Businesses worldwide are being challenged to deliver sustainable value creation while enhancing their environmental performance, including driving a zero emissions future. Companies that are major players in the global supply chains that are disproportionately responsible for the world’s carbon emissions, are working hard to reimagine their operations and the way in which they fulfill commitments to suppliers, customers, employees, and shareholders – to create value while protecting our planet and reducing future risk.

Many large Consumer Packaged Goods (CPG) companies and national retailers have made meaningful strides in this area. But what about within the often overlooked chemical distribution industry, a little-known backbone of our global economy? In fact, distribution-led supply chains have proven to be more efficient and more effective for transporting goods from large complex suppliers to tens of thousands of local customers. And chemical distributors like Univar Solutions own the total management of the supply chain, from supplier to end customer, and facilitate the journey of literally thousands of chemicals and ingredients. From pharmaceuticals, to food and a wide range of home care and beauty products, Univar Solutions works directly with well-known consumer product companies to help formulate next generation solutions as well as provide the chemicals and expertise needed for essentials like water treatment, energy and manufacturing.

In today’s globalized environment rife with supply chain headwinds and an overburdened transportation ecosystem, it is imperative for shippers to diversify and actively manage their modes of transportation to find the right balance of effectiveness, efficiency, and environmental impact for their business, customers, and for society as a whole.

That’s why at Univar Solutions, we are proud to be building a smarter, cleaner transportation system in collaboration with our suppliers, business partners and customers. We own the last mile of distribution and are committed to reducing our direct absolute greenhouse gas emissions by at least 40% by 2030 – and are hopeful that our systemic approach, that prioritizes and balances reliability of delivery and our impact on the environment, can serve as an important model for other distributors. Through minimizing our miles, adopting efficient equipment, and enacting targeted training, we are developing a best in class, vertically integrated transportation function. Our model will create a safe, collaborative transportation system that balances effective service at an efficient cost while helping deliver on our goal to reach net-zero emissions by 2050, in line with Univar Solutions’ purpose to keep our communities healthy, fed, clean, and safe.

A key priority to reducing our emissions is minimizing the miles our fleet travels. By taking a multipronged approach focused on adapting which mode of transportation we use, increasing our payload, prioritizing contracts with carriers with better payload and stronger emissions tracking, and optimizing our network to remove excess miles driven along delivery routes. Our ultimate goal is to reduce our overall miles driven which supports both emissions reductions and cost savings on an annual basis.

Univar Solutions is committed to converting a sizeable portion of our transportation miles to intermodal or rail options to minimize the number of miles that products are moved by trucks. By utilizing other modal options, we will be able to cut down on emissions by approximately 17 percent, representing a cost savings opportunity as well. With 1 railcar shipping the equivalency of approximately 4.3 trucks, this conversion will benefit Univar Solutions suppliers and customers by offering a freight capacity solution that increases transportation efficiency. It offers a cost advantage relative to the volatile expenses of the trucking sector associated with line haul and fuel, while also diversifying our exposure to the capacity constrained truckload (TL) market.  Additionally, this expansion of multi-modal management programs take advantage of the railroads well established advantages from a safety, and sustainability perspective that align well with both Univar Solutions and its suppliers as well as its customers. 

Through network optimization and further investment and expansion of our private fleet Univar Solutions is expanding our payload over a five year plan by maximizing our truckload and bulk capacity.  These operational priorities and efficiencies will drive value for our customers by reducing dock congestion with fewer deliveries to the same location, expand capacity for goods to be shipped on the private fleet vs carrier, and in so doing, reduce exposure to the dynamic carrier market swings in both price and capacity.

When determining external carrier partners, Univar Solutions is incorporating standards into the bid process that favor carriers with better payload, fuel efficiency, and emissions tracking technology to encourage the use of efficient equipment, and supports all carriers to reduce their emissions while improving safety performance. Looking to the future, Univar Solutions will also prioritize piloting programs that transport non-hazardous freight by electric and autonomous vehicles.  By adjusting our route guide with a stronger emphasis on asset-based carriers, with a stronger commitment to service, efficiency, and sustainability efforts, Univar Solutions is ensuring that its complete portfolio of freight capacity is evolving to better service its supplier’s and customer’s freight capacity requirements in a more effective and efficient manner.  By using volume across a smaller base of strategic carriers, Univar Solutions is able to gain better leverage with its carrier partners driving deeper and longer lasting improvements to on-time delivery, and sustainable capacity solutions that also mitigates exposure to inflationary swings ensuring a consistent, reliable, safe, and environmentally friendly transportation solution. Univar Solutions is focusing on evolving its own private fleet and taking advantage of new and emerging technologies, such as autonomous vehicle (AV) platforms, that drive an overall higher asset utilization rate that will translate into a significantly more efficient and effective private fleet that can offer an increase in reliable, safe, and efficient delivery opportunities for its customer base.

Through this process, Univar Solutions expects to reduce emissions and further create a cost savings opportunity, when compared to our current carrier bidding process and private fleet operations.

Beginning now Univar Solutions will undergo an analysis of our approximately 100 branch locations across 13 districts within the United States to begin tracking routes to increase asset utilization on both its dedicated and private fleets and ultimately reducing the number of miles driven and reduce exposure to the common carrier marketplace. These initiatives will drive an increase of freight onto the more efficient and effective assets under the direct control and management of Univar Solutions thus increasing service performance and mitigating cost exposure while also yielding a lower carbon footprint as loads are optimized into more multi-stop configurations and are distributed on more efficient assets such as Univar Solutions new EV assets from Nikola. Univar Solutions expects that we will be able to reduce our emissions through this optimization process, leading to additional cost savings opportunities.

As part of our strategy to reach net-zero carbon emissions by 2050 and as identified in our latest ESG Report, one core pillar of our long-term strategy is infrastructure and investment in low-emissions technology. Through prioritizing alternative fuel replacements, and reducing engine idling and speed governing, Univar Solutions is preparing our fleet for the future, with a goal of significantly contributing to a reduction of Scope 1 and Scope 2 emissions of 20% by 2025 against our baseline, representing a cost savings opportunity as well.

Univar Solutions will replace assets to increase our fleet’s average mile per gallon. Univar Solutions will adapt its heavy fleet to meet this goal through a phased approach focusing on proof of concept, a strong pilot program, and investments in capital replacements to create a portfolio approach in alternative liquid fuels, electrically powered tractor units and autonomous vehicles. We will also transition 75% of our light fleet to hybrid or electric vehicles by 2025. 

As part of our broader efforts to improve fuel efficiency, Univar Solutions will pilot the use of synthetic oil, and fuel additives which increases the mile per gallon of our private fleet.  Synthetic oils have been shown to improve MPG performance by reducing the internal friction of the engine, thus reducing the internal engine temperatures and provide a slight increase in horsepower and torque with thus reducing the amount of fuel needed. With the use of fuel additives that contain sustainable catalysts combustion efficiencies can be improved by converting more heat within the piston cylinders that then creates increased mechanical energy, thus requiring less fuel to be consumed by the asset.  Using synthetic oil and fuel additives will also reduce the amount of fuel and motor oil used, reducing the company’s carbon footprint. Based on early estimates, we expect that this conversion could improve our delivery fleet’s fuel usage.

Engine idling while waiting to make deliveries accounts for a portion of our fleet’s emissions. For package and bulk shipments, we will reduce emissions through implementing thresholds that account for the differences in freight profiles (bulk shipments typically require a passive idle during the product pump-off) yet focus on ensuring the tractors are only running while actively engaged in the distribution of products. These thresholds will be set through the vehicles ECM and monitored through on-board telematics (Samsara) to generate driver and asset specific efficiency reports that will be used to drive improve MPG performance. We will also model application of APUs for all bulk and mini-bulk deliveries to ensure that the necessary heating and cooling systems are still running, even if the truck is off. Additionally, Univar Solutions will take steps to minimize how driver’s speed on the road impacts our overall emissions. We currently rely on a standard static limit to govern truck speed, however by updating this limit by geographic region, we anticipate we will be able to reduce emissions by requiring trucks to drive slower in certain geographies throughout the country.

The way in which our trucks are driven, including acceleration, braking and anticipatory practices, is one of the most important factors affecting day-to-day fuel efficiency, impacting efficiency by up to 10%. Through targeted training, for our drivers, dispatchers, and transportation supervisors, Univar Solutions aims to reduce our emissions by modifying driver behavior and developing more efficient routes. The implementation of these processes will reduce our emissions and costs.

Univar Solutions will replace assets to increase our fleet’s average mile per gallon. Univar Solutions will adapt its heavy fleet to meet this goal through a phased approach focusing on proof of concept, a strong pilot program, and investments in capital replacements to create a portfolio approach in alternative liquid fuels, electrically powered tractor units and autonomous vehicles. We will also transition 75% of our light fleet to hybrid or electric vehicles by 2025. 

Univar Solutions will utilize in-cab telematics to modify, monitor, and coach driver behavior with a focus on safety and reducing emissions by improving pre and post-trip inspections, and reduce sudden acceleration and sudden braking incidents, in addition to reducing idling and speed governing. By establishing, monitoring, and coaching these processes and behaviors, Univar Solutions’ team of professional drivers will raise the bar on safe driving operations while also improving fuel efficiencies and reduce wear and tear on the assets they drive. We will also explore best practices for the industry to enhance our performance, such as SMITH system driver training.

To reduce our emissions and optimize our routes, Univar Solutions is implementing an efficiency training program which will result in a positive improvement in mile per gallon (MPG) performance as well as reducing the overall mileage though route optimization.   By promoting dispatch and routing excellence to pair the right truck to the right route we will ensure the highest MPG performing assets are on the longest length runs, thus maximizing the efficiency potential. By reviewing and dispatching our fleets holistically within the districts we will identify and exploit natural font-haul/backhaul opportunities reducing the overall number of assets needed on a given day.

Like many backbones to society, chemical distribution is a highly time-sensitive industry, where competition is strong, and the availability of product along with the consistency to get the product where it needs to be and when it needs to be there, all at a competitive price point are very important. We also recognize our commitment to find ways to meet our supplier and customers’ needs while also fulfilling our obligations to our many stakeholders to contribute to a meaningful reduction in emissions from the means of transport. Through this three-pronged approach focused on minimizing miles, efficient equipment, and targeted training, Univar Solutions is creating a system that meets our clients today and will help us drive forward to a more efficient future together.