Sustainability in the Private Sector: The Importance of Greening the Logistics Industry
On 4 September 2024, the United Nations University (UNU) hosted “Sustainability in the Private Sector: The Importance of Greening the Logistics Industry,” a conversation with Tony Khan, president and representative director of DHL Japan.
The global logistics and supply chain industry — freight transportation and warehousing — contributes 11% to global greenhouse emissions. This is equivalent to the total greenhouse emissions of the United States or Japan and the European Union combined. Developing new technologies and business practices that can streamline the logistics industry is critical to achieving the emissions targets of the Paris Agreement. The reduction in emissions from the transport sector was referenced for the first time in the first global stocktake outcome document of the COP28 Climate Summit, held in December 2023 in Dubai.
Mr Khan joined UNU Rector Tshilidzi Marwala for an in-depth discussion on issues of technological development, sustainability and public-private cooperation. They discussed whether technological innovation in the private sector would accelerate emissions reductions in the global transportation and logistics sector; is there scope for greater collaboration between national governments, global processes, including the UNFCCC COP summits, and private companies? And how will the logistics industry have changed by 2030?
Mr Khan said that DHL uses only reusable packing materials, but is not allowed to touch inside the parcels so the contents cannot be verified. These days, everything is digital-only, including waybills and other documents prepared by the carrier that provide details of the shipment, its route and charges. The only paper or plastic that Japan Post has used since March, for example, are stickers on the packages.
One guest asked: “Why is Japan so far behind the rest of the world in green initiatives?” Mr Khan replied that Japan had been a very innovative country for decades, citing the Walkman as an example. “But recently younger people are slowing down, being less global and not challenging themselves and others enough.” He urged them to “Go help, trade and teach!”
On energy, he said that the number of EV cars in Japan is being held back by the government not creating enough charging points. Globally, he pointed to a Bloomberg report two days previously, titled “European Airlines Outpace US Carriers on Cleaner Jet Fuel.” It said: “Green fuel is critical to efforts to tackle the climate impact of air travel. But sustainable aviation fuel was only 0.17% of airlines’ global propellant consumption in 2023.”
Some DHL planes, however, can recharge in just 30 minutes, he said. DHL Express shaped the future for sustainable aviation with the order in 2021 of 12 first-ever all-electric cargo planes from Eviation. Flown by a single pilot, they carry 1,200 kilograms a maximum range of 815 kilometers (440 nautical miles) in all environments currently serviced by piston and turbine aircraft. The advanced electric motors have fewer moving parts to increase reliability and reduce maintenance costs. Its operating software constantly monitors flight performance to ensure optimal efficiency.
What does it take to be a CEO? “You must have bite, willpower. I can guide you but the rest is hunger; invest in yourself and read a lot.”
Finally, to much applause, Rector Marwala agreed: “Yes, those who don’t read cannot lead!”
About the speaker:
Mr Khan has been a member of the DHL Express Asia Pacific Management Board since 2020. He has more than 35 years of experience in the industry and he is managing the Express business and its overall operations in Japan, an important market for DHL Express globally. He has led the company to navigate a number of crises including the pandemic and global geopolitical tensions. He has united the employees “AS ONE”, who upheld excellent quality of service and maintained operations without a single day of service suspension. Under Tony’s strong leadership, the company has further achieved the number one market share position in Japan, as well as continuous business growth.
Since joining DHL in 1988, Tony Khan has held a number of key positions, particularly in the Asia region. This includes the management of the Central Asia Hub in Hong Kong that plays an important role in the company’s global aviation network, and the opening and expansion of a number of major facilities in Japan. These have contributed significantly to the development of the DHL business. The experiences have provided him with a great depth of knowledge and perspective into international logistics, particularly in Asia.
Mr Khan has lived in Japan for 23 years. He was born in Pakistan in May 1965, graduated from the University of Karachi with a degree in Economics in 1987, and is fluent in both Japanese and Chinese.