AS Watson Boosts Supply Chain Sustainability to Combat Climate Change

AS Watson, the world's leading multinational health and beauty store, has increased its global supply chain sustainability efforts by shifting to electric delivery vehicles and initiating waste reduction programs to combat climate change.

According to Malina Ngai, Group CEO of AS Watson, “As a responsible global retailer, sustainability is at the heart of our business. We’ve been investing and innovating to lessen our environmental footprint and contribute to a more sustainable future. Our most recent endeavor focuses on improving the environmental impact of our supply chain's delivery fleet. We have 12 retail brands in our global portfolio, and 60% of them are now employing electric vehicles for some warehouse-to-store and online order deliveries. While the industry's acceptance of electric vehicles is gradual, I believe we should rise to the challenge of launching this program in as many areas as possible."

Ngai added, "Electric vehicles have a limited driving range per charge and insufficient charging infrastructure, making long-distance deliveries difficult." Furthermore, current technical solutions for reducing charging times and improving overall performance are not widely available. These limits make it difficult for several of our operational markets to broadly deploy electric vehicles. We remain dedicated to addressing these challenges and switching our delivery fleet to more environmentally friendly electric choices wherever possible."

A recent survey [1] found global direct carbon dioxide emissions from heavy and medium-duty vehicles climbed by 2.4% to 1.8 billion metric tons (GtCO₂) in 2022, accounting for approximately 25% of global transportation CO₂ emissions. Using battery electric vehicles can reduce CO₂ emissions by at least 63% compared to diesel vehicles [2].

AS Watson has intensified its attempts to implement electric cars in its global delivery network. Watsons China has made great progress, with electric trucks currently accounting for more than 80% of warehouse-to-store deliveries on average in Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin, Chongqing, and Xiamen.

For online order delivery, Superdrug, Savers, and ICI PARIS XL have begun using electric vans and e-Cargo motorcycles in Central London and 13 emission-free zones in the Netherlands, respectively. Furthermore, Watsons China, Singapore, and Taiwan have implemented electric vans and motorcycles for nationwide online order deliveries.

Meanwhile, Superdrug, Savers, Kruidvat, and Trekpleister have begun to transition to greener fuels such as liquefied natural gas (LNG) and compressed natural gas (CNG), which emit fewer carbon emissions than standard diesel fuel.

Promoting positive change through Waste Reduction.

In addition to electrifying its delivery vehicle, AS Watson has achieved tremendous progress in waste reduction across its worldwide supply chain, diverting more than 95% of warehouse waste from landfills. Furthermore, AS Watson has decreased the usage of virgin plastics in its online business packaging by 50% year on year, demonstrating its dedication to environmentally friendly packaging solutions.

Ngai stated, "We will continue our journey toward supply chain sustainability." We anticipate increased adoption of electric vehicles and the implementation of more waste reduction efforts to contribute to a more sustainable future. Sustainability is more than a catchphrase at AS Watson; it is a culture that all 130,000 of our colleagues around the world embrace every day. Only by working together can we make a truly substantial difference on the earth."