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Prioritizing theFactors Leading toCarbon
Footprint Neutrality inIndian Logistics
Operation Toward Net-Zero Emission: AnAHP Approach
SameerShekhar, ShahbazKhan, SwetaLeenaHota,
andK.K.MuhammadNajeeb
Abstract The advent of technology and economic development has led to
environmental degradation on various fronts. Today’s economic development is
largely driven by the efficient and effective logistics and supply chain operation
which yields implicit logistics issues including wastage of the resources, carbon
emission, and that of the greenhouse gases leading to climate change. The issues
have gathered attention of the global community toward having a sustainable envi-
ronmentally friendly distribution system that may lead toward low-carbon emission
SCM and logistics mechanism. Therefore, this necessitates the model that may lead
the age toward carbon neutrality. In this connotation, the study tries prioritizing the
factors which plays a significant role in ensuring green logistics with low-carbon
emission toward net-zero emission by using analytical hierarchy process (AHP)
method. The research has been conducted along nine experts’ perception on the
comparative scale for the identified criteria. The multidimensional decisive frame-
work focuses on 5 significant criteria, i.e., operational efficiency, resource utiliza-
tion and management, infrastructural efficiency, cargo handling mechanism, and
logistics personnel efficiency identified aspects based on literature survey which
have further expansion up to total 20 sub-criteria along which the survey has been
conducted using AHP questionnaire. The AHP analysis result has come up with the
empirical result providing scope for decision-making by Indian logistics firms to
adopt carbon neutrality toward attainment of net-zero emission.
S. Shekhar (*) · S. L. Hota · K. K. MuhammadNajeeb
KSFH, Kalinga Institute of Industrial Technology (KIIT), Deemed to be the University, Bhubaneshwar, India
e-mail: muhammad.najeebfcm@kiit.ac.in S. Khan
Department of Industrial Engineering, University of Tabuk, Tabuk, Kingdom of Saudi Arabia
© The Author(s), under exclusive license to Springer Nature 61 Switzerland AG 2024
R. Singh et al. (eds.), Net Zero Economy, Corporate Social Responsibility and
Sustainable Value Creation, CSR, Sustainability, Ethics & Governance,
https://doi.org/10.1007/978-3-031-55779-8_4 62 S. Shekhar et al. 1 Introduction
Over the past 20 years, the main worldwide worry has been the growing threat
posed by climate change and global warming. Researchers have been analyzing the
effects of global warming on the global economy in detail since the 1990s. Global
institutions like the United Nations have been working to create legally binding,
international agreements that would lessen the negative effects of global warming.
One such accord, the Kyoto Protocol, was agreed in 1997 following much deliberation.
In order to achieve its development and poverty eradication goals, India’s green-
house gas emissions are expected to rise, although from a low base. It should be
emphasized that, although having 17% of the world’s population, India’s historical
cumulative emissions from 1850 to 2019 equal to less than 4% of the world’s cumu-
lative carbon dioxide emissions from the preindustrial era. As a result, India’s con-
tribution to global warming has been negligible thus far, and its yearly per capita
emissions are still just around one-third of the world average.
India stated its goal of reaching net-zero emissions by 2070 at the United Nations
Framework Convention on Climate Change (COP 26) in November 2021. In accor-
dance with Article 19 of the Paris Agreement, India’s long-term low-carbon devel-
opment strategy has been presented to the United Nations Framework Convention
on Climate Change, reaffirming the objective of attaining net-zero emissions by
2070. The ideas of equity and climate justice, as well as the principle of Common
but Differentiated Responsibilities and Respective Capabilities, underpin India’s
long-term low-carbon development plan.
The Ministry of Environment, Forests, and Climate Change launched the
National Clean Air Programme (NCAP) in January 2019 with the goal of enhancing
the air quality in 131 cities across 24 states. The program is focused on achieving
the National Air Quality Standards of PM 10 concentration by 2023–2026 by
involving stakeholders. Furthermore, in order to establish compressed biogas plants
for the manufacture of CBG vehicle fuels, the government has started a program
called Sustainable Alternative Towards Affordable Transportation (SATAT). The
government’s initiative to subsidize electric vehicles is a significant step in the
direction of reducing carbon emissions.
It is quite difficult to navigate the complex web of accounting and emissions
reporting procedures inside supply chains. Businesses frequently struggle with
insufficient access to critical data, which impairs their capacity to make defensible
decisions and significant progress toward reducing emissions. The intricate and
multilayered structure of supply chains obscures emissions monitoring and enforce-
ment of compliance, hindering the process of achieving carbon neutrality (Spiller,
2021; Touboulic, etal., 2018). Furthermore, setting aggressive decarbonization tar-
gets is impeded by the lack of consistent reporting and the reliance on faulty data
from suppliers, customers, and secondary sources (Spiller, 2021).
The demand for energy worldwide and the corresponding emissions are mostly
attributed to the transportation industry. Nations all around the world have been
Prioritizing the Factors Leading to Carbon Footprint Neutrality in Indian Logistics… 63
coming up with plans to reduce emissions from this industry. Despite making up
less than 5% of India’s total energy consumption and almost 11% of the country’s
energy-related carbon dioxide emissions, the transport sector’s emissions are
increasing more quickly than those of other sectors. The transport sector outlook
has revealed that economic development has induced increase in four-wheeler
demand along with private passenger vehicles leading to congestion and more car-
bon emission. Rising income levels have increased domestic air travel demand
along with dominance of trucks in India’s freight transport. Due to the transporta-
tion of commodities, energy use in production, distribution, and waste disposal,
supply chains are a major contributor to greenhouse gas emissions (Ghosh etal.,
2020; Zhang etal., 2022). Reducing carbon footprints through the adoption of sus-
tainable supply chain strategies can pave the road for a more sustainable future. For
example, companies can reduce packaging waste by using environmentally friendly
materials, optimizing logistics to reduce emissions from shipping, and looking for
suppliers who use low-carbon production.
Controlling the carbon footprint of the supply chain is a business requirement as
well as an issue of environmental responsibility. Businesses need to understand that
in order to maintain their profitability in the low-carbon economy, future-proof their
operations, and prepare for climate regulations, they must effectively manage the
emissions from their supply chain. While there is still much work to be done, com-
panies can significantly reduce their supply chain carbon footprint and aid in the
global effort to combat climate change by implementing the appropriate strategies,
utilizing the appropriate tools, and forming partnerships. The present study looks to
identify those specific factors and prioritize their significance which are capable in
minimizing the carbon emission during course of logistics operation. 2 Literature Survey
Logistics and supply chains are a major producer of carbon emissions, generating
nearly 60% globally (Timmermans, )
2022 . It has high operating costs in India and
is susceptible to the risks and disruptions of climate change. Developing a sustain-
able supply chain and logistic network is therefore an essential step in the transition
toward net-zero carbon. Reaching net-zero emissions requires radical changes in all
economic sectors, including the digitalization of the supply chain. According to
Antikainena et al. (2018), there is potential for this digital transition to reduce
resource consumption and promote a move toward a circular economy. Supply
chain possesses the ability to guide sustainability and strengthen resilience when
they are equipped with digital technologies and innovation, coupled with strong
data management and trained personnel (Timmermans, ) 2022 .
It is often known that incorporating new digital technologies can greatly enhance
an organization’s performance (Dubey etal., 2019; Fosso-Wamba etal., ) 2015 . In a
similar vein, these developments have demonstrated promise for improving global
supply chains’ overall performance (Rai et al., 2006; Govindan et al., 2018). 64 S. Shekhar et al.
Cutting-edge information technologies (IT), particularly advancements in big data
(BD), hold the promise of fostering greater success within supply chains (Rai etal.,
2006) and among businesses (Dubey et al., 2019). Seuring and Müller (2008)
revealed that sustainable supply chain management (SSCM) involves material man-
agement and procurement, and flow of information free from barriers, while align-
ing with different dimensions of sustainable development. Intelligent and barrier-free
communication leads to creation of successful SCM by building trust, facilitating
client collaboration through smooth exchange of information (León-Bravo et al.,
2019, Zhang et al., 2020), and positive development of supplier projects, thus dem-
onstrating a convening and positive supplier-customer relationship management (de
Sousa Jabbour etal., 2015; Vargas etal., 2018). Transportation being an indispens-
able and inherent part of supply chain, proper timely vehicle scheduling and accu-
rate route optimization will lead to tracking and controlling emission, thus ultimately
bringing about net-zero emission (Islam etal., 2021; Esfahbodi etal., ; 2017 Golini etal., 2017).
Expansion of trade fueled by the globalization started in the late twentieth cen-
tury all over the world created a huge demand for logistic networks. Based on this
boosted up demand for the logistic services, the infrastructures such as storage facil-
ities, road networks, and rail networks were created in an accelerated pace across
the globe. Huang etal. (2018), Wang etal. (2015), Liu etal. (2017), and Karlsson
etal. (2020) identified that the materials used for developing logistic network infra-
structure are the major source of carbon emission. Upgradation along with redesign-
ing of freight logistics using environment-friendly storage capacity of distribution
nodes will lead to efficient distribution system (Islam et al., ) 2021 . Islam et al.
(2021) have also propounded for optimum utilization of delivery vehicles, opti-
mum. So, efficiency in the development of infrastructural facilities is essential for
achieving the goal of net-zero carbon emissions (Islam etal., 2021).
Given the limited availability of natural resources, particularly rare metals, it’s
crucial to optimize their utilization. This underscores the importance of resource
management (RM), conservation efforts, and finding alternative materials to reduce
resource consumption within the supply chain. Given the limited availability of
resources, it becomes crucial to optimize resource utilization and management
within supply chain (Thong & Wong, )
2018 . Integrated approaches and coopera-
tively designed systems—also referred to as the merging of digital and physical
systems—are examples of extremely successful techniques. They are essential for
reducing material usage, lowering logistics costs, and optimizing supply chain
tracking systems for quick decisions (Baliga et al., ;
2020 Cousins et al., 2019).
Nearly 55% of global greenhouse gas emissions are curbed by renewable energy.
Adopting fuel and electricity from renewable sources, with reduction of non-
renewable resource consumption, is a step toward becoming a net-zero state. By
adopting renewable energy on a large scale, reduction in carbon footprints can be
significantly ensured. It would also help in streamlining the logistics operation in
compliance with the stated regulations and would ultimately enhance resilience in
the long term. Similarly moving toward environment-friendly alternative raw
Prioritizing the Factors Leading to Carbon Footprint Neutrality in Indian Logistics… 65
materials will go a long way in bringing about net-zero emission. Packaging waste
can be reduced by using environmentally viable materials, along with optimization
of logistics to reduce carbon emission from transportation and moving toward low-
carbon suppliers (Ellen Macarthur Foundation, 2019; Ghosh et al., 2020; Zhang
etal., 2022). Mallidis etal. ( )
2014 advocated for an economically viable and eco-
conscious approach where they recommended leveraging shared warehouses and
transportation methods to decrease the overall CO e 2 missions within the supply
chain. Logistics practices, including recycling of the containers, utilization of vehi-
cles which are energy-efficient, bringing in practice the recycling of pallets used,
and reduction of overpackaging, help in building net-zero supply chain manage-
ment system (Vargas etal., 2018; Ahmad etal., ) 2016 .
Human resource management or the logistics personnel is a vital element toward
achieving sustainable supply chain management. Proper training and learning for
logistics practitioners will enhance their awareness and lead toward net-zero emis- sions (Raut etal., ; 2017 Jia etal., )
2015 . Educational program will enhance their
decisions toward eco-friendly supply chain practices (Vargas etal., 2018). As some
countries have established rules to curb emissions, it becomes imperative for logis-
tics personnel to be aware of such rules and adhere to the same (Raut etal., ) 2017 .
The cargo handling equipment energy usage is pivotal in shaping a port’s sus-
tainability and energy expenses. By implementing intelligent and eco-friendly cargo
handling machinery, ports can actively contribute to environmental protection,
energy conservation, and cost-effectiveness (Lee etal., ) 2018 . Green cargo handling
machinery can only be effective if there is a need for efficient energy storage system
that can help achieve zero emission supply chain. Minimizing the empty containers
by repositioning and turnaround can be achieved by consolidation and collaboration
efforts between suppliers through multi-drop and multipack strategies, along with
cross-docking. This would involve integrating demand, consolidating internal and
external systems, coordinating batch sizes, leveraging warehousing through col-
laborations, and partnering with vendors to minimize packaging sizes and also iden-
tifying shorter transportation routes for cost and emission reduction (Islam etal.,
2021; Golini etal., 2017). Vargas etal. ( )
2018 have strongly advocated for refur-
bishing and reusing of containers, recycling of pallet systems, and promotion of
green packaging along with enhancing the port and deport capacity which will
eventually lead to net-zero emissions.
T.L.Satty, an American OR professor, invented the analytical hierarchy process
(AHP) (Satty, 1980). It is a multicriteria decision-making process that incorporates
both quantitative and qualitative data (Javanbarg etal., ; 2012 Sharma etal., 2020).
Nonstructural issues are generally addressed by this analytical methodology and are
distinguished by its ability to organize numerous components into complicated
issues by splitting them into interconnected and ordered layers (Xiong etal., 2021).
The AHP integrates the experts’ view with the analyst’s judgement on the set objec-
tives. The method quantifies the experts’ view opinion based on and shows the rel-
evance of pairwise comparisons of different factors at one defined level
(González-Prida etal., 2012, 2014; Kim etal., 2022). A mathematical approach is 66 S. Shekhar et al.
used to calculate the weight of each criterion taken into consideration. The weight
indicates their relative importance with other factors, and the total priority is determined.
Broadly, there are three main steps in the AHP method, i.e., consistency verifica-
tion, calculation of relative weight, and stratification of the problem or the ranking
of the factors based on their calculated weight (Chen et al., 2023; Chen, 2020). Chen et al. ( )
2015 employed the Petri network method along with hierarchical
method for designing logistics distribution system in the urban region of China,
which was limited to low-carbon development aspects and made no progress toward
strategic inference which may create considerable difference in carbon footprint
reduction. Using the Petri network approach, Aized and Srai ( ) 2014 created a hier-
archical model to determine how many delivery tools are needed and to map out a
path for the last mile operation of a logistics distribution system. Nevertheless,
increasing distribution efficiency in the logistics distribution process is a systematic
issue, and the research does not include sufficient supporting data. The logistics
management field has made extensive use of the AHP method. Seuring and Müller (2008), Liu and Lyons ( ) 2011 , Loureiro et al., ( ) 2022 ; and Raut et al., ( ) 2019 devel-
oped AHP-DEA as a combined model of evaluation for providing unique result and
suggestions. The model was used to assess the third- party logistics performance of
the firms. Nevertheless, the research lacked firm- level evidence because it concen-
trated on a macro-level comparison. So much research has been conducted utilizing
AHP for finding out the best alternative in many respects and finding out the solu-
tion as well. Xiong etal. (2021) examined the performance of cold chain enterprises
using the analytical hierarchy process (AHP) method and suggested enhancing the
customer services, management of the financial affairs, cold chain infrastructure,
and other dimensions of the evaluation system. However, their study did not offer
any evidence to support the low-carbon, environmentally friendly, and sustainable
development of cold chain enterprises. In a different study, sustainable decision-
making process of logistics outsourcing was studied by Zarbakhshnia etal. (2020)
using the AHP.Fuzzy AHP and fuzzy VIKOR methods were used by Wang etal.
(2021) for proposing a multicriteria optimization model for third-party logistics. It
was examined from third-party logistics supplier selection viewpoint, but it did not
come up with any decision-making model that may lead to further sustainable
development approach from the standpoint of the logistics firms. 3 Methodology
It is an exploratory study which delves to determine the priority weight of the dif-
ferent aspects in logistics operation which plays a vital role in ensuring the reduc-
tion in carbon emission. The study has been conducted along several predetermined
factors that helps in ensuring an effort of the Indian logistics toward attainment of
net-zero emission in logistics sector. Therefore, literature has come up with several
factors which were put before the experts from academia and industrial sector
engaged in logistics operation and having considerable experience in the field of
Prioritizing the Factors Leading to Carbon Footprint Neutrality in Indian Logistics… 67
logistics and supply chain research. Based on the literature survey and experts’
opinion, a list of five factors and several sub-factors under them were identified as presented in Table1.
Based on the literature survey, a list of influencing factors have been identified
under five different categories having several sub-criteria under each, which have been presented in Table . 1
Based on the list of enabling factors identified from literature survey and vali-
dated and refined by the experts, a questionnaire was developed along pairwise
comparative scale referring Saaty’s comparison table depicted in Table2, according
to which the experts as respondents have assigned preference values to the superior criteria.
The responses were collected from the same experts who helped to conform the
list of factors and sub-factors ensuring the minimization of carbon emission in
logistics practices, which were further put to conduct the analytical hierarchy pro-
cess (AHP) to prioritize the main factors and the respective sub-factors. Also, the
global ranking has been calculated to determine the rank of all the elements as a list of whole.
The identified enabling factors and sub-factors have been used for conducting
the study and reaching the inference by prioritizing them by using a multicriteria
Table 1 List of criteria and sub-criteria identified influencing carbon emission during course of
logistics operation Indian perspective Sub- Criteria Code Sub-criteria criteria Authors (year) Operational efficiency OE Stable big data SBDP León-Bravo etal. (2019); processing Zhang et al., (2020); Islam etal. (2021) Intelligent and IBFC Islam etal. (2021); barrier-free Esfahbodi etal. (2017) communication Timely vehicle TVS Golini etal. (2017); scheduling León-Bravo etal. (2019) Accurate route ARO Esfahbodi etal. ( ) 2017 ; optimization Golini etal. (2017) Single-window system SWSD Zhang et al., ( ) 2020 ; Islam documentation etal. (2021) Infrastructural IE Urban infrastructure UIFR Huang etal. (2018), Wang efficiency etal. (2015), Liu etal. (2017) Distribution node DNF Wang etal. (2015), Liu frequency facility etal. (2017) Storage capacity of SFC Liu etal. (2017), and distribution nodes Karlsson etal. (2020); Islam etal. (2021) Number of delivery NDV Karlsson etal. (2020) vehicles Type of delivery TDV Karlsson etal. (2020); vehicles Islam etal. (2021) (continued)