SMEs

Introduction

Expanding internationally involves a great logistical complexity for any company: longer routes, a greater number of players (suppliers, carriers, customs, warehouses, distributors), different regulations, transport times and costs, storage, customs management, etc.

Logistics is not only an exercise in operational efficiency; it must also be considered from the perspective of environmental, social and regulatory sustainability. This dual perspective (profitability + responsibility) is key for SMEs and mid-sized companies that aspire to compete globally.

What do we mean by sustainable logistics?

Sustainable logistics includes all those logistics practices in transportation, storage, distribution and reverse distribution that reduce environmental impact, optimize the use of resources and promote social responsibility.

Some common components:

• Route optimization (to reduce kilometers traveled and fuel consumed).
• Use of clean or less polluting modes of transport: rail transport, efficient maritime transport, electric or hybrid vehicles for the “last mile”.
• Ecological packaging, recyclable materials, returnable, design to minimize volume and weight.
• Reverse logistics: product recovery, returns, recycling, reconditioning.
• Efficient warehouse infrastructure: renewable energy, LED lighting, efficient air conditioning systems, good insulation, etc.
• Digitization of processes and documentation (paperless, electronic invoicing, real-time tracking).

These components not only have an environmental impact, but also interact with each other: for example, less weight in packaging reduces the cost of air or sea transport; optimized routes reduce emissions and delivery time; etc.

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Key regulatory framework: the CSDDD

One of the most important regulations for companies operating in Europe is the Corporate Sustainability Due Diligence Directive (CSDDDD) which was approved by the European Parliament in April 2024, by the Council in May 2024, and published in the Official Journal of the European Union on July 5, 2024; it came into force on July 25, 2024. ohanapublicaffairs.eu+4lw.com+4HFW+4

Main obligations of the CSDDD

• Subject companies should identify, prevent, mitigate and remediate adverse human rights and environmental impacts in their operations, including upstream supply chains (suppliers, raw materials) and certain downstream elements (distribution, transportation, storage). HFW+2Deloitte+2
• They are also required to develop plans for the transition to low-carbon models. lw.com+2Business & Human Rights Resource Centre+2
• Penalties and civil liability are possible if the requirements are not met. Business & Human Rights Resource Centre+2ohanapublicaffairs.eu+2
  

Progressive scoping (deadlines and thresholds)

The application is gradual, ordered by company size (employees) and turnover:

Year of application	EU and non-EU companies in the relevant billing area
2027	Companies with more than 5,000 employees and a worldwide net turnover of more than 1.5 billion euros
2028	Companies with more than 3,000 employees and a turnover of more than 900 million euros
2029	Companies with more than 1,000 employees and worldwide net sales of more than 450 million euros Deloitte+2lw.com+2

Even if an SME does not meet these thresholds, it could still be affected if it is part of the supply chain of a company within the scope of the CSDDD, as the regulation requires upstream (suppliers) and certain downstream responsibility. HFW+1

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Advantages for international expansion

The following are the main advantages of adopting sustainable logistics if your company is in the process of internationalization:

1. Legal compliance and risk mitigation:
   
   Complying with standards such as those of the CSDDD avoids legal sanctions, trade or customs blockades, fines and possible civil liabilities. In addition, it regulates the relationship with international suppliers: if your supply chain does not meet environmental or human rights standards, your business can be legally penalized or your reputation affected…
   
   Example: CSDDD marks a turning point for the environmental and social responsibility of European companies. The standard obliges large companies – thosewith more than 500 employees and a turnover of more than €150 million per year –to identify and manage environmental and human rights risks throughout their value chain, both upstream (suppliers, extraction and manufacturing) and downstream (distribution, transport and use phase). In addition, the regulation provides for the inclusion of medium-sized companies in high-impact sectors when they meet certain thresholds, and requires the adoption of climate transition plans aligned with the Paris Agreement, verifiable preventive measures and the obligation to publicly report progress.

The final adoption of the text by the Council of the European Union took place on 24 May 2024 (see Council press release). (Council press release, 24 May 2024); for information on the scope and entry into force, see also the European Commission’s explanatory page on the CSDDD.(European Commission – CSDDDD)

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2. Reduced operating costs in the medium and long term:
   
   Although the initial investment may be significant (clean vehicles, digitization, efficient infrastructure), continuous improvements typically generate savings:
   
   • Route optimization and multimodal transport: lower fuel consumption and shorter delivery times. Can be combined with better control of fleet movements (see for example the solutions of https://www.atlantisioe.com/).
     
   • Lighter packaging or returnable packaging allows for reduced packaging and transportation costs.
     
   • More energy-efficient warehouses reduce electricity consumption, air conditioning, lighting, etc.
     
3. Improved reputation, brand and access to demanding markets:
   
   In global markets, large distributors, retailers or institutional customers are increasingly demanding environmental and human rights standards. Being able to demonstrate that your logistics is sustainable can open doors:
   
   • Brands that stand out against competitors with less commitment.
     
   • Access to contracts with large chains that establish ESG criteria (environmental, social, governance).
     
   • Increased consumer confidence, which may translate into a willingness to pay more for sustainable products or products with visible certifications.
     
4. Incentives, subsidies and preferential financing:
   
   In the European Union and in many countries there are public programs that support sustainability projects: energy efficiency, circular economies, emissions reduction, green digitalization, etc. For example, regional organizations (such as ACCIÓ in Catalonia) offer grants for internationalization linked to sustainability.
   
   In addition, ESG funds, institutional investors and certain banks grant better terms to companies that demonstrate sustainable practices, which can make it easier to obtain favorable financing.
   
5. Internal innovation, efficiency and technological competitive advantage
   
   Implementing sustainability often requires the adoption of digital technologies: geolocation, real-time tracking, big data, predictive models, artificial intelligence to optimize routes. These technologies not only improve the environment, but also efficiency, transparency and decision making.
   
   One example of research is “Designing and Deploying AI Models for Sustainable Logistics Optimization,” which analyzes how machine learning algorithms can help anticipate more efficient routes, reduce costs and carbon footprint. arXiv
   

Best practices for a growing SME

1. Diagnose your logistics footprint. Measure emissions and critical points. DHL offers free guides and calculators(DHL Guidebook). You can also opt for a consultancy, such as Duvalis(https://duvalis.es/sectores/transporte) or EHS Techniques(https://www.ehstechniques.es/).
   
2. Define measurable and achievable goals. Example: reduce 10 % CO₂ per ton transported in 12 months.
   
3. Optimize and digitize. Uses route planning and control software.
   
4. Choose sustainable suppliers. Prioritizes carriers with clean fleets or environmental certifications.
   
5. Adopt circular packaging. Recycled, reusable, or low volume materials.
   
6. Communicates and certifies. ISO 14001, green labels or ESG reporting enhance your global credibility.
   

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Practical strategies for getting started

For a medium-sized company or SME that wants to adapt its logistics to be more sustainable, here are some practical strategies:

1. Perform a diagnosis of the current logistics footprint: identify routes, modes of transport, critical points, estimated emissions.
   
2. Establish measurable targets and clear timelines (e.g., reduce emissions per tonne-kilometer, percentage of delivery by clean transport, percentage of recyclable or reusable packaging).
   
3. Apply route optimization technologies, real-time tracking, digital warehouse and transportation management.
   
4. Prioritize suppliers with sustainable commitment, environmental certifications, good practices in transportation and packaging.
   
5. Start with pilot projects: select specific international markets or routes where greener logistics can be implemented first, learn, adjust and then scale up.
   
6. Use intermodal transport when feasible, combining maritime, rail and road transport to optimize costs and reduce emissions.
   
7. Redesign packaging to reduce volume, weight, non-recyclable materials, facilitate returns or reusable packaging.
   
8. Record keeping, monitoring, auditing results; sharing reports, certifications, transparency with customers, partners and stakeholders.

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Conclusion

For entrepreneurs and SMEs wishing to grow beyond their borders, sustainable logistics is no longer a moral option but a strategic and mandatory asset of international trade.

Adopting green practices in transportation, packaging, digitization, supplier management, not only contributes to the environment and social welfare, but also improves regulatory compliance, real savings, reputation, resilience and innovation.

The earlier a company prepares itself (internal diagnostics, small changes, traceability, transparent communication), the more competitive advantage it will have, the lower the risk of future regulations, and the better positioned it will be in demanding markets.

In EMD – Digital Marketing Strategy we accompany companies that want to digitize, internationalize and grow with purpose.
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