Turning climate ambition into reality in Europe
Two stark messages came out of COP29 this year. First, ambitions are no longer enough – public and private sectors must take an 'action-first' and measurable approach. Second, climate change is a universal issue and can only be overcome through collaboration.
Backed by strategic regulations, finance schemes, and technological advancements, Europe is leading by example in the global sustainability transition – and setting the stage for governments worldwide, as well as companies like DP World operating in the European region, to emulate its sustainability framework.
Amidst the climate emergency, legally enshrining the 2050 net zero goal became a necessity. But it also demonstrated Europe’s forward vision and leadership in climate action. And, as seen with The European Green Deal, these actions leave no one behind.
The European Union’s initiative to cut 55% of carbon emissions by 2050 (using 1990 as its baseline year) compensates for the social and economic impacts of a just transition by providing finances for all its countries to actively partake in their industries’ sustainable transformation. It includes clauses to support energy intensive industries as they move towards clean fuel and upskill people to support greener industries and ways of living and working.
There's no denying that this is a landmark blueprint for other regions to follow. However, it’s also a source of inspiration for me as a business leader in an industry that emits approximately 3% of global carbon emissions annually.
DP World, an end-to-end supply chain solutions provider, has, and continues to play, an integral role in modernising the region’s trade infrastructure and contributing to economic growth in Europe. And we now have an opportunity to play an even greater role in securing a more resilient economic future and trade landscape for the region.
So, if we’re to maintain trade as a key driver of growth, we must not only adapt but enable the industry to achieve our climate goals.
Raising the bar
With the race to a more sustainable future on, my teams are taking inspiration from the likes of The European Green Deal and Fit for 55 initiatives. By taking an action-first approach that facilitates a transition for the countries and partners we serve, we’re ensuring our sector evolves from end to end.
It begins with the courage to hold ourselves accountable. By working with The Science Based Targets Initiative (SBTi), we’ve set a bold yet achievable goal. We have committed to a Group revised target of a 42% reduction in Scope 1 and 2 greenhouse gas (GHG) emissions by 2030, up from 28%. In Europe, we have an accelerated target of a 50% reduction by 2030 of Scope 1 and 2 emissions and are actively working to reduce our customers’ Scope 3 emissions. We are doing this by increasing renewable energy use across our European locations and introducing tech-based solutions such as the Smart Freight Centre-accredited Carbon Footprint Calculator. This solution measures the carbon emissions of different modes of transportation by using the Well-To-Wheel (WTW) technology.
Through action, we hope to inspire others to follow in our footsteps, accelerating our shared progress towards a low-emission future.
Just as Europe is basing its sustainability strategy in support and collaboration, we too are pursuing partnerships to progress sustainable European trade.
Collaborating for impact
Decarbonisation and low-emission solutions can be costly. High upfront investments and inconsistent regulations across borders have discouraged investments into more sustainable solutions. However, through partnerships, risks and costs are shared, and sustainability advancements can be accelerated. This is despite longer term barriers, such as establishing standardised alternative fuels.
This is why DP World is a member of the First Movers Coalition (FMC). This alliance eases the implementation of emerging climate technologies to decarbonise heavy emitting sectors like logistics. Joining the coalition is about more than being a signatory; it gives businesses access to willing partners who want to share ideas and resources. Since its launch at COP26, the group has grown to 96 members, all of whom are committed to carbon offtake technologies. These include carbon dioxide removal solutions and electric heavy-duty (HGV) fleets – many of which have been provided by Swedish car manufacturer, Volvo.
Partnerships don’t just enable greater transitions – they amplify their impact. Take the Move to -15°C Coalition, which was launched by DP World at COP28. Now an independent Coalition with widespread support from industry, this global movement seeks to raise the cold chain international temperature for refrigerated goods to -15°C from -18°C, potentially saving 17.7 million metric tonnes of carbon per year in the process. The initiative is grounded in scientific research that demonstrates how action, in the form of a tiny temperature adjustment, can make a huge impact to the cold chain’s carbon footprint. Since its launch, more than 30 companies have agreed to the temperature shift, including Europe's largest food producer, Nomad Foods.
New perspectives, bold solutions
Behind our impactful industry alliances are a series of innovations that are delivering tangible results. These are not only keeping us on track for our 2030 goal, but our European customers too.Taking inspiration from Europe’s sustainability incentivisation schemes like the EU Emissions Trading System (ETS), a world-first carbon market that pays industries that pay businesses to reduce emissions, we launched the Modal Shift Programme (MSP) in our UK sites.
Recognising the need to reduce road traffic and air pollution around our Southampton terminal, MSP offers freight forwarders significant discounts for moving containers via our rail services instead of by truck. Within just one year, the programme has removed a staggering 64,300 truck journeys from UK roads – and saved an even more impressive 17,000 tonnes of carbon. This increase in rail freight volume is equivalent to around 6 million road miles to rail.
In addition, we are actively developing a plan for our UK operations to help the UK government meet its newly set target of 81% GHG emissions reduction by 2035 (with 1990 as the baseline year), as recently announced by Prime Minister Sir Keir Starmer at COP29.
Action has delivered results here. But it also demonstrates how, as established operators, we don’t need to reinvent the wheel to make trade sustainable. Reimagining how existing infrastructure works is a small step in the grand scheme of things, but it delivers big results.
For example, trucking is often unavoidable in our sector – particularly for last-mile logistics. Therefore, rather than be impeded by the issue, we are committed to converting at least 70% of our European fleet to electric HGV fleets by 2030, significantly cutting our road emissions in the region. As logistics operators for vital industries such as food, technology and pharmaceuticals, adaptations like this will keep important goods flowing and advance ours, our customers’, and Europe’s climate goals.
From vision to impact
Europe’s leadership in sustainability extends far beyond its borders, setting an example that inspires companies and governments worldwide to act. This influence highlights the power of aligned public-private initiatives, as demonstrated by DP World’s active participation in this global movement.
Yet, true sustainability demands more than leadership alone. It requires deep collaboration across borders, industries, and communities. Achieving a sustainable and equitable future will hinge on shared responsibility and collective action from businesses and governments worldwide.