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3 steps towards a sustainable wholesale business

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25 July 2024
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The call for sustainable business operations is becoming increasingly louder. In politics, too, there is growing attention for climate-neutral business, for example through the recently introduced CSRD legislation. These agreements oblige companies to become climate-neutral in the long term, something that is not so easy for trading companies. As much as 95% of their CO2 emissions do not occur directly in the company, but, for example during production or transport. Nevertheless, they too will have to operate more sustainably in the future, but how do you do that?

1. Assortment

For trading companies, most CO2 emissions occur during the production process. The assortment therefore plays an important role in the climate impact of the company. This often starts during the design phase. Certain materials are easier to recycle or have less impact on the environment. Products that last a long time or are easy to repair also ensure lower emissions. The choices you make in this have a major influence on CO2 emissions. The assortment you offer is therefore very decisive for sustainable business operations. For most companies, however, the price remains more important than the climate impact. The challenge is therefore to offer products that are both sustainable and profitable.

2. Packaging 

By 2030, all packaging must be reusable or recyclable. This means that trading companies must look for sustainable alernatives to plastic, for example. The fastest profit can be achieved by packaging products more efficiently. Small, light packaging with a minimal amount of air already ensures less packaging waste. In addition, a deposit system and reusable material offer another possibility for sustainability. Here too, price plays an important role. Sustainable packaging is usually 15% to 30% more expensive, which is why many companies are still somewhat hesitant.

3. Transport

Finally, logistics will also have to be more sustainable. The easiest profit can be achieved by purchasing products closer to home. However, this is not always possible, which is why other solutions will also play a role. Companies can opt for rail transport instead of plane, or for electric transport. In addition, sea containers and trucks can sometimes be filled more efficiently by bundling the freight from different parties. For the transport sector, shipping is more uncertain than air travel due to the long delivery times. At the same time, electric transport is complicated over long distances and the number of charging points is still limited. Sustainable logistics therefore remains a challenge.

Conclusion

Trading companies will mainly have to look at external CO2 emissions in their sustainability efforts. Of course, their own office or distribution centre can also be made more sustainable, but the greatest gains can be achieved outside the company. A more climate-friendly range, sustainable packaging and clean transport offer the best opportunities.
However, there are still some hurdles to overcome for all three. The increasingly strict legislation on this subject ultimately offers companies no choice, but it also helps to accelerate sustainability processes.