Covestro transitions to green logistics at Shanghai site

Based on the success of its pioneering green logistics pilot program in November last year, Covestro transitioned it into operational implementation, in collaboration with COSCO Shipping Logistics & Supply Chain Management Co., Ltd.

Management team from Covestro’s Head of Integrated Logistics APAC and COSCO Shipping Logistics & Supply Chain Management at the launch ceremony.

High emission from product transportation

Approximately 80% of Covestro’s total emissions stem from scope 3 emissions, or indirect emissions resulting from upstream and downstream processes, including supply chains, material transport, and raw material processing.

In the Asia Pacific region, around 70% of Covestro’s products are transported by truck, concerted efforts to reduce emissions within the logistics framework are specifically targeted at trucks.

Transition to green logistics

The initial phase involves the introduction of first electric heavy-duty truck to replace existing diesel truck for transporting polymeric diphenylmethane diisocyanate (pMDI) from the Shanghai site to nearby warehouses.

This electric heavy-duty truck will be the first one to transport pMDI from Covestro Integrated Site Shanghai to nearby warehouses.

This transition is set to cover part of the annual pMDI shuttle volume at Covestro’s largest production site, resulting in a projected reduction of 43 tons CO2 equivalent in well-to-wheel emissions in 2024, which is a 22% decrease compared to the 2022 baseline.

The future use of green power to charge the trucks will further contribute to the goal of achieving net zero in logistics.

“The commercial deployment of this groundbreaking electric truck for chemical shuttling is poised to act as a catalyst, propelling our site and company towards climate neutrality and a circular economy," stated Dr. Yun Chen, General Manager of Covestro Integrated Site Shanghai (CISS).

Covestro aims to become operationally climate neutral, including reducing both direct emissions from its own operations (scope 1) as well as indirect emissions from purchased energy (scope 2) to net zero by 2035. The company is poised to unveil its reduction targets for scope 3 emissions soon.