Logistics Sector

Risks of transition in the logistics sector in the main is balancing the financial and operational move from ICE to EV, ensuring that service is not compromised (i.e. mile range concerns) and the costs of installing a recharging infrastructure across the network. However the opportunity in the long term is efficient technology, reduction in running costs, reduction in GHG, innovative products & services, potentially increase market share and positive customer perception.

Risks of delayed or failure to meet a net zero strategy :

  • Failure to attract & retain climate conscious customers, who look to reduce Scope 3 (Market )
  • Risk of negative customer & supplier perception due to failure to transition to more low-carbon service (Market/Reputation)
  • Failure to attract & retain the best talent for the increasingly climate conscious individuals (Market)
  • Failure to comply with low-emissions policies (Policy & legal)
  • Failure to sufficiently adapt and apply new low carbon technology (Technology)

Tipping points are economic as the cost for EV and other technology is more affordable and available and well as Government to improve policy, recharging infrastructure and grants offered to businesses for lower emissions vehicles.

-Irene Boctor

2 thoughts on “Logistics Sector

  1. Mohamad Faizul Bin Nawi Post author

    Agreed with risk#2 with regards to negative customer perception. As in my country, the efforts in executing and propagate on the EV vehicles is already there and been executed. The only thing is about time where all people can afford to have and buy EV electrical cars/motorcycle as for now those are rather too expensive as compared to normal diesel vehicles.

  2. Fiona Penhallurick Post author

    In a previous role the major issues around EVs were:
    1. infrastructure – the electricity grid a giving a 2-3 year lead time and a very significant cost to be able to upgrade the electrical grid to put in EV charging. The electricity  companies are private companies but they are regulated and I think the regulator can and should do more to make them bring in the infrastructure more quickly.

    2. The second biggest issue was fire risk – there was a reluctance to put charging points in multi storey car parks (I know this is not the case elsewhere but they were very risk adverse) due to the reports of EV car fires burning for 24 hours plus.  

    I agree, price is a demand side issue but there are structural and infrastructure issues (and therefore opportunities)  that need to be solved before there can we significantly greater uptake. 

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