CN Logistics partners with international retail brands to build a sustainable supply chain
There are lots of misunderstandings that exist in the transportation and logistics industry. One of the typical concerns is that the huge amount of waste and pollutants generated during transportation causes harmful impacts on the environment. Undoubtedly, the high variability, dispersion and complexity of international logistics all have increased the difficulties of formulating sustainable strategies.
Promoting the utilization of earth’s resources has become a consensus of all sectors of society in recent years. United Nations’ “The 2030 Agenda for Sustainable Development” states that all countries should strive to promote sustainable consumption and production, eliminating the link between economic growth and environmental degradation, striving to achieve sustainable management and effective use of natural resources by 2030, through recycling, reuse and large reduction of waste generation.
(The 2030 Agenda for Sustainable Development)
In view of this, Junior Chamber International Hong Kong has cooperated with CN Logistics International Holdings Limited (CN Logistics) which has been actively promoting sustainable development in the logistics industry as well as the retail sector. We invited the group’s Logistics Director Mr. Thomas Tsui and Ms. Suki Cheung, Director of Global Commerce and Corporate Communication to share how CN Logistics becomes an industry pioneer in the field of green logistics and the plan to incorporate more sustainable development concepts into the business.
CN Logistics was established in 1991 in Hong Kong, providing integrated logistics services covering airfreight, seafreight, warehouse and distribution logistics. It now has 19 offices around the world and services covering over 100 countries and regions.
“CN Logistics (hereinafter referred to as “CNL”) was established in Hong Kong in the early 1990s, focusing on providing logistics services to high-end fashion brands and wine customers, helping them to enter the Hong Kong market as well as the greater China market by arranging one-stop logistics solutions. CNL will formulate suitable logistics solutions according to the actual needs of customers, and acts as a strong backup for customers in daily operations and logistics distribution. Compared with traditional logistics service providers, it is more like a customer’s business partner, allowing them to take advantage of the huge opportunity in the retail industry.”
Transportation and logistics are easily associated with carbon emissions, when asked how does CN Logistics implement sustainable concepts in daily operations and how does the CNL Green Logistics Solutions work, Thomas said: “In the past, the logistics industry produced plenty of waste every day, especially the luxury goods and fashion fields that we are mainly focused on. A lot of wrapping paper, hangers and cartons are used daily. But in response to the “The 2030 Agenda for Sustainable Development”, CNL has launched the one-stop green logistics solutions in 2021 to provide value-added green services such as consultancy to carbon emission and recycling clothes and reusable or recyclable materials to our brand customers, in order to satisfy their needs, as well as encouraging them to participate and promoting sustainable development together.
Our green logistics services deployed dedicated vehicles and personnel to collect recyclable materials from brand clients’ stores such as cartons, plastic bags, hangers, clothes and more. They will be categorised and processed, thereafter handed over to our professional partners in recycling. To improve the efficiency in resource management, we also provide professional and customized advice to customers, helping them to review their production process and reduce manufacturing waste. “
Since officially launching green logistics services in 2021, the group has been entrusted by 25 brand clients to provide relevant services and assisted in processing 519 tons of recyclable materials within the year.
In addition, according to industry reports, the fashion industry accounts for about a quarter of the world’s total carbon emissions. The greenhouse gas emissions of the fashion industry are expected to be increased by more than 50% by 2030 when compared with the current level. To reduce the environmental impact of the fashion industry, we also provide clients with carbon emissions consulting services, tracking and neutralizing carbon footprints. The services have been certified by The “United Nations Framework Convention on Climate Change” (UNFCCC) and passed GHG Emissions Verification ISO 14001-3.
“We will base on customers’ needs to use green means of transportation including electric vehicles as the primary means of transportation and distribution tools, to reduce carbon emissions in our daily operations and promote energy conservation and environmental protection in every stage of the supply chain.
The group launched its first electric van in Hong Kong in 2018, and it has been gradually implemented in many cities in mainland China. Recently (mid-May 2022), we have also launched three new electric trucks to assist in handling more goods and covering a wider range of service areas. With the further expansion of the electric fleets, it is expected that the carbon footprint will be reduced by 6,091 tons this year, and the emission reduction efficiency will increase by 126% per year. In the near future, the group hopes that electric vehicles can completely replace traditional diesel trucks. “
Thomas shared that CNL’s electric vehicles are labelled with a specially designed eVehicle logo. The interlocking elements of the logo represent connection, and blue is the symbolic color of CNL which also symbolizes the group’s dedication to moving toward the blue sky. Green indicates the team’s vision of promoting one-stop green logistics services. The leaf-shaped wheel design also refers CNL’s high efficiency of transportation services and the advocated “3C” concept. The logo is unique and meaningful.
Since the launch of one-stop green logistics service, CNL not only received positive feedback from major brand customers, but also won a number of awards and industry recognition, including the “InnoESG Prize” by the Society Next Foundation and “2020 Hong Kong Awards for Environmental Excellence (transportation and logistics industry categories)” which is co-organized by the Environmental Campaign Committee, the Environmental Protection Department and 9 other organisations, recognizing the achievements in sustainable development. Earlier this year, CNL also received the Bronze Award from EcoVadis, an international rating institutes for recognising businesses in fulfillment of social corporate responsibility and their contribution to sustainable development.
「Circular Economy ‧ Carbon Neutrality ‧ Co-Create Green」
CNL takes the 3C concept as the principle of sustainable development, and the green logistics business is developed based on Circular Economy and Carbon Neutrality, achieving the sustainable development goal through a series of waste recycling, reuse and emission reduction services; CNL also holds regular meetings with clients and collaborative partners to review and understand their supply chain process to create new synergies in sustainable development.
In terms of Co-Create Green, apart from connecting with recyclers and brand customers, the group also cooperates with many green organizations and institutions to develop a green society in various aspects. For example, the group partnered with Redress, an NGO in Hong Kong, to provide integrated logistics services for its fashion products recycling program in areas like China, Hong Kong and Macau.
As a member of the Business Environment Council (BEC), CNL is devoted to promoting Hong Kong’s transition to a low-carbon economy and has signed the Low Carbon Charter launched by BEC, committing to formulate and achieve decarbonisation plans in response to the goals of the UNFCCC’s Paris Agreement. Moreover, CNL also participated in the ReThink HK 2021 exhibition co-organized by the Business Environment Council, exchanging ideas with environmental experts and the public. The group was also invited to the forum to share the application of green logistics solutions in the supply chain, as well as the efficient and sustainable resource utilisation, with other participants.
“Redress is Asia’s first non-profit organization dedicated to promoting waste reduction in the fashion industry. It has 34 recycling points in Hong Kong and Macau. The organisation resells the collected second-hand fashion products according to their level of maintenance to raise funds for work and donates them to local charitable organizations to support those in need, as well as cooperating with recycling contractors to alleviate the waste issue in the fashion industry. CN Logistics will provide logistics-related support to Redress. In addition to providing warehouse space and delivery services, CNL will also assist in recycling clothing sorting and redistributing to enhance third party’s ability on disposing of old clothes, thereby contributing to energy conservation and waste reduction in Hong Kong.”
CNL green logistics solutions are not only regarded as new business services that catering customers’ needs and enhancing their stickiness, but also being regarded as one of the key actions for the group to fulfill its social corporate responsibility and embodiment of the sustainable investment of ESG (Environmental, Social, Governance) enterprises. CNL will utilise its influence in the industry and society to strengthen the promotion of sustainable development and green logistics to all stakeholders in the society, including the government, public and academic sectors; seeking more cooperation opportunities to jointly create social values. Our beliefs in green logistics will also be extended and implemented in our offices in other areas in the long run, so as to make a contribution to the sustainable development of the Asian region, and even the entire world.
CNL also gathers staff from different departments and forms the CNL Green Team, which is specialised in promoting green logistics services. Our editor couldn’t help but ask Suki, one of the CNL Green Team members: “Since the formation of the Green Team, do colleagues think their workload is increased? Moreover, do they feel a sense of mission? ” Suki answered with a smile: “The sense of mission is too heavy. They agree environmental protection is everyone’s responsibility. If everyone can take one more step, then it is easier and more feasible for all to create a greener and cleaner supply chain together. Therefore, they don’t mind taking the first step and become the pioneers to provoke green logistics. As for the workload, they do not think there is an increase since many ideas and programs are worked jointly with various departments, so the plans can be implemented effectively. Social corporate responsibility is not just the work of a single party or corporate communications.”
“ Buy to Fulfill Your True Character! “
Besides green logistics services, CN Logistics is committed to expanding its exposure to the B2C field, seizing opportunities to develop new eCommerce services, enhancing economic sustainability, and creating long-term value for business partners.
In recent years, the rapid development of online shopping technology and the sudden pandemic outbreak makes the consumption behaviours shift from offline to online. eCommerce, especially in the retail sector, becomes a major trend. CNL observed that society is more accustomed to and prefers shopping online, and brands are also actively exploring this new market. Therefore, the Group strives to expand into eCommerce segment. A cross-border marketplace for fine wines “PJFWines.com” (PJFWines.com) was launched last year to promote foreign imported wine products to the vast consumer groups in mainland China. At the beginning of this year, CNL also launched another eCommerce platform, CNShip4Shop (CNShipforShop.com), to provide one-stop international groupage logistics services for consumers in Asia.
Having seen that, when consumers are shopping from overseas eCommerce platforms or online stores, they often face problems that the delivery services only cover designated countries and hinders them to ship items purchased to their regions or countries. In order to meet the needs of consumers, the group combines its global logistics network and existing facilities to build a brand new online platform “CNShip4Shop “, which provides competitively priced, reliable and high-quality international groupage logistics solutions to help consumers transfer the products from 6 oversea countries to 12 major regions in Asia.
“CNShip4Shop” integrates the Group’s extensive logistics background in B2B market and far-reaching global network, with the advanced electronic management system, to provide efficient and affordable international groupage solutions to customers. The unique “Cap & Go” function enables customers to save time from inputting the shipping information and transactional data. What they need to do for creating a shipping order is just upload the picture of invoice or transactional email, then they can complete the shipment and delivery order in three steps. The platform will be further enhanced with other high technologies like artificial intelligence and machine learning in future, and apply big data and cloud computing to create an all-around eCommerce environment, offering the best customer experience.
CNL hopes that “CNShip4Shop” can become the first choice of Asian consumers when they are shopping from overseas online stores and looking for international groupage services providers, as well as the preferred partner for overseas retail brands and eCommerce platforms when they are seeking ways to expand their footprint into Asia, bring more business opportunities and values to the group.
“What are the opportunities that CNL expects from the cooperation with the Junior Chamber International Hong Kong?”
Suki: “We understand that the stable and long-term development of an enterprise is inseparable from the sustainable development of the society, so we invest sufficient resources in management and fulfillment of corporate social responsibilities every year. As the group’s influence continues to increase after its listing and the leading position in logistics industry is further strengthened, we plan to exert our influence. Apart from leading the industry towards green and sustainable development through our green logistics solutions, we will also actively cooperate with local non-profit organizations to participate in and organize different community activities to promote social inclusion and encourage the development of diversity in the community, especially through actions to support young people to develop their talents in contribution to the society.
Junior Chamber International Hong Kong has had a foothold in Hong Kong for many years, connecting Hong Kong youth with the international business community, gathering and nurturing many young leaders and entrepreneurs. It brings positive changes and vitality to society, and contributes a lot to the future development of the region. Through this cooperation, on top of promoting the group’s sustainable development concept, green logistics service and newly launched eCommerce platforms, we also want to call for attention from the public and enterprises in echoing the UNSDGs, to think more on how to practice and co-create more shared values, making greater contributions to the local and global society. “
Rethink for the Future – Suki Cheung (TEDxConnaughtRoadWest)