Research Report

Logistics companies and its impact on environment or green house gasses




Greenhouse gas and CO2 gas emissions makes a significant and effective contribution in environment and atmospheric change. In today’s developing technology and rapid development of economy is also creating impact on the environment in adverse manner as companies like logistics are using energy (fuel) for their freight transport (McKinnon, et al., 2015). The fuel consumption by the company is contributing to global warming and also producing different harmful gases which harm the environment and human life.

Linfox is an Australian logistics and supply chain solutions and services which established by Lindsay Fox in 1956. In Australia, it is one of the largest supply chain service companies which provide its services across the world. Linfox provides different logistics services to other multinational companies such as delivering fuel, retail goods and so on (Linfox, 2017). In addition, Linfox includes different logistics transport services like road freight, air freight, rail freight and ocean freight service across the Asia Pacific. However, company also expanded its operations by acquisition of two different companies FCL and Mayne logistics and also company using kety technologies to reduce the emissions.

Problem definition and justification

This study focuses in depth on the impact of logistics companies on environment change in relation to CO2 and greenhouse gas. This article is concern more about the impact on environment due to high fuel consumption and CO2 & greenhouse emissions. The problem is that logistics companies are using various freight transports services and for that company is utilizing the fuel and from that CO2 and greenhouse gas emission is impacting on the environment (Palmer & Piecyk, 2010). This reduction of emission affects the customer’s delivery on time for that company required to adopt new technology and way to reduce the fuel consumption for protecting the environment. The justification to this research study is that it will provide the clarity and develop the understanding about the impact of CO2 and greenhouse gas emissions. Moreover, this study will also justify the topic by developing the knowledge and learning related to impact of emission of harmful gas on environment.

Research Aims /Objectives

The main purpose or aim of this report is to examine the impact of logistics companies on CO2 and greenhouse gas emission so that logistics companies can develop and improve their business process at a large extent. In addition, the following research objectives are required to be accomplished for achieving a research aim successfully in this research study:

  • To identify the key factors impacting greenhouse gas or CO2 emission from logistics transport
  • To determine the relationship between the fuel consumption by logistics companies and greenhouse gas emissions
  • To recommend ways which will helps in eliminating the emission of CO2 and greenhouse gas emission on environment

Literature review

According to the Dekker, et al., (2012) logistic companies have their highly impact on the environment by consuming the fuel through transportation. Logistics companies use the high consumption of the energy and also it burns most of the petroleum products which impacts on the environment. In the concern of LINFOX Company, logistic company affects highly on the environment because it uses the transportation vehicle that contributes on the global warming by the emission of carbon dioxide and other harmful gases in the environment. In the words of Wang, et al., (2012) the fuel consumption by the logistic companies increases the pollution of the environment due to enhancement in the number of transportation vehicles.

At the same time Dekker, et al., (2012) defines that vehicles are the major source of the pollution in the air through the emission of the CO2, HC (hydrocarbons), Nitrogen oxides, carbon dust, tetraethyl lead, etc. that affects on the climate also. It is said that the emerging greenhouse gas are effecting on the environment such as atmosphere of the earth, increase in the warmness on earth etc. The air pollution which is raised by the transportation of the logistics companies can provide the negative effects on the earth such as remove the quality of the air, acid raining, smog during the day, change in the climate etc. On the other hand Tang and Zhou, (2012) describes that in order to emission of the level of greenhouse gas is effecting on the human health though increasing the diseases in the human body.

In the research of Feng, et al., (2013) stated that the logistic companies require the high consumption of the energy for vehicle operation in transportation that increases the pollution of the environment. The polluted air are taken by the human beings in the respiration that increases diseases and highly harmful for the patient of the respiration disease. The logistic companies are playing a vital role in the enhancement of the greenhouse gases due to using the transportation vehicles because it consumes the too much fuel in the process. In the same concern of this Plambeck (2012), the human activates are also affected by the greenhouse gas emissions that change the climate of the environment. The global warming is highly harmful for the human life and provides the long term cause to the natural environment.

The logistics companies are affecting on the transportation system by making the traffics in the big cities and this traffic consumes additional fuel which provides the more air pollution to the environment. In support to this Wang, et al., (2012) logistics companies are provided the social benefits of transportation and increase the productively but it impacts on the environmental system by providing the pollution by the use of vehicles. In the research of the Smith et al., (2013) it is said that the transportation is the highly dominant source of the emission of the pollution in the environment and it provide multiple effect on the nature. This impacts have three are categories, direct impact, indirect impact and cumulative impacts.

If any transportation activity provides the immediate consequence on the environment and it is easy to understand the relationship between the cause and effect like noise pollution and carbon monoxide emissions. According to the Berners-Lee, et al., (2012) the transport activates of the logistics companies are also includes the indirect impacts on the environment which have high consequence then the direct impacts. The indirect impacts are more difficult to understand by everyone because the outcomes are indirectly linked with the transport vehicles. In support to this Wang, et al., (2012) the cumulative impacts of the transport activate can provide the multiplicative, additive and synergetic consequence to the nature by changing the effects timely on the ecosystem. It can provide the unpredictable effects on the climate and nature with changes.

Logistics companies should provide the transportation with the high quailed transportation vehicle which has a quality of emission on low pollution to the environment. In addition to this, Dekker, et al., (2012) defines that the companies who are offering the facility of the logistics should think about the impacts on the environment to save the earth from many harmful effects and provide the solutions of it. The logistics companies should make effective planning and implementation for moving goods and supplying services for reducing the environmental impact of the high transitions which can occur due to lack of planning. According to the LINFOX Company of the logistics, they provide the effective management in the transportation for reduce the negative impact of the logistic on the environment. On the other hand Tang and Zhou, (2012) describes that it uses the management in transport routes, transport method and transport vehicle according to the load and given time. Instead of using the road path, the logistics companies should use the rail or water paths for moving the freight. It will further decrease the environmental effect of logistics.

Research methodology

The objective behind this study is to identify the key factors impacting greenhouse gas or carbon dioxide emission from logistic transports, to find out the relationship between the fuel consumption and greenhouse gas emissions by logistics companies and to provide the ways for helping in eliminating the emission of CO2 and greenhouse gas emission. In this research, the qualitative research methods are used by the researcher. The overall research is used in this study id the deductive approach because all the data are taken from the secondary sources like already established theories. In addition to this, this study provides the impacts of the greenhouse gas emissions by the logistic companies by the use of its transport activate. In this research, all the data are collected from the secondary data sources like articles, journals, website etc. The secondary data collection method provides the depth understanding to the researcher about the research objective and helps to improve the quality of service. The impacts of the greenhouse gas emission can be finding in the secondary data sources with the reference of the LINFOX Company data. The research can be reliable by the access of the relevant data for the research outcome. In this research, the researcher selected the appropriate methods for analyze the data effectively and selected the content analysis method for make successful this research.

The content analysis method is helpful for the researcher to find out the better understanding among the data for successful outcome of the research. Additionally, the researcher thinks about the ethical issues because it is a very important part of the research methodology. The research includes several kinds of ethical issues such as plagiarism, copyright, etc. The researcher needs to solve the issues related with the plagiarism as well as copyright and provide the correct and appropriate referencing. The researcher should overcome the ethical issues for the successful accomplishment of the research. In this research, the researcher followed the ethical consideration with the respect of the secondary data providers. The research methodology provided the successful outcome to the research by the use of appropriate methods and techniques. The requirements and objectives of the research will be analyzed by the selection of the appropriate options by the researcher at the time of requirement. The research methodology also includes the techniques of the data gathering and analysis in this part for the successful outcome of the research.


Under this section, the impact of CO2 and greenhouse emission is identified in context to the Linfox Logistics Company. The findings from this study is that there are large number of companies which are creating high impact on the environment from their high fuel consumption as it result into more CO2 and greenhouse emissions (Gross, et al., 2012). Moreover, it is also identified that emission of gases in large amount is depleting the earth environment quickly and this result into the death of human and animal’s life as well as increase in the diseases.

The above stated graph indicates that in logistics business, there is emission of gas which harms the environment to large extent. There are different types of logistics and transport activities which company’s uses for providing services to customers like road freight, air freight, rail freight, ocean freight are some transport services (McKinnon, et al., 2009). These all services required an energy system for that they consume large amount of fuel and that result into high emission of harmful gases.

This above stated figure helps in understanding and determining that how Linfox company has reduced emission of CO2 and greenhouse gas. However, it can be easily seen that company has consistently reduced emission by taking range of initiatives under GreenFox sustainability program like new truck technologies, efficient warehouse systems, best use of equipments and many more (Seneviratne, et al., 2016). In addition to this finding, it is also identified that in year 2007, Linfox decided to reduce its impact on environment by setting a target that in coming 8 years company will reduce 50 % of greenhouse gas and CO2 emissions (Linfox, 2017).

Moreover, this graph indicates a clear picture that Linfox Logistics Company has reduced the emission of gas from year 2007 but in year 2009-10, the emission of gas raised to a peak level till year 2012-13. But after that, company again developed its concern by improving their technologies and services in order to achieve a fall in emission gas (Samimi & Zarinabadi, 2012). The other findings related to impact on environment is that logistics companies are developing a separate sustainability policy for long terms and also emphasizing on using more renewable as one effective contributor in lowering the gas emissions.

This above figure demonstrates or projects that CO2 gas emission in relation to the Australian civil domestic transport. This graphical representation of gas emission helped in relating the energy use and CO2 & greenhouse gas directly. This graph indicates three different scenarios i.e., low scenario, high scenario and base year scenario. On the other hand, it is also identified that Linfox conducted a separate emission test known as Dipetane fuel treatment in which fuel consumption effects is also determined (McKinnon, et al., 2015). In concern to it, it is studied by Linfox in order to determine the capabilities of Dipetane and also to reduce the fuel consumption and emission. However, the test result are summarized in efficient manner such as carbon dioxide reduced to 23 %, Nitrogen Oxide reduced to 35.4%, Sulphur oxide reduced to 26.8 % and so on. At the same time, Linfox logistics reduced its fuel consumption by 7.5% and that result into the improvement in the energy efficiency of the freight transport services.


From the above findings, it can be discussed that logistics companies are encouraging and developing their concern for reduction of emission of gases and protecting the environment. In similar manner, Linfox is also developed its concern and care for the environment for which company decided to distribute the customers products and services in best manner without harming or producing more harmful CO2 or greenhouse gas (Harris, et al., 2011). This study helped in identifying the different factors which are creating the impact on the environment due to high emission of harmful gases are pollution, global warming and high consumption of fuel. These factors are affecting the environment in adverse manner to large extent as these harmful gases are developed from the fuel or energy used by the logistics companies.

On the other side, the above study helped in understanding that it is important to reduce the environmental impact by encouraging the logistics provider to initiate in minimizing the emission effect and also to improve the energy efficiency of the transport services. This improvement and development in the transport services helps the company to deliver the best service solutions to the customers efficiently and effectively (Chaabane, et al., 2012). However, logistics companies are required to adopt new technologies which help them in protecting the environment and reduction of emission gas. At the same time, Linfox is also facing problem related to transportation system because in big cities, there is high traffic and for that road transportation vehicles requires more fuel consumption. This high consumption of fuel affects in the form of air pollution as the vehicles releases the pollution which affects directly on the human health.

On the other hand, figure 2 is indicating that the logistics provider like Linfox are taking initiative and playing an important role in supporting the Australian government in improving the environmental condition and also leading to achieve a zero carbon outcome. Moreover, company also provided drivers with a training to reduce the consumption of fuel and the more use of smarter lighting system for reducing the electricity usage. But at the same time, McKinnon, et al., (2015) stated that for identifying the environmental impact, carbon mapping is used by the logistics companies. In the research study of Dey, et al., (2011), it is identified that the relationship between the fuel consumption and emission of harmful gases is adverse or negative.  This is because more consumption of the fuel will release more different harmful gas and that develop more dangerous diseases and pollution in the air of the environment. Moreover, this study also supported in understanding the relation that fuel consumption requirement need is high in logistics companies but if fuel consumption decreases then it impact directly & positively on the reduction of harmful gas. From the figure 1, the result can be easily interpreted that road transport is releasing high pollution in the environment in comparison to the other freight transport.

Conclusion and Recommendations

The above study helped in concluding that logistics companies are creating huge impact on the environment due to emission of CO2 and greenhouse gas. This study helped in developing knowledge that how to assess the CO2 and greenhouse gas in relation to the fuel consumption by the logistics companies. This paper focused on determining the relation between the fuel consumption and CO2 and greenhouse gas emission impact on environment. With the help of this comparison, it became easy to understand and identify the ways which help the company in reducing the emission. The relation between them develops pollution, harmful gas, global warming which damages the human life and develop difficulty to survive in the polluted environment.

The recommendation to the Linfox logistic is that they need to develop a new classification model of logistics sites so that energy intensity of the processes and influence can be improved. At the same time, logistics company like Linfox need to develop a suitable decarbonization strategy in order to protect the environment by aiming to reduce the carbon intensity impact. At last, it is easy to conclude that logistics companies like Linfox are required to improve and adopt new energy technology or transport system which helps in reducing the harmful gas emission by 50 % on the environment.


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