Kimberly-Clark: Driving Logistics into a Sustainable Future
Companies having sustainable logistics is no longer perceived as cutting edge, but as an expectation. Organisations across the globe are striving to reduce their carbon footprints in a bid to curb rising temperatures.
Kimberly-Clark, the renowned manufacturer of personal care products, is leading the charge in reimagining sustainable transport through a methodical and financially-pragmatic approach to electric vehicle (EV) adoption.
"Our purpose is better care for a better world," explains James Hallam, Climate Programme Lead at Kimberly-Clark.
This ethos underpins the company's ambitious sustainability goals, which include reducing carbon emissions by 50% in Scope 1 and 2 by 2030, with an even more aggressive target of 65% reduction in logistics carbon intensity compared to 2015 levels.
The renewable energy imperative
One of the most critical insights from Kimberly-Clark's electric truck pilot is the paramount importance of renewable energy. Initial analysis revealed a startling discovery: without renewable energy, electric trucks might actually increase carbon emissions rather than reduce them.
"We were shocked to see that actually the reduction would only be about 3% reduction in carbon when we actually did this for the Czech Republic using their energy intensity factors," James reveals.
"We actually found that we'd be emitting more carbon using an electric truck than we would do with a diesel."
To address this challenge, Kimberly-Clark has strategically invested in virtual power purchase agreements (VPPAs), including wind farms in Scotland and solar farms in Spain and Italy. Crucially, these renewable energy credits can be transferred across Europe, ensuring a clean energy supply for their electric truck operations.
Economic sustainability
Procurement professionals know that environmental initiatives must also make economic sense. Kimberly-Clark's approach demonstrates how innovative thinking can bridge the cost gap between traditional and electric transport.
Initial costs from its logistics partner showed electric trucks were significantly more expensive. However, by challenging assumptions and reimagining operational models, they found path to cost parity:
- Negotiating lower charging costs by using private infrastructure
- Adjusting for actual product weight (personal care products are volume-limited)
- Double-shifting vehicles to increase asset utilisation
- Sharing financial risks with suppliers through monthly fee structures
"Cost parity is already achievable for this archetype," James notes, “but it might require doing things differently."
The pilot route connects Kimberly-Clark's manufacturing plant in Jaromer, with a distribution centre in Dobřenice, which are around 36 kilometres apart. The route handles around 1,500 deliveries annually — approximately 15 per day.
Key implementation strategies included:
- Installing a 120kW charger with future expansion in mind
- Designing charging infrastructure close to site entry and loading areas
- Adapting operational procedures to maximise vehicle utilisation
Scaling and future outlook
Kimberly-Clark isn't stopping at a single pilot. The company is already evaluating expansion across multiple European routes, including connections between France and Germany and various UK locations.
Looking towards 2030, the ultimate goal is straightforward: "The default option should be battery electric vehicles rather than diesel.”
For procurement professionals, Kimberly-Clark's journey offers several crucial lessons: renewable energy is non-negotiable for meaningful carbon reduction; cost parity requires creative operational thinking; asset utilisation is key to economic viability; and pilot projects must be designed with scalability in mind
By approaching electric vehicle adoption with rigorous analysis, financial pragmatism and a commitment to sustainability, organisations can transform logistics from a cost centre to a strategic differentiator.
To read the full article in the magazine, click HERE.
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