Change through cooperation
A fossil-free PostNord requires fossil-free transport providers. This can be achieved through procurement, knowledge sharing and working together.
To be able to deliver to all parts of the Nordic region, PostNord purchases transport services for certain routes. These are often the long and heavy routes – which is where PostNord has the greatest carbon emissions. “If PostNord is to become fossil-free, our transport service providers need to become fossil-free, since they stand for a substantial share of our transport,” says Johan Sandström, Project Manager in environment and sustainability.
“I believe that the transition of our many transport providers is the biggest challenge in terms of reaching the climate target by 2030.” “Transport providers have differing abilities to convert to fossil fuel-free or emission-free,” he says. “For a small haulage company, it can be a big risk and requires the right financial conditions. Perhaps the carrier needs to charge a higher price, or assistance with funding. We need to provide conditions that give providers the confidence to invest and believe that the transition will pay off in the long term,” says Johan.
PostNord is pursuing goal-oriented efforts to accelerate the transition through-out the supply chain. The green tech roadmap contains the Group’s overall plan for the transition of the vehicle fleet and transport. Based on this plan, each PostNord market is developing its own investment plan to ensure fossil-free and/or emission-free transport.
“A key tool for ensuring that transport providers make the transition is to change the procurement demands,” says Johan. “We must specify the requirement that transport be partially and eventually completely fossil-free when we purchase new transport services. In parallel, we need to collaborate and communicate with existing subcontractors,” says Johan.
Several of PostNord's providers are showing interest in the green transition and understand that it can be crucial to being competitive in the long term. PostNord wants to support these providers through knowledge sharing. Another incentive could be to offer longer contracts, which would provide security.
“Timing is also important where the transition is concerned. The prices of the vehicles needed will hopefully come down, and prices and tax rates for fuels, electricity, etc. will affect transition opportunities. We’re not alone in recognizing the need for a green transition. Customers, our owners and legislators are all pushing for us to continue our journey towards fossil-free transport,” Johan concludes.
Johan Sandström
Position: Project Manager, Sustainable Supply Chain, PostNord Group.
At PostNord since: 2017.