Chapter 1. Introduction............................................................

2
1.1 Background and motivation........................................................................................2

1.2 The purpose the research...........................................................................................3

1.3 Framework of the research.........................................................................................5

Chapter 2. Theoretical Background........................................6

2.1 Sustainable Development...............................................................................................6

2.1.1 Definition of sustainable development....................................................................6

2.1.2 The importance and principles of sustainable development...................................7

2.1.3 The history of sustainable development..................................................................9

2.1.4 Sustainable development goals.............................................................................11

2.2 Green logistics...............................................................................................................13

2.2.1 Definition...............................................................................................................13

2.2.2 Green Supply Chain Management.........................................................................15

2.2.3 ISO 14001...............................................................................................................19

2.2.4 Last mile delivery...................................................................................................23

2.2.5 The negative effects of the last mile delivery.........................................................27

1
 Chapter 1. Introduction

1.1 Background and motivation

In the middle and late 20th century, with the continuous development of the global
economy, human beings' living environment is getting worse, causing people in the
world to suffer serious consequences such as climate warming, air and water
pollution, and land desertification. “Human beings, in their quest for economic
development and enjoyment of the riches of nature, must come to terms with the
reality of resource limitation· and the carrying capacities of ecosystems, and must
take account of the needs of future generations.” (IUCN, 1980).” Therefore, many
countries worldwide are paying more attention to finding solutions to fix
environmental problems. Sustainable development could be the key for the people.
The world's research experts believe that sustainable development that can protect the
environment and the economy will be an essential goal to fulfill.

Sustainable living aims to protect people’s health and the earth's environment. Its
purpose is to balance the development of three aspects: environment, economy, and
society to meet all the people’s basic needs with limited natural resources. Moreover,
due to globally rising trends such as continuous increase of population, climate drastic
change, global warming, growth of energy consumption, declining biodiversity, and
dynamic economic activities, especially global warming has been recognized as
having immediate and significant consequences for climate change. The environment
with limited natural resources of our world is gradually showing a severe
deterioration, which has further aroused people's concern about permanent and made
people began to think about the necessity of building a sustainable environment.

Sustainable development relates to all kinds of industries and all human activities. In
the early years, logistics services were not considered a big impact on the
environment. However, due to the heightened development of economic globalization
and the booming of e-commerce, the logistics operation process (including
manufacturing, storage, and distribution) increasingly shows high variability,
dispersion, complexity, and transnationalism. According to WEF (2009) estimates, the
annual greenhouse gas emissions generated by the logistics industry account for about
5.5% of the global total (equivalent to about 10% of global energy-related greenhouse
gas emissions). This figure will increase with the annual economic activities.

2
Moreover, by the 2020 World Economic Forum survey, due to the rise of e-commerce,
if we do nothing, the number of freight vehicles in the world's top 100 cities will
increase by 36% in 2030, and related emissions will increase by 32%, and urban
traffic congestion will increase by 21%. It should be noticed that changes in consumer
habits. Online shopping has gradually become a popular consumption method, as well
as the proportion of this way in the market is increasing year by year, as shown in
table 1.

Table 1. Retail e-commerce sales worldwide from 2014 to 2025

(In billion U.S. dollars)
$7,000
Sales in billion U.S. dollars

$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$-
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
2014 to 2024 Global e-commerce total sales

Source: Statista (2021)

Therefore, from the perspective of Green Supply Chain Management (GSCM), the
logistics services that must reduce environmental impacts such as greenhouse gas
emissions and waste generation through operational planning and monitoring based
on ecological sustainability considerations. In other words, the development of Green
Logistics cannot be ignored in today's global sustainable development process by
those businesses.

1.2 The purpose the research

The logistics industry is an essential industrial pillar of the national economy, driving
economic growth and playing an essential role in economic globalization (Yang et al.,
2019; Rashidi, 2019). However, a large number of energy resources worldwide are
consumed by logistics activities, causing voluminous greenhouse gas and other
pollution (Rashidi, & Cullinane, 2019). This is the main reason that makes the
purpose of this study. The concept of green logistics is not a brand-new trend, but it
still has a lot of room to improve. It is a development of traditional logistics, aiming to
carry out logistics activities in an eco-friendly way, realizing logistics and economic

3
development while saving resources and protecting the environment (Zhang, 2020).
Nowadays, the topic of sustainable development has become one of the main
consensuses of humanity, and the green logistics associated with it are worth
discussing. For many years, scholars have been producing contributions to the
logistics industry, making the logistics industry closer to the target of sustainable
development. This study mainly focuses on the impact of the concept of sustainable
development on logistics enterprises. There is a large part to discuss the development
of green logistics, including the critical factors that affect the development of green
logistics and the ultimate practical goal of green logistics. In addition, it will also
analyze the green supply chain but focus on transportation, the stage that caused
emissions, and not all units in the supply chain.
On the other hand, from the view of narrow sense, logistics is the activity of the flow
of commodities. It is the stage where upstream manufacturers deliver goods to
downstream factories or end-users. Green logistics will be a crucial supply chain
management activity for companies to gain customer confidence. Therefore, only an
excellent green supply chain strategy and integration of various units can make the
enterprise move towards sustainability. 

As governments worldwide have increasingly stringent requirements on corporates,

Materials and products must meet environmental protection requirements. Companies
will inevitably provide more environmentally friendly logistics if they want to satisfy
social expectations and increase market competitiveness. Therefore, this research can
be a reference for manufacturers to develop a green supply chain, evaluate logistics
operators with environmental performance indicators, and find which third-party
logistics operators will be the best to achieve the green logistics standards.

Nowadays, sustainable development is no longer just a slogan because much data

show that environmental damage causes severe damage to the global economy. For
the looming climate crisis, governments have announced that “carbon neutrality” has
to be achieved by 2050. After 30 years, there will be no increase in carbon emissions.
One of the most important measures is the Paris Agreement, which allows countries to
differentiate their carbon reduction responsibilities. It also announced that at the end
of the century, signatories have to contain the global temperature not to rise by more
than 2 degrees Celsius, the ideal goal is not to rise by 1.5 degrees Celsius (Salvia,
2021); As well as the climate defense line launched by the EU, such as the official
announcement of the Carbon Border Adjustment Mechanism (CBAM) plan on July
14, 2021, that is to say, if the company does not reduce carbon enough, the cost will
increase due to the risen carbon tax.

4
Additionally, large companies have always been the leading role models for the
logistics industry. Several major businesses in the world have also introduced green
logistics for a long time. Both FedEx and DHL have announced plans to electrify their
transportation fleets in the next few years and accelerate the reduction of carbon
emissions. Therefore, the green policy of enterprises is one of the items worth
studying. For this reason, big and small companies in the logistics industry will follow
the example of enterprises that have achieved social expectations and green values.
This research will focus on:
 The process of the green logistics that global major companies and success cases
have implemented in their business operation.
 The obstacles and challenges those companies met when they were in the progress
of the green logistics transformation. The recycling of strategic resources.
 The economic benefits that green logistics has bought to companies.
 Collect the information about the feasible methods of green last mile.

1.3 Framework of the research

This thesis has five chapters. The first chapter is the introduction, including the
research background, motivation, and thesis structure. The second chapter is the
theoretical background. First, this part contains the literature reviews related to
“sustainable development” (SD), the principles, histories, and the goal of SD.
Secondly, this study broadly discusses the literature on “supply chain management”
(SCM) and its future trend model “green supply chain management” (GrSCM). In
addition, the topic ISO 14000 series is also discussed in this part because it is one of
the most critical required standers for the business to pick the qualified upstream or
downstream. Last, it is part of the literature on “green logistics” and “last one mile
logistics” because these two concepts and sustainable development are the main
topics of the whole study. The third chapter is the research method. This chapter will
introduce the research of the cross-analysis between sustainable development and
green logistics. Furthermore, this part is to determine which SD target and indicator
can be related to green logistics. Besides, this chapter shows the economic data linked
to the influences of SD. The fourth chapter discusses how global prior logistic
companies' green logistics management methods lead the entire industry. Also, this
part discusses the obstacle and the feasible method of green last mile. At the end of
the chapter will discuss about the economic benefits of the green last mile. The fifth
chapter is the conclusion and suggestion. This chapter will draw conclusions based on
the research results and make research suggestions for the operation in the logistics

5
field.

6
 Chapter 2. Theoretical Background

2.1 Sustainable Development

2.1.1 Definition of sustainable development

The word “sustain” comes from the Latin “sustenere,” which means to continue.
Natural systems support human life and the consequences of their activities; therefore,
sustainability can barely be considered without an ecological factor (Jenkins, 2009;
Sachs, 2010; Shiva, 2010). Ecological sustainability has thus become a fundamental
framework for assuming socio-cultural and economic sustainability and a topic of
discussion in the concept of sustainable development (Tomislav, 2018). Our Common
Future concludes that, “human survival and well-being could depend on success in
elevating sustainable development to a global ethics” (WCED, 1987, p. 308).
According to the Brundtland Report, a brief definition of sustainable development is
the “Ability to make development sustainable to ensure that it meets the needs of the
present without compromising the ability of future generations to meet their own
needs.”
Judging by its widespread use and frequency of citations, this is undoubtedly the
standard definition. In addition, this definition has guided many to see sustainable
development as a primary concern with intergenerational equity. (Robert et al., 2005).
Meanwhile, human needs to be realized through development (Jabareen, 2008). In
addition to this, sustainable development has become the basis of theoretical methods
like green economy (Bina, 2013; Wanner, 2015) and circular economy (Schroeder et
al., 2019; Suárez-Eiroa et al., 2019). It has even become a common sense that many
people use as environmental-defense political slogans (Mebratu, 1998). Sachs (1993)
argues that carrying out the concept of sustainable development creates a balance
between ecological (sustainability) and economic (development) interests while can
manage the ecological crisis without affecting the existing economic environment.
The ‘limits to growth’ have become negotiable and manageable (Jabareen, 2008)
because SD erases the contradiction between capitalism and ecology (Baeten, 2000).

“The 2002 World Summit on Sustainable Development marked a further expansion of

the standard definition with the widely used three pillars of sustainable development:
economic, social, and environmental” (Robert et al., 2005). Many researchers have
also extended its definition like Duran et al., (2015) states that sustainable

7
development consists of three components: economic component, ecological
component, human component. Therefore, “development must be conceived as a
process multidimensional, involving major changes in social structures, attitudes
popular and national institutions, aiming at accelerating economic growth, reducing
inequality and poverty eradication.” Tomislav (2018) shows “the concept of
sustainable development is based on the concept of development (socio-economic
development in line with ecological constraints), the concept of needs (redistribution
of resources to ensure the quality of life for all) and the concept of future generations
(the possibility of long-term usage of resources to ensure the necessary quality of life
for future generations).” So that the following generations can equally have a better
life if people manage economic systems should very well and maintain and improve
the asset base.

2.1.2 The importance and principles of sustainable development

Importance of SD
Sustainable development has become an ordinary consciousness in human society
since the deterioration of environmental circumstances (Bossel, 1999). Because the
current climate change problem humankind faces is no longer a case that can be easily
improved by every country that closes the door and individually doses the progress of
environmental afforestation and environmental friendliness in a small area. Moreover,
humanity is forced to pay more attention to the environmental problem as the modern
industrial society requires even more burdens on nature (Wall & Gong, 2001). The
advancement of science and technology has driven the rapid development of human
social and economic activities. However, with the abundance of material life, people's
lifestyle has also bought mass production, mass consumption, and mass waste. When
realizing the need for continued economic and social development, the protection and
improvement of the environment is the only possibility to make and sustain welfare
for both present and future generations (Duran et al., 2015). As a result, the impact of
the business process on the environment exceeds the earth's natural resilience
capability. It will further cause pollution, sharp reduction of resources, and then
endanger the sustainable development of future generations. Therefore, people realize
that economic development and environmental issues are inseparable Economic
development can damage the earth's environment and resources, and environmental
degradation undermines the economy. Many scholars state that the concept of
sustainable development can provide a possible solution to this global dilemma and
pave the most suitable path for the well-being of human beings. More than this,

8
Fleming et al. (2017) show that if the business wants to operate sustainably in the
market, being environmentally viable and socially acceptable are necessary. The
correct environmental policies can be the incentives to reduce production waste by
motivating the market to introduce new technologies (Emas, 2015).

Principles of SD
Mensah, J. (2019) sums up the principle of SD as the systematic integration of
environmental, social, and economic concerns into all aspects of decision-making
across generations. Bansal (2002) also thinks that environmental, social-equity and
economic are inextricably connected and internally interdependent. For further
explanation: (1) The environmental principle requires that society protect its
environmental resources. Spijkers, (2018) states “the earth is generally seen as a
resource, to be used by present and future people.” (2). The social-equity principle
requires that everyone be treated fairly, independent of initial endowments. Regards
to inter-generational fairness: There is only one earth and leave a pure land for future
generations; Regards to intra-generational fairness: Resources are shared by all human
beings, and only a few people cannot use a large number of resources. Also, see how
resources are allocated to current and future generations and try to predict what the
preferences of future generations are? (3) The economic principle requires the
adequate production of resources for society to maintain a reasonable standard of
living. On the other hand, sustainable development policies cope with symptoms and
take up the causes of environmental degradation while still providing opportunities
and creating incentives for economic advancement (Porter & van der Linde, 1995).
Sustainable development requires that natural assets be maintained intact. Besides,
whether the resource is renewable or nonrenewable, both need to improve the end-use
efficiency of resources (Daly, 1992).

Figure 1. The social, economic, and environmental systems have an interlinked and
overlapping relationship. The three must be taken into account at the same time and
are equally important. Sustainable development is to pursue the greatest common
divisor of the three.

9
2.1.3 The history of sustainable development

In seeking the development of the economy and enjoying natural wealth, human
beings must face up to the reality of limited resources and the carrying capacity of
ecosystems. They must consider the needs of future generations, and this is protected
information. This is to say that people must continue to provide social and economic
well-being while ensuring that the planet where we live can maintain its ability to
develop and support all life. The concept of sustainable development continued to
evolve in the 1970s, especially in the 1980s. However, several academicians,
researchers, and development practitioners (Dernbach, 2003; Paxton, 1993) claim that
sustainable development got its first significant global recognition in early 1972 at the
UN Conference on the Human Environment held in Stockholm (Mensah, 2019).

The term Sustainable Development (SD) was firstly mentioned in the Nature
Conservation and Natural Resources Strategy of the International Union for
Conservation of Nature published in 1980 (IUCN, 1980). Although, in the beginning,
sustainable development was initially viewed from the field of ecology, more diverse
definitions and explanations came out when it spread to a broader scope of economics
and sociology (Tomislav, 2018). In 1984, the Establishment of the United Nations
World Commission on Environment and Development (WCED). The assignment of
the Commission is to cooperate with developed and developing countries and make a
goal of global development plans on environmental conservation (Tomislav, 2018).

Brundtland Commission, 1987

WCED is also called the Brundtland Commission. The Brundtland Commission
Report described the concept of sustainable development as “development that meets
the needs of the present without compromising the ability of future generations to
meet their own needs.” It published its final report, Our Common Future, in 1987.
Which stated that governments should handle environmental protection and related

10
crises altogether, such as economic development and energy production. It also
drafted a blueprint for dealing with these interlocking crises simultaneously. The
results and recommendations of this report have improved global environmental
policy for the last two decades. Sustainable development as a vision started to gain
more momentum after the Brundtland Report, Our Common Future, Jain and Islam
(2015) show that the Brundtland report engendered the United Nations Conference on
Environment and Development (UNCED), known as the Rio Earth Summit in 1992
(Mensah, 2019).

Rio Earth Summit in 1992

A significant impetus for developing sustainable development indicators came from
the 1992 World Summit in Rio. More than 178 governments adopted Agenda 21, the
Rio Declaration on Environment and Development, and the Statement of principles
for the Sustainable Management of Forests. Mainly, Agenda 21 is an overall plan of
action to be accepted globally, nationally, and locally by organizations of the United
Nations System, Governments, and Major Groups in every place human’s activity that
impacts the environment (UN official website, 2022). Also, Agenda 21 adopted by
the conference expressed the need to establish indicators to better monitor and
promote sustainable development. Another outcome of the meeting was the
establishment of the United Nations Commission on Sustainable Development
(UNCSD). Its goal is to assist countries in developing and using sustainable
development indicators. (Hak et al., 2012; UNCSD, 2001).

United Nations Conference on Environment and Development (UNCED), 2012

In December 2009, the United Nations adopted Resolution 64/236 (A/RES/64/236)
with the topics “Implementation of Agenda 21, the Programme for the Further
Implementation of Agenda 21 and the outcomes of the World Summit on Sustainable
Development” and scheduled the United Nations Conference on Sustainable
Development (UNCSD) held in Rio de Janeiro, Brazil in June 2012. At the UNCSD
or Rio+, 20 years after the first Rio Earth Summit. The goal of this Rio+20 conference
is to review the progress and challenges of promoting sustainable development in the
world and expect that countries will make new political commitments to sustainable
development. Moreover, this conference focuses on two main themes: (1) Green
economy within the context of sustainable development and poverty eradication. (2)
Institutional framework for sustainable development. And highlighted seven areas
requiring priority attention, Including jobs, energy, sustainable cities, food security
and permaculture, water resources, oceans, disaster preparedness, and more. The

11
conference finally adopted the document "The Future We Want" as the latest program
to guide the future global sustainable development process. Similarly, at the same
conference in 2012, United Nations (UN) Secretary-General Ban Ki-Moon in the UN
action agenda stressed that SD was one of the five key priorities in the UN action
agenda. He also highlighted SD's key role in international and national development
policies, programs, and agendas (Mensah, 2019).

Open Working Group (OWG) and Sustainable Development Goals (SDGs)

The Open Working Group (OWG) drafted Sustainable Development Goals SDGs.
OWG was established by the UN General Assembly in the “Zero Draft” of July 2014
(UN OWG, 2014). The purpose of OWG is to prepare a proposal on the SDGs.
Besides, the group modifies the set of targets and accompanies them with related
tangible indicators for adoption in 2015. At the UN in New York, the OWG proposed
a set of global Sustainable Development Goals (SDGs), comprising 17 goals and 169
targets, and 303 indicators (Hák et al., 2016).

2.1.4 Sustainable development goals

As early as the end of the 20th century, the concept of "sustainable development" has
been the focus of the United Nations, and the United Nations first formally discussed
the concept of “sustainability” at the Earth Summit in Rio de Janeiro in 1992.
Representatives of 178 countries voted and signed Agenda 21, hoping to create a
bright and friendly new century by implementing the concept of sustainable
development and environmental protection. Although many precious concepts have
been carried out in Agenda 21, it encourages countries to develop feasible
development strategies according to their conditions or emphasizes that
environmental protection must start with economic issues. Eventually, it is a pity that
Agenda 21 is not mandatory in the case of fragmentation. The results are mostly less
than expected. In this context, the issue of sustainable development has been
discussed again at the United Nations Millennium Summit in 2000, which eventually
spawned to the United Nations Millennium Declaration and the Millennium
Development Goals (MDGs).

At the UN in New York the Open Working Group (OWG) established by the UN
General Assembly proposed a set of global Sustainable Development Goals (SDGs)
which comprises 17 goals and 169 targets in September 2015 at the UN in New York
(Hák et al., 2016). These goals and targets are expected to be met by 2030 (UN 2015).

12
The SDGs expand the content of Millennium Development Goals in many forms, “…
but particularly by seeking to profoundly link the social, economical, and
environmental aspects of goals” (Stafford-Smith et al., 2017). In another word, the
ultimate goal of SDGs is to fulfill “prosperity,” “fairness,” and “environmental
sustainability.”

The 17 goals of the SDGs have grown from small to large, and its design has a clear
hierarchy. From ending poverty, eliminating hunger, improving health and well-
being, popularizing quality education, practicing gender equality, offering clean water
and sanitation, and other aspects of society that focus on the essential well-being of
people. The next level of goal that needs to be achieved such as the aspect of people:
affordable and sustainable energy, job opportunities to increase economic growth, and
innovation of the industrial infrastructure; The aspect of prosperity: is reducing
inequality and raising prosperity, as well as maintaining consumption and production
in urban and rural areas; The aspect of the planet: climate protection action to marine
ecology, terrestrial ecology and other environmental protection of the planet’s
resources. At first glance, these three aspects seem to be distinct, but they are closely
integrated and inextricable.

Table 2. The 17 SDGs

No. Goals Contents
1 NO POVERTY End poverty in all its forms everywhere

End hunger, achieve food security and improved

2 ZERO HUNGER
nutrition and promote sustainable agriculture

GOOD HEALTH AND  Ensure healthy lives and promote well-being for all
3
WELL-BEING at all ages

QUALITY Ensure inclusive and equitable quality education and

4
EDUCATION promote lifelong learning opportunities for all

Achieve gender equality and empower all women and

5 GENDER EQUALITY
girls

CLEAN WATER AND Ensure availability and sustainable management of

6
SANITATION water and sanitation for all

AFFORDABLE AND
7 Ensure access to affordable, reliable, sustainable and
CLEAN ENERGY

13
 modern energy for all

DECENT WORK AND  Promote sustained, inclusive and sustainable

8 ECONOMIC economic growth, full and productive employment
GROWTH and decent work for all

INDUSTRY,
Build resilient infrastructure, promote inclusive and
9 INNOVATION AND
sustainable industrialization and foster innovation
INFRASTRUCTURE
REDUSED
10 Reduce inequality within and among countries
INEQUALITIES
SUSTAINABLE
Make cities and human settlements inclusive, safe,
11 CITIES AND
resilient and sustainable
COMMUNITIES
RESPONSIBLE
Ensure sustainable consumption and production
12 CONUMPTION AND
patterns
PRODUCTION

Take urgent action to combat climate change and its

13 CLIMATE ACTION
impacts

Conserve and sustainably use the oceans, seas and

14 LIFE BELOW WATER
marine resources for sustainable development

Protect, restore and promote sustainable use of

terrestrial ecosystems, sustainably manage forests,
15 LIFE ON LAND
combat desertification, and halt and reverse land
degradation and halt biodiversity loss

Promote peaceful and inclusive societies for

PEACE, JUSTICE,
sustainable development, provide access to justice for
16 AND STRONG
all and build effective, accountable and inclusive
INSTITUTIONS
institutions at all levels

Strengthen the means of implementation and

PARTNERSHIP FOR
17 revitalize the Global Partnership for Sustainable
THE GOALS
Development

Source: Available at https://unstats.un.org/sdgs/metadata/

14
 2.2 Green logistics
2.2.1 Definition

Traditional logistics activities include management of warehousing, inventory,

transportation, and information processing disseminating from the supplier to the end
buyer (Agyabeng-Mensah et al., 2020). It is a flow of goods activity of manufacturing
and transporting objects, including raw materials, goods, merchandise, etc. In the
industrial circulation process, to create value for the supplier and meet customers’
various needs, logistics enterprises can combine transportation, warehousing, loading
and unloading, packaging, and circulation processing effectively through management
procedures. Also, apply professional knowledge to the whole procedure and operate it
with other related logistics functional activities. In short, the word logistics refers to
the entire circulation process of goods from production to the consumer or final user.
Compared to traditional logistics, green logistics is a relatively young but rapidly
growing topic. (Alan McKinnon et al., 2010) Put forward by many scholars in recent
years. It's also an environmental symbiotic logistics management system are
established from the perspective of the environment and sustainable development. The
word “green” in “green logistics” is about environmental concerns; it generally refers
to the embodiment of actions, plans, ideas, and concepts that protect the earth's
environment in logistics management activities. When putting two words "green" and
"logistics" together can be regarded as an environmentally friendly and efficient
transport and distribution system (Rodrigue, Slack, and Comtois, 2017). Due to the
rising trend of sustainable development, the implementation of green logistics has
become the focus of the development of the world logistics industry. Unlike
traditional logistics, green logistics introduces green concepts, taking environmental
protection as the starting point. At the same time, it pays attention to the value
generated after product recycling. For instance, the reverse logistics that contain
recycling and the removal of all kinds of waste materials, including harmful and
unsafe goods, has become a major new market (Rodrigue, et al., 2010).

Given the global increase in the production and international movement of goods
across nations, environmental issues have become significant concerns for logistics
companies (Rashidi & Cullinane, 2019). However, market development relies very
much on logistics (Ding et al., 2019). This problem is the opposite of environmental
protection. Therefore, the implementation of green logistics is becoming an essential
subject and a major challenge for governments (Zhang et al., 2020). Based on the
environmentally friendly concept, the several methods below are the strategies used in

15
many companies:

Method 1. Introduce green procurement.

Green procurement refers to the efforts of negotiation and decision-making made by
various departments within an enterprise. It fully considers environmental factors in
the procurement process and improves enterprise performance by reducing material
costs, handling processing costs. The company should make sure that every supplier is
ISO 14001 certified to reduce the environmental impact of each stage in procurement
and improve corporate reputation.

Method 2. Introduce green transportation.

Logistics and transportation consume great amount of fossil fuels, which serves as the
primary source of environmental pollution caused by logistics activities. (Zhang, et
al., 2020). The improper management of logistics activities may increase waste and
energy consumption and the emission of greenhouse gas leading to excessive
pollution (Chien and Shih, 2007; Demir et al., 2015). As a result, in order to build
green logistics, the prior thing to carry out is to layout and planning of transportation
routes reasonably, achieve the goal of energy-saving and reduction of emission by
shortening transportation routes and increasing loading rates in each vehicle. In
addition, companies should care a lot about the maintenance of transport vehicles, the
use of clean fuels, and the reduction of energy consumption.

Method 3. Introduce green storage

Building a green warehouse requires a proper place to save transportation costs; on
the other hand, the warehousing layout should be designed scientifically so that the
companies can fully utilize the warehouse. Maximize the utilization of the storage
area to reduce the warehousing cost.

Method 4. Introduce green packaging

Packaging is an important part of logistics activities. Green packaging can improve
the recycling rate of packaging materials, effectively control resource consumption,
and avoid environmental pollution.

Method 5. Introduce waste logistics

Waste logistics refers to the flow of goods that have lost their original value in
economic activities, collected, classified, processed, packaged, transported, stored,
etc., according to actual needs, and then distributed to particular processing sites. The
basic goal is to shape the flow of materials and products in the opposite direction to

16
the classic approach in order to minimize the amount of waste and to make the best
use of waste suitable for recovery. (Mesjasz-Lech and Michelberger, 2019)

2.2.2 Green Supply Chain Management

Supply Chain Management (SCM) is the method that refers to organizing suppliers,
manufacturers, warehouses, distribution centers, and stores successfully to minimize
the cost of the entire supply chain system while on the condition that is meeting
customer requirements to a certain level. Also, supply chains are a set of three or more
entities (organizations or individuals) directly involved in the upstream and
downstream flows of products, services, finances, and/or information from a source to
a customer (Mentzer et al., 2001). It’s a management method for improving products
manufacturing, transshipment, distribution, and sales and creating value in the
different processes and activities.

The concept of supply chains management was incomplete initially and didn’t come
up suddenly. Some part of its process was considered too risky due to the money-
saving issue. Fortunately, after many years, those experts have kept improving the
operations of each industry step. They are devoted to gaining the benefits in the
company's manufacturing process and eliminating the unnecessary parts of costs and
the waste that the clients are not willing to pay. We can have a complete model of
supply chains management than the former one and put it into practice. Indeed, this
theory will keep improving in the future. Moreover, we can see there are different
definitions of supply chain management. It is to say that the supply chain management
is flexible, and it can fit the demand of any company that with a different scale.

Supply chains management originated in the late 1980s. Companies developed close
cooperation between enterprises in response to the pressure of global competition, the
impact of changes in the economic environment, and the development of information
technology. SCM became a competitive tool for creating an advantage for companies.
In terms of management meaning, supply chain and supply chain management are
essentially different. The former represents the integration of operating procedures
and the strategy of coordination and cooperation between cross-functional
departments of the enterprise, just as Mentzer et al. (2001) mentioned in the essay:
“Supply Chains are a set of three or more entities (organizations or individuals)
directly involved in the upstream and downstream flows of products, services,
finances, and/or information from a source to a customer”; the latter means that the

17
enterprise is eager to pursue the efficiency of collaboration with partners with less
operating cost and product lead time in order to obtain a competitive advantage in
business operations. However, after more than 20 years of evolution, in the era of the
current economy, supply chain management covers a broader range, not only
involving the procurement of raw materials, product manufacturing, semi-finished
product assembly, distribution but also providing after-sales service, and delivery to
the final consumer. As all levels of the supply chain are interdependent, risks in any
link may lead to a major shock to the overall supply chain. Most companies have
outsourced and extended many productions and SC activities resulting in a great
dependency on global suppliers and complexity, which makes them especially
vulnerable to SC disruptions (Bozarth and Handfield, 2016). Furthermore, global
supply chains carry specific risks such as variability and uncertainty in currency 4
exchange rates, economic and political instability and changes in the regulatory
environment (Dornier et al. 1998; Carter and Vickery, 1989). The Covid-19 crisis
severely disrupted the flow of people and goods worldwide, disrupting entire supply
chains. Most countries have implemented lockdown measures to curb the spread of
the new coronavirus, causing a shutdown of manufacturing activities, which caused
disorders that have paralyzed global supply chains.

Green supply chain management

Green supply chain management (GrSCM) is based on traditional supply chain
management and adds environmental protection concepts. Srivastava (2007) defined
GrSCM as “integrating environmental thinking into supply-chain management,
including product design, material sourcing and selection, manufacturing processes,
delivery of the final product to the consumers as well as end-of-life management of
the product after its useful life”, and even reverse logistics RL (Zhu and Sarkis 2004).
According to the report from The Intergovernmental Panel on Climate
Change （ IPCC ） 1 The fastest expected is in 2030, and by2052, at the latest, the
global average temperature will increase by 1.5°C. Extreme weather such as
heatwaves, droughts, rainstorms, and hurricanes will become more frequent, which
will bring more significant challenges to business operations. No industry is immune.
The total investment related to sustainability is expected to be as high as 100 to 150
trillion US dollars by 2050. We can speak that the trend is apparent. Companies'
response is to implement the concept of sustainability in every link of the business,
create new value for the enterprise, and achieve the transformation of sustainable
management. From the perspective of management, GrSCM is a kind of strategy.
1
The Intergovernmental Panel on Climate Change (IPCC) is the United Nations
body for assessing the science related to climate change.
https://www.ipcc.ch/sr15/chapter/spm/
18
From the standpoint of operation, it requires the whole process from product design,
material procurement, product manufacturing, product sales, and recycling, all of
which need optimizing the overall environmental benefits. Hence, the scope of
GrSCM ranges from reactive monitoring of the general environment management
programmes to more proactive practices implemented through various Rs (Reduce,
Re-use, Rework, Refurbish, Reclaim, Recycle, Remanufacture, Reverse logistics, etc.)
(Srivastava, 2007). For Hall (2000) the external pressure (on the organization) is one
of the main factors that affect the execution of GSCM. Consumers in developing
countries have increasingly heightened environmental awareness and are starting to
opt for green products (Harris, 2006).

Nowadays, investors are no longer looking at profits only when picking a company to
invest in and pay close attention to the enterprise's sustainability. Companies can get
better investment evaluations when corporate strategies apply the aspects of
environmental, social, governance (ESG). The key pressure that pushes firms towards
green supply chains is the growing recognition by society that the firm’s impact on the
natural environment extends beyond any individual, core process to the complete
product life cycle (Sharfman et al., 2009). Besides, due to consumers' high awareness
of environmental protection, many big brands reversely require suppliers to adopt
green energy and implement carbon reduction; their employees will also recognize the
company's social value because of the company's goal of net-zero. The essential factor
that has always led to the company's eagerness to introduce GrSCM is that it is
difficult to export without green transformation. The "cost" has been a competitive
advantage in the past, but now it is also necessary to include "low carbon" as a
competitive advantage. Sustainability is the future, and international requirements will
increase more than ever. Nearly 80% of multinational companies intend to terminate
cooperation with suppliers who cannot collaborate with low-carbon transformation by
2025. Companies applying green principles to their internal operations naturally wish
to ensure that their purchases of goods and services come from suppliers that also
meet certain minimum environmental standards (McKinnon et al. 2010). At the very
least, they want to minimize any environmental liability associated with purchased
goods and services (Sarkis, 2000).
On the other hand, companies going green is not just all about the ethical thing; they
can also get essentially financial feedback:

1. Gain more portion of market share or penetrate new markets

Lamming and Hampson (1996: s61) envisaged: “the prospect of environmental
soundness becoming a recognized feature of a supplier’s overall performance”. Many

19
governments worldwide require companies to reduce carbon emissions, and those
manufacturers that have not yet gone green will be ignored. The more the company
has greened its supply chain enough, the more opportunity to gain market share or
approach new markets.

2. Cost reduction
Lower costs can also result from reduced material waste and the deification and
reduction of inefficient processes (Klassen and McLaughlin, 1996). For example,
companies can redesign products so that certain components can be reused, or draft
the product size again to reduce the using packaging materials, which can lower
manufacturing costs.

3.Purchasing advantage
Suppose the upstream companies of the supply chain of each industry are the
manufacturers that believe in sustainability. In that case, they will want to sell
products to those downstream who believe in sustainable value. Taking apparel
brands as an example, the brand that emphasizes sustainability is more likely to obtain
high-quality raw materials such as organic cotton.

4. lower the cost of loans

For investors or lenders, companies that care about the environment, social
responsibility, and corporate governance are less likely to have significant product
shortages, trigger social resistance, violate laws and other risks; even more, have the
opportunity to obtain funds on better terms. In addition, many governments also offer
low-interest loans to sustainable businesses. In addition, banks continue promoting
green finance. In the past, banks focused on the enterprise's financial health and credit
status when evaluating whether to lend or not. Today, the environmental and social
risks derived from the funds have become a vital evaluation indicator for lending.

According to the Sustainability Linked Loan Principle ( SLLP) 2, If the company

meets the relevant indicators of sustainability, the bank will take the initiative to
reduce the loan interest rate, otherwise it will increase.

2.2.3 ISO 14001

2
Sustainability linked loans aim to facilitate and support environmentally and socially sustainable
economic activity and growth. The Sustainability Linked Loan Principles (SLLP) have been developed
by an experienced working party, consisting of representatives from leading financial institutions active
in the global syndicatedloan markets.
20
Standardization was first conceived, at the beginning of the twentieth century, as a
means to limit the uneconomical diversity of components, parts and supplies in order
to favor their interchangeability, which in turn would facilitate mass production and
the repair and maintenance of products and services (Dale, 2002). ISO is an
independent, non-governmental international organization with a membership of 167
national standards bodies (International Organization for Standardization, 2022). Duo
to the increase in international trade, ISO 14000 standards is the intention of enabling
standardization as a means of protecting the environment (D'Souza, 2019). Chiarini
(2013) think that companies have to design a sustainable supply chain that balances
several aspects sometimes in a difficult way. The independent and worldwide
accepted guidelines issued by the International Organization for Standardisation (ISO)
based in Geneve can provide direction. With the increasing acceptance of ISO 14001
environmental standards, there is a greater role for supply chain management in
organizational environmental practice (Sarkis, 1995). In the value-seeking approach,
companies integrate environmental activities such as green purchasing and ISO
implementation as strategic initiatives into their business strategy. (Srivastava, 2007)

The history of ISO series standards certifications can date back to the 1980s. Uzumeri
(1987) explains that because the standards bodies made major breakthroughs in
management standardization by developing MSS (management systems standard).
Following British Standard BS 5750, the International Organization for
Standardization (ISO) developed ISO 9000—a generic quality MSS, which became
accepted globally. (Castka et al. 2008). The ISO 9000 series was published in March
1987. is a quality assurance certification standard established by SC2 (a subcommittee
dealing with a particular field of Quality systems), which belongs to ISO/TC 176
(Technical Committee 176 of ISO), as known as the “Quality Management and
Quality Assurance Technical Committee.” In September 1996, ISO published the first
of the ISO 14000 standards, including ISO 14001, which is of central importance in
the series. ISO 14001 specifies the requirements for an environmental management
system (EMS), by which an organization may be certified by a third party (Poksinska,
2003). Requirements for certification include having procedures to identify all
environmental aspects of the site’s operations, to ensure safe handling and disposal of
hazardous materials, to communicate with interested parties, etc. (Corbett et al. 2001).
After introducing ISO 9000, countries around the world have adopted it one after
another. Therefore, ISO transplanted the successful experience of ISO 9000 and
pursued the compatibility of ISO 14000 and ISO 9000. After the actual setting, the
two have the same structure and essentials. The concepts and principles are also very

21
similar, but management objects are different. (Ammenberg, 2001) suggest a sound
ISO 14001 EMS will give a firm the capacity to measure and monitor the
environmental aspects of its operations. Viadiu (2006), mentions the ISO 14000
standard establishes a reference model for implementing environmental management
systems in companies. Also, in Viadiu’s (2006) study, pointed out the family of ISO
9000 standards and the ISO 14000 standards are the two main standards that stand out
among the others. (Corbett and Kirsch, 2001) state the number of firms and
organizations worldwide that have received ISO family certifications grows by
50,000-60,000 annually.

ISO14001 is a system standard on environmental management. It is a complete

set of scientific and operational system standards formed by integrating the
experience of many developing countries in the world in the ecological
management aspect. The standard requires effective control of the entire
production process within the whole enterprise, from the initial design to the
final products and services, considering the reduction of pollution generation,
emissions, and impact on the environment. Control important environmental
factors by setting and establishing goals, indicators, and management plans to
reduce or avoid excessive discharge of pollutants, thereby saving expenses,
reducing costs, and obtaining significant economic benefits. Corbett and Kirsch
(2001) indicate the process of applying IOS 14000 certification:

An individual company seeking ISO 14000 certification may start by turning to an environmental
consultant to help prepare their environmental management system (EMS). After that, the company
needs to select an auditor (which may not be the same as the consultant) for the actual certification
process. Auditors are mostly private firms (often not-for-profits, but sometimes branches of for-profit
firms), and include BVQI (Bureau Veritas Quality International), KEMA (of the Netherlands), ABS
(American Bureau of Shipping), and many others, some global, some national. The auditors will
typically conduct one or two preliminary audits (initial assessments and/or pre-audits), before the
actual certification audit itself. If successful, the company is then awarded the ISO 14000 certificate by
the auditing firm.

Generally, there are the following situations for enterprises to implement iso14001
environmental management system:

1. Pay attention to environmental protection:

22
ISO 14001 is an essential driver for involving suppliers in the environmental
management systems of a company can be supported (Chiarini, 2013). It helps
companies to lower emissions, waste, consumption, and general ecological impacts
(Banerjee et al., 2003; Guoyou et al., 2012; Chiarini, 2013). Chiarini (2013) mentions
that Morrow and Rondinelli (2002) explain the main motivations why large
companies adopt ISO 14001: one of the motivations that many companies take into
account is the opportunity of developing a green supply chain (similar findings in
Babakri et al., 2003; Tsoulfas and Pappis, 2006; Arimura et al., 2011). Arimura et al.
(2011) claimed that more than 40 percent of ISO 14001 certified companies in Japan
assess their suppliers' environmental performance, and even more than 50 percent
encourage encouragement their suppliers to follow specific ecological practices.

2.The requirement within the supply chain

The company has to identify the product flow from the supplier, and then a
performance measurement system has to be developed. ISO 14001 is an important
driver for involving suppliers in the environmental management systems of a
company can be supported (Chiarini, 2013). Major multi-national corporations have
already begun requiring or strongly recommending that their suppliers conform to the
ISO 14001 standard (Morrison et al., 2000). Some organizations may view ISO 14000
certification as a means of distinguishing organizations from their competitors by
creating an environmentally friendly image (Pouliot et al., 1996). The introduction of
ISO certification made many firms improve their green impression (Petroni, 2000)
and sweeten their relationships with stakeholders (Azzone et al., 1997). Rondinelli
and Vastag (2000) state ISO 14001 can increase the awareness of adverse ecological
impacts and apply responsibility for maintaining high environmental criteria
throughout the association and, potentially, suppliers, vendors, and contractors. It is
necessary for the enterprises to require their suppliers to have ISO 9000/14000
certification since suppliers with ISO certification perform far superior to those
without certification (Pan, 2003)

According to Chiarini's (2013) research, in the collected data, the companies claimed
the design and development of the sustainability supply chain have followed this
chronological pattern:
(1) defining new contracts with the suppliers in order to reduce environmental
impacts and aspects;
(2) raising supplier awareness about environmental matters;
(3) developing an environmental management system inside the supplier
organization;

23
(4) defining new environmental KPIs/targets for supply chain, including performance
measuring (Epstein and Roy, 2001); and
(5) eventual common investments with the supplier, considering it as a “green
partner”.
The steps mentioned above can be interpreted as operative steps that the companies
have implemented in order to improve the supply-chain sustainability from an
environmental point of view.
2. Improve the management level
Potential benefits for ISO 14001 users include reduced costs of waste management,
savings in the consumption of energy and materials, an enhanced corporate image,
regulatory cost savings, more effective supply chain management, improved customer
relationships, and increased market competitiveness (ISO, 1998). It designed as a tool
to assist companies in setting performance targets and measuring their performance
against them (Poksinska, 2003). Bowen et al., (2001) show that a company can
introduce an evolving system to keep pace with technological advances as much as
possible. Approaching the goal of promoting the transformation of the enterprise
management model. Through the control of the consumption of various resources,
fully optimize the cost reduction.

4. Marketing
With the rise of environmental awareness, there is evidence which shows that
customers prefer the more environmentally responsible companies and their products
(Laroche et al., 2001). Many industries are perceived as destroyers of the environment
and ISO 14001 may provide demonstrable proof that a company is environmentally
sound (Poksinska, 2003). There are several ways that ISO 14000 can improve
environmental marketing efforts. Namely, ISO 14000 standards influences green
positioning and other forms of marketing strategies at the functional level.
Furthermore, when adopted, naturally would lead to encouraging other players in the
market to comply, for example, firms also require their suppliers to adopt green
strategies (Polonsky, 2011). This distribution chain from suppliers to manufacturers
and then to retailers informs consumers of a product's environmental worth. ISO
14000 standards when implemented by firms result in important inherent
consequences for sustainability, as consumers and businesses are able to make
informed choices (D’Souza, 2019). Besides,
firms also consider implementing ISO 14000 as a competitive advantage (Chen, 2005;
Hart, 1997; Porter & Linde, 1999; D'Souza, 2019). Usually, the usefulness of ISO
14000 certification can command a premium price for certified products (Carter &
Merry, 1998).

24
Implementing the iso14001 environmental management system is voluntary, and any
enterprise that needs to improve can implement this certification to increase its
reputation and fundamentally improve the management level.

2.2.4 Last mile delivery

In the communications network industry field, "the last mile" originally meant to
complete the last mile of a long journey. By extension, it is the final critical step in a
whole process (usually also indicating that this step is full of difficulties). The word
"mile" is used figuratively, and actually, the last mile link may be more or less than a
mile. Likewise, delivering goods from a retailer's warehouse to consumers in e-
commerce is called "last-mile delivery." Often referring to B2C (business to
customer) home deliveries (Janjevic & Ndiaye, 2014). In B2B (business to Business)
channel, manufacturers or distributions deliver the products and supplies from the
stock to physical stores. In B2C or B2B canal, customers have become part of the
supply chain. No matter delivery speed, smooth communication channels, and
customer experience, everything brings challenges to e-commerce and logistics
operators. It is also an essential key to affecting customer satisfaction.

The purpose of last mile delivery

If the customer is at the endpoint of the last mile, improving customer satisfaction will
be the ultimate goal. Logistics is an entity's cargo circulation movement and
management system that exists to meet the needs of consumers. In circulation,
transportation, storage, loading and unloading, packaging, etc., are all included.
Additionally, logistics services must be performed in right time, from the right place,
right products, in right condition, to the right user and with reasonable cost (Juhász et
al., 2018).

The cost of last mile delivery

Although the last mile delivery is often the shortest part of the entire supply chain
journey. The last mile of the supply chain is focused on the most expensive and
problematic area of the supply chain (Juhász et al., 2018). Moreover, last mile
logistics is the least efficient stage and causes up to 28% of the total delivery cost
(Wang et al., 2016). Bernau et al. (2016) mentioned that this last mile delivery within
the city is highly expensive and comprises more than half of the entire delivery
costs.“City Distribution and Urban Freight Transport: Multiple Perspectives” pointed

25
out that the last mile logistics is the closest part to the customer in the e-commerce
supply chain, but the problem is it puts a lot of time into delivery, which is considered
the most costly, and least efficient. It even causes the most environmentally polluting
process in the entire supply chain. Simply put, today's consumers expect fast and
transparent shipping. The main reasons for the high cost of last-mile delivery include
inefficiencies in planning routes for drivers and different vehicle types, limited
delivery options, and increased expenditure on maintaining delivery tools and
personnel. Companies that want to improve their last-mile shipping services must
strike a tricky balance between offering competitive shipping options without
drastically reducing profits. When consumers feel delivery services they receive are
not customized, efficient and convenient, they will look for other opportunities
elsewhere.

The challenge for the last mile delivery: Same-day delivery

The increasing demand for multi- and omnichannel shopping opportunities is forcing
retail companies to continuously enhance their supply chain strategies to satisfy
customer requirements (Agatz et al., 2008; Gallino et al., 2019). The cooperation of e-
commerce and logistics can greatly improve customers satisfaction. Because buyers have
started to demand high service (Galkin et al., 2019), most of the customers who like to shop
online are very concerned about the delivery time of the goods. As long as the shopping web
shows “in stock” and “fast same-day shipping”, people's willingness to place an order can
often be greatly improved. Normally in the competitive market, orders that have been placed
before 12 P.M. will be shipped at 4 pm on the same day. For consumers, such a delivery
speed is already very fast. Even if they place an order after 12 o'clock will only need to wait
until the next day. In order to gain a competitive advantage, companies start offering
increasingly narrower delivery deadlines of a few hours length (Ulmer, 2017). In the
meantime, however, retailers are investigating whether and under what conditions same-day
deliveries can be offered to customers in order (Schubert et al., 2021). In other words, if
companies can guarantee that the merchandise can be delivered as quickly as possible after
placing an order, they can gain goodwill from consumers and effectively improve customer
satisfaction.

Table 3. Forecast of the global same-day delivery market size from 2021 to 2027(in billion
U.S. dollars)

26
 30

25

Market size in billon U.S. dollars 20

15

10

0
2021 2022 2023 2024 2025 2026 2027
Annual data

Source: Statista 2022 https://www.statista.com/statistics/1255427/same-day-delivery-market-

size-worldwide/

The solution of last mile delivery

The continuous development of transportation equipment could be a risk that may lead to
companies' financial and sustainable development and the environment. Which makes e-
commerce companies have been trying to solve these problems. One of the measures is to
establish a local consolidation center responsible for collecting and distributing parcels in
specific areas. There are other ways that e-commerce companies can reduce logistics costs,
shorten transportation times, and reduce the impact of transportation on the environment.
Some literature pointed out the solution like Ranieri et al. (2018) indicated: “The problem of
the last mile delivery is dealt with innovative modes thanks to the development of
Information and Communication Technologies (ICT), Information Transport Systems (ITS),
Industry 4.0 and new transport vehicles.” According to this, for instance, by investing in
innovative data analysis tools to facilitate the link between retailers and logistics providers
will be one of good ways optimizing last mile delivery services.

Table 4. Juhász et al. (2018) has also provided provides multiple optimization
methods. those components below that provide important information and skills to
the logistics users while improving the whole delivery process, efficiency, and cost
reduction.

Time savings Supply Chain Management interprets and

manages manufacturing and service processes.
Routing time can be reduced in the last mile

27
 phase.
Valuable data control systems Last mile can use system data, and uses the
necessary information which is required by
each process.
Security Signature must accept to the successful
delivery. Security becomes more complex, and
smart with logistics and human resources.
Energy and environmental effects It means that the right delivery method can
reduce emissions, and become economically
competitive.
Customer service level The characterized service level is based on
time windows
Mobility It means the shipping time and delays are
reduced by increasing mobility
Productivity Last mile logistic solutions can allow
productivity developments.
Customer satisfaction It measures the customer experiences in
services/products, and assessing new markets
for services and products that serve the
customer's additional needs.
Manufacturing Logistic issues can be solved where the
product is ready. The manufacturing and
service companies are associated with business
through the operation of last mile solutions.

Last mile management has an impact on customer satisfaction. In fact, errors, delays, and
complications that occur during this period can disrupt all the logistics that have been done in
advance. Therefore, the last mile is a broader concept than just delivering the package to the
customer.

2.2.5 The negative effects of the last mile delivery

In recent years, in the economic aspect, the development of logistics has become one
of the leading research goals of scholars because logistics is an important project in
the economy of every country. As Diziain et al. (2012) mentioned: “Logistics is
becoming an important source of employment and a generator of wealth in cities.”

28
The methods or tools used in any era are different, and without a doubt, it is a field
that will always exist. In each period, many scholars continue to propose
improvement methods for the sustainable development of logistics.
Ranieri et al. (2018) showed the effect of the congestion and pollution on last-mile
delivery from the sustainability perspective in their study. Similarly,
Forkenbrock(1999) analyzed many types of external logistics costs, including
emissions(air pollution and greenhouse gases) and noise. Yang, et al. (2016) pointed
out the supply chain network must redesigne strategically or tactically to ensure long-
term sustainability of their operations given to environmental constraints or carbon
emissions limits. Moreover, many companies are continuously concerned about the
issue of environmental pollution to ensure that the logistics industry can reduce the
impact on the global environment.

Globally, B2C e-commerce is a rapid pace growing phenomenon and the online
market in 2018 has been worth more than € 2,500bn worldwide (Mangiaracina, 2019).
Witch drives a lot of demand for logistics services, and last-mile logistics has become
an important part of achieving fast and accurate customer service in e-commerce. A
largerquantity of goods is expected to be delivered in the next future (Ranieri et al.,
2018). When it comes to the delivery time, the fierce competition happens to
companies every day, creating a more incredible speed for last-mile delivery. For
instance, after Amazon announced that it could provide one-day shipping to their
member who subscribed to Amazon prime in 2019, a month later, Walmart, the
biggest brick-and-mortar retailer globally, claimed the same service to their clients.
But, while customers enjoy the convenience of life, the environment also undertakes a
heavier burden than ever. At the global level, the transport sector is responsible for
about 20–25% of emissions. Climate change mainly comes from the Greenhouse Gas
(GHG) emissions into the atmosphere (Ranieri et al., 2018). In the last decade, a large
amount of cargo shipped to the cities due to the increased population in the urban
area. Epidemiological studies indicate that the most important air pollutants in urban
area are: Particulate Matter (PM), Nitrogen Oxides (NOx), Carbon Monoxide (CO),
aliphatic and aromatic hydrocarbons, Sulfur Dioxide (SO2) and heavy metal (Van
Essen et al. 2011); SO2, on the other hand, leads to the formation of acid rain, which
can adversely afect vegetation, buildings, and humans over a large area. Similarly,
VOC and NOX react to produce ground-level ozone (O3), which leads to regional
smog production (Forkenbrock, 1999). According to the 2020 World Economic
Forum survey: due to the rise of e-commerce, if we do nothing, the number of freight
vehicles in the world's top 100 cities will increase by 36% in 2030, related emissions
will increase by 32%, and urban traffic congestion will increase. The level will

29
increase by 21%. If current trends continue alongside this rise in the number of
delivery vehicles, cities will be hard-pressed to meet decarbonization targets. Besides,
logistics activities are inseparable from the use of vehicles. In addition to noise
pollution and air pollution, there are other potential hidden dangers including the
accumulation of waste tires of automobiles, waste diesel that often seep into soil and
water. Even the leakage occurs due to improper storage and transportation during the
logistics process.

30