German chemicals group Covestro initiates green logistics program with Chinese partners

The collaboration on reducing greenhouse gases in logistics was agreed at the China International Import Expo with the signing of a memorandum of understanding (MoU). U.S. partner Sherwin-Williams, as well as the industry organization Smart Freight Center China, also joined the agreement.

"The idea is to pilot, adopt and scale up low-emission fuels, vehicles and more sustainable logistics solutions with optimal costs and even financial benefits through an open platform," said Samir Hifri, senior vice president of Covestro's supply chain and logistics division in Asia Pacific.

Since around 70 percent of Covestro's goods traffic in the Asia-Pacific region is carried out by truck, the pilot program will focus on this form of transport. Tests are being conducted on the possible use of biodiesel, which is subsidized in Shanghai, and hydrogen fuel cells.

"We believe the supply chain could be an essential part for the chemical industry to achieve climate neutrality, and it's crucial for us to find a balance between economics and emission reductions through such collaboration," Hifri added.

The company is aiming to become climate-neutral in its own production, as well as in regard to external energy sources by 2035.