E-commerce has transformed global shopping habits, providing convenience and accessibility like never before. Now that the fever of Black Friday has subsided, we might need to double-check the significant environmental consequences of modern e-commerce: the good and the bad. 

From increased pollution and packaging waste to excessive fuel consumption, understanding the environmental impact of e-commerce is critical for building a sustainable future.

What Is the E-commerce Environmental Impact?

E-commerce simplifies shopping but complicates sustainability. The convenience of online retail comes at the cost of increased carbon emissions, waste, and resource consumption. Below, we explore how e-commerce affects the environment, supported by data and recent statistics.

The Environmental Benefits of E-commerce

Despite its challenges, e-commerce offers certain environmental advantages:

Reduced Need for Physical Retail Spaces

• Online shopping reduces the demand for physical stores, saving energy used in lighting, heating, and cooling.
• Retail spaces account for a significant portion of urban energy consumption, which can be mitigated through e-commerce.

Streamlined Supply Chains

• By consolidating shipments and optimizing delivery routes, e-commerce can reduce inefficiencies in traditional supply chains.
• Bulk deliveries often have a lower per-item environmental footprint compared to individual consumer trips to stores.

The Negative Environmental Impact of E-commerce

While e-commerce has benefits, its rapid growth exacerbates several environmental challenges.

Pollution from Logistics and Transportation

The explosion of e-commerce has led to a surge in delivery vehicles, increasing greenhouse gas emissions:

• Stat: Carbon emissions from e-commerce logistics in urban areas are projected to hit 25 million metric tons of CO₂ by 2030.
• The growing demand for same-day or next-day delivery requires faster, less efficient transportation methods.

Packaging Waste

E-commerce relies heavily on packaging, much of which is difficult to recycle:

• Stat: Over 40% of e-commerce packaging is made of single-use plastic, much of which ends up in landfills or the ocean.
• Products shipped via e-commerce often require multiple layers of protective materials, exacerbating the waste problem.

Fuel Consumption and Urban Traffic

• The need for rapid deliveries leads to increased fuel usage and congestion.
• Stat: A 36% increase in delivery vehicles is expected in urban centers by 2030, further straining city infrastructure and increasing pollution.

Data-Driven Insights into E-commerce’s Environmental Footprint

Carbon Emissions

E-commerce is a major contributor to carbon emissions due to:

• Increased reliance on fossil-fuel-powered delivery vehicles.
• Expanded shipping routes to meet global demand.

Waste Management Challenges

With billions of packages shipped annually, the waste generated by e-commerce is becoming unmanageable:

• Packaging waste contributes to 30% of total municipal solid waste in the U.S.
• Recycling systems are struggling to keep up with the influx of non-biodegradable materials.

Resource Depletion

The production of packaging materials for e-commerce consumes large amounts of natural resources:

• Deforestation for cardboard and paper products.
• Extraction of fossil fuels for plastics.

Mitigating the Environmental Impact of E-commerce

E-commerce businesses, consumers, and policymakers must work together to reduce the environmental footprint of online shopping.

Strategies for Businesses

• Sustainable Packaging: Shift to biodegradable, reusable, or compostable packaging materials.
• Eco-Friendly Logistics: Transition to electric or hybrid delivery vehicles and optimize routes to reduce emissions.
• Carbon Offsetting Programs: Invest in projects to offset the carbon footprint of shipping and packaging.

Actions for Consumers

• Consolidate Orders: Reduce the environmental cost of shipping by bundling purchases.
• Choose Sustainable Options: Opt for companies that use eco-friendly packaging and offer carbon-neutral delivery.
• Reject Fast Shipping: Avoid expedited delivery options, often requiring less efficient shipping methods.

Policy Interventions

• Regulations on Packaging Waste: Implement stricter rules to minimize single-use plastics and promote recyclable materials.
• Incentives for Green Logistics: Provide tax breaks or subsidies for companies that adopt sustainable delivery practices.

E-commerce is here to stay, but its environmental footprint must be addressed to ensure global sustainability. By adopting eco-friendly practices and raising awareness about the e-commerce environmental impact, we can mitigate its negative effects and foster a greener future.

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By CIRRO - Amsterdam, Netherlands, April 18, 2024 (GLOBE NEWSWIRE) -- CIRRO, a leading global e-commerce logistics and fulfillment service provider, has joined forces with GoodZero, to decarbonize its operations through projects certified by Gold Standard, The Verified Carbon Standard (VCS) Program, and ISO (International Organization for Standardization).

CIRRO, in partnership with GoodZero, is involved in three projects to tackle greenhouse gas emissions:

1. Running Tide (US/Iceland): Aiming to remove carbon from the atmosphere by transferring it to the ocean's depths, mitigating warming and acidification.
2. Dutch Methane Recovery (Netherlands): Capturing methane from manure to generate renewable 1,580 GWh of renewable electricity and 896 GWh of heat, reducing greenhouse gases from farming.
3. Wind Power (India): Installing wind projects with a 34 MW capacity, providing renewable electricity to the national grid and reducing reliance on fossil fuels.

These initiatives have already offset 500 tons of CO2 emissions and contribute to Sustainable Development Goals like clean energy, economic growth, and climate action.

Thijs Boots, Vice Managing Director at CIRRO E-Commerce Europe, said, "At CIRRO, we believe in "Efficiency for Good" – where efficiency meets responsibility. We are pleased to support these initiatives because we are not just alleviating environmental impact; we are investing in sustainability, innovation, and a brighter, greener tomorrow for generations to come."

Eva Båsk, Head of GoodZero, said, "We extend our heartfelt gratitude to our valued partner, CIRRO, whose dedication to sustainability fuels our shared mission. We have made significant strides in combating climate change and promoting environmental stewardship." 

About GoodZero

GoodZero, part of FincoEnergies alongside GoodShipping and GoodFuels, accelerates global business decarbonization by offering high-impact carbon credits offsetting scope 1, 2, and 3 emissions. Through its robust approach - Calculate, Reduce, Offset- enables a transparent path for companies to manage, and neutralize their carbon footprint through the GoodCriteria Framework. GoodZero is dedicated to driving impactful, data-driven climate action. For more information, visit  www.goodzero.com.

About CIRRO

CIRRO is positioned as your global cross-border e-commerce logistics and fulfillment partner. Our primary focus has been developing comprehensive supply chain ecosystems to serve the global e-commerce sector with logistics and fulfillment solutions. Under CIRRO, there are two sub-brands: CIRRO E-Commerce and CIRRO Fulfillment. 

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The European Parliament voted to revise the Packaging and Waste Directive. According to the modification, all packaging must be reusable or recyclable by 2030. Several parties have criticized the modification since the EU has not set uniform logistics standards across Europe.

So far, online sellers have been experimenting with recyclable and reusable packaging on their own volition. Amazon, for example, has started exclusively using recyclable packaging for European deliveries. 

According to the new directive, the European Parliament will provide reusable package quotas. By 2030, at least 10% of all shipments should be sent in a closed system - meaning they should be reusable within their area - This means that packaging needs to be made from materials that allow for recycling or reuse. Also, consumers must return the packaging even when they keep all products included in the order.

Empty boxes moving around… is it a wise choice? 

Although, in theory, the idea is logical, it creates a considerable problem: empty boxes need to be moved in a reverse logistic operation from the customer to the companies to be used again. This, in turn, could spell disaster as carbon fuel-based vehicles will surely be needed, 

“If it is not guaranteed that reusable packaging is accepted across service providers within the EU, we do not consider it acceptable to send empty packaging shipping across Europe in cross-border trade permanently. Returns are caused even if the customer keeps the item”, says Christoph Wenk-Fischer, General Manager at the German association of e-commerce, Bundesverband E-commerce und Versandhandel (Bevh).

To fix this, two possible solutions are being considered: the creation of reusable areas - to limit the distances involved in a potential reverse logistic operation, thus enabling ‘return spots’ for the customers to deliver the reusable packaging in their area. 

A second possible solution will be to manage some deals with carrier companies to guarantee that the inverse logistic operation of the reusable packages will be done using 100% electric vehicles or any other form of 0% carbon foot-print logistics.  

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As part of the 2030 Environmental Agenda, the European Commission has announced that it is currently working on new packaging waste laws. 

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The plans include cutting down on empty space in e-commerce parcels as well as an increase in reusable packaging.  A draft of the rules, which was supposed to come out at the end of the month, was leaked early.

Nevertheless, the finished plans for these new packaging waste laws are supposed to be unveiled on November 30th. Adjustments to the laws are still being made. 

A lobbying frenzy against the new packaging waste laws 

According to the Politico website, the early leak of this draft has sparked a lobbying frenzy in Brussels to try to either moderate or change some of the new EU directives concerning the packaging. 

Under the draft rules, businesses in the hospitality sector offering takeaway food or drink, for example, will have to serve customers in reusable packaging or by using customers' own containers. 

At least 30 percent of takeaway beverage sales will have to meet those criteria, with the target ramping up to 95 percent in January 2040.

Those targets have alarmed sectors from the beer industry to the hospitality trade, which say they're worried about complicated logistics, high costs, and hygiene issues, derived from the new packaging waste laws.

Indeed, some of the measures leaked by Politico - if they survive into the final draft - could pose severe incongruencies regarding previous Covid sanitary measures, recently enforced. 

Is it our health, or the planet? 

During a POLITICO Working Group discussion, Anna Papagrigoraki, sustainability director at the Confederation of European Paper Industries, warned of "cross-contamination" between food types including potential allergens, and wondered who would be responsible for fixing damaged containers.

"The entire life-cycle including end-of-life of reusable options has to be taken into account ... including recyclability," she said.

The industry is not alone in questioning the draft proposal for these new packaging waste laws.

Bruno Gautrais, in charge of food processing technologies in the Commission's health department, said he had "more questions than answers" over the new plan. The reuse measures are far from the "regular habits" of most food sellers, who will have to "remain very strict on the hygiene part," he said. Aspects of the proposal are still being discussed within the Commission, but "the challenge is worth the effort to find common ground,” he added.

Finally, the Swiss food and drink multinational Nestlé, which is already trialing reuse systems, said hygiene issues "can be solved," but pointed out that comes with environmental trade-offs as it involves higher water and energy use — especially since containers and bottles may have to travel long distances to be refilled by the original company.

"Every glass bottle’s return logistics, cleaning, washing; it is not an easy case to make for the environment with all the energy, chemicals and water involved, not to speak about the economics," said Christian Detrois, the company's sustainability and packaging lead for Europe, the Middle East, and North Africa. "So that's why we're having difficulties to really make an environmental case for reuse ... We're not at all pushing back but for an open debate we need to flag those concerns."

All in all, it seems that neither the industry nor the policymakers in Brussels have a clear solution that could provide a healthy hygienic packaging system for us humans, and at the same time, an environmentally friendly packaging that could be used and recycled at a large scale.

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Over 50% of online shoppers will be willing to wait longer for their purchases if they are shipped in a sustainable way or come from sustainable brands. 

This figure comes from a survey by software supplier Descartes Systems Group, with a statistical universe of 8.000 consumers assorted from Canada, the United States, and 9 European countries: the United Kingdom, the Netherlands, Germany, Belgium, Sweden, Norway, Denmark, Finland, and France.

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Yet the same survey also hinted at the fact that only 1 in 5 customers are prepared to pay extra for eco-friendly delivery. 

Groceries and fashion consumers are the most environmentally aware

Consumers are most worried about the environment when shopping for groceries and fashion. For example, in France, 49%, Germany 48%, and Belgium 46% of the consumers think about sustainability when buying groceries and fashion. 

Particularly when buying shoes and clothing, with an overall mark of 35% across all countries. 

Still, there are vast differences in the environmental awareness of consumers in each country: in Germany, people have more environmental worries about groceries - 46% - while the Netherlands scores lowest in this segment - 21% - For supermarket groceries, more than half of people are prepared to pick up their order if it is more sustainable. When shopping for fashion, as many as 45% are prepared to do so.

All in all, these numbers will surely keep on growing due to the fact that the raw percentage of people concerned about sustainability is rapidly growing among Millenials and Gen Z.

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Amazon UK, in a bet to reduce carbon emissions in its deliveries, is launching its first micro-mobility hub in the English city of London, through a fleet of electric cargo bikes and delivery staff on foot. It is estimated that the center will carry out around 5 million deliveries per year with this mobility. 

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Amazon is committed to sustainability

This is not the first time Amazon UK has invested in sustainability. The firm announced earlier this year that it would start working with electric trucks for its deliveries. In addition, months ago, it explained that it would stop packaging products using single-use plastic bags. 

In the case of plastic bags, the announcement was made in April, when it was said that these would be replaced by cardboard envelopes and recyclable paper bags. These changes were implemented in the company's supply network, and it was announced that more and more products would be shipped using their original packaging and with only an address label.

Emissions-free UK

The launch of this micro-mobility center comes at a time when Amazon is looking to reduce its carbon emissions in the territory. It has launched the first such hub in Hackney, east London. 

With this new quest, electric bikes will start operating in the postcode districts of the city's low-carbon zone, reaching more customers in a sustainable way and with no negative impact on the environment.

But this will not be the only such center. According to Amazon representatives, the company is looking to open more e-freight delivery centers across the UK. 

Net zero carbon

The UK Country Manager of Amazon, John Boumphrey, explained that Amazon is moving towards a net zero carbon future globally. And, at this point, looking at alternative forms of transport networks is one way of achieving this goal. So, through new electric bikes and a fleet of electric vehicles that continues to grow, it hopes to deliver more than ever before while guaranteeing zero carbon emissions. 

Amazon has also recently announced that it will install more than 30,000 solar panels on its various buildings across the UK, which will be completed towards the end of the year. In addition, the e-commerce giant is launching a total of 18 solar projects in strategic locations across the region, a number it expects to double in two years. The company continues to focus on sustainability.

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"Let's not waste this summer" is the name of the new Coca-Cola campaign and with that slogan, the soft drink giant is focusing its biggest campaign of the year entirely on recycling and sustainability.

Preventing litter

With this new campaign, the brand wants to create awareness about litter. It thereby adds a deeper meaning to the theme ‘Let's not waste this summer’. Part of the locally developed operation is a campaign where consumers can win prizes if they request information on the best way to dispose of their empty bottle or can.

Start Coca-Cola sustainability campaign

The campaign started with a life-size canvas in Amsterdam that spelled out ‘Don’t buy Coca-Cola if you don’t help us recycle’. The campaign is supported by a national TV campaign and a website. Here, consumers can find information about how Coca-Cola recycles and how consumers are able to contribute.

The soda brand will also be present at various festivals this summer with a festival activation around recycling. Here, the brand is using so-called "can crushers" to encourage consumers to dispose of their packaging properly. For example, visitors are rewarded with a party when sufficient waste has been collected.

The Coca-Cola summer campaign is traditionally the largest campaign of the year. In total, this summer in the Netherlands there are 150 to 160 million packages, with the message ‘Together, help us recycle’ and a specially designed logo.

Coca-Cola aims to recover 100% of European packaging for reuse in 2025; worldwide in 2030.

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The General Sales Manager of Ranpak Australia, Peter Forsyth said: “We are humbled by the recognition. It is an honour to know that our industry peers have judged our work to be positively impactful in ways that support the environmental practices our company was founded on.”

WrapPak Protector

Ranpak’s 100% paper-based solution, the WrapPak Protector™, was recognised in the competition for its insulation abilities compared to plastic-based alternatives. The paper insulation pads are formed with a unique stitching process that traps air between two sheets of kraft paper. This helps to insulate and maintain a consistent temperature for the delivery of food, meat and other cold products. Unlike other competing products (made of plastic), the paper material of which the pads are made is completely curbside recyclable.

According to Forsyth: “WrapPak Protector™ is an optimal solution for retailers and perishable products distributors. It’s a completely on demand product at the packing stations, so it eliminates the need to store bulky coolers and panels, freeing up floor space. It’s a winning product, from the shipper’s floor to its disposal at the other end of the line.”

Worldstar Packaging Awards

The winning entries in the PIDA Awards will move on to the Worldstar Packaging Awards, which is one of the major events of the World Packaging Organisation. This worldwide organisation was founded in 1968 to encourage the development of packaging technology, science, access and engineering in contributing to the development of international trade and stimulating education and training in packaging.

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Albert Heijn developed an algorithm that takes various factors into account. It calculates the best price to eliminate unsaleable products and reduce waste. The algorithm factors include location, bonus offers, weather conditions, historical sales performance and in-store stock. The products are accompanied by electronic price tags that show two prices: the regular price and discount at a specific expiration date.

Albert Heijn strives to reduce food waste with 50% by 2030

Anti-waste company Wasteless advised Albert Heijn for the test. Reducing food waste is an important aspect of the sustainability strategy of Albert Heijn. The supermarket chain aims to eliminate at least half of the waste across the food chain by 2030. Other aspects of the sustainability goals concern development projects in Africa and setting up a closed, sustainable and transparent dairy chain with its own farmers.

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Zalando says that packaging is an important part of the company’s vision to become the leading platform for sustainable fashion in Europe. This decision is partly based on a recent study on customer behaviour. The study shows that 75% of European consumers find that sustainable packaging influences their purchasing decisions.

Pilot project on reusable packaging

Zalando is already converting their Beauty Bags from plastic to paper. The company recently also introduced polybags that are made from 60% recycled plastic to protect its textiles. Now, they are working on a pilot project to see how they can work with reusable packaging.

Return packaging to Zalando

Zalando's customers will receive their orders in a transport box or bag. These boxes and bags are to be used many times for shipping or returns.  Zalando puzzles about both the use of materials and the organisation behind the initiative. The fashion platform will run the test in several European countries and will enable customers to return the packaging to Zalando to be used again. Zalando wants to start a pilot project for the reusable packaging this year.

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