-
All DSV subsidiaries are charged an internal carbon pricing fee based on the level of CO2 emissions within their operations
-
Funds generated are invested in innovation programs and projects to accelerate DSV’s emissions-reduction initiatives
-
Group CEO Jens Bjørn Andersen says the program represents a necessary shift in DSV’s approach that is essential to enhancing its own sustainability practices
Global transport and logistics company DSV has launched a global funding program backed by an internal carbon pricing fee on subsidiaries’ emissions to pay for net zero projects, the firm announced on June 9.
The internal carbon pricing fee is charged to all DSV subsidiaries, whose contributions are based on the level of CO2 emissions within their operations. Funds generated are being invested in innovation programs and projects to accelerate DSV’s emissions-reduction initiatives.
As one of the world’s largest transport and logistics providers, DSV is committed to help the industry transition to a carbon-neutral future. The company has set ambitious targets, including a promise to reach 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 are 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,” said Jens Bjørn Andersen, group chief executive of DSV.
“DSV’s new carbon funding program 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,” Andersen explained.
“This program 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.”
DSV is expected to raise around Danish krone 1 billion (US$144.25 million) for sustainable initiatives and innovation projects over the first five years through the new internal carbon pricing fee program.
With the program 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 for net zero projects that are 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 organization in such a short timeframe. In addition to funding emissions-reduction initiatives, this program also aims to increase awareness of the impact of our practices across our operations and to engage and incentivize the entire DSV organisation to support the green transition,” said Andersen.
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.
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,” Andersen said.
“As a result, innovation will be key to realizing the industry’s long-term decarbonization ambitions. I hope that DSV’s carbon funding program will play a role in exploring and developing possible solutions to these challenges,” he said.
RELATED READ: DSV purchases SAF for 2023 business travel
