In an era where sustainability is no longer a choice but a necessity, ANC, one of Australia’s leading last-mile delivery companies, has embarked on a significant journey to reduce emissions from their fleet of delivery vehicles.
Spearheaded by Mo Abbas, the Chief Growth & Sustainability Officer, ANC’s transformation is a testament to how businesses can balance operational efficiency with environmental responsibility. Central to this transformation has been the company’s role as a supplier to IKEA, a global leader in sustainability, which has environmental requirements for its delivery partners.
Recognising the need for change
The push towards reducing emissions in the transport sector, particularly for delivery fleets, has been driven by increasing regulatory pressures, customer demand for greener solutions, and a broader societal shift towards environmental stewardship. For ANC, the journey began with a clear acknowledgment of these drivers, but it was the partnership with IKEA that accelerated the pace of change. As a supplier to IKEA, ANC was required to meet specific sustainability benchmarks, including a significant reduction in carbon emissions from their delivery operations.
During a recent webinar on transport decarbonisation, Abbas highlighted that the starting point was an internal review of the company’s environmental impact.
“We realised that our fleet was a significant contributor to our carbon footprint,” he stated.
This recognition, coupled with IKEA’s stringent requirements, spurred ANC to take decisive steps towards a more sustainable future, aligning their business strategies with global sustainability goals and the expectations of their key clients.
Implementing a strategy for sustainable growth
ANC’s strategy to reduce emissions was multifaceted, focusing on both immediate and long-term goals. The company adopted a three-pronged approach: investing in electric vehicles (EVs), optimising existing fleet operations, and engaging in partnerships for innovative solutions.
Investment in electric vehicles
The most visible step in ANC’s sustainability journey has been its investment in electric vehicles. Understanding the growing availability and practicality of EVs, ANC began phasing out older, less efficient vehicles in favour of a new, electric fleet.
“Our goal was to ensure that a significant percentage of our fleet was electric by 2024,” Abbas noted.
This commitment was in direct response to IKEA’s sustainability demands, which required their logistics partners to contribute to the retailer’s goal of achieving zero emissions in its home delivery network by 2025. This transition to EVs was not just about reducing emissions; it also aimed at setting an industry benchmark. By being early adopters, ANC hoped to encourage others in the sector to follow suit, fostering a broader industry shift towards greener fleets.
Fleet optimisation
While the adoption of EVs was crucial, ANC recognised that optimisation of existing operations could yield immediate benefits. This included route optimisation, driver training programs focused on eco-driving, and the adoption of telematics to monitor and improve vehicle performance in real time. Route optimisation software was a game-changer for ANC. By analysing delivery patterns and traffic conditions, the software allowed for more efficient route planning, reducing unnecessary mileage and, consequently, emissions. Driver training programs were equally important, teaching drivers how to operate vehicles more efficiently, which resulted in lower fuel consumption and reduced wear and tear on vehicles.
Innovative partnerships
Collaboration has been a cornerstone of ANC’s strategy. Recognising that innovation often comes from working with others, ANC formed partnerships with technology companies, vehicle manufacturers, and research institutions. These collaborations have led to the development of cutting-edge solutions, such as advanced battery technologies and integrated logistics systems that further reduce the environmental impact of their fleet. One such partnership involved a pilot project with a leading EV manufacturer, testing the latest models under real-world conditions. The insights gained from this pilot have been instrumental in refining ANC’s approach to fleet electrification and have provided valuable data to inform future investments.
Overcoming challenges
Transitioning to a sustainable fleet is not without its challenges. During the webinar, Abbas candidly discussed the hurdles ANC faced, particularly around the cost of new technology and the need for a robust charging infrastructure.
“One of the biggest challenges was the upfront investment required for EVs and the supporting infrastructure,” he explained.
To address this, ANC explored various financing options, including leasing arrangements and government grants, which eased the financial burden. Additionally, the company worked closely with local governments and energy providers to expand the availability of charging stations, ensuring that their growing fleet of EVs could operate efficiently across all service areas.
Another challenge was the cultural shift within the organisation. Moving towards sustainability required buy-in from all levels of the company. To foster this, ANC invested in education and awareness programs, ensuring that everyone, from drivers to senior management, understood the importance of the transition and their role in it.
Moreover, IKEA’s requirements acted as a catalyst, pushing ANC to overcome these challenges more swiftly. The need to comply with IKEA’s sustainability criteria not only justified the investments but also motivated the entire ANC team to embrace the changes with a sense of purpose and urgency.
Looking ahead: A greener future
ANC’s journey is far from over. The company has set ambitious targets for the future, aiming for a fully electric fleet by 2030 and exploring the potential of hydrogen fuel cell technology as the next frontier in sustainable transport.
Abbas highlighted the broader impact ANC hopes to achieve, not just within the company but across the entire logistics and delivery industry. “We believe that by leading by example, we can inspire others to take similar steps towards sustainability,” he said.
The company is also exploring ways to offset any remaining emissions through reforestation projects and investments in renewable energy. This holistic approach ensures that ANC’s sustainability efforts extend beyond just their fleet, contributing to global efforts to combat climate change.
ANC’s journey to reduce emissions from their fleet is a powerful example of how businesses can align growth with sustainability, particularly when influenced by key partners like IKEA. Through strategic investments, operational efficiency, and innovative partnerships, ANC is not only reducing its carbon footprint but also setting a new standard for the delivery industry in Australia. As they continue on this path, ANC is poised to be a leader in the transition towards a greener, more sustainable future, meeting the expectations of their partners and contributing to a larger global mission.
