As the global community converges to address the escalating climate crisis, India’s booming e-commerce sector stands in a pivotal position. The sector’s rapid growth, projected to reach $300 billion by 2030 underscores its significant economic impact. However, this expansion does bring environmental challenges, notably in packaging waste and carbon emissions from logistics. Addressing these issues is imperative for aligning with global sustainability goals and ensuring the sector’s long-term viability.
Packaging Waste: A Pressing Concern in the Pre-Shipping Phase
The surge in online shopping has led to an unprecedented increase in packaging materials, much of which is non-biodegradable. In 2021-22, India’s e-commerce sector produced approximately 98,000 tonnes of plastic packaging waste, marking a 73% rise from preceding years. India currently lacks well-developed methods for efficiently recovering packaging plastic waste. This issue is particularly even more concerning because plastics contribute to microplastic pollution and pose health risks. Chemical additives used in packaging plastics are toxic, such as persistent organic pollutants (POPs), which can spread into ecosystems.
In response, the Indian government has introduced various legislative frameworks, like the Plastic Waste Management Rules, 2011, and its subsequent Amendments in 2016, 2020, and 2022. Previously, the e-commerce sector was not constrained by legislative frameworks, as it did not fall under the definition of obligated entities in earlier Extended Producer Responsibility or EPR (a regulatory mechanism that holds producers responsible for the management of their products throughout their lifecycle) regulations. However, the said legislative measures introduced in 2022 marked a crucial step in addressing plastic waste generated by the e-commerce industry.
In addition, the launch of the Business Responsibility and Sustainability Report (BRSR) mandated listed companies to provide quantitative metrics on sustainability-related factors from the fiscal year 2023. These regulatory frameworks and changes compelled e-commerce companies to further adopt sustainable packaging solutions.
Leading e-commerce platforms are taking proactive measures. Flipkart, for instance, has committed to eliminating single-use plastic packaging and is transitioning to recycled alternatives. Similarly, Amazon India has introduced various measures which minimize waste. Q-commerce companies like Blinkit have also transitioned to fully biodegradable packaging in its orders. These initiatives resonate with the growing demand for eco-friendly practices. However, aggressive efforts are required for realising the intended goals.
Logistics and Carbon Emissions: The Need for Greener Deliveries
The traditional logistics network of e-commerce is a significant contributor to carbon emissions. The sector’s total annual emissions will amount to 80 lakh tonnes of CO2 by 2030, which is comparable to the emissions produced by 16.5 lakh petrol cars driven for an entire year. The rise of q-commerce, promising rapid deliveries, has added to the woes.
The expanding reach of e-commerce has led to higher demands for more complex logistics operations. With consumers expecting faster and more frequent deliveries, companies have to maintain extensive fleets, which are often powered by fossil fuels. This puts immense pressure on supply chains, not only in terms of efficiency but also environmental impact. According to World Economic Forum, last-mile delivery emissions in urban areas are projected to grow by 30% by 2030 if current practices continue, leading to increased traffic congestion and deteriorating air quality index.
To mitigate this, mandating the integration of electric vehicles (EVs) into delivery fleets is ‘the viable solution’. This transition would not only reduce carbon footprint but also align with India’s broader goal of achieving 30% EV penetration by 2030. While e-commerce companies have already started operationalising their EV strategy, an approach based on compliance rather than a practice is the need of the hour.
Looking Ahead: A Three-Point Strategy
Achieving sustainability in e-commerce requires cohesive efforts from the government, industry stakeholders, and consumers. The government’s ban on single-use plastics and incentives for EV adoption are commendable steps. However, more comprehensive actions are essential.
Global advocacy: The Conference of Parties’ (COP) push for circular economy principles focuses on waste reduction and resource efficiency. India needs to amplify this so that more countries adhere to norms that minimise and recycles waste coming from sectors like digital commerce. Since carbon financing is an eminent part of COP this year, e-commerce companies could engage with policymakers going forward, to advocate for tax credits or financial incentives when they achieve emission reduction milestones. Platforms could also explore collaborations to develop carbon offset programs or invest in local renewable energy projects.
Mandated change over voluntary change: The next set of policies should aim at making some measures a regulatory mandate rather than optional guidelines. This includes enforcing stricter standards on the use of eco-friendly packaging, requiring carbon footprint disclosures for all deliveries, and setting legally binding targets for emission reductions.
Consumer Awareness and Demand: Consumer behaviour plays a pivotal role in driving sustainability. A study indicates that 80% customers are more likely to buy from a brand with a positive approach to sustainability. E-commerce companies must leverage this by offering eco-friendly products and transparent information about their efforts.
India’s e-commerce sector is not just a digital convenience but an accelerator of the consumption economy. Prioritizing sustainable packaging and green logistics thus becomes a prerequisite responsibility of all the stakeholders involved. ……….…..(The author is Samir Hosangady, a Senior Advisor and Industry Expert in Logistics & Supply Chain. He is currently also a Consultant to Denmark-based A.P. Moller – Maersk)
