DSV launches internal carbon fee, funds to be used for sustainability initiatives
The funds generated are being used to invest in innovation programmes and projects to accelerate DSV's emissions-reduction initiatives
Global transport and logistics company DSV has launched a global funding programme to invest in sustainability initiatives across the organisation. The internal carbon pricing fee is charged to all DSV subsidiaries, and their contributions will be based on the level of CO2 emissions within their operations. The funds generated are being used to invest in innovation programmes and projects to accelerate DSV's emissions-reduction initiatives.
New technology and innovation
As one of the world's largest transport and logistics providers, DSV is committed to helping the industry transition closer to a carbon-neutral future. The company has set ambitious targets, including a promise of reaching net-zero emissions by 2050. As DSV works to achieve these sustainability ambitions, funding for testing and implementation of new technologies, innovation and more efficient transport solutions will be essential.
"To make a positive change and play a role in driving the green agenda within the transport and logistics industry, we need to scale up our ambitions and accelerate our sustainability initiatives. DSV's new carbon funding programme will enable us to invest in various schemes, removing the need for a strong financial case to instead focus on projects that will result in meaningful CO2 reductions," explains Jens Bjørn Andersen, Group CEO, DSV. He continues:
"This programme represents a necessary shift in DSV's approach, which is essential as we continue to enhance our own sustainability practices. I'm very excited to see the impact of these investments and the resulting initiatives over the coming months and years."
Through the new internal carbon pricing fee programme, it is expected that DSV will raise approximately DKK 1 billion for sustainable initiatives and innovation projects over the first five years.
The first round of funding
With the programme in place and generating funds for the past six months, the first projects have now been greenlit for investment. From across a number of divisions and countries, DSV has received several requests, all at various stages of review and approval.
"It is very promising to see the high level of interest that we have generated from the organisation in such a short timeframe. In addition to funding emissions-reduction initiatives, this programme also aims to increase awareness of the impact of our practices across our operations and to engage and incentivise the entire DSV organisation to support the green transition," says Jens Bjørn Andersen, Group CEO, DSV.
The first project to receive funding is a small fleet of electric trucks, which will be delivered at the start of 2024 and will support warehousing customers for local distribution from DSV's facilities in Horsens, Denmark.
DSV has designed and implemented a process to ensure that all funding requests from countries are properly evaluated. This process is in place to verify that project requests are eligible for investment based on DSV's criteria, which include requirements for all initiatives to have proven CO2 reductions.
Jens Bjørn Andersen explains why additional investment in green initiatives is so important for the industry, "The transport and logistics sector faces a lot of challenges to achieving meaningful reductions of carbon emissions. Today, many technological developments are still in their infancy, and there are limited carbon-neutral solutions available at scale. As a result, innovation will be key to realising the industry's long-term decarbonisation ambitions. I hope that DSV's carbon funding programme will play a role in exploring and developing possible solutions to these challenges," he says.