Electrifying the Last Mile Delivery by Eco-Efficiency Analysis: Case Study of Latvia

The demand for e-commerce platforms has rapidly increased over the last years leading to increase demand on last mile delivery (LMD) services. Not to fall short of 2030 greenhouse gas (GHG) emission targets in the transport sector transitioning to sustainable LMD solutions is the key. Adopting electric vehicles (EVs) in delivery services can significantly reduce direct and indirect emissions, which can be of interest for many supply chain actors willing to report their sustainability practices within Scope 3 as per IPCC guidelines for the upcoming Corporate Sustainability Reporting Directive. This study undertakes the eco-efficiency analysis of a local LMD company in Latvia to understand the financial viability and the external environmental cost related to fleet electrification. As a result, the eco-efficiency analysis confirms the financial and environmental advantages of EVs. The study acknowledges limitations in the current eco-efficiency framework related to the GHG emissions monetisation and recommends leveraging the voluntary carbon credit markets for a more market-based assessment of carbon pricing. The findings support the transition towards sustainable LMD options, aligning with broader sustainability goals.