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by Striped Giraffe Team
2. September 2024
Time to read: 3 Minutes
E-commerce

Towards sustainable e-commerce: UNCTAD recommendations (part 1)

E-commerce presents both opportunities and challenges for environmental sustainability. UNCTAD’s guidelines show the way to ensure e-commerce contributes positively to the planet.

The rapid growth of online shopping offers opportunities to reduce carbon emissions through better logistics, less reliance on physical stores and innovative supply chain management. However, if left unchecked, it could exacerbate the climate crisis.

The environmental impact of e-commerce depends heavily on the organization, management, and legal framework. According to a UNCTAD report, online shopping can be more energy efficient, but often leads to more purchases, larger quantities and many returns that are rarely resold. This can quickly cancel out the initial environmental benefits. It is therefore crucial to design e-commerce in a way that makes it truly sustainable.

UNCTAD supports governments and businesses in shaping the digital marketplace for sustainability. In the coming weeks, we will present recommendations for more sustainable e-commerce practices.

Sustainable warehouses and distribution centers

Recommendations for governments

  • Introduce economic incentives, such as tax rebates and reduced VAT, for businesses investing in resource-efficient infrastructure and effective waste management in warehouses.
  • Address employment, safety, and working conditions for warehouse workers to ensure social sustainability across the supply chain.

Case studies

The Netherlands offers the Energy Investment Allowance (EIA), a tax relief scheme that allows businesses to offset 40% of their investments in energy-saving equipment and sustainable energy against their corporate income tax.

Germany offers various incentives for businesses investing in resource-efficient infrastructure. For instance, the German government provides grants and low-interest loans through initiatives like the KfW Energy Efficiency Program to encourage companies to invest in energy-efficient technologies and sustainable infrastructure, including in warehouses. Additionally, businesses investing in renewable energy systems like solar panels can benefit from subsidies and tax incentives.

Recommendations for businesses

  • Invest in energy-efficient solutions like LED lighting and renewable energy sources (solar, wind) to power warehouse operations.
  • Implement good practices to effectively manage waste, for example by optimizing inventory management to minimize overstocking.
  • Separate different types of waste to facilitate recycling and proper disposal and regularly monitor waste generation and disposal practices to identify opportunities for improvement.
  • Ensure good employment conditions and safety for warehouse workers.

Case studies

The express courier company, FedEx, uses sunlight to heat the refrigerant for its air conditioners, with significant cuts in energy demand and GHG emissions as a result.

Germany’s leading retailer Lidl has invested in energy-efficient technologies in its warehouses, including the installation of LED lighting and solar panels to reduce energy consumption. Lidl also implements waste separation and recycling programs in its warehouses.

Stay tuned for the next part of our series, where we will explore sustainable transportation and delivery!

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