ESG

Ultra Low Emission Zones – the new direction for European cities?

2024-01-15 przez iLabs - Kamil

Clean transport zones in Europe

As of June 2022, Europe had 320 active Low Emission Zones (LEZs), marking a 40% increase since 2019. This number is projected to rise by another 58%, reaching 507 LEZs by 2025, driven by new national laws in countries like France, Spain, and Poland that mandate or support the adoption of such schemes. For now Germany and Italy lead in the number of low emission zones implemented.

However the effectiveness of these zones is evident now in cities like London, where the largest clean air zone operates. The ULEZ in central London has led to a 46% reduction in nitrogen dioxide (NO₂) levels compared to what they would have been without the scheme. In addition, some London boroughs now meet World Health Organization (WHO) standards for PM2.5 levels, significantly improving air quality in both inner London and outer.

The impact of ULEZ on air quality, public health, and the economy

The introduction of Ultra Low Emission Zones (ULEZ) has proven to be a transformative measure for urban centers aiming to tackle air pollution, protect public health, and transition towards sustainable mobility. By targeting the most polluting vehicles and enforcing strict emissions standards, cities like as mentioned London have demonstrated measurable improvements in air quality, which translate into significant health and economic benefits.

Air quality improvements and public health benefits

Air pollution is a major public health issue, with the World Health Organization (WHO) estimating that exposure to poor air quality causes 7 million premature deaths annually worldwide. In urban areas, transport emissions are a leading contributor to air pollution, particularly nitrogen dioxide (NO₂) and particulate matter (PM2.5). The ULEZ implementation has directly addressed these pollutants.

Economic costs and operational adjustments

While the initial cost of implementing ULEZ and transitioning vehicle fleets to compliance is high, the long-term savings are significant. For businesses, particularly those in logistics and courier industries, the costs include:

Upgrading fleets: electric vans, often used to meet ULEZ standards, cost £30,000–£40,000, compared to approximately £20,000 for diesel cars.
Daily charges for non-compliant vehicles: vehicles that do not meet ULEZ emissions standards face daily charges of £12.50 for cars and vans or £100 for larger vehicles like lorries. For businesses relying on extensive urban deliveries, this can lead to significant operational costs if fleets are not updated.

Opportunities and benefits for the courier industry

In Poland, ULEZ has been in effect since July 1, 2024 in the capital, while Cracow and Wroclaw are planning to introduce these zones. The report “Transforming the Last Mile. Zero Emission in Urban Logistics” by the Foundation for the Promotion of Electric Vehicles (FPPE) highlights several implications of the move for the courier industry.

Reduction in delivery times

ULEZ areas, with fewer polluting vehicles and improved air quality, experience reduced traffic congestion. This has a direct positive impact on delivery times, especially for last-mile logistics, which is typically the most time-sensitive and challenging part of the supply chain.

Zero-emission vehicles: electric vans, increasingly adopted by courier companies, can move more freely within ULEZ areas without the need for paying daily charges. These vehicles also benefit from lower traffic restrictions and can use routes specifically designated for eco-friendly transport, such as bus lanes in some urban areas.
Improved traffic flow: studies from London indicate that areas with ULEZ implementation have seen smoother traffic flow due to fewer vehicles entering the zone. This allows couriers to make deliveries more quickly and efficiently.

Long-term cost savings

Although the initial cost of transitioning to ULEZ-compliant vehicles such as electric or hybrid vans and lorries is significant, the long-term economic benefits outweigh these expenses.

Lower naintenance costs: electric vehicles (EVs) have fewer moving parts than internal combustion engine (ICE) vehicles, resulting in reduced maintenance costs. Brake wear is also lower in EVs due to regenerative braking technology.
Reduced fuel expenses: with fluctuating fuel prices, the predictable and often lower energy costs of charging electric vehicles provide a financial advantage. For example, charging an electric van is up to 70% cheaper per kilometer than fueling a diesel equivalent.
Incentives and grants: governments and local authorities offer various financial incentives to support the transition, such as grants for purchasing electric vehicles or tax exemptions for ULEZ-compliant fleets. In London, the scrappage scheme provides funding for replacing old vehicles, further easing the financial burden.

Meeting customer demands

The rise in consumer awareness about sustainability and environmental impact has made green logistics a critical factor for customer loyalty and brand reputation. Businesses adopting ULEZ-compliant fleets are seen as responsible and forward-thinking.

Sustainability as a selling point: companies that highlight their commitment to reducing emissions, through measures such as investing in electric vans or using carbon-neutral delivery services, appeal to environmentally conscious consumers.
Enhanced customer loyalty: studies show that 71% of consumers prefer brands with a demonstrated commitment to sustainability. Offering ULEZ-compliant deliveries, which actively reduce air pollution, can help couriers strengthen customer relationships.
Corporate partnerships: businesses increasingly prioritize working with logistics providers that align with their sustainability goals. By adopting ULEZ-compliant fleets, courier companies position themselves as ideal partners for environmentally focused corporations.

Contribution to climate goals

Investing in ULEZ-compliant fleets helps courier companies align with broader climate objectives. Governments worldwide are implementing stricter emissions targets, and by complying with ULEZ regulations, businesses contribute to reducing greenhouse gas emissions.

Carbon neutrality: transitioning to electric or hybrid fleets aids courier companies in achieving their carbon-neutral goals, which are becoming a requirement for many multinational partners.
Future-proofing operations: as regulations tighten globally, businesses that adapt early will face fewer disruptions in the future.

Costs and benefits: a closer look

ULEZ compliance delivers indirect financial benefits through improved public health and reduced environmental damage. These improvements contribute to healthcare savings. Reduced rates of respiratory and cardiovascular diseases are expected to save the UK healthcare system approximately £4 billion over the next decade. Environmental benefits include a reduction of approximately 800,000 tonnes of CO₂ emissions in Greater London over four years, equivalent to removing 175,000 cars from the roads annually. Such reductions support broader climate goals, including the UK’s commitment to achieving net-zero emissions by 2050.

However the implementation of Ultra Low Emission Zones (ULEZ) entails both challenges and opportunities for businesses, particularly in the courier and logistics sectors. Businesses that adapt to ULEZ requirements also gain competitive advantages. Courier companies that transition to zero-emission fleets position themselves as leaders in sustainable logistics, appealing to environmentally conscious customers and corporate partners. For example, DHL’s introduction of electric cargo bikes in London’s ULEZ areas has reduced delivery times during peak traffic hours by 25% while eliminating emissions from those routes.

While ULEZ implementation presents challenges, such as significant upfront investments, the long-term economic benefits—ranging from lower operating costs to public health savings—make it a transformative approach for sustainable urban development. The experiences of cities like London demonstrate the potential for ULEZ to drive economic growth, improve public health, and combat climate change.

More progress on decarbonized transport: how political decisions affect the move toward climate neutrality

2023-12-18 przez iLabs - Kamil

More progress on decarbonized transport: how political decisions affect the move toward climate neutrality

The Paris Agreement aims to have the European Union achieve climate neutrality by 2050. It is estimated that transport is responsible for 1/4 of greenhouse gas emissions within the Union, and it is this sector that is currently doing the worst in implementing the commitment¹. What political decisions are about to change that?

Only zero-emission vehicles from 2035

In March 2023, the Council of the European Union adopted a rather radical solution to allow only the sales of zero-emission new passenger cars and vans in the Community from 2035. In addition, a 55% reduction in emissions for cars and 50% for vans is to be achieved between 2030 and 2035.

Heavy-duty vehicle tolls

In November 2021, the Eurovignette Directive was amended. The new regulations went into effect in March 2022, and require the drivers of heavy-duty vehicles to pay tolls for the use of certain parts of the road infrastructure in order to help reduce CO₂ emissions.

Euro 7

Cars contribute not only to CO₂ emissions, but to air pollution as well. For this reason, the European Union has been working on the Euro 7 standard which is expected to further reduce the level of additional pollutants, for example, from tires, brakes and batteries. The regulations, which have been in the works since September 2023, are expected to apply to passenger cars and vans as well as trucks.

It is worth noting that decarbonized transport solutions apply equally to passenger car and truck owners, forcing the logistics industry to take radical steps.

https://www.consilium.europa.eu/pl/policies/clean-and-sustainable-mobility/#goals

How are global brands adapting to sustainability requirements?

2023-12-04 przez iLabs - Kamil

How are global brands adapting to sustainability requirements?

ESG, the non-financial corporate assessment model being implemented by the European Commission, has made sustainability a hot business topic in again. How are e-commerce giants approaching it? Here are some examples.

Amazon’s ambitious goals

US Amazon certainly deserves its title of giant. The company has set itself an ambitious goal – to achieve climate neutrality by 2040. To this end, it is investing in renewable energy, such as the 3,900 solar panels that power its robotics centre in Świebodzin. The company is also committed to green transportation. It plans to be using 100,000 electric vehicles by 2030 to reduce CO₂ emissions by several million tons. In addition, Amazon is constantly improving its supply chain, promoting eco-friendly packaging and the idea of recycling¹.

Sustainability by Allegro

How is sustainability being implemented by Polish giants? Let us take a look at the 2022 ESG report presented by Allegro. In terms of ecology, it says that 98% of the warehouse waste generated by the company is recycled. Allegro boasts a 10.4% reduction in CO₂ emissions in its supply chain, as well as the introduction of nearly 4 million eco-friendly packages into the market.

There is an eco-friendly tint to Allegro’s One Box parcel lockers, as while they are powered by electricity from the grid, the company purchases energy certified with green certificates. In addition, the lockers are covered with vegetation and measure air quality in the area.

ESG strategy at Alsendo Group

The development of ESG initiatives is a priority for the Alsendo Group. Our business models are developed and implemented in accordance with UN recommendations aimed at minimizing the negative impact of businesses on the global environment. Demonstrating a strong commitment to environmental protection and social responsibility, we are committed to sustainability and environmental neutrality in every aspect of our operations. Part of this process is an emphasis on developing low-carbon forms of courier services, launching educational projects to promote environmentally friendly forms of sending and picking up parcels, and driving change in our daily work. The effects of our decisions are already visible – we have sent more than 50,000 emails encouraging the use of PUDOs and parcel lockers as the most environmentally friendly courier service option, our paper consumption has been reduced by 35%, and electricity by 15%. Alsendo Group expects to continue its sustainability strategy by launching new projects in the area of environmental impact, labour and social relations, and corporate governance.

https://mycompanypolska.pl/artykul/7-sposobow-na-zrownowazony-rozwoj-w-e-commerce/12553

Ethics and digital awareness in online shopping: how do consumers respond to privacy and data security issues?

2023-11-13 przez iLabs - Kamil

The growing popularity of online shopping

According to the E-commerce in Poland 2024 report published by IAB Polska, 78% of Polish internet users shop online, maintaining a stable trend over recent years. Notably, 36% of respondents purchase from international e-commerce platforms, an increase of 6 percentage points compared to the previous year. Moreover, 61% of users now engage in second-hand online shopping, reflecting a shift toward sustainable e-commerce. As digital transactions continue to expand, so do opportunities for enhancing security, trust, and convenience in online shopping. Innovations in cybersecurity, improved data protection policies, and secure payment systems contribute to a more seamless and confident shopping experience for consumers worldwide.

The rising threat of cyberattacks in e-commerce

As e-commerce continues to expand, the importance of cybersecurity has become more evident. In 2024, Poland recorded over 110,000 cyber incidents, highlighting the growing need for robust security measures. While the public sector and critical infrastructure have faced particular challenges, businesses and institutions are increasingly prioritizing proactive security strategies.

Poland’s Deputy Prime Minister Krzysztof Gawkowski noted that cyber threats have doubled year over year, emphasizing the evolving digital landscape. As security practices advance, the focus remains on strengthening protections, increasing awareness, and enhancing resilience to ensure a safer online environment for consumers and organizations alike.

Most common cyber threats in e-commerce

Among the most significant cyber threats affecting online shoppers are:

Phishing attacks – deceptive emails and websites designed to steal login credentials and payment information.
Skimming – the use of malicious software to capture credit card data during transactions.
Ransomware attacks – where hackers encrypt data and demand ransom payments for its release.
Account takeovers – where cybercriminals gain unauthorized access to user accounts, often through credential stuffing or weak password security.

Consumer awareness of cybersecurity risks

While cyber threats are becoming more prevalent, there is still room to improve consumer awareness of key security risks. According to the Digital Security in Poland 2024 report, 53.7% of respondents have received suspicious messages, though not all feel confident in recognizing or responding to them effectively.

Similarly, the “Poles’ Attitudes Toward Cybersecurity” survey, conducted by the Warsaw Institute of Banking in June 2024, indicates that cybersecurity education could be strengthened to better equip consumers against potential online threats. As awareness grows and digital safety practices become more accessible, individuals and businesses alike can take steps to enhance protection and build a more secure online experience.

How do consumers protect their data?

Despite limited awareness, some security-conscious consumers actively implement protective measures, including:

Avoiding suspicious links and attachments – 78%
Using antivirus software – 63%
Being cautious when sharing personal information – 58%
Using strong, unique passwords – 54%
Avoiding public Wi-Fi networks – 48%

These actions indicate that while many shoppers engage in basic security practices, there is still room for improvement in awareness, resilience, and incident response.

Improving security in the e-commerce landscape

To combat growing security risks, both public institutions and private sector organizations are intensifying their efforts to strengthen cybersecurity and protect consumers.

Government and institutional initiatives

The “Cyber-Secure Municipality” program aims to enhance local governments’ security capabilities by conducting security audits, training programs, and network upgrades.

Security measures implemented by e-commerce companies

Leading e-commerce platforms and financial institutions are adopting advanced security operations, including:

Multi-factor authentication (MFA) to strengthen user verification.
AI-powered fraud detection for real-time transaction monitoring.
End-to-end encryption to protect customer data and payments.
Biometric authentication as an alternative to passwords.

The role of AI in cybersecurity

The integration of generative AI is transforming both cyberattacks and defense mechanisms. While cybercriminals leverage AI to develop sophisticated phishing attacks, businesses use AI to:

Detect and prevent fraudulent transactions in milliseconds.
Monitor security threats in real time and automate rapid response.
Analyze attack patterns to predict future risks.

Experts predict that deepfake technology will become a major tool for social engineering attacks in 2025, necessitating greater investment in AI-powered cybersecurity solutions.

The future of secure online shopping

As e-commerce continues to expand, cybersecurity remains a critical challenge. Ensuring secure online transactions requires a collaborative effort between consumers, businesses, and government institutions. By combining awareness programs, AI-driven security solutions, and stronger regulatory frameworks, the future of online shopping can be more secure, resilient, and efficient. Only through proactive cybersecurity policies, consumer education, and technological advancements can we create a safer digital shopping experience in this new era of e-commerce.

Increasing importance of rating and ESG indicators

2022-12-29 przez iLabs - Kamil

Increasing importance of rating and ESG indicators

ESG aspects are becoming one of the priorities of investors as well as banks. Because of this, today’s entrepreneurs are developing new business models in order to implement sustainability and gain a positive view of corporate social responsibility. The issue is being widely discussed – the 2nd ESG Poland Power of Business Congress has already taken place on 7 November. We explain where the growing importance of ratings and ESG indicators came from!

What are ESG indicators and ratings?

ESG is an acronym for the parameters that help to produce ratings (risk assessments) and non-financial assessments of companies, but also of institutions, organizations, states, etc. As the name suggests, they consist of issues related to:

E – environment (climate issues and good environmental practices),
S – social responsibility (equal treatment of employees and shareholders, taking into account their health and safety),
G – corporate governance (innovation that uncovers different opportunities and creates more jobs).

Based on these, investors can compare different investment directions, with the possibility of comparing the available options on a single level.

Why are ESG indicators becoming increasingly important?

The outbreak of the COVID-19 pandemic put companies in virtually all industries to the test and shook the stability of the global economy. However, the research showed that companies taking ESG factors into account performed better in crisis management and were less affected by the consequences associated with current difficulties and new challenges. This was because the units were less exposed to disruptions related to, for example, technological constraints or the need to comply with new regulations. Data analysis minimises the impact of the crisis and speeds up the process of implementing solutions to rebuild losses and better cope with new conditions.

ESG parameters are also worth taking into account when making investment decisions, as in this way more long-term sustainability projects can be acquired, mobilising the capital needed to meet the Green Deal objectives, etc.

How are the ESG analyses performed?

ESG analysis is difficult because this type of data is not always available and, in addition, often only shows a historical perspective. As they tend to be qualitative in nature, it is also not possible to apply a standard approach to them, such as in the analysis of financial data. For this reason, more and more entities are using the services of rating agencies.

Investors want to invest their capital in the best possible way, which is why they are keen to finance companies that boast good ESG parameters. However, it is worth being aware of the fact that they do not treat them as a direct indicator. Rather, they are treated as a source of baseline data, which is the starting point for subsequent analyses from which, for example, KPIs (key performance indicators) are created.

What is interesting is that there is no one-size-fits-all methodology for analysing ESG data. Because of this it is possible that if you use several agencies, they may give different ratings for the same entity. Entrepreneurs often decide precisely to seek further ‘opinions’ in order to gain as much data as possible.

Why should you order an ESG rating?

Joining the ESG rating helps to improve a company’s image, putting it in a better light for shareholders, but also of course for investors, business partners and customers. As a result, a greater chance of new investment and a lower cost of capital are gained.

Support for strategic business decisions is also a very important issue. The analysis of ESG parameters allows you to run and develop your business in a fully informed manner, limiting the risk of loss and maximising the chances of earning.

Moreover, in recent years, consumers have also been incorporating ESG aspects into their choices. Growing public awareness of the need to care for the environment means that customers are increasingly examining the business models of companies and brands and are more likely to choose those that focus on ecology and sustainability.