Solution

Table of Contents

1.0 Introduction. 3

1.1 Introduction to DSV.. 3

1.2 Corporate Structure of DSV.. 3

2.0 DSV’s Environmental and Social Sustainability Strategy. 4

2.1 Ambition and Realism of DSV’s Sustainability Strategy and Targets. 5

2.2 Actions for Achieving Long-term Targets 6

2.3 Sector Influence on DSV’s Strategy. 6

2.4 Learning Lessons for an Omani Industrial Sector. 7

2.6 Recommendations 8

References 9

List of Figures

Figure 1: DSV’s corporate structure. 4

Figure 5: Decarbonation Roadmap. 6

1.0 Introduction

1.1 Introduction to DSV

DSV is a Danish logistics and transportation organisation established in 1976 which offers services such as freight forwarding, warehouse, and supply chain management (DSV, 2024). DSV global supply chain is located in more than 90 countries, as well as DSV is cooperating with different industries such as automotive industry, retailers, healthcare, IT technologies and others. It aims at offering Global Supply Chain Solutions which meet the comprehensive and integrated logistic service requirement of the global traders by offering highly efficient logistic services that do not harm the environment in any way, thereby supporting the company’s goals of innovativeness and sustainability.

1.2 Corporate Structure of DSV

Based on DSV ‘s global operation, the organization has a corporate structure to accommodate its three main divisions as depicted below in figure 1.

Figure 1: DSV’s corporate structure

1. DSV air & sea deals with air and sea freight forwarding, and exports and imports shipment across different routes and customer type.
2. DSV road serves sea transportation, controlling a tremendous number of trucks and trailers in Europe, North America and South Africa.
3. DSV solutions concerned with offering services like warehousing service and management services such as storage, inventory control and delivery services.

2.0 DSV’s Environmental and Social Sustainability Strategy

DSV is among the biggest global freight forwarders and it provides an elaborate environmental sustainability strategy in countering climate impact as well as moving away from fossil energy sources. DSV has now spelled out its dependence on transport by recognizing the need to reduce its emissions to net zero by 2050 both for its own operations and the supply chain. This goal is also in line of Science Based Targets (SBTi) and the Paris Agreement. In the short term, DSV is targeting the reduction of its direct (Scope 1 and 2) emissions by 50% and indirect (Scope 3) emissions by 30% by 2030 from the 2019 baseline (DSV, 2024).

To achieve these goals, DSV has developed an initial plan to decarbonize through energy efficiency, the elimination of fossil fuels, generation of renewable energy, innovative technologies as portrayed in figure 1 below;

Figure2: Decarbonization roadmap

These efforts also cover the construction side of the company; DSV insists on green constructions for new buildings, which must earn certification under the DGNB . Also, DSV has provided client’s net-zero and sustainability solutions such as CO2 reporting, green warehouse, supply chain optimization, and carbon neutral services (DSV, 2024).

In waste management, DSV has strategies which work a circular system in all their branches globally to minimize the usage of landfills but instead reuse and recycle wastes. They operate under a waste management policy that initiates and coordinates waste reduction programs at every DSV subsidiary.

An Environmental Management System integrated with ISO 14001 forms the basis of sustainability at DSV. This supports organisational environmental risk management, and drives improvement where, as of 2023, 38% of DSV’s locations are ISO 14001 compliant (ISO, 2024). By those actions, DSV commits to lower its environmental impacts and supports the international community goals towards sustainability.

2.1 Ambition and Realism of DSV’s Sustainability Strategy and Targets

DSV’s sustainability strategy reflects a strong ambition to lead the logistics sector toward decarbonization. By committing to net-zero emissions by 2050, DSV aligns with global climate goals and benchmarks its initiatives against the Science Based Targets initiative (SBTi), ensuring that its targets are grounded in scientific climate principles. The company’s near-term goal to reduce direct emissions (Scope 1 and 2) by 50% and indirect emissions (Scope 3) by 30% by 2030 is ambitious, particularly given the logistical challenges and high dependency on fossil fuels in the freight forwarding industry (DSV, 2024). These targets, along with DSV’s investment in green logistics, sustainable infrastructure, and alternative fuel research, place the company among industry leaders in environmental responsibility (DSV, 2024).

The realism of these goals depends on several factors, including technological advancements, supply chain partnerships, and regulatory support. While DSV’s approach of phasing out fossil fuels and implementing energy-efficient practices is feasible with existing technologies, achieving full-scale decarbonization will likely require further innovation, particularly in long-haul transport modes where low-emission alternatives are still developing (Gailani, 2024). Additionally, achieving 50% reduction in Scope 1 and 2 emissions will demand substantial capital investments in fleet electrification and renewable energy production, which may pose financial and operational challenges.

DSV’s collaboration with customers and subcontractors in its Green Logistics program also suggests a pragmatic understanding of shared responsibility within the supply chain (Zhang, 2022). Thus, envisioning itself as a changemaker for clients’ decarbonization strategies as well as proposing clients a CO2 reporting and sustainable warehousing services, DSV has to embark on building up collective progress since the logistics industry is tangled and customers are dependent on each other.

2.2 Actions for Achieving Long-term Targets

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