AS Watson, the world’s largest international health and beauty retailer, has ramped up its global supply chain sustainability efforts by transitioning its delivery fleet to electric vehicles and implementing waste reduction initiatives to combat climate change.

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“As a responsible global retailer, sustainability is at the heart of our business,” said Malina Ngai, Group CEO of AS Watson. “We’ve been investing and innovating to reduce our environmental impact and contribute to a more sustainable future. Our latest initiative focuses on making the delivery fleet of our supply chain more environmentally friendly. We operate 12 retail brands in our global portfolio, and 60% of them have started using electric vehicles for some of the warehouse-to-store and online order deliveries. While the adoption of electric vehicles is slow in the industry, I believe that we should take on the challenge to launch this initiative in as many markets as possible.”

Ngai acknowledged the challenges posed by electric vehicles, including limited driving range per charge, insufficient charging infrastructure, and current technology constraints. Despite these obstacles, AS Watson remains committed to transitioning its delivery fleet to more sustainable electric options wherever possible.

A recent survey highlighted that global direct carbon dioxide emissions from heavy and medium-duty trucks increased by 2.4% to 1.8 billion metric tons (GtCO₂) in 2022, contributing to around 25% of global transportation CO₂ emissions. Battery electric vehicles can help mitigate these issues, emitting at least 63% less CO₂ than comparable diesel vehicles.

Watsons China has made significant progress, with electric vehicles now accounting for over 80% of all warehouse-to-store deliveries in cities like Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin, Chongqing, and Xiamen. For online order deliveries, Superdrug, Savers, and ICI PARIS XL have started using electric vans and e-Cargo bikes in Central London and 13 emission-free zones in the Netherlands. Additionally, Watsons China, Singapore, and Taiwan have introduced electric vans and motorbikes for nationwide online order deliveries.

Superdrug, Savers, Kruidvat, and Trekpleister are also shifting towards greener fuels like liquefied natural gas (LNG) and compressed natural gas (CNG), which generate fewer carbon emissions than traditional diesel fuel.

In addition to electrifying its delivery fleet, AS Watson has made significant strides in waste reduction across its global supply chain, successfully diverting over 95% of warehouse waste from landfills. The company has also reduced the use of virgin plastics in its online business packaging by 50% year-on-year, showcasing its commitment to sustainable packaging solutions.

“We will continue our journey towards supply chain sustainability,” added Ngai. “We expect to see increasing adoption of electric vehicles and the introduction of more waste reduction initiatives to help create a more sustainable world. At AS Watson, sustainability is not a slogan but a culture that every one of our 130,000 colleagues globally embrace every day. Only by working together can we create a truly significant impact on the planet.”