Reducing Emissions

We recognise that our core business relies on transportation to service our customers.

As an emissions-intense organisation, our commitment to the Toitū certification and the Climate Leaders Coalition process encourages our people and partners to make environmentally positive decisions.

As a significant member of the transport sector, we know it’s important to lead by example by being transparent and accountable regarding our climate actions.

2035 Science-based targets

Our parent company, Freightways had a baseline carbon footprint of 50,625 tonnes CO2e in 2020.

Freightways is committed to playing its part in the new carbon reality, but the technology solutions will take time.

Freightways’ 2030 target of 33,170 tonnes of CO2e (35% reduction) and 2035 target of 25,313 tonne CO2e (50% reduction).

Freightways’ 2030 target of 33,170 tonnes of CO2e (35% reduction) and 2035 target of 25,313 tonne CO2e (50% reduction) are science-based, aligning with what society needs to achieve globally to keep global warming to between 1.5°C and 2°C.

Much of our footprint sits in our supply chain, namely the contractors we partner with and the targets above apply their GHG emissions as well as our own direct emissions. We are actively engaging with our contractors and other suppliers on ways we can work together to bring emissions across the supply chain down. Procurement decisions are influenced by opportunities to decarbonise our supply chain.

Our reduction strategies focus on driving greater efficiencies; maintaining modern fleets; a move away from fossil fuel consumption; electrification of our road fleet over time; and a more fuel efficient air fleet in the future.

Technology to Reduce Carbon Emissions

In 2021, TOITŪ Envirocare named Freightways as a Top 10 Carbon Reducer.
Toitū Carbon Reduce

Our greenhouse gas emissions are measured in accordance with ISO 14064-1:2006, and we remain committed to managing and reducing our emissions. We are currently committed to a five-year reduction plan, with longer-term targets being developed on an ongoing basis.

We believe that our commitment to the Toitū-Carbon Reduce certification process encourages staff, contractors, business partners and suppliers to make environmentally positive decisions every day. As certified participants in TOITŪ’s carbon reduce programme, our carbon footprint is disclosed annually on the TOITŪ website.

TOITŪ verified Carbon Emissions Reporting

Our customers using electronic ticketing or prepaid charge labels can now get a Toitū verified Emissions Report for their courier transport. The report details the emissions for greater transparency and informed decision-making. The methodology behind this has been independently verified by TOITŪ Envirocare. The data is suitable for use in ISO 14064-1:2018 compliant inventory.

Example report
Example report
Example report

To request a report, speak to your New Zealand Couriers representative.

Reducing Greenhouse Gases

Well over 95% of our emissions come from the combustion of transport fuel. This is the fuel we use across our vehicles and aircraft. We are committed to reducing our emissions to levels that support New Zealand’s commitment to the Paris Accord.

Much of our footprint sits in our supply chain, namely with the contractors we partner with. We are actively engaging with them and other suppliers on ways we can work together to bring down emissions across the entire supply chain.

Our primary reduction strategies

Driving greater efficiencies through our network and density

We use GPS and mapping technologies to find the most efficient routes for couriers. This allows more items to be delivered per hour, with higher pay for couriers and fewer vehicles on the road. The rationalising of courier runs has extended to encompass all Freightways Express Package businesses. 

Maintaining modern fleets

We use modern equipment. We aim for the company vehicle fleet to be no older than 4 years, and we seek to take advantage of the lower emissions technology in recent vehicles. Regular maintenance and servicing of all company vehicles help ensure ongoing safety and low emissions, and we require all independent contractors to have late-model vehicles.  

Electrification of our road fleet over time

We are currently transitioning our company fleet to electric and hybrid vehicles. We will always look to make the most of new technology as it enters the market, and to keeping an ear to the ground for new innovation is a crucial part of our business strategy.

A more fuel-efficient air fleet in the future

We operate four modern Boeing 737 freight aircraft out of our three freight hubs in Auckland, Palmerston North and Christchurch. Our aviation business actively measures and manages its performance to minimise fuel usage and emissions. 

Reducing our use of fossil-based virgin plastics

Historically, satchels have been made from fossil-based virgin plastics. We now use 80%+ New Zealand-sourced recycled content (which would have been previously bound for landfill) in the manufacturing process. The resulting satchels are still ‘class 4 recyclable’. Read more about it here.

Independent Contractor model incentivises efficient fuel use

An absolute strength of ours has always been the Independent Contractor model. By having delivery professionals pay for their fuel and running costs (and paying contractors for every pick-up, on-board and delivery scan), these professionals are not only accountable for their productivity but also directly financially incentivised to minimise kilometres travelled (which also minimises emissions). 

LED lighting & solar-based energy in depots

Many of our depots have been converted to LED lighting, and as we set up new depots our teams are investigating feasibility of using of solar panels for energy capture and running of plant and operations.

On Track Results

As part of Freightways, we also disclose our footprint and targets in our Annual and Sustainability Reports and our carbon footprint is shared annually on the Toitū website.

To understand and report transparently against our emissions reduction goals, we are committed to managing and reducing our carbon footprint and have been measuring Scope 1, 2, and 3 GHG emissions since 2014 for our New Zealand operations, meeting the requirements of TOITŪ CarbonreduceTM certification and ISO 14064-1:2006.

Driven by Freightways

By optimising and rationalising our runs, the Freightways fleet has decreased by 4.5% across all brands whilst delivering the same number of items.

Scope (tCO2e)Baseline 2019FY20FY21FY22FY23
Scope 13,912.343,679.884,151.3410,083.6111,700.31
Scope 2873.07825.95802.044485.673,549.33
Scope 340,277.6046,118.7447,483.4971,502.1568,271.04
Total absolute emissions45,063.0150,624.5752,436.8786,071.4383,520.68
Total emissions intensity
(gross tCO2e/ $Millions operating revenue)

Our emissions calculation approach can be found here. Freightways’ emissions calculation uses an operational control consolidation approach and only includes fuel, electricity, and refrigerants. Emissions factors and Global Warming Potentials (GWPs) were provided by TOITŪ and reference the IPCC fifth assessment report (AR5). The remaining sources have been excluded on the basis that they are de minimise.

The following business unit was excluded:

  • Prior to FY22, GHG emissions above excluded Big Chill Distribution Limited and the Group’s Australia operations.
  • Freightways acquired Allied Express Transport Pty Limited (Allied) effective 30 September 2022. The GHG emissions above exclude Allied. Freightways intends to include Allied’s GHG emissions from FY24.

From the base year of 2013/14, we reduced emissions intensity (for Scope 1, 2 and 3 emissions) by 33.24 tCO2e/$M. In FY21, we set 2030 and 2035 emission reduction targets supported by a third-party consultant. We are working toward a 2030 target of 30% reduced GHG emissions and a 2035 target of 50% reduction in absolute GHG emissions from a 2019 baseline. Over 95% of our emissions come from the fuel we use in our fleet cars, our contracted courier vans and trucks, and the aircraft we use. Freightways’ efforts to achieve our targets are dependent on low emissions technology, which is not yet available to allow for meaningful progress made against the targets.

Climate Leaders Coalition

As part of Freightways, we are also members of the Climate Leaders Coalition, an organisation helping New Zealand transition to a low emissions economy and, in doing so, creating a positive future for New Zealanders, their businesses, and the economy.
Climate Leaders Coalition

Organisations from all sectors of the economy are represented in the Coalition, with the signatories making 60% of New Zealand’s gross emissions.