Transportation in fossil-free vehicles

How our vehicle fleet is to become fossil-free

The predominant part of our business encompasses transporting letters, parcels and goods from one place to another. Carbon emissions from these transport operations also account for the majority of PostNord’s environmental impact. 

Our objective is for all our transport operations to be conducted using fossil-free fuel – i.e. HVO (Hydrotreated Vegetable Oil), hydrogen, biogas or electricity – by 2030. PostNord Sweden owns around 7,300 vehicles and 1,000 electric bicycles, and the entire fleet is to become fossil-free. This is an ambitious goal that demands significant investment. 

In the period 2022–2024 alone, we will be investing SEK 1.2 billion in initiatives to combat climate change. Given that we drive such long distances every day, this is a highly prioritized area. We simply have to reduce our emissions.

Focus on biofuels

In order to reduce fossil emissions sufficiently quickly, we need to convert as many vehicles as possible from diesel to the transition fuels HVO100 and biogas. Those vehicles that run on diesel are fueled with HVO100 instead, where possible.

HVO100, electricity and gas

In 2022 HVO100 accounted for almost all the fuel used in our own vehicles, and we are working to increase this proportion on an ongoing basis. Using biofuel helps reduce the climate impact from our transport operations in the short term. 

In the longer term, we are focusing on fuels that generate the least possible emissions, such as hydrogen and renewable electricity. When we need to buy new vehicles, we primarily purchase models powered by gas or electricity.

Electrification and charge points

Fully 36 percent of our vehicles already run on electricity – and we’re committed to adding more. In order to focus on electric vehicles, we need to build up and expand the charging infrastructure in all parts of Sweden. We are therefore installing charge points for all types of electric vehicles at our terminals. We have already installed more than 800 chargers.

When it comes to our light vehicles, which we use for distributing letters and parcels to homes, parcel lockers and service points (“last mile” distribution), we have made good progress on electrification. The development in technology for heavier trucks is progressing more slowly, however, in the industry as a whole. 

We are working with vehicle manufacturers and corporate customers with a view to accelerating development and the transformation to fossil-free operation; for example, we are testing completely new types of electric trucks.

Sustainable transports throughout Sweden

One aspect of our universal service obligation entails us distributing letters and parcels to all parts of the country – both metropolitan and rural areas. This naturally affects the options open to us to transition quickly, compared to other operators who only deliver letters and parcels in large towns and cities. 

The reason for this is that electrification is progressing faster in built-up areas than in rural regions, where the lack of charging infrastructure and long driving distances are significant obstacles. That said, we remain committed to our goal of fossil-free transports in all parts of Sweden.

Green corridors

In 2022 we launched one of our biggest initiatives designed to maintain a fast pace in our climate transition work: our “green corridors”. We have established green corridors on those routes where we handle large volumes of parcels. 

Our green corridors entail fossil-free delivery of business parcels from the e-retailer’s warehouse all the way to the end consumer – to/from and within selected towns. To date, we have set up green corridors in twelve towns and cities in Southern Sweden: from Malmö to Borlänge.

Reduced carbon emissions

Through this initiative, we are aiming to cut our emissions by at least 3,200 tons of CO2 in 2023 and to meet our customers’ needs for fossil-free e-commerce transports. We plan to expand our green corridors on an ongoing basis.

Fossil-free last mile

We have already established fully fossil-free transport solutions (delivery to the home, parcel locker or service point) in several towns and cities, from Umeå in the north of Sweden to Malmö in the south. 

We are working tirelessly to expand the number of towns, cities and other locations where we can operate fully fossil-free vehicles. By 2027 at the latest, all last mile transports are to be completely fossil-free.

Transport partnerships transforming the sector

A number of our road transport operations, particularly long-distance assignments, are typically contracted out to other transport providers. As a result, we are contributing to a transition in the entire sector because as a major purchaser of these transport services, we are influencing hauliers to switch to fossil-free options. 

We are working to promote a sustainable supply chain by making demands in the context of environmental and social conditions. We are also working with hauliers, vehicle manufacturers and other parties to reduce the climate impact from the transport industry.

More rail transports

Another important aspect, of course, is for us to examine how we transport and to make climate-smart choices. The majority of our shipments are still carried by trucks on roads. We do make some use of air freight, primarily to ensure that letters that have a long way to go still arrive on time in compliance with the Swedish Postal Act. 

However, as we are committed to reducing emissions from all the types of transport we use, we are striving to send more freight by rail and less by air.