ODLO commits to:
- Ensure environmental responsibility along the supply chain
- Contribute to industry collaboration on environmental protection through multi-stakeholder engagement
Our actions include:
- Moving to a new combination of rail and road shipping from our own production in Romania. With this change, in 2020 we were able to save 40 543kg CO² for a total of 56 full truck loads. In 2020, we shifted 80% of our deliveries from ODLO Romania to our central warehouse using rail and road, a huge achievement over just one year in reducing our CO2 footprint.
- Moving from road to sea deliveries from Turkey and further exploring the options to apply this to more European countries.
- Reducing our air shipments from 3% to 2% in 2020. This great accomplishment was achieved by improved planning, continuous tracking and flexibility on order splits which significantly improves our carbon footprint. In addition, we continued with direct inbound shipments from Asian production partners to distribution parties in Asia which minimises the amount of double freight.
Climate neutral outbound shipments with DPD
In the last business year 2020/21, ODLO delivered 250k packages, representing a growth rate of 15%. Through our clear commitment to 100% climate neutral shipments, our team achieved an outstanding result of 97% climate neutral shipments beginning in July 2021, even though in 2020 it was still only 35%.
Being active in many countries also leads to a variety of logistic providers at the various country level which made it far more complicated than one might think to switch to climate neutral.
Climate neutral cartons - supporting forest conservation, Kenya
In 2020/21 we made a great step forward by introducing climate neutral cartons for all outbound shipments. We decided to actively support climate protection with our packaging by offsetting our emissions through Climate Partner.
How does carbon offsetting work?
With the help of Climate Partner, our carton supplier calculates the CO2 emissions of the entire order of cartons which are in turn compensated by supporting a climate protection project. It is important to mention that all projects are verified by an independent third party. Our project in Kenya is verified by Det Norske Veritas and received the VCS, CCBS gold level. Every time you receive a package from ODLO there is a QR code on the box offering more details about the amount of emissions we compensated and the project we support. More information can be found here: climate-project.com
Packaging – material improvement initiatives
Our logistics and E-commerce team further analysed our packaging footprint for outbound shipments. In 2020/21 we started with saving material resources for our steadily growing E-commerce business. We reduced the carton size and changed the material to 100% recycled material. Switching the bigger cartons to recycled material was not yet possible to ensure carton stability, but for these we continue to use certified FSC material. In addition, to seal the cartons, we started using wet adhesive tape made from natural rubber instead of conventional plastic adhesive tape. In this we apply the approach that every small step counts.
Environmental initiatives – central warehouse Brüggen
Our central distribution centre, with a warehouse of 26,000 m2, is based in Brüggen (Germany). Increasing sustainability within all operational process is a key driver for the local team.
Ökoprofit viersen 2020/21
In February 2021, ODLO Logistik GmbH successfully completed the Ökoprofit project. Environmental and climate protection with revenue is the goal of the project. Originally started in the 80s in Austria, this project supports companies in their practical sustainability strategies through a regional network. Using open dialogue with consultants, municipalities and partners, as well as the on-site process analysis, participants are helped in developing and implementing improvement plans. The project framework consists of three steps: workshops (energy waste, water, EMS, procurement, etc), consulting, and verification. In the latest edition of the Viersen Region, 13 regional companies participated and successfully completed the project and were awarded certification.
ODLO Logistik GmbH joined with an environmental project team of Horst Römer, Frank Rudolph and Bernd Wolf. Thanks to great team efforts, seven improvements were achieved in these areas: waste, transportation, packaging and resource efficiency through reuse. Thanks to the new measures implemented, our warehouse was able to significantly improve the carbon and waste footprints of the logistic center and save costs as well. A win win for everyone. The electricity supplied to our warehouse comes 70% from renewable sources in 2020, 100% renewable sources in 2021. To save energy, the warehouse is equipped with a geothermal heat pump and a lighting system which can be regulated independently by workplace division.