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Integrating EVs in our last mile network

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At Hindustan Unilever, since its very inception, we have championed sustainability at every step to drive real-time change at the grassroots and beyond. To help fulfil our vision of a cleaner, greener future, we have embarked on an ambitious and transformative journey to reduce carbon emissions. Driven by our climate action commitments, we are striving to achieve zero emissions in Manufacturing operations by 2030 and net zero emissions for all our products from sourcing to point of sale by 2039.

A picture of an white coloured EV from HUL's last mile distribution network

A roadmap to sustainability

Committed to reducing carbon emissions in our value chain, we have taken several steps to reduce carbon emission intensity in our logistics operations through the, three key levers below:

  • Travel less
  • Travel efficiently
  • Power renewably

Through these levers, the objective is to reduce the distance travelled, improve efficiency and asset utilisation, and harness green energy for transport operations. However, no great feat is achieved without collaboration. Our vision of a greener future is grounded in partnerships, customer centricity, and driving cutting-edge innovation. To this end, we are exploring a progressive partnership with Jio-BP to enable the use of their Bio-CNG production facility.

Green energy for future-ready mobility solutions

When it comes to emission control, Bio-CNG is an incredibly potent tool to have at one’s disposal. It has the power to reduce emissions by 70% in comparison to diesel-run vehicles and is an unequivocal alternative for first and mid-mile transportation. With its manufacturing relying heavily on feedstock availability, the agricultural belts of Uttar Pradesh and Punjab offer fertile grounds to produce Bio-CNG.

Jio-Bp in collaboration with HUL is setting up Bio-CNG filling stations in the proximity of HUL strategic sites in Uttar Pradesh & Punjab. The routes will be within 200kms, basis range covered in single fill of fuel in vehicle.

Reducing distance travelled

Another key achievement in primary logistics is reducing CO2 emission by reducing distance travelled by 10% in the last five years, serving our ‘travel less’ strategy. This not only helps in improving agility but also helps to reduce costs and deliver sustainability goals.

Introducing EVs in our distribution network

Furthering our approach of taking the customer along and driving innovation towards our net-zero ambition, we began with the pilot of two EVs in Delhi, with a sharp focus on distributor points.

A major boost was the Delhi government’s regulations that allowed EVs to run during no entry timings that helped increase delivery by a staggering 10%-20%. Today, our Last Mile Network is powered by 106 EVs that offer a host of benefits. In addition to driving sustainability, they are digitally enabled and require lesser maintenance as compared to diesel vehicles.

Our vision for the future

We have a long, long way to go. But our journey so far motivates us, empowering us to navigate the uncharted terrain confidently. We strive to deploy more EVs across all HUL logistics ecosystems i.e., from factory to depot & depot to customer with introduction of higher payload EVs in the market. We are also targeting to deploy EVs in non-metro cities through strategic partnerships with Original Equipment Manufacturers (OEMs) and Logistics Service Providers (LSPs).

We will also continue to harness and explore Bio CNG, Hydrogen, and other green energy options as a fuel in other part of geographies.

Steadily working towards reducing our emission in logistics exemplifies our commitment towards net zero. And together with our vendors, partners, and customers, we are striving for a greener, cleaner, and sustainable future.

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