurate deliveries. Many organizations offer initiative green logistics tools and strategies to enhance delivery accuracy and efficiency.

Re-Thinking Carbon Emissions

Considering carbon offset programs or investing in alternative fuel vehicles plays a prominent role in diminishing carbon footprints. The Carbon Fund is an excellent resource for companies seeking to offset emissions and contribute to global sustainability projects.

Management Role in Green Logistics

Leadership’s commitment is pivotal for successful implementation. By setting clear sustainability goals, managers can drive organizational change. The Environmental Leader offers case studies and insights on how top executives can champion green initiatives in the logistics sector.

Why Green Logistics Companies Matter

The rise of green logistics companies symbolizes a revolutionary shift in the logistics industry, emphasizing sustainability and eco-friendly practices. Eco-conscious companies like DHL, with its GoGreen program, and UPS, with its alternative fuel fleet, project the industry’s evolution towards reducing carbon emissions and championing environmental stewardship.

Diving into some of the commonly asked questions about green logistics.

What is meant by green logistics?

Green logistics refers to optimizing logistics and supply chain operations in an eco-friendly manner, minimizing environmental impact.

What are examples of green logistics?

Examples include using electric delivery vehicles, optimizing routes to save fuel, and utilizing biodegradable packaging materials.

Is Green Logistics a real company?

No, Green Logistics isn’t a specific company. It’s a term referring to sustainable and eco-friendly logistics practices.

Key Takeaways on Implementing Green Logistics

Embracing green logistics and other efficient logistics processes isn’t just a trend; it’s necessary for the environment and business longevity.

Implementing green logistics strategies allows companies to reduce their carbon footprint, optimize operations, and resonate with environmentally conscious consumers. As the logistics sector continues to evolve, prioritizing sustainability will be paramount.

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Practicing green logistics in supply chain management.

Photo: iStock.com/ AlexBrylov

In recent years, the supply chain industry has undergone a major shift toward “green” practices. The push for sustainability comes with many built-in benefits, including lower costs, increased efficiency and stronger customer loyalty.

Green logistics uses a combination of technology and management tools to create a more sustainable supply chain. Relevant practices include shifting to renewable energy sources; transitioning to fleets of electric vehicles; optimizing routes, fuel efficiency and loads; improving maintenance practices; adopting recycled packaging materials, and monitoring aggressive driving.

Making the transition to green logistics isn’t always easy. There are a number of challenges to be overcome, before companies can successfully implement sustainable technologies. While some in the logistics field are already shifting to a green approach, others are slow to adopt new strategies.

Beyond a natural resistance to change, implementing green logistics can be expensive. Electric vehicles cost  up to three times as much  as traditional models. When you factor in the cost of building renewable charging stations, that figure is even higher. And in most parts of the world, biofuels cost more than fossil fuels.

Down the road, expect many of those costs to be offset by efficiency gains. And the technology will become more affordable with time.

Public perception can be a strong incentive to adopting green logistics. According to a McKinsey study, some buyers are willing to pay between 5% and 10% more for sustainable logistics. It’s important, then, to inform customers about your sustainability efforts.

Green logistics can also boost operational efficiency. Route and load optimization, and the elimination of aggressive driving and unnecessary idling, can reduce pollution while cutting costs. In the end, by pursuing sustainability, companies can actually reduce the long-term expense of shipping and transportation.

Following are the most promising trends in sustainable supply chain management.

Adopting renewable energy in the warehouse.  According to the United Nations , 29% of the world’s electricity comes from renewable sources. Warehouses are part of this trend, as they shift to solar, wind and biomass power in order to reduce their carbon footprint and cut costs. Solar power is relatively easy to scale — companies can simply add more solar panels as needed — while wind turbines are easy to place around the exterior of the warehouse as needed.

Renewable energy also mitigates the risk of sudden power outages from natural disasters. And it promotes energy independence, by freeing companies from reliance on the grid.

Optimizing fuel efficiency.  The  U.S. Department of Energy  notes that aggressive driving can reduce fuel efficiency by as much as 40%. Idling, according to the Department of Energy, can use up to half a gallon of fuel per hour.

Fleet telematics  can help companies optimize fuel efficiency, by identifying where waste occurs during transportation. Operators should use the technology to take a close look at fuel consumption, aggressive driving and idling trends over the span of multiple months.

Deploying the IoT and real-time monitoring for resource efficiency.  Internet-of-things devices like smart sensors can monitor energy usage, then issue alerts when, for example, lights are left on in unoccupied buildings, or heating and cooling systems are being overused.

Adopting green certifications and compliance.  ISO 14001  is the recognized international standard for sustainable logistics and transportation. The certification can be key to boosting a business’s public image and enhancing customer loyalty. In addition, by complying with a host of domestic and international regulations on sustainability, companies can avoid heavy fines and other penalties.

Shifting to electric vehicles.  Electric cars, trucks and buses cost more than traditional vehicles, but over time they may save companies money. That’s especially the case when they’re powered by electricity from renewable sources.

The use of electric vehicles can also save companies from fines. In California, for example, the  Clean Trucks Check program  sets emissions standards for trucks and other heavy vehicles. Electric vehicles are generally compliant with the regulations, while many older vehicles are not. Additionally, EVs offer operational cost savings over internal combustion engines.

Embracing circular economy practices.  A circular economy reduces waste by extending the lifespan of every material and product. In the supply chain, this means reusing packaging materials like plastic, metal, and cardboard; choosing biodegradable materials wherever possible, and repurposing products and materials at the end of their lifespan.

Modern technology tools have made supply chain transparency easier than ever before. The blockchain, for example, enables the tracking of goods and materials, while IoT sensors can track products and vehicles, as well as monitor driver behavior. Systems employing artificial intelligence can help operators to accurately forecast demand, avoiding the over- or understocking of materials.

In the future, expect to see much wider adoption of technologies like AI and blockchain. As the supply chain becomes more transparent, companies will place an increased emphasis on sustainable material sourcing and fair trade.

Ultimately, greening the supply chain means transforming every stage of the process, in order to reduce carbon emissions, increase resilience and create more efficient systems.

Graham Perry is a writer at  Business Tech Innovations .

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Carbon Neutral Port Brings Green Hydrogen Production to Maritime Shipping

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The Climate Technologies and Innovations in Transport (DKTI) was launched by the Dutch government to help achieve a 49% reduction in greenhouse gas emissions by 2030. The Port of Den Helder—along with ENGIE, Damen Shipyards and other parties—were awarded a DKTI subsidy to develop a hydrogen filling station for maritime and road transport in the region.

Green Logistics Done Right

ENGIE has a demonstrated history in green logistics projects . So when the Den Helder project team reached out to collaborate, we were quick to bring our expertise to the table. We worked alongside the Den Helder team to define, size, and optimize their hydrogen supply chain (LCOH) and support the scale-up project financial valuation.

Two hydrogen filling points will be produced in Den Helder—one accommodating vehicles and trucks in Kooyhaven, and one for hydrogen-powered ships along the Noordhollandsch Kanaal.

The green hydrogen is produced on location by electrolysis and is then stored and made available for shipping, freight traffic and passenger transport. ENGIE is developing a 2.6MWp solar park to feed the electrolyser. The expected maximum capacity will be around 400 kg of green hydrogen. The entire value chain is involved in this green logistics project, making it unique.

In addition to the hydrogen filling points, ENGIE is also working with Damen Shipyards to build a green hydrogen-powered vessel to be used by the Port of Den Helder and others. The project’s goal is to have the solar park, electrolyser and station fully operational in 2021.

Outcomes of a Carbon Neutral Port

Den Helder’s carbon-neutral transition to green electricity and green hydrogen will lead to substantial savings.

energy purchase savings in 2021

savings on energy tax and storage of sustainable energy (ODE)

solar park feeding 2 hydrogen filling points

Den Helder’s green hydrogen transition will play an important role in driving emission-free shipping throughout the Wadden Sea. The ENGIE-supported project serves as an early step in green hydrogen ambitions for the region. Over time, Den Helder hopes to influence other maritime players such as the Royal Navy to become more sustainable.

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Please note you do not have access to teaching notes, green supply chain management: practices and tools for logistics competitiveness and sustainability. the dhl case study.

The TQM Journal

ISSN : 1754-2731

Article publication date: 9 March 2015

Globalization has led worldwide organizations to balance their economic and environmental performances in order to achieve a concrete sustainable development. In an environmental centered world, logistics is called to put into action advanced programs based on technological and organizational improvement, in order to gain or maintain a concrete competitive advantage. The purpose of this paper is to investigate how logistics organizations try to face the recent ecological challenges and the role that the emergent green technologies play in making them finally “green” and competitive.

Design/methodology/approach

Green supply chain management (GSCM) practices have been investigated to better understand their influence on economic performance and corporate competitiveness. After providing a background discussion on Green Logistics and GSCM, the authors have also identified specific research questions that are worthy of investigation, also thorough the DHL case study. The case study analysis has been conducted according to a specific conceptual model (Rao and Holt, 2005), which allows a deeper understanding of literature review results.

The present paper offers some insights on innovation influence on supply chain management (SCM) greenness, a process oriented to a sustainable and environmental-friendly approach to management of supply chain. According to DHL case study evidence, in logistics innovation, often based on emerging green technologies, is strictly related to the development of a much more sustainable and environment-friendly approach to SCM, based on reduction of core activities’ ecological impact, cost saving, quality, reliability, performance and energy efficiency. In this context, the respect of environmental regulations is fundamental to achieve not only a reduction of ecological damage, but also to overall economic profit.

Research limitations/implications

There is a concrete need of further research to better understand the potential link between GSCM, green innovation and logistic organizations competitiveness. In fact, this research area still represents a source of interesting challenges for practitioners, academicians and researchers. Concluding, the research findings cannot be generalized to all logistic organizations, even if DHL is on of the most important and globalized logistic companies. Future researches should empirically test the achieved results also through comparative studies based on a large sample.

Originality/value

The suggestion of literature review and the result of case study analysis represent a first attempt to better understand the real and potential influence of GSCM on corporate image and competitiveness. In fact, the present investigation has pointed out that logistic organization can achieve environmental goals and acquire a better positioning than their competitors also cooperating with stakeholders. Therefore, it is necessary that organizations contribute to make them able to participate in corporate activities and develop a concrete environmental-friendly orientation, based on the respect of market’s requests and environmental regulations in order to get their corporate reputation strong than ever.

• Sustainable innovation
• Green Logistics
• Green supply chain management

Cosimato, S. and Troisi, O. (2015), "Green supply chain management: Practices and tools for logistics competitiveness and sustainability. The DHL case study", The TQM Journal , Vol. 27 No. 2, pp. 256-276. https://doi.org/10.1108/TQM-01-2015-0007

Emerald Group Publishing Limited

Copyright © 2015, Emerald Group Publishing Limited

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• DOI: 10.1016/J.IJPE.2010.04.041
• Corpus ID: 153396150

Green logistics at Eroski: A case study

• S. Ubeda , F. Arcelus , J. Faulin
• Published 1 May 2011
• Environmental Science, Business
• International Journal of Production Economics

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Green logistics: What is it and why it matters

Green logistics includes any business practice that minimises the environmental impact of the logistics network and delivery. Sustainable logistics or green logistics secure a strong bottom line without sacrificing customer satisfaction, or the well-being of the planet. Intelligent businesses are rushing to understand and embrace sustainable logistics management, supported by powerful technologies such as artificial intelligence, machine learning, and advanced analytics.

As enterprises make the shift toward greener logistics, they realise benefits across the business, including improved profitability and good corporate citizenship. But a primary driver is customer demand. As customers (both businesses and consumers) see the real-world results of climate change on newsfeeds and streaming channels daily, they are quickly shifting loyalties to companies that demonstrate significant, permanent steps toward a sustainable future. Customers (and shareholders) advocate for a circular supply chain that incorporates reverse logistics, and are not content with or influenced by “greenwashing.”

Reverse logistics and circular supply chains

Traditionally, supply chains have been linear and unidirectional: raw materials are processed into products and shipped to customers, who then dispose of them. Today, this flow is being disrupted with two practices – reverse logistics and circular supply chains – that add bottom-line value to supply chains while reducing environmental impact .

Reverse logistics: As the name implies, reverse logistics refers to processes related to the return of items and goods traveling backward through the supply chain. This can include repairs and maintenance, returns of defective items, reuse of packaging, or recycling and reclamation of end-of-life products. For businesses, today’s reverse logistics challenges most often come in the form of customer returns . Online purchases contribute to a much higher rate of customer returns than in-store purchases. This issue is further exacerbated  by the business model of “subscription box” brands (typically fashion), which are based entirely on the concept of customers selecting from a wide assortment of delivered goods and returning whatever they decide not to keep. In fact, as this trend progresses, estimates are for the global amount of e-commerce returns to exceed one trillion dollars over the coming decade. Furthermore, transporting returned inventory creates more than 15 million metric tons of CO2 in the U.S. alone each year.

Circular supply chains : A circular supply chain is a loop in which organisations reclaim as much as possible, from raw materials to finished products. In its simplest form, this means realising value from end-of-life products, often by recycling their primary components. For example, plastics can be shredded and repurposed – even into the very shipping pallets that are used to move goods. And as the world’s metal supplies diminish, there is meaningful value to be had in extracting gold, copper, and other recyclable commodities from otherwise discarded items.

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Green transport and the growing use of commercial EVs

At the height of the COVID pandemic, online shopping rose to an all-time high with parcel volume in the US alone, growing 37% from 2019 to 2020, reaching 55 million deliveries each day . The Amazon Effect put further strain on logistics operations with consumers expecting deliveries within a day – and sometimes even within a few hours. This means goods can no longer be warehoused in a single location and distributed nationally. To achieve such aggressive delivery speeds, items must be stored in local distribution centres and then rushed to consumers in smaller batches. This calls for larger fleets of smaller vehicles.

And as the pandemic shifts and restrictions lift, these trends show no sign of slowing. According to the World Economic Forum , we should expect demand for urban last-mile delivery to grow as much as 78% by 2030, and add up to 36% more delivery vehicles in the world’s largest 100 cities. 

To meet these changing delivery demands, businesses are rapidly shifting to EV fleets. At less than half the cost per mile for electricity as for gas or diesel, and without any need for tune-ups or oil changes, EV fleets have lower operating costs and less downtime . For businesses, another advantage of EVs is the ease with which they can be integrated into a greater cloud-connected supply chain network. This means that businesses can use AI-powered technologies to analyse both past and real-time operational data – delivering powerful (and actionable) insights into ways to save money, lower fuel consumption, and streamline their operations overall.

The capacity and size of modern EVs is also becoming increasingly diverse. Today, we are seeing a rise in not only light commercial vehicles (LCVs) like cargo vans but also a growing range of electric semi-trucks and long-haul transport vehicles.  

And when it comes to greener transport, let’s not forget that some 80-90% of the world’s goods are transported by sea. Each year, container ships spew about 1 billion metric tons of carbon dioxide into the air — about three percent of all greenhouse gas emissions — and tons of toxic waste left in the oceans.  Recognising this, in September 2021, the International Maritime Organisation (IMO), representing 150 industry leaders, set a  decarbonization goal  to reduce emissions by 50% by 2050, compared to 2008 levels.

Danish company Maersk (whose ships emitted 33 million tons of CO 2 in 2020) ordered eight new vessels that run on carbon-neutral methanol to help meet that ambitious goal. Shipping companies in Japan and Norway are also bringing significant innovation to the marine cargo sector, unveiling fully electric tanker ships and even the world’s first autonomous electric cargo carrier which (using radar, infrared, and automotive integrated solutions cameras) can be operated and moored entirely via remote control.

A connected logistics system helps improve profitability and brand perceptions while reducing environmental impact.

Alternative distribution networks and green logistics solutions

Of course, making the switch to EVs and alternative fuels is probably the most significant change when it comes to greener logistics. However, as McKinsey’s Bernd Heid points out “ in an 'ecosystem scenario' in which both public and private players work together effectively, delivery emissions and congestion could be reduced by 30%...when compared to a 'do nothing' scenario ”.  To achieve maximum cost efficiency, faster delivery speeds, and meaningful reductions in emissions and waste, businesses will need to consider more collaborative logistics methods, and a more sophisticated array of optimisations.

A few additional optimisation strategies include:

Load pooling: A growing trend in optimised supply chain management sees similar (even competitive) companies working together to pool their warehouse and logistics resources. At first glance, this can seem like a challenging concept but fortunately, cloud-connected logistics management technologies are helping businesses to collaborate and cooperate with maximum visibility and control.

Unbranded parcel lockers : Amazon pioneered the idea of neighbourhood parcel lockers to shorten routes and speed up delivery. This is highly effective but has tended to shut out the competition. Unbranded community parcel lockers function similarly to the existing Amazon locker networks, but are accessible to a much broader range of delivery providers. By making this resource more widely available, the major logistics providers can work together to save time and money – and improve consumer choice.

Automated load optimisation : This refers to coordinating items (held in warehouses and distribution centres) with similar delivery ETAs and destinations. With today’s volumes, it’s essentially impossible to achieve this via manual efforts but smart supply chain solutions can identify and automate vehicle loading, to help eliminate the costly practice of sending delivery vans out with only half a load.

Night-time delivery : The more time vehicles spend on the road, the greater the amount of fuel and energy used. Especially in urban areas, making deliveries at night can reduce road-time and congestion by up to 15% . Furthermore, with EVs being quieter, there is less risk of adding to night-time noise pollution.

On-demand micro-mobility networks : Micro-mobility refers to small – often two-wheeled – vehicles like electric scooters and e-bikes. Modern logistics technologies now give drivers easy access to cloud-connected apps. This means connectivity with the home base (dispatch) and the customer (delivery ETAs) in real time. By leveraging an on-demand network of independent drivers (not exclusively employed by any one business), companies are reaping significant savings in both fuel usage, and the cost of maintaining standing fleets.

Dynamic route allocation : In urban settings, cloud-connected route allocation tools can assess traffic, parking, even construction or other delays. In rural areas, other factors may be more relevant such as road and weather conditions, or distance from EV charging stations. By incorporating this kind of intel into real-time route planning, companies can increase delivery speed and minimise fuel consumption. 

Drones and automated vehicles : It’s visually compelling to think of drones crossing the skies and dropping packages like mechanized storks, or unmanned robots rolling down city sidewalks, laden with parcels. In reality though, we are still a few years away from fully automated logistics networks. But innovation is fast in this sector and digital automation is at the fore of many green solutions – so watch this space…

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Advantages of green logistics

The advantages of green logistics accrue to the company, its suppliers and partners, its customers, and every member of society. Here are just a few:

Improved long-term profitability : From first to last-mile delivery, green logistics cut waste, cost, and carbon emissions. Although realising the advantages of green logistics requires an upfront investment, the downstream benefit outweighs the cost. A recent study found “evidence that High Sustainability companies significantly outperform their counterparts over the long-term, both in terms of stock market as well as accounting performance.” The bottom line? Green business equals good business.

New or enhanced partnerships : When businesses use sustainable supply chains and green logistics, they’re not only more attractive to customers but to corporate partners as well. A recent study from HBR found that the largest global multinationals are using the United Nations Global Compact or the Carbon Disclosure Project’s (CDP’s) Supply Chain programme to assess their suppliers’ levels of sustainability and environmental impact. Suppliers, in turn, are eager to partner with the largest brands and are making investments to try to reduce their carbon footprints.

Happier, loyal customers : Customers – both retail and business – demand fast delivery and the flexibility to make easy returns. They want to know where their products came from, whether they’re sustainably sourced and transported, and where they are in their journey – in real time. Companies that offer these insights and transparency gain new customers and earn long-term loyalty among existing ones.

Better corporate responsibility reputation:  Large companies are increasingly called to the mat to answer for their contribution to global warming, which is considered a social justice issue. Publicly leveraging the advantages of green logistics will help companies win in the court of public opinion. Smart companies are scrutinizing their environmental footprint locally, as well as globally. Those that aren’t willing to change, especially in moving away from fossil fuels, risk their reputation and are at a competitive disadvantage.

Easier recruitment:  In the tightest job market in decades, every company advantage matters. An organisation focused on green logistics is more attractive to young professionals who desire to work for a company that embodies their values.

Green logistics strategies

Organisations that combine a cloud-based smart supply chain with mobile technologies get a birds-eye view of their entire logistics process, from manufacturing to delivery to returns. But green logistics isn’t achieved in isolation. Successful implementation requires planning and the inclusion of all the various stakeholders. Below are a few suggested steps:

Collaborate with suppliers, vendors, third- and fourth-party logistics (3PL and 4PL) partners, and experienced advisors to develop environmentally-friendly procurement protocols and eco-friendly shipping options.

Use AI-powered technologies like supply chain control towers to integrate carbon footprint analysis into all stages of the business.

Engage with corporate networks to share logistics resources and data-driven insights. Even brands that are typically competitive can become partners for a shared purpose.

Strategize and right-size your fleet. Build in the ability to handle fluctuating demand with elastic logistic networks so that trucks aren’t sitting idle. For last-mile delivery, consider adding micro-mobility vehicles, such as e-bikes or drones.

Educate customers on the impact of fast delivery speeds versus more sustainable choices. Amazon, for example, encourages customers to pick an “Amazon Day” that groups packages into fewer shipments, which saves money on packaging and transportation.

Green logistics and the future of distribution networks

Robust, AI-powered, cloud-based logistics solutions are at the core of the supply chains of the future – helping businesses to consolidate loads, automate dispatch and tracking, optimise routes, determine when and where to charge batteries, calculate ETAs, monitor vehicle maintenance, and more. Data modelling and simulations can test routes and fleet capacities, and integrated technologies can help incorporate and analyse supply chain and delivery data across the entire value chain. Every step toward the smoother and faster movement and delivery of goods, is a win/win, making customers happier and more engaged, and helping businesses to improve both their sustainability profiles and their bottom lines.

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• Published: 19 September 2024

Exploring the synergy of logistics, finance, and technology on innovation

• Chunfang Wang 1 ,
• Md. Mominur Rahman 2 ,
• Abu Bakkar Siddik 3 ,
• Zheng Guang Wen 4 &
• Farid Ahammad Sobhani 5  

Scientific Reports volume  14 , Article number:  21918 ( 2024 ) Cite this article

Metrics details

• Environmental economics
• Environmental sciences
• Environmental social sciences

As global environmental challenges intensify, manufacturing firms face increasing pressure to innovate sustainably. Green innovation, characterized by the development of environmentally friendly products, processes, and technologies, has become essential for firms striving to remain competitive. This study aims to investigate the influence of key factors—green logistics, green finance, and green technology—on green innovation within manufacturing firms, while exploring the mediating role of green technology in these relationships. A multi-method approach was employed, combining partial least squares structural equation modeling, fuzzy-set qualitative comparative analysis, and necessity condition analysis. 447 responses were collected from manufacturing companies in Dhaka city, Bangladesh, using structured questionnaires. The analysis revealed that green logistics and green finance have a significant positive impact on green innovation, while the influence of the green work environment was found to be positive but statistically insignificant. Additionally, green technology was identified as a significant mediator in the relationships between green finance, green logistics, and green innovation. This study offers a comprehensive green innovation model while green technology is a mediator. Furthermore, this study advances the resource-based view theory by integrating green technology as a pivotal resource that enhances a firm's competitive advantage in sustainable markets. By adopting a multi-method approach, this research provides a rigorous examination of the research questions, offering a comprehensive understanding of the dynamic interactions between green finance, green logistics, and green technology in driving innovation. Thus, this research has thought provoking implications to prioritize investments in green finance, logistics, and technology, manufacturing firms can enhance their competitiveness, improve operational efficiency, and meet evolving environmental regulations and consumer preferences.

Introduction

In recent years, the global community has faced mounting pressure to address environmental challenges such as climate change, resource depletion, and pollution. These issues pose significant threats to ecosystems, human health, and socio-economic stability, necessitating urgent action from governments, businesses, and individuals worldwide 1 , 2 , 3 . Moreover, as awareness of environmental degradation grows, there has been a surge in demand for sustainable solutions across various sectors 4 . Businesses nowadays are under growing pressure to embrace eco-friendly practices and technologies, aiming to reduce their environmental footprint and support the shift towards a more sustainable economy 5 . This drive for sustainability has given rise to the idea of green innovation, which involves creating and implementing new products, methods, and business strategies that prioritize environmental protection and sustainability 6 .

The COVID-19 pandemic has highlighted the critical need for businesses to adopt green innovation, as it exposed the fragility of current economic systems and emphasized the interconnectedness of human health, environmental sustainability, and economic resilience 7 , 8 . The widespread disruptions caused by the pandemic forced businesses to rethink their strategies, revealing that traditional practices may not suffice in a rapidly changing world. As a result, the pandemic has acted as a catalyst, pushing firms to prioritize green innovation as a means to build more resilient and sustainable business models. This shift towards green innovation is not only crucial for environmental preservation but also enhances a company's ability to adapt and thrive in the face of future uncertainties 1 , 9 . In response to the challenges posed by the pandemic, manufacturing firms have adopted green innovations such as energy-efficient production processes, waste reduction technologies, and the use of renewable energy sources. These changes have not only enhanced environmental sustainability but also improved operational efficiency and resilience in the face of future disruptions.

In manufacturing companies, adopting green logistics, finance, work environment, and technology altogether offers a comprehensive way to tackle environmental issues while keeping operations efficient 10 , 11 , 12 . Green logistics, for instance, aims to streamline transportation, storage, and delivery methods to cut down on environmental harm, lower carbon emissions, and use resources more efficiently 13 . This may involve the use of alternative fuels, route optimization algorithms, and sustainable packaging materials to streamline supply chain operations while reducing ecological footprint. Similarly, green finance involves the allocation of capital towards environmentally sustainable projects, initiatives, and investments 14 . This may include funding for renewable energy projects, energy-efficient technologies, and eco-friendly manufacturing processes. By leveraging green finance, manufacturing companies can not only reduce their environmental footprint but also improve their financial performance and access new sources of capital 14 .

Moreover, creating a green work environment entail fostering a culture of sustainability within manufacturing companies and implementing practices that promote environmental stewardship among employees 15 . This may involve initiatives such as waste reduction programs, energy conservation measures, and eco-friendly workplace policies. By cultivating a green work environment, companies can enhance employee morale, productivity, and satisfaction while reducing their overall environmental impact 16 . Lastly, green technology involves implementing environmentally friendly technologies and innovations throughout manufacturing processes 17 . This might mean incorporating renewable energy sources, energy-efficient equipment, and eco-conscious production methods to reduce resource usage, pollution, and waste generation. Embracing green technology helps manufacturing firms improve their competitiveness, comply with regulations, and play a part in advancing towards a more sustainable future 17 .

This study is crucial to address the urgent global challenges of environmental degradation and climate change. These issues have heightened the demand for sustainable business practices, especially in the manufacturing sector 12 , 18 , 19 , 20 . As the world recognizes the necessity of transitioning to greener and more environmentally friendly operations, there's a vital need for research to uncover the factors that drive green innovation in manufacturing companies. Furthermore, the COVID-19 pandemic has highlighted the weaknesses in existing supply chains, emphasizing the importance of resilience and sustainability in business operations 8 , 9 . For instance, the pandemic exposed vulnerabilities such as dependency on single-source suppliers, disruptions in global logistics, and limited flexibility in adapting to sudden demand shifts. Green logistics is vital for enhancing the sustainability of supply chains by reducing carbon emissions and minimizing waste through practices like route optimization and sustainable packaging 13 . However, many firms face challenges in implementing these practices due to high initial costs and complexity in integrating new technologies 14 . Green finance, on the other hand, is crucial for funding sustainable projects, yet there are significant gaps in understanding how to effectively allocate resources and assess the financial viability of green initiatives, limiting the potential impact of these investments 21 . Against this backdrop, there is a growing imperative to develop comprehensive models that integrate green logistics, green finance, green work environment, and green technology to foster innovation and sustainability within manufacturing firms. Therefore, this study is vital for filling the gaps in existing research and offering practical insights for businesses, policymakers, and other stakeholders aiming to advance environmental sustainability and resilience in the post-pandemic period. The study aims to investigate how green logistics, finance, work environment, and technology impact green innovation within manufacturing companies. To achieve this goal, the study poses the following research questions: How does green logistics influence green innovation? What impact does green finance have on green innovation outcomes? What role does the green work environment play in driving green innovation? What is the relationship between the adoption of green technology and green innovation? and does green technology mediate the relationships between green logistics, finance, and green innovation?

This study identifies research gaps in the existing literature regarding green innovation models within manufacturing companies. Firstly, there is a notable absence of technology-driven green innovation models, with many studies focusing predominantly on organizational practices and policies without adequately considering the role of technology in driving sustainability initiatives 7 , 9 , 17 . Secondly, there is a dearth of research that identifies green technology as a mediator for green innovation outcomes. While previous studies have examined the direct effects of green technology adoption on environmental performance 18 , 22 , no studies explored its indirect effects on innovation outcomes within the context of green practices. Despite existing research exploring the moderating role of green technology adoption and its influence on environmental sustainability, there remains a significant gap in understanding its indirect effects on innovation outcomes within green practices 23 , 24 . Moreover, Hossain, et al. 25 examined green innovation performance as an outcome, there is a need to comprehensively explore how green finance and green logistics contribute to these innovation outcomes, particularly within manufacturing firms. Thirdly, there is a lack of multimethod approaches to testing comprehensive green innovation models, with most studies employing single-method analyses such as regression or structural equation modeling 3 , 8 , 26 , 27 . By employing a multi-method approach integrating PLS-SEM, fsQCA, and NCA, this study aims to address these gaps and provide a more holistic understanding of the mechanisms driving green innovation within manufacturing firms. Through the integration of these methods, the study seeks to overcome the limitations of traditional single-method approaches and provide a comprehensive and nuanced analysis of the factors influencing green innovation.

Literature review

Green logistics and green innovation.

Green logistics involves incorporating environmentally friendly practices into the logistics and supply chain management of organizations 28 . This includes strategies like optimizing transportation routes to cut down on carbon emissions, using eco-friendly packaging materials, integrating reverse logistics, assessing the carbon footprint of the supply chain, and adopting energy-efficient warehousing practices. The relationship between green logistics and green innovation is mutually beneficial because adopting sustainable logistics practices can drive innovation in environmental sustainability within manufacturing companies 13 . By integrating green logistics principles into their operations, companies not only reduce their environmental impact but also spur innovation by requiring the development of new technologies and practices to support sustainable logistics processes 10 . For example, the implementation of reverse logistics systems, which involve the return and recycling of products and materials, requires the development of innovative technologies and processes to facilitate efficient and environmentally friendly product returns and recycling.

However, although implementing green logistics practices can open doors for sustainability innovation, the actual environmental impact of these innovations may differ based on factors like organizational culture, regulations, and market demand 28 . Moreover, the effectiveness of green innovation initiatives can also be affected by external factors beyond logistics operations, including technological readiness, financial limitations, and stakeholder involvement 29 . Therefore, while green logistics can provide a conducive environment for fostering innovation in environmental sustainability, the realization of green innovation outcomes may be contingent upon a range of internal and external factors beyond the scope of logistics operations alone. Thus, the study postulated H1:

Green logistics affect green innovation.

Green finance and green innovation

Green finance encompasses financial mechanisms and instruments that support environmentally sustainable initiatives and projects 17 , 21 . This may include investments in renewable energy infrastructure, green bonds, corporate green finance policies, eco-friendly funding accessibility, environmental incentives, sustainable development loans, and other forms of financing aimed at promoting environmental sustainability 11 , 17 , 21 . The relationship between green finance and green innovation is complex, as financial support and incentives play a vital role in promoting sustainable practices within organizations 30 . Having access to green finance allows companies to invest in researching and developing environmentally friendly technologies, implementing energy-efficient processes, and adopting sustainable business practices 31 . By offering financial resources and incentives for innovation, green finance can speed up the adoption of sustainable technologies and practices, thereby encouraging green innovation 21 , 30 .

However, even though financial support can help drive sustainability innovation, the effectiveness of green finance initiatives in achieving green innovation outcomes can be influenced by various factors such as market conditions, regulations, and a company's capabilities 31 . Additionally, merely having access to green finance doesn't guarantee successful innovation outcomes. Implementing green innovation initiatives often requires additional factors like technological know-how, organizational dedication, and involvement from stakeholders 17 . Moreover, challenges like accessing capital, high investment expenses, and uncertainty about returns on investment can hinder the adoption of green finance and impede the achievement of green innovation goals 30 . Therefore, while green finance can stimulate green innovation, its impact depends on a variety of internal and external factors that shape the innovation process within manufacturing companies. As a result, the study proposes the following hypothesis:

There is an association between green finance and green innovation.

Green work environment and green innovation

The concept of a green work environment encompasses various initiatives and practices aimed at promoting sustainability and environmental responsibility within the workplace 15 . This may include measures such as energy-efficient buildings, eco-friendly workplace, green building standards implement, telecommuting promotion, employee sustainability engagement, waste reduction programs, eco-friendly policies, and employee engagement in sustainability initiatives 15 , 16 . The relationship between the green work environment and green innovation lies in their shared goal of fostering sustainability and environmental stewardship within organizations 16 . A conducive green work environment can serve as a catalyst for innovation by providing the necessary infrastructure, resources, and culture to support sustainable practices and encourage creative problem-solving in addressing environmental challenges 32 . Employees working in a green work environment may feel more motivated and empowered to contribute to sustainability efforts, leading to increased innovation in sustainable processes, products, and services within manufacturing companies 33 .

Creating a green work environment can foster an atmosphere conducive to innovation, but its impact on green innovation outcomes can differ based on factors like organizational culture, leadership dedication, and employee involvement 32 . Moreover, the influence of the green work environment on innovation may be affected by other contextual elements such as market conditions, technological abilities, and regulatory limitations 33 . Furthermore, the adoption of green work environment practices may not automatically translate into tangible innovation outcomes if there is a lack of alignment with broader organizational goals, limited resources, or resistance to change within the organization 15 , 16 . Therefore, while a green work environment can contribute to fostering a culture of sustainability and innovation, its influence on green innovation outcomes may be contingent. Therefore, H3 is suggested:

Green work environment influences green innovation.

Green technology and green innovation

Green technology involves implementing innovative solutions and technologies aimed at reducing environmental impact, enhancing resource efficiency, and promoting sustainability across various sectors, including manufacturing 29 . The relationship between green technology and green innovation is fundamental, as green technology acts as a primary driver of green innovation within manufacturing companies 17 . By harnessing advancements in green technology, organizations can develop and adopt innovative solutions that tackle environmental challenges while also driving business growth and competitiveness 22 . Green technology provides the tools and capabilities needed to design and manufacture sustainable products, streamline production processes, and minimize environmental impact throughout the value chain 17 . Consequently, the adoption and integration of green technology are critical in spurring green innovation by empowering companies to explore new opportunities, enhance efficiency, and distinguish themselves in the market through eco-friendly practices 29 , 34 .

The availability and adoption of green technology can promote innovation in sustainable practices and products, but its impact depends on various factors such as organizational culture, technological capabilities, market demand, and regulatory frameworks 34 . Additionally, successfully implementing green technology requires aligning it with organizational goals, allocating adequate resources, and implementing effective change management processes to overcome potential barriers and challenges 35 . Moreover, merely adopting green technology doesn't guarantee innovation success; it's the integration of technology with organizational processes, human capital, and strategic vision that ultimately drives meaningful innovation outcomes in sustainability within manufacturing companies 17 , 35 . Thus, the study proposes the following hypothesis:

Green technology influences green innovation.

Green logistics and green technology

Green logistics focuses on streamlining transportation, distribution, and supply chain processes to minimize environmental impact and promote resource efficiency 10 . Conversely, green technology encompasses a broad range of innovative solutions and technologies aimed at reducing environmental footprint and enhancing sustainability across various operational areas, including logistics 29 . The relationship between green logistics and green technology is symbiotic: advancements in technology often enable more efficient and environmentally friendly logistics practices, while the adoption of green logistics principles drives the need for innovative technological solutions to support sustainable operations 28 , 29 . For instance, integrating telematics, GPS tracking systems, and data analytics technologies into logistics operations can enable real-time monitoring of vehicle emissions, optimize routes for fuel efficiency, and reduce carbon footprint in transportation activities. Similarly, the advancement of electric vehicles, alternative fuels, and autonomous transportation technologies provides opportunities to further improve the environmental performance of logistics operations, aligning with the objectives of green logistics initiatives 10 , 13 .

While technological advancements hold the potential to revolutionize logistics practices and promote sustainability, the successful implementation of green technology in logistics operations may face challenges such as high initial investment costs, compatibility issues with existing infrastructure, and limited availability of specialized skills and expertise 17 , 22 . Additionally, the adoption of green technology in logistics may require changes in organizational processes, supply chain dynamics, and stakeholder collaboration, which could pose barriers to implementation 35 . Furthermore, the effectiveness of green logistics initiatives may also be contingent upon factors such as regulatory frameworks, market demand for sustainable products, and consumer preferences, which may influence the prioritization and adoption of green technology solutions in logistics operations 22 . Therefore, the study offers H5:

Green logistics affects green technology.

Green finance and green technology

Green finance plays a crucial role in helping organizations adopt and implement green technology by providing the necessary funding, resources, and incentives for sustainable initiatives 31 . Using various financial tools such as green bonds, sustainable loans, and venture capital investments, green finance allows manufacturing companies to invest in research and development, acquire state-of-the-art technologies, and integrate sustainable practices throughout their operations 30 . Additionally, green finance encourages collaboration among financial institutions, businesses, and policymakers to develop creative financing models and incentives that promote the adoption of green technologies, thus hastening the transition towards a more sustainable future 14 .

Despite their interdependence, green finance and green technology may not always align perfectly, and several factors can influence the relationship between the two 30 . One potential challenge is the availability and accessibility of green finance options, which may vary depending on market conditions, regulatory frameworks, and investor preferences 14 . While there is growing interest and demand for sustainable investments, manufacturing companies may encounter obstacles in accessing affordable green finance options, particularly for small and medium-sized enterprises (SMEs) or businesses operating in emerging markets. Additionally, mismatches between the timing and scale of financial investments and technological developments can pose challenges in effectively deploying green technologies within manufacturing operations 31 . Moreover, the complexity and novelty of green technologies may present uncertainties and risks for investors, leading to hesitancy or reluctance in allocating capital towards green technology projects 14 . Despite these potential barriers, strategic collaborations between financial institutions, technology providers, and industry stakeholders can help bridge the gap between green finance and technology, unlocking new opportunities for sustainable innovation and growth in the manufacturing sector. Thus, the study suggests H6:

Green finance affects green technology.

Green work environment and green technology

A conducive green work environment promotes the adoption and integration of green technologies by fostering a culture of sustainability, providing the necessary infrastructure and resources, and encouraging employee engagement and participation in eco-friendly initiatives 15 . Through initiatives such as energy-efficient buildings, waste reduction programs, and sustainable procurement practices, organizations can create an environment that supports the implementation and utilization of green technologies. Moreover, investments in employee training and education on green technology usage and best practices can enhance workforce skills and competencies, facilitating the effective deployment and management of green technology solutions. Additionally, a green work environment can serve as a catalyst for innovation by fostering collaboration, creativity, and knowledge-sharing among employees, leading to the development of new ideas and solutions for sustainable manufacturing processes and products 16 .

Retrofitting facilities and upgrading equipment to accommodate green technologies may require significant investments of time and capital, posing barriers to adoption for some manufacturing companies 35 . Moreover, resistance to change and organizational inertia may hinder the adoption and acceptance of new green technologies among employees, especially if they perceive disruptions to established workflows or job roles. Additionally, the effectiveness of green technology solutions may be contingent on factors such as workforce skill levels, management support, and organizational culture, highlighting the importance of addressing human and organizational factors alongside technological advancements 3 . Despite these challenges, strategic initiatives to promote sustainability and green practices within the workplace can create synergies between green work environment and technology, driving continuous improvement and innovation towards a more sustainable future 8 . Thus, the study postulates H7:

Green work environment affects green technology.

Mediating role of green technology

The mediating role of green technology in the relationship between various factors and green innovation is crucial for understanding the mechanisms through which sustainable practices drive innovation. Firstly, green logistics can influence green innovation through its impact on the adoption and integration of green technology throughout the supply chain 21 . By implementing environmentally friendly transportation methods, optimizing routing and distribution processes, and adopting eco-friendly packaging solutions, companies can reduce their carbon footprint and resource consumption, leading to more sustainable operations. Green technology, such as electric vehicles, route optimization software, and eco-friendly packaging materials, plays a vital role in enabling these green logistics practices, thereby facilitating innovation in environmentally sustainable business practices and products 19 .

Secondly, green finance can indirectly impact green innovation by facilitating the adoption and deployment of green technology solutions within manufacturing companies 20 . Access to green financing mechanisms, such as sustainability-linked loans, green bonds, and government incentives for sustainable investments, can provide the necessary capital and resources to implement green technology initiatives. These investments in renewable energy, energy-efficient equipment, and sustainable manufacturing processes contribute to improved environmental performance and innovation in green products and services. Green technology acts as a mediator in this relationship by enabling the implementation of sustainable practices funded by green finance, thus driving innovation towards greener and more sustainable outcomes 6 .

Lastly, the green work environment can influence green innovation through its interactions with green technology within manufacturing companies 3 . A supportive and conducive work environment that promotes sustainability practices and encourages employee engagement in eco-friendly initiatives can enhance the adoption and utilization of green technology solutions. By investing in employee training, providing access to resources and infrastructure, and fostering a culture of sustainability, organizations can empower their workforce to embrace green technology and drive innovation towards sustainable outcomes 31 . Green technology serves as a mediator in this relationship by facilitating the implementation and effectiveness of sustainability initiatives within the workplace, thereby contributing to innovation in green practices and products. Thus, the following hypotheses are proposed:

Green technology mediates the link between green logistics and green innovation.

The link between green finance and green innovation is mediated by green technology.

The relationship between green work environment and green innovation is mediated by green technology.

Theoretical framework

According to the Resource-Based View (RBV) theory, a company's competitive edge and success are shaped by its distinct set of strategic resources and abilities 36 . In the realm of green innovation, green technology stands out as a vital strategic resource that can be incorporated into the RBV framework 37 . Green technology encompasses a wide range of environmentally friendly technologies, processes, and practices that enable firms to reduce their environmental impact, enhance operational efficiency, and develop sustainable products and services 38 . By integrating green technology into its resource portfolio, a firm can leverage it as a source of competitive advantage by differentiating its offerings, reducing costs, and enhancing its reputation as a socially responsible and environmentally conscious organization 39 .

The association between RBV theory and fsQCA suggests a configurational approach to understanding the role of green technology in driving green innovation 37 . Figure  1 illustrates the green innovation model through a conceptual framework and configurational model of fsQCA, highlighting the interplay between different factors and their configurations in achieving high levels of green innovation. In this context, RBV theory suggests that firms must strategically manage their resources, including green technology, to achieve sustainable competitive advantage 39 . By adopting a configurational perspective, fsQCA allows for the identification of complex combinations of factors, including green technology, that are necessary for achieving desired outcomes, such as high levels of green innovation.

Conceptual framework and configurational model.

Strategically integrating green technology into the RBV framework and leveraging fsQCA's configurational approach can provide firms with insights into the specific combinations of factors that drive green innovation 37 . By identifying the configurations of resources, capabilities, and environmental practices that lead to superior performance in sustainable markets, firms can develop targeted strategies to enhance their competitiveness and profitability 36 , 38 . Moreover, by aligning their resource allocation decisions with the configurations identified through fsQCA, firms can optimize their investments in green technology and other critical resources, thereby enhancing their ability to innovate and succeed in the rapidly evolving landscape of sustainability.

Figure  1 is developed to show the conceptual and configured models. In the Fig.  1 , the following abbreviations are used: EFTA: Eco-friendly Transportation Adoption, SPIM: Sustainable Packaging Implementation, RLIN: Reverse Logistics Integration, SCFE: Supply Chain Carbon Footprint Efficiency, GIFA: Green Investment Fund Availability, CGFP: Corporate Green Financing Policies, EFFA: Eco-friendly Funding Accessibility, ENIN: Environmental Incentives, EWPA: Eco-friendly Workplace Practices Adoption, GBSI: Green Building Standards Implementation, TELP: Telecommuting Promotion, and EMSE: Employee Sustainability Engagement.

Research design

Sampling and data collection.

This study focuses on manufacturing companies located in Dhaka city, Bangladesh. Dhaka's status as a central hub for manufacturing activities in the country, with its diverse industries, makes it an ideal target for this research 26 . Additionally, Dhaka faces significant environmental challenges, which highlight the importance of assessing the adoption of green practices within the manufacturing sector 26 . By honing in on this specific population, the study aims to shed light on how green logistics, finance, work environment, and technology impact green innovation. This research not only contributes to academic understanding but also provides practical insights that can benefit Dhaka's manufacturing sector and beyond.

In this study, all methods were carried out in accordance with the relevant guidelines and regulations of Helsinki. The experimental protocols were thoroughly reviewed and approved by the Institutional Review Board of Bangladesh Institute of Governance and Management. Furthermore, informed consent was obtained from all participants involved in the study, or from their legal guardians, ensuring that their participation was voluntary and based on a full understanding of the research objectives and procedures.

The survey administration process involved distributing questionnaires via email to designated individuals, typically owners or managers, within selected manufacturing companies. A comprehensive cover letter accompanied each survey, outlining the study's objectives and inviting participation. Cement, ceramics, fuel and power, jute, pharmaceuticals and chemicals, textiles companies the number of manufacturing companies (approximately 136 in total) listed in Dhaka Stock Exchange (DSE). 25 companies were randomly chosen to receive survey invitations, totaling 500 potential respondents (20 questionnaires per company). The study used individual respondent as the unit of analysis from these manufacturing firms employing convenient sampling. Impressively, the response rate reached 91%, with 455 completed surveys returned. Following careful screening to exclude unusable or ineligible responses, a robust dataset of 447 responses remained for subsequent analysis. The demographic characteristics of the respondents are detailed in Table 1 .

Table 1 presents the demographic profile of the respondents involved in the study, outlining various characteristics such as gender, age, employment position, and education level. This breakdown is essential for understanding the composition of the sample and provides insights into the diversity and representativeness of the dataset. The gender distribution indicates that 58% of the respondents are male, while 42% are female, reflecting a relatively balanced representation across genders within the sample. Age distribution highlights a broad range of respondents, with the majority falling within the age brackets of 26–35 (29%) and 36–45 (26%). However, there is also notable participation from younger age groups (18–25) and older respondents (above 55), demonstrating a diverse age profile within the sample. In terms of employment positions, most respondents are officers (58%), followed by managers (33%), and a smaller proportion comprising owners, CEOs, or presidents (9% combined). This distribution suggests that the survey captured perspectives from various organizational levels, including top management and operational roles. The education level of respondents varies, with a significant portion holding bachelor's degrees (47%) and master's degrees (28%). Additionally, there are respondents with diplomas (16%) and other educational qualifications (9%), indicating a mix of educational backgrounds within the sample.

To ensure the accuracy of our sample, we carefully analyzed potential sources of bias. Initially, we compared respondents who replied early with those who responded later using a t-test to check for non-response bias. Surprisingly, we found no significant differences in means between these groups, indicating that the timing of responses didn't skew our sample representation. Additionally, we conducted a thorough examination of common method bias (CMB) using a comprehensive collinearity test 40 . The results showed that the variance inflation factor for all constructs consistently remained below the critical threshold of 3, ranging from 1.112 to 2.103 41 . This highlights the absence of any problematic CMB effects, confirming the reliability and validity of our study's results. By addressing both non-response bias and common method bias diligently, we strengthen confidence in the trustworthiness and accuracy of our research findings.

All survey instruments were crafted using established scales from existing literature, with slight adjustments in wording to fit the specific context of our study (refer to Table A1 in the appendix). This research employs three higher-order or second-order constructs, along with fourteen first-order or lower-order constructs. Green logistics 10 , 13 , 28 , for instance, is operationalized as a higher-order construct comprising four lower-order constructs: eco-friendly transportation adoption (EFTA), sustainable packaging implementation (SPIM), reverse logistics integration (RLIN), and supply chain carbon footprint efficiency (SCFE). Similarly, green finance 21 , 30 , 31 is represented as a higher-order construct consisting of four lower-order constructs: green investment fund availability (GIFA), corporate green financing policies (CGFP), eco-friendly funding accessibility (EFFA), and environmental incentives (ENIN). Lastly, green work environment 15 , 16 is conceptualized as a higher-order construct composed of four lower-order constructs: eco-friendly workplace practices adoption (EWPA), green building standards implementation (GBSI), telecommuting promotion (TELP), and employee sustainability engagement (EMSE). Green technology 29 , 34 , 35 and green innovation 6 , 33 , 34 , 39 are considered as the two lower-order or first-order constructs. Detailed information on constructs, items, and their sources can be found in Table A1 .

Analysis strategy

To comprehensively examine the dynamics of green innovation within manufacturing companies, a multi-method approach was employed, incorporating PLS-SEM, fsQCA, and Necessity Condition Analysis (NCA). Initially, we utilized PLS-SEM through SmartPLS 4 to examine the overall effects and mediating impacts of green logistics, green finance, green work environment, and green technology on green innovation 41 . PLS-SEM offers several advantages compared to covariance-based SEM, especially in modeling reflective-formative hierarchical latent variables and identifying significant drivers or barriers of the outcome variable 42 . The bootstrap technique integrated within PLS-SEM enhances the analysis of mediating effects, outperforming traditional methods like the causal-step approach and Sobel test 43 . In addition, we conducted fsQCA to uncover combinations of factors, known as causal recipes, that contribute to high levels of green innovation 44 . fsQCA utilizes Boolean logic to identify multiple pathways leading to the desired outcome, offering a nuanced understanding beyond the limitations of conventional symmetric approaches like regression and SEM 44 . Given the inherent complexity of firms' decision-making processes, fsQCA provides a robust framework to analyze the synergistic effects of various factors on green innovation, enhancing insights gained from net effect analysis.

Finally, we opted to employ NCA as a complementary method in our research for several reasons 45 . Firstly, NCA offers a unique perspective by focusing on identifying the essential conditions required for the occurrence of a specific outcome. This approach aligns well with our aim of understanding the critical factors driving green innovation within manufacturing firms. Secondly, integrating NCA allows us to complement our primary analytical methods, such as regression-based analyses or configurational analyses, providing a more comprehensive understanding of the determinants of green innovation 12 , 46 . By combining NCA with these existing techniques, we can delve deeper into the underlying mechanisms and necessary conditions that contribute to or inhibit the desired outcome. Lastly, NCA enhances the robustness of our findings by offering a complementary lens through which to examine the research problem, thereby strengthening the validity and reliability of our conclusions.

Empirical analysis

Analysis of pls-sem, reflective measurement model assessment.

We thoroughly examined the psychometric properties of the fourteen reflective constructs by assessing internal consistency reliability, convergent validity, and discriminant validity. To gauge internal consistency reliability, we used Dijkstra-Henseler's rho as a substitute for the traditional Cronbach's alpha (CA), providing a more lenient measure of composite reliability. The results, presented in Table 2 , indicated that all CA values exceeded the recommended threshold of 0.7, indicating robust construct reliability 41 . Additionally, convergent validity was confirmed through indicator loadings and average variance extracted (AVE) values, which surpassed 0.533 for all reflective constructs. This implies that each construct's indicators reliably converge to measure the underlying construct, thereby bolstering the validity of the measurement model.

Formative measurement model assessment

To estimate the reflective-formative higher-order constructs (green finance, green logistics, and green work environment), we employed a two-stage approach. In the initial stage, we obtained latent variable scores for the lower-order constructs using the repeated indicator approach. These scores were subsequently used as formative indicators for the higher-order constructs in the second stage. To validate the higher-order constructs, we assessed the collinearity between formative indicators.

The data in Table 3 indicate that all formative indicators had variance inflation factors (VIF) below the critical threshold of 3, suggesting no issues with multicollinearity 41 . This implies that the formative indicators collectively contribute to the higher-order constructs without redundancy or undue influence from collinearity. Moreover, we conducted a bootstrapping analysis on the model with 5000 subsamples to evaluate the significance and relevance of the indicator weights. Table 3 shows that all indicator weights were statistically significant at the p < 0.01 level, confirming their meaningful contribution to the respective constructs. Additionally, we assessed the reliability and validity of the higher-order constructs using CA, CR, and AVE. These metrics ensure the robustness and validity of the constructs, as they met the thresholds for CA, CR, and AVE, providing further evidence of their reliability and validity.

To rigorously assess discriminant validity, two widely accepted methods were employed: the heterotrait–monotrait ratio of correlations (HTMT) and the Fornell–Larcker criterion. Firstly, HTMT values were computed to gauge the distinctiveness of constructs from each other. As indicated in Table 4 , all HTMT values fell below the threshold of 0.90 43 , signifying that correlations between constructs' indicators are lower than their correlations with indicators of other constructs, thus affirming discriminant validity. Secondly, the Fornell-Larcker criterion was utilized to validate discriminant validity. This criterion compares the square root of each construct's AVE with the correlations between that construct and other constructs 42 . In Table 4 , it is evident that the square root of each construct's AVE (displayed along the diagonal) exceeds the correlations between that construct and other constructs (shown in the respective columns). This consistent pattern indicates that each construct shares more variance with its indicators than with indicators of other constructs, providing further evidence of good discriminant validity.

Structural model assessment

To assess the significance of the hypothesized relationships, we employed a robust non-parametric bootstrap procedure with 5000 subsamples and a confidence interval of 95 percent 41 , 42 . The results, summarized in Fig.  2 and detailed in Table 5 , offered valuable insights into the connections between different constructs. The values for RMSEA, NFI, and SRMR were 0.06, 0.83, and 0.07, respectively. The RMSEA, NFI, and SRMR values indicates the best of the model 41 , 42 . Initially, the analysis revealed that green logistics had a statistically significant positive effect on green innovation (β = 0.120, p < 0.01), thus confirming the validity of H1. Similarly, green finance showed a significant positive impact on green innovation (β = 0.147, p < 0.01), providing empirical support for H2. However, the effect of the green work environment on green innovation was positive but statistically insignificant (β = − 0.019, p > 0.05), leading to the rejection of H3. The non-significant impact of the green work environment may be due to the overarching influence of work climate and culture, which are pivotal in shaping employee behaviors and innovation outcomes, potentially overshadowing direct environmental initiatives.

Results of structural model.

Additionally, the study revealed a significant positive impact of green technology on green innovation (β = 0.949, p < 0.01), providing robust support for H4. Furthermore, it was observed that both green logistics (β = 0.494, p < 0.01) and green finance (β = 0.464, p < 0.01) significantly influenced green technology, supporting H5 and H6, respectively. However, the analysis found that the green work environment had no significant impact on green technology (β = 0.107, p > 0.05), leading to the rejection of H7.

In the final phase of analysis, we explored the mediating role of green technology in the relationships between green logistics, green finance, and green innovation. The results illuminated the indirect effects of these constructs on green innovation through the mediating influence of green technology. Initially, the analysis unveiled a significant indirect effect of green logistics on green innovation through green technology (β = 0.469, p < 0.01). The bootstrap confidence interval, spanning from 0.381 to 0.575, further validated the robustness of this indirect effect, providing strong support for H8. Similarly, a significant indirect effect of green finance on green innovation through green technology was observed (β = 0.441, p < 0.01). This finding not only corroborated the importance of green technology as a mediator but also lent credence to H9. The confidence interval further bolstered the significance of this indirect effect. Conversely, the analysis revealed that the indirect effect of the green work environment on green innovation through green technology did not attain significance (β = − 0.102, p > 0.05), thereby failing to provide support for H10. This suggests that while green technology plays a mediating role in the relationships between green logistics, green finance, and green innovation, the green work environment does not exert a significant indirect effect on innovation outcomes through technology (Table 6 ).

Analysis of fsQCA

We employed fsQCA to investigate how various factors interact to influence green innovation outcomes 47 . Following the instructions outlined in the fsQCA user's guide, we completed three essential steps: calibrating the data, constructing the truth table, and analyzing causal conditions.

In the first phase, standard data underwent a conversion into fuzzy sets (refer to Table 7 ) by assigning fuzzy scores to align with the criteria for full membership (fuzzy score = 0.95), cross-over anchors (fuzzy score = 0.50), and full non-membership (fuzzy score = 0.05), as recommended by Sukhov et al. 44 and Rahman 12 . This conversion allowed us to grasp the intricate connections between variables and their impact on green innovation.

Next, our attention turned to constructing the truth table to create diverse combinations of causal conditions that are adequate for achieving significant levels of green innovation 48 . This entailed establishing a consistent cutoff value of 1 and setting the number-of-cases threshold at 3 to ensure the reliability of our analysis 45 . Subsequently, we utilized standard analytical methods to derive the "intermediate solution," incorporating partial logical remainders into the solution. This approach enabled us to identify the causal patterns leading to substantial levels of green innovation, offering valuable insights into the combined effects of multiple factors on innovation outcomes 48 . For further information and details regarding the truth table minimization process, refer to Table A2 in the Appendix, which outlines the minimized truth table resulting from our analysis.

Table 8 and Fig.  3 present a summary of the intermediate solutions for achieving high and low levels of green innovation. In Model 1, three distinct causal configurations leading to high green innovation are identified. Each configuration demonstrates consistent values above 0.80, indicating strong causal relationships, with an overall solution coverage of 0.986, suggesting high informativeness of the model 48 . In Solution S1a, it is revealed that high levels of green innovation can be achieved despite a low green work environment, provided there are high levels of both green finance and green logistics. This underscores the importance of financial and logistical support in driving innovation, particularly in environments where green workplace practices may be lacking. Solution S2a highlights the significance of green logistics and green technology, alongside a low green work environment, in fostering high levels of green innovation. This suggests that even in the absence of robust green finance initiatives, the combination of efficient logistical processes and advanced green technologies can propel innovation in environmentally sustainable practices. Solution S3a emphasizes the pivotal role of green finance and green logistics, coupled with high levels of green technology, in achieving high green innovation outcomes. This configuration underscores the synergistic effects of financial investment and logistical support in conjunction with advanced technological solutions in driving innovation towards sustainability goals. Thus, the findings underscore the critical importance of green technology as a core condition for achieving high levels of green innovation because it is visible to all the three solutions. In Table 8 , ~ indicates absent of conditions.

Graphical presentation of the causal configurations for high green innovation.

Furthermore, Table 8 also shows that the absence of conditions can lead to low green innovation. As shown in Model 2, the absence of green technology (S1b), green logistics (S2b), and green finance (S3b) lead to low green innovation. Through the fsQCA results, it is found that green finance, green logistics, and green technology are the sufficient configurations for high green innovation regardless of green work environment. These findings are consistent with the results of PLS-SEM.

Further, Fig.  4 displays scatter plots depicting the relationships between different pairs of variables in terms of their consistency levels 46 . Each plot compares the consistency of two variables, where one variable is represented on the X-axis and the other on the Y-axis. The consistency values are shown for scenarios where the X variable is less than or equal to the Y variable (X <  = Y) and where the X variable is greater than or equal to the Y variable (X >  = Y). For instance, the scatter plot for green finance (GRF) and green innovation (GRIN) reveals a consistency of 0.91 when GRF is less than or equal to GRIN and 0.88 when GRF is greater than or equal to GRIN. Similarly, other scatter plots illustrate the consistency levels between green logistics (GRL), green technology (GRT), green work environment (GWE), and green innovation (GRIN), providing insights into the relationships and interactions among these variables in driving green innovation within the context of the study.

Scatter plots.

Analysis of NCA

NCA has become a well-established approach and data analysis technique utilized across various fields including social, medical, and technical sciences 45 . It serves to identify necessary conditions within datasets, offering valuable insights that complement regression-based methods or configurational methods like fsQCA. NCA is versatile and can be employed as a stand-alone method or integrated with other analytical approaches 44 . To perform complete and rigor analysis, First, we employ NCA of fsQCA. Second, we perform all steps of NCA stand-alone approach. A juxtaposition of the outcomes from NCA and fsQCA reveals that NCA has the capability to pinpoint a greater number of necessary conditions compared to fsQCA. Moreover, NCA provides the advantage of specifying the requisite level of each condition necessary to achieve a desired level of the outcome 45 . This highlights the nuanced insights that NCA offers in understanding the underlying factors influencing outcomes, particularly in complex contexts such as those encountered in research on green innovation within manufacturing firms.

Table 9 presents the outcomes of NCA conducted within the framework of fsQCA. In line with the criteria established by Dul 45 and Ragin 48 , a condition is deemed necessary when its consistency value exceeds 0.9. As depicted in Table 9 , the results indicate that among the studied factors—green finance, green logistics, green technology, and green work environment—only green technology emerges as essential for achieving the desired response, namely green innovation. In Table 9 , ~ indicates absent of condition. Bolded values indicate necessary conditions.

Now, we proceed with the NCA process step by step, which comprises three main steps. Step 1 involves creating scatter plots. Step 2 assesses effect sizes, and Step 3 entails bottleneck table analysis. In the initial step illustrated in Fig.  5 , XY scatter plots are generated, with green logistics, green finance, green technology, and green work environment plotted on the horizontal X-axis, while green innovation is plotted on the vertical Y-axis. Values increase to the right and upwards on the plot 45 . This method entails examining the amount of empty space in the upper-left corner when plotting X and Y against each other. A significant empty space in this corner suggests that achieving a high value on Y requires a minimum level of X. To determine this threshold, either a step function (CE-FDH) or a linear regression function (CR-FDH) is applied to the ceiling points with a higher y-value than all points with a lower x-value, as indicated by the dots in Fig.  5 . This approach enables the identification of critical thresholds and relationships between variables, facilitating a deeper understanding of the factors influencing green innovation.

Scatter plots for X = GRL, GRF, GWE, GRT, and Y = GRIN.

In the second step, we evaluate the significance of the effect size (d) within our specific context to determine its theoretical or practical relevance. Following general benchmarks, where 0 < d < 0.1 indicates a "small effect," 0.1 ≤ d < 0.3 signifies a "medium effect," 0.3 ≤ d < 0.5 represents a "large effect," and d ≥ 0.5 indicates a "very large effect," we assess the magnitude of the observed effects 12 , 45 . Additionally, we compare the accuracy of the effect size against the benchmark of 95%. In our study, we consider the necessity effect size as meaningful, comprising a combination of large, medium, and small effect sizes. However, it's important to acknowledge that the accuracy might be somewhat compromised due to the limited number of observations, with certain data points exceeding the ceiling line. Despite these constraints, if both the effect size and accuracy are sufficiently large, we proceed to Step 3 for bottleneck table analysis, enabling a deeper investigation into the identified thresholds and critical factors influencing the outcome of interest. In Table 10 , the effect sizes for green logistics and green finance are both categorized as having a "Medium Effect" size, with values of 0.29 and 0.24 respectively. This suggests that these variables moderately impact Green Innovation. In contrast, green technology exhibits a larger effect size of 0.45, classified as a "Large Effect." This indicates that Green Technology significantly influences Green Innovation within the studied context. However, the effect size for green work environment is notably smaller at 0.03, indicating a "Small Effect." This suggests that the influence of the green work environment on green innovation is relatively weak or negligible.

In the third step of our analysis, we utilize the bottleneck table to interpret the findings from multiple NCA. The bottleneck table, represented in Table 11 , offers a structured overview of the required necessary levels of the conditions (green logistics, green finance, green technology, and green work environment) for different levels of the outcome (green innovation). The levels of the conditions and outcome are expressed as percentages of the observed range, ranging from 0 (minimum observed value) to 100 (maximum observed value), with 50 representing the midpoint 45 . According to the bottleneck table, when the outcome level (Y) is less than 10, there is no minimum requirement for any of the conditions (designated as NN, Not Necessary) for that outcome to occur. However, as the outcome level increases, minimum thresholds for each condition become necessary. For instance, when Y equals 10, a minimum level of 18.4 is required for green logistics, 3 for green finance, and 20.7 for green technology, while green work environment remains unnecessary. Similarly, when Y equals 90, higher minimum levels are required for green logistics (58.2), green finance (47.4), green technology (71.9), and green work environment (18.1). Notably, if any of these minimum levels is not attained in practice, the outcome Y = 100 will not occur, indicating that each condition can potentially act as a bottleneck for achieving the desired outcome.

Discussions and conclusions

The findings from PLS-SEM reveal a notable positive and significant impact of green finance, green logistics, and green technology on green innovation, while green work environment showed no significant effect. This observation could be rationalized through the lens of the RBV theory. According to RBV, a firm's competitive advantage and innovation potential stem from its unique resources and capabilities. Green finance facilitates the acquisition of financial resources necessary for investment in green projects, innovation, and technology adoption. Similarly, efficient green logistics practices optimize resource allocation and enhance operational efficiency, contributing to innovation by streamlining processes and reducing environmental impacts. Additionally, green technology investments enable firms to develop and implement innovative solutions that enhance sustainability and drive competitive advantage. Conversely, the non-significant impact of the green work environment may suggest that other factors, such as technology and financial resources, play a more decisive role in driving innovation outcomes within manufacturing firms. From a practical perspective, these findings underscore the importance of prioritizing investments in green finance, logistics, and technology to foster green innovation and sustainability within manufacturing firms.

Furthermore, the outcomes of PLS-SEM highlight a notable positive influence of green finance and green logistics on green technology, while the green work environment does not exhibit a significant effect. This observation is consistent with the Resource-Based View (RBV) theory, which suggests that a company's competitive advantage stems from its distinct resources and capabilities. Green finance empowers organizations to invest in the research, development, and implementation of green technologies, while effective green logistics practices optimize resource allocation and operational procedures, fostering the integration of green technologies across the supply chain. However, the absence of a significant impact from the green work environment implies that factors beyond organizational culture and workplace practices may hold greater sway in driving technological innovation. From a practical standpoint, these findings underscore the importance of prioritizing investments in green finance and logistics to propel technological innovation and sustainability efforts. Moreover, according to PLS-SEM, the mediating role of green technology in the relationships between green finance, green logistics, and green innovation signifies a crucial pathway through which investments in financial resources and efficient logistical practices translate into innovative outcomes. This suggests that companies can leverage their unique resources and capabilities to establish a competitive edge in the market.

The findings from fsQCA corroborate the results obtained from PLS-SEM, indicating that configurations involving green finance, green logistics, and green technology are sufficient conditions for high green innovation within manufacturing firms, irrespective of the green work environment. This consistency highlights the robustness of the observed relationships and underscores the importance of these factors in driving innovation outcomes. In both analyses, green finance and green logistics emerge as critical determinants of green innovation, emphasizing the significance of financial resources and efficient logistical practices in fostering sustainability-driven innovation. Additionally, the sufficiency of green technology further reinforces its pivotal role in facilitating innovation by enabling the adoption and integration of sustainable practices and technologies throughout the organization. However, the absence of green finance, green logistics, and green technology leads to low green innovation, underscoring the necessity of these factors for achieving meaningful progress towards sustainability goals. Together, these findings provide compelling evidence for the importance of prioritizing investments in green finance, logistics, and technology to drive innovation and sustainability within manufacturing firms, while also highlighting the need for a comprehensive approach to sustainability management that integrates multiple factors to maximize innovation potential.

The results of NCA provide valuable insights into the necessary conditions for green innovation within manufacturing firms, highlighting the significance of green logistics, green finance, and green technology while indicating that the green work environment is not a necessary factor. This suggests that while investments in financial resources, logistical efficiency, and technological advancement are crucial for driving innovation and sustainability, the organizational culture and workplace practices may not directly influence innovation outcomes. This has important implications for strategic decision-making and resource allocation within firms, as it underscores the need to prioritize investments in green finance, logistics, and technology to drive innovation, while potentially reallocating resources away from initiatives aimed solely at improving the work environment.

Moreover, the contrast between NCA and fsQCA demonstrates that NCA can pinpoint more essential conditions and delineate the necessary threshold for each condition to achieve a specific outcome, complementing the insights derived from fsQCA. This underscores the significance of employing diverse analytical methodologies to acquire a holistic comprehension of the factors influencing innovation outcomes and to guide strategic decision-making for sustainability initiatives. Through the integration of NCA alongside fsQCA, both researchers and practitioners can cultivate more nuanced understandings of the intricate dynamics of sustainability innovation. This, in turn, enables the development of targeted interventions and resource allocation strategies tailored to drive substantive advancements towards sustainability objectives within manufacturing enterprises.

Practical implications of the findings suggest that manufacturing firms should prioritize investments in green finance, green logistics, and green technology to drive innovation and sustainability initiatives. By allocating resources towards these key areas, firms can enhance their competitiveness, improve operational efficiency, and meet evolving environmental regulations and consumer preferences. Furthermore, the identification of the green work environment as a non-necessary factor implies that while fostering a supportive workplace culture is important for employee satisfaction and well-being, it may not directly influence innovation outcomes. Therefore, firms may need to reassess their resource allocation strategies and focus on initiatives that have a more direct impact on driving innovation and sustainability.

From a theoretical standpoint, the findings resonate with the RBV theory, which accentuates the significance of internal resources and capabilities in cultivating sustainable competitive advantages. Specifically, the results underscore the pivotal roles played by financial resources, logistical efficiency, and technological prowess in fostering innovation and sustainability within manufacturing enterprises. This bolsters the RBV assertion that firms possess the potential to harness their distinctive resources and capabilities to attain a competitive edge in the marketplace. Moreover, the recognition of green technology as a pivotal mediator in the interplay between green finance, green logistics, and green innovation further substantiates the RBV premise that valuable, rare, and difficult-to-replicate resources can confer sustainable competitive advantages. In sum, these findings enrich our comprehension of how firms can strategically manage their resources to propel innovation and sustainability, aligning closely with the foundational principles of RBV theory.

While this study provides valuable insights into the impact of green finance, green logistics, and green technology on green innovation, it is not without limitations. The research primarily focuses on manufacturing firms within a specific geographical context, which may limit the generalizability of the findings to other industries or regions. Additionally, the study does not fully explore the long-term effects of these green practices as the cross-sectional design of the study, leaving room for future research to examine their sustained impact on innovation outcomes over time. Future studies could also investigate the role of other factors, such as regulatory environments or consumer demand, in shaping the relationship between green practices and innovation, providing a more comprehensive understanding of how to drive sustainable business practices across various contexts.

This study offers valuable insights into the drivers of green innovation within manufacturing firms. Our findings indicate that green logistics and green finance exert a positive and significant influence on green innovation, while the impact of the green work environment, though positive, was not statistically significant. Moreover, green technology was identified as a significant mediator in the relationships between green finance, green logistics, and green innovation. Additionally, the application of fsQCA revealed the sufficiency of green finance, green logistics, and green technology in fostering high levels of green innovation, irrespective of the green work environment's level. These results underscore the importance of investing in green finance, logistics, and technology to propel sustainability-oriented innovation within manufacturing firms.

This study makes four significant contributions to the literature on green innovation within manufacturing firms. Firstly, by developing a comprehensive model of green innovation, the study provides a framework for understanding the key drivers and mechanisms underlying sustainability-driven innovation. This model offers valuable insights into the interrelationships between green logistics, green finance, green work environment, green technology, and green innovation, facilitating a holistic approach to sustainability management within manufacturing firms. Sufficient conditions with configurations are discovered for high green innovation that led to a comprehensive green innovation model. Secondly, the identification of green technology as a key mediator in the relationships between financial, logistical, and environmental factors and innovation outcomes adds to our understanding of the mechanisms driving sustainability-driven innovation. This highlights the pivotal role of technological advancement in translating investments in green finance and logistics into tangible innovation outcomes.

Thirdly, the study contributes theoretically by integrating green technology into the RBV theory, highlighting its importance as a strategic resource for gaining competitive advantage in sustainability-driven markets. This underscores the relevance of RBV theory in explaining the dynamics of innovation and sustainability within manufacturing firms. Lastly, the application of a multi-method approach, including PLS-SEM, fsQCA, and NCA enhances the robustness and comprehensiveness of the findings. By integrating quantitative and qualitative methods, the study provides a nuanced understanding of the complex relationships between various factors influencing green innovation, offering valuable insights for both researchers and practitioners in the field of sustainability management.

Data availability

Data will be made available on reasonable request through corresponding author.

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Wang, C., Rahman, M.M., Siddik, A.B. et al. Exploring the synergy of logistics, finance, and technology on innovation. Sci Rep 14 , 21918 (2024). https://doi.org/10.1038/s41598-024-72409-9

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Delivering on the Promise of Green Logistics

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Leading Sustainable Organizations

In 2011, the Environmental Defense Fund (EDF) approached Dr. Edgar Blanco, research director of the MIT Center for Transportation & Logistics (MIT CTL), to develop a series of case studies designed to help companies embrace “carbon-efficient” strategies in logistics operations. The case studies would provide examples of financially viable logistics strategies that reduce greenhouse gas (GHG) emissions (primarily CO 2 ) by reducing the amount of fuel and energy consumed to move products along the supply chain.

Three companies from different sectors — Boise, Inc., Ocean Spray and Caterpillar — were selected to participate in the project. The enterprises were at various stages of implementing logistics initiatives and were unsure of the GHG impact of these projects. In addition to providing technical details on how to assess the environmental impact of logistics initiatives, the case studies showed that collaboration is often at the center of achieving the expected financial and environmental benefits.

Image courtesy of Flickr user johnelmer .

Companies worldwide have been working hard to reduce their carbon footprints. And one of the biggest challenges in that effort is the process of moving goods from point A to point B — the collection of transport and storage activities commonly referred to as “logistics.”

The ships, trucks, trains, airplanes, shipping containers, and warehouses that the logistics function uses to deliver products and services both locally and globally account for almost 6% of the GHG emissions generated by human activity. The EPA 1 2 estimates that freight movements consume over 35 billion gallons of diesel fuel each year in the U.S. Burning this fuel produces more than 350 million metric tons of CO 2 , which is over 20% of all the GHG emissions generated by transportation-related fuel combustion. These emissions are neither declining nor stable — they’re growing, and fast.

There are known logistics strategies that can both significantly reduce CO 2 emissions 3 and produce cost savings.

About the Authors

Dr. Edgar Blanco is a Research Director at the MIT Center for Transportation & Logistics. Ken Cottrill is Research Marketing and Development Lead at the MIT Center for Transportation & Logistics.

1. EPA 430-R-13-001, U.S. EPA Inventory of U.S. Greenhouse Gas Emissions and Sinks 1990-2011, April 2013

2. http://www.epa.gov/smartway

3. In the U.S., CO₂ represents over 80% of GHG emissions and over 90% of logistics related emissions. Thus, it is the main GHG gas under analysis.

4. The Boise organization described in this case study, refers to Boise Cascade LLC, the paper and forest products. It should not be confused with Boise Cascade Corporation that is now OfficeMax Incorporated.

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The Geography of Transport Systems

The spatial organization of transportation and mobility

B.15 – Green Logistics

Authors: dr. jean-paul rodrigue, dr. brian slack and dr. claude comtois.

Green logistics relates to supply chain management practices and strategies that reduce its environmental and energy footprint. It focuses on material handling, waste management, packaging, and transport.

1. Greenness and Logistics

Most considerations in sustainable transportation focus on passengers, leaving freight issues somewhat marginalized. Logistics are at the heart of the operation of modern transport systems and imply a degree of organization and control over freight movements that only modern technology could have brought into being. It has become one of the most important developments in the transportation industry. Greenness has become a code word for a range of environmental concerns and is usually considered positively. It is employed to suggest compatibility with the environment, and thus, like logistics, it is perceived as beneficial. When put together, the two words suggest an environmentally friendly and efficient transport and distribution system.

The loosely defined term of green logistics covers  several dimensions related to production planning, materials management, and physical distribution. It opens the door to a wide array of potential applications of environmentally friendly strategies along supply chains. This implies that different stakeholders could apply different strategies, all labeled as green logistics. One corporation could focus on product packaging while another on alternative fuel vehicles; both are undertaking green logistics. However, after a closer look at the concept and its applications, a great many paradoxes and inconsistencies arise, which suggests that its application may be more difficult than what might have been expected in the first place. Although much debate has been about what green logistics truly entails, the transportation industry has developed very narrow and specific interests in the issue. If transportation costs are reduced, and assets such as vehicles, terminals, and distribution centers are better utilized, the assumption is that green logistics strategies are being implemented.

In common with many other areas of human endeavor, greenness became a catchword in the transportation industry. It grew out of the emerging awareness of environmental problems and negative externalities, which started in the 1950s when the fast growth of trucking impacted urban communities. Factors such as truck size, emissions, and noise became public concerns, leading to the first legislation focusing on pollutant and noise emissions and road access conditions. In a more recent context, well-publicized issues such as sustainability, energy, waste disposal, and climate change have contributed to establishing green logistics as a formal field of inquiry and mitigation. Environmental concepts, such as material flows or the carbon cycle, became readily applicable to supply chain management. The World Commission on Environment and Development Report (1987) established environmental sustainability as a goal for international action, giving green issues a significant boost in political and economic arenas. The transportation industry was recognized as a major contributor to environmental issues through its modes, infrastructures, and flows. The developing field of logistics was seen as an opportunity for the transportation industry to become more environmentally friendly. Yet, environmental perspectives and transportation sustainability issues remain predominantly focused on passenger transportation.

Interest in the environment by the logistics industry manifested itself most clearly in terms of exploiting new market opportunities. While traditional logistics seeks to organize forward distribution, that is, the transport, warehousing, packaging, and inventory management from the producer to the consumer, environmental considerations opened up markets for recycling and disposal and led to an entirely new sub-sector; reverse logistics. This reverse distribution involves waste transport and the movement of used materials. Even if the term reverse logistics is widely used, other names have been applied, such as  reverse distribution , reverse-flow logistics, and even green logistics. A more recent framework is the circular economy , which inserts logistics into reuse, remanufacturing, recycling, and waste disposal into a feedback loop. It is becoming an emerging approach that considers the full extent of logistics, which is the greening of both the forward and reverse segments of supply chains.

2. Green Logistics and its Paradoxes

An overview of the standard characteristics of logistical systems reveals several inconsistencies with regard to the mitigation of environmental externalities. They take the form of five basic paradoxes .

The purpose of logistics is to reduce costs, notably transport costs. While the former remains the most salient logistics cost , inventory carrying costs come second. In addition, economies of time and improvements in service reliability, including flexibility, are further objectives. Corporations involved in the physical distribution of freight are highly supportive of strategies to cut transport costs in a competitive setting. Economies of scale in transportation and higher load densities are common cost-saving strategies that concomitantly lead to environmental benefits in terms of lower fuel consumption per ton-km. On some occasions, the cost-saving strategies pursued by logistic operators can be at variance with environmental considerations that become externalized. This means that the users realize the benefits of logistics, and eventually, these benefits reach the consumer if the benefits are shared along the supply chain.

However, the environment assumes a wide variety of burdens and costs, which form a  hierarchy ranging from costs internal to the supply chain to externalized costs. Society is becoming less willing to accept these costs, and pressure is increasing on governments and corporations to include more significant environmental considerations in their activities. A salient example concerns food supply chains that have been impacted by lower transport costs, enabling diversification of the suppliers and longer transport chains. The concept of  food-miles has been developed to capture the full costs of food distribution by using the distance food is carried as a proxy. Such measures are controversial since sourcing can vary substantially for a product based on changing input costs and seasonality.

In logistics, time is often of the essence. By reducing the time of flows, the velocity of the distribution system is increased, and consequently, its efficiency. This is mainly achieved by using the most polluting and least energy-efficient transportation modes. The significant increase in air freight and trucking is partially the result of time constraints imposed by logistical activities. The time constraints result from the increased flexibility of industrial production systems and the retailing sector. Logistics offers door-to-door (DTD) services, mostly coupled with just-in-time (JIT) strategies. Other modes cannot satisfy the requirements such a situation creates as effectively. This leads to a vicious circle ; the more DTD and JIT strategies are applied, the further the negative environmental consequences of the traffic it creates. The slow steaming strategy pursued by maritime shipping companies is further challenging time management within long-distance supply chains.

c. Reliability

At the heart of logistics is the overriding importance of service reliability. Its success is based upon the ability to deliver freight on time with the least breakage or damage. Logistics providers often realize these objectives by utilizing the modes that are perceived as being the most reliable. The least polluting modes are generally regarded as the least reliable regarding on-time delivery, lack of breakage, and safety.

Ships and railways have inherited a reputation for poor customer satisfaction. For instance, the schedule reliability of container shipping is around 50%, implying that about half the time, a container ship will not arrive at a port terminal on the scheduled day. Lower reliability levels are linked with lower asset utilization and higher inventory levels, which are wasteful and indirectly damaging to the environment. The reliability of the logistics industry is built around air and truck shipments, the two least environmentally friendly modes.

d. Warehousing

Logistics is an important factor in promoting globalization and international flows of commerce. Modern logistics systems economies are based on reducing inventories, as the speed and reliability of deliveries remove the need to store and stockpile. Consequently, a reduction in warehousing demands is one of the advantages of logistics. However, this means that inventories have been transferred to a certain degree to the transport system, especially roads and terminals. Inventories are actually in transit, contributing still further to congestion and pollution. The environment and society, not the logistical operators, assume external costs. Not all sectors exhibit this trend, however.

For example, in some industrial sectors, computers, there is a growing trend for vertical disintegration of the manufacturing process, in which extra links are added to the supply chain. Intermediate plants where some assembly is undertaken have been added between the manufacturer and consumer. While facilitating the customizing of the product for the consumer, it adds external movement of products in the production line.

e. Information Technologies

Information technologies have led to new dimensions in retailing. One of the most dynamic markets concerns e-commerce. This is made possible by an integrated supply chain with data interchange between suppliers, assembly lines, and freight forwarders. Even if there is an appearance of a movement-free transaction for online customers, distribution created by online transactions may consume more energy than other retail activities. The distribution activities that have benefited the most from e-commerce are parcel-shipping companies that rely solely on trucking and air transportation. Information technologies related to e-commerce applied to logistics can have positive impacts. So once again, the situation may be seen as paradoxical.

It can be argued that the paradoxes of green logistics make it challenging for the logistics industry to become significantly greener. The internal inconsistencies between the goal of environmental sustainability and an industry that gives undue preference to road and air transport  can be seen as irreconcilable . Yet internal and external pressures promoting a more environmentally-friendly logistics industry appear inexorable. How the logistics industry has responded to the environmental imperatives is not unexpected, given its commercial and economic imperatives, particularly given the paradoxes it is facing.

3. A Blueprint for Green Logistics

Environmental pressures in many economic sectors are already manifest in the logistics industry, including incentives to decarbonize. The matter is how these pressures will take shape and which actors will be the most proactive. Over the later three scenarios are possible, but they are not mutually exclusive:

• A top-down approach where environmental standards are imposed on the logistics industry by government policies through regulations ;
• A bottom-up approach where environmental improvements are coming from the industry itself through the adoption of best practices through innovative firms;
• A compromise between the government and industry, notably through certification schemes leading to accreditation to desirable environmental standards.

First is that government action will force a green agenda on the industry, in a top-down approach. Although this is the least desirable outcome for the logistics industry, it is already evident that government intervention and legislation are reaching more directly over environmental issues. In Europe, there is a growing interest in charging for external costs, as the EU moves towards a ‘fair and efficient’ pricing policy. A sharp increase in costs could have a more severe impact than a more gradual, phased-in tax. In North America, there is a growing interest in road pricing, with the re-appearance of tolls on new highways and bridges built by the private sector, and by congestion pricing, especially in metropolitan areas.

Pricing is only one aspect of government intervention. Legislations controlling the movement of hazardous goods, reducing packaging waste, stipulating the recycled content of products, and the mandatory collection, and recycling of products are already evident in most jurisdictions. Indeed, it is such legislation that has given rise to the reverse logistics industry. Truck safety, driver education, and limits on driver’s time are among many types of government action with the potential to impact the logistics industry.

A difficulty with government intervention is that the outcomes are often unpredictable, and in an industry as complex as logistics, many could lead to unintended consequences. Environmentally-inspired policies may impact freight and passenger traffic differently, just as different modes may experience widely variable results of common regulation. Issues concerning the greenness of logistics extend beyond transport regulations. The sitting of terminals and warehouses is crucial to moving the industry towards sustainability. Yet, these are often under the land use and zoning control of lower levels of government whose environmental interests may be at variance with national and international bodies. A positive trend has been the joint planning and sitting of logistics zones and intermodal terminals as co-located facilities.

If a top-down approach appears inevitable, at least a bottom-up solution would be the industry preference in some respects. Its leaders oppose leaving the future direction to be shaped by government action. There are several ways a bottom-up approach might come about. As with reverse logistics, these occur when the business interests of the industry match the imperatives of the environment. One such match is the concern of the logistics industry with empty movements, which range from empty trucking backhauls for regional freight distribution to the repositioning of empty containers across oceans. Further gains are achievable with the growing sophistication of fleet management and IT control over scheduling and routing. Another match involves fine-tuning the routing and operations of freight transport systems with  higher energy prices . The adoption of  slow steaming strategies by maritime shipping companies uses the rationale of environmentalism to reduce fuel consumption and improve the utilization of their ship assets.

Less predictable, but with a much greater potential impact on the greenness of the industry, are possible attitudinal changes within logistics and without. These changes are comparable to that which has already occurred in recycling. There has emerged striking public support for domestic recycling. Some firms have extended this in successfully marketing their compliance and adopting green strategies. Firms have found that by advertising their friendliness towards the environment and compliance with environmental standards, they can obtain an edge in the marketplace over their competitors. Traditionally, price and quality characteristics formed the basis of choice, but greenness can become a competitive advantage because environment preservation is seen as desirable in general. Ultimately, pressure from within the industry can lead to greater environmental awareness. Corporations that stand apart will lose out because purchasers will demand environmental compliance.

The compromise appears to be the most desirable option, with the industry following up by implementing environmental management systems (EMS). Although governments are involved in varying degrees, a number of voluntary systems are in place, notably ISO 14001 and EMAS (Environmental Management and Audit System). In these systems, firms receive a certification based on establishing an environmental quality control tailored to that firm and setting up environmental monitoring and accounting procedures. Obtaining certification is seen as evidence of the firm’s commitment to the environment and is frequently used as a public relations, marketing, and government relations advantage. This represents a fundamental commitment of the corporation to engage in environmental assessment and audits that represent a significant modification of traditional practices, in which efficiency, quality, and cost evaluations prevailed. The challenges of certification schemes include:

• Certification can be biased to represent or protect the interests of specific stakeholders and markets.
• Attaining compliance can be a costly endeavor in terms of time and resources in regard to the uncertainty of the benefits. Figures vary, and it can take from 6 months to two years to go through the certification process. This can be a negative factor for smaller firms or developing economies. Thus, certification can create barriers to entry, effectively protecting the market advantage of compliant firms.
• Once a certification has been achieved, auditing and review can continue to be time and resources-intensive as they can take place every three years. They can also relapse, implying that the certified firm may not consistently adhere to the standards they have been certified for.

Of the three possible directions by which a greener logistics industry may emerge, it is realistic to consider that they will help shape the industry in the future. Although there is a clear trend in policy guidelines to make the users pay the full costs of using the infrastructures, logistical activities have largely escaped these initiatives. Environmental policy focuses on private cars (e.g. emission controls, gas mixtures, and pricing). While there are increasingly strict regulations being applied to air transport (noise and emissions), the degree of control over trucking, rail, and maritime modes is less. For example, diesel fuel is significantly cheaper than gasoline in many jurisdictions, despite the negative environmental implications of the diesel engine. Yet trucks contribute on average 7 times more per vehicle-km to nitrogen oxide emissions than cars and 17 times more for particulate matter. The trucking industry has avoided the bulk of environmental externalities it created, notably in North America.

4. Applying Green Logistics to Supply Chains

Although the environment was not a significant preoccupation or priority in the industry itself, the last decades have shown a remarkable change as green logistics became increasingly part of the supply chain management discourse and practices. The standard themes of materials management and physical distribution can be expanded with an additional focus on strategies able to mitigate the paradoxical nature of green logistics:

• Product design and production planning . The conventional focus of product design and development is the improvement of its commercial and competitive attributes such as price, quality, features, and performance. There is also planned obsolescence in product design with the expectation that it will be discarded after a certain amount of time or uses. This process is common for electronic goods as each new generation of a product (computers, phones, televisions) is quantitatively and qualitatively better. Products are increasingly being considered from a supply chain perspective, namely, their sourcing and distribution, where the concern is about designing or redesigning supply chains that are more environmentally friendly. This can involve the physical characteristics of the product itself, such as its material intensity (lighter, alternative materials ) or production processes that allow for a higher transport density of parts. Suppliers that are closer (near sourcing) may be considered even if they may be more expensive so that transportation costs can be reduced. A decision can also be made to preferably contract suppliers that have demonstrated that the parts and resources they provide have been procured in a sustainable manner.
• Physical distribution . Concerned about strategies to reduce the environmental impacts of physical distribution, namely the transportation and warehousing processes. It could involve using facilities that have been certified as environmentally efficient (Leadership in Energy & Environmental Design – LEED – is a globally recognized certification scheme) as well as carriers abiding by environmentally friendly principles. Preferences could also be placed on delaying shipments until a sufficient load factor is reached. Using alternative modes and fuels is increasingly applied, particularly for city logistics. For long-distance travel, a modal shift to rail and economies of scale on maritime shipping are considered strategies that may lead to greener supply chains.
• Materials management . Concerned about reducing the environmental impacts related to the manufacturing of goods in all their stages of production along a supply chain. A salient strategy involves better packing and packaging to increase the load density as well as to reduce materials consumption and waste. Low-impact materials, particularly recycled resources, can be preferred as industrial inputs. As products, or their components, tend to be increasingly recyclable, waste management strategies are being pursued to ensure that the end products are either discarded properly or, preferably, recycled for other uses.
• Reverse distribution . Concerned about activities and movements related to taking back consumed goods as well as waste to be recycled or discarded. It has opened up new market opportunities over specific aspects of materials management (mostly recycling and waste disposal) and physical distribution (collection channels). Here the environmental benefits are derived rather than direct. The transportation industry itself does not necessarily present a greener face. Indeed in a literal sense, reverse logistics adds further to the traffic load and facilities required to handle them. The manufacturers and domestic waste producers are the ones achieving environmental credit.

Applying green logistics to supply chains must also consider the network and spatial footprint of freight distribution. The hub structures supporting many logistical systems result in a land take that is exceptional . Airports, seaports, and rail terminals are among the largest consumers of land in urban areas. For many airports and seaports, development costs are so large that they require subsidies from local, regional, and national governments. User costs rarely completely reflect the dredging of channels in ports, the provision of sites, and operating expenses. For example, in the United States, local dredging costs were nominally to come out of a harbor improvement tax. However, this has been ruled unconstitutional, and channel maintenance remains under the authority of the US Corps of Army Engineers. In Europe, national and regional government subsidies are used to assist infrastructure and superstructure provision.

The trend in logistics toward hub formation is clearly not green, as it incites the convergence of traffic flows and their externalities within a well-defined area. On the positive side, this confers opportunities to mitigate these environmental externalities since they are focused and identifiable.

Improvement of logistics flows, and performance required setting up new facilities in suburban areas, a trend labeled as “logistics sprawl”. In turn, this process is related to an additional footprint and a level of disorganization of freight flows within a metropolitan area. Logistics zones provide a more coherent setting for distribution centers, including shared facilities such as parking areas and intermodal terminals. They confer the advantage of minimizing the impacts of freight distribution on surrounding areas more effectively, such as with direct access ramps to highways (less local intrusion) or the setting of buffers to mitigate noise and emissions. There is an  array of rationale and settings for logistics zones and, correspondingly, environmental mitigation strategies. Still, the  environmental impacts of distribution centers remain a daunting issue to mitigate.

Logistics involve complex and energy-intensive activities, including packaging, warehousing, and distribution. These observations support the paradoxical relationship between logistics and the environment: reducing costs does not necessarily reduce environmental impacts. Overlooking significant environmental issues, such as pollution, congestion, and resource depletion, means that greenness remains challenging to apply to the logistics industry. Green logistics remains an indirect outcome of policies and strategies to improve the cost, efficiency, and reliability of supply chains. A key aspect of more environmentally friendly freight distribution systems concerns city logistics, where the “last mile” in freight distribution takes place, as well as a large share of reverse logistics activities. Still, even in this context, the driving force is not directly environmental issues but factors linked with costs, time, reliability, warehousing, and information technologies. An argument could be made that pursuing green strategies in the logistics sector may be associated with declines in capacity, reliability, and performance.

Related Topics

• Environmental Management Systems
• Transportation and Energy
• Transportation, Land Use and the Environment
• Transport and Sustainability
• Logistics and Freight Distribution
• Transportation Environmental Management
• City Logistics
• Logistics Zones

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Impact of concrete durability improvement on building life cycle carbon emissions: a case study of residential buildings in Northwest China

• Research Article
• Published: 18 September 2024

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• Xiangchen Zhu 1 ,
• Zhiyong Liu 2 ,
• Yunsheng Zhang 1 ,
• Hongxia Qiao 1 &
• Qiming Zhou 1  

Building carbon emissions (CE) have become the focus of the current topic, but there is still no mature typical building life cycle theory method from the perspective of building materials, and the research on the relationship between building durability and building life cycle is still insufficient. To this end, this study established a detailed calculation method for building carbon emissions (CE) and divided the building life cycle (BLC) into three stages: manufacturing, use, and demolition according to the result analysis. In addition, a durability improvement and carbon reduction scheme of “partition, resistance, and repair” is proposed, and the carbon emission reduction index of effectiveness index is proposed. The proposed method is applied to the case of residential buildings in Northwest China. The main conclusions are as follows: the CE of residential buildings are more dependent on the use stage. If the centralized heating system is adopted, the CE in the operation stage account for 80–90%. If the air conditioning refrigeration and heating system is adopted, the CE in the operation stage account for about 50%. Using the method of improving the durability of buildings to extend the service life of buildings is very significant for building carbon reduction (RC); the effectiveness index proposed in this paper includes key indicators such as total CE, service life, and building area. Compared with the traditional index, the effectiveness index is more accurate and comprehensive. CR is the focus of green building, but the impact of economy needs to be considered in practical engineering. In the future research, durability, CE, and economy need to be considered comprehensively for careful study.

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This paper is supported by the National Natural Science Foundation of China (U21A20150, 52178216, 52008196) and the Science and Technology Program of Gansu Province (23JRRA799).

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Xiangchen Zhu, Yunsheng Zhang, Hongxia Qiao & Qiming Zhou

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Writing—original draft preparation and conceptualization: Xiangchen Zhu; data curation, funding acquisition: Zhiyong Liu, Yunsheng Zhang, Hongxia Qiao; validation: Qiming Zhou.

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Zhu, X., Liu, Z., Zhang, Y. et al. Impact of concrete durability improvement on building life cycle carbon emissions: a case study of residential buildings in Northwest China. Environ Sci Pollut Res (2024). https://doi.org/10.1007/s11356-024-34883-6

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Received : 26 April 2024

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DOI : https://doi.org/10.1007/s11356-024-34883-6

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