< PreviousTHE BACK PAGE | FINAL WORD... 50APRIL - MAY 2021 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com F I NAL W O RD ... The Middle East is an e-commerce growth hotspot, thanks to the region’s wealth, ongoing infrastructure investment, youthful population and impressive 70 percent internet penetration. No wonder western retailers are eagerly eyeing expansion opportunities here. The challenge for local digital businesses, and ambitious international retailers, will be achieving growth while keeping their carbon footprint light. After all, 2021 is billed as the year the world finally takes action to combat climate change. It’s forecast that across the Middle East and Africa, B2C e-commerce will have grown by 20 percent annually in the five years to 2022, compared to average growth rates of 13 percent. A Statista survey found that following the outbreak of Covid-19 almost half (47 percent) of respondents in Saudi Arabia were shopping online more frequently. Lockdown habits are likely to stick which means e-commerce sales and shipping volumes will keep on climbing in the region. Wonderful news. However, I believe these exciting opportunities need to be viewed within the context of today’s pressing environmental agenda. One thing is certain: a higher number of freight journeys and e-commerce deliveries will lead to more emissions. Consumers in the six Gulf Cooperation Council countries (UAE, Bahrain, Kuwait, Qatar, Oman and Saudi) have awareness of the threat that global warming poses to their families and to future generations. A report published this January by Boston Consulting Group found that more than 80 percent of GCC consumers surveyed would be willing to adopt more sustainable lifestyles. It’s clear that mounting government and corporate initiatives, and wider GREEN SUPPLY CHAINS MUST UNDERPIN GULF’S FUTURE E-COMMERCE GROWTH THE CARBON FOOTPRINT OF E-COMMERCE FULFILMENT NEEDS TO BE ADDRESSED BY RETAILERS PLANNING GROWTH IN THE MIDDLE EAST, WRITES RENAUD MARLIÈRE, LOGISTICS EXPERT AT ASENDIA. access to information, are having an impact on the shopper psyche here. Furthermore, with the UN Climate Change Conference, COP26 taking place in the UK in November 2021, governments and business leaders can expect intensifying pressure to go green – reflecting the surge in consumer interest in carbon reduction we’ve seen in recent years. Thankfully green initiatives in air and sea freight are proliferating. For instance, Etihad the national airline of UAE is investing in sustainable aviation fuels including biofuel, developed and refined in Abu Dhabi from saltwater-tolerant plants. The airline is committed to a minimum target of zero net carbon emissions by 2050 and halving of its 2019 net emission levels by 2035. Meanwhile the International Maritime Organization (IMO) is committed to reducing greenhouse gas emissions from the total shipping fleet by at least 50 percent by 2050 from 2008 levels. The ocean freight industry is now complying with the IMO’s new sulphur cap while docks and warehousing companies are developing innovations to enhance operations efficiency, labour management and waste management. Leading postal operators across the globe, including Asendia , are already engaged in efficiency drives and off- setting to become carbon neutral. We are investing in delivery options and smart technologies to help e-commerce fulfilment operations become more cost- effective and climate-friendly. The use of connectivity, real-time communication and data analytics in voyage optimisation and energy management are now widely accepted as crucial elements in the journey towards sustainable shipping. Collaborating with proactive logistics and international postal partners – ideally those that have already made progress towards carbon reduction and offsetting – is therefore a smart move for ethically-minded e-commerce companies looking to make their mark in the Middle East. Minimising your carbon footprint now will reassure new customers and wider stakeholders that you’re expanding into the territory responsibly. Renaud Marlière, logistics expert at Asendia Join Our Network The Institute of Supply Chain Management are transforming the Supply Chain landscape utilising education and collaboration, through; Qualifications Membership Expertise Networking Organisation Recognition Employee development For the Supply Chain Professional; Trust your Continuous Professional Development to IoSCM, with an unrivalled selection of approved and regulated qualifications designed for those looking to develop their skills, knowledge and opportunities within the Supply Chain sector. Learn via Distance Learning, Face to Face Classroom or Hybrid courses, developed to suit your requirements. Qualifications available from Level 2 (Introductory) to Level 7 (Strategic) Become a Global Member and join the 1,000’s who already benefit from our international network and enhanced benefits package. 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