AS Watson adopts EV delivery fleet to enhance supply chain sustainability

Sixty percent of its 12 retail brands now use EVs for warehouse-to-store and online deliveries.

Health and beauty retailer AS Watson is transitioning its delivery fleet to electric vehicles (EVs) and implementing waste reduction initiatives as part of its efforts to make its supply chain more sustainable. 

"We operate 12 retail brands in our global portfolio, and 60% of them have started using electric vehicles for some of the warehouse-to-store and online order deliveries,” said Malina Ngai, group CEO of AS Watson.

“Whilst the adoption of electric vehicles is slow in the industry, I believe that we should take on the challenge to launch this initiative in as many markets as possible,” she added.

Ngai also acknowledged the challenges associated with EV adoption, such as limited driving range, insufficient charging infrastructure, and the unavailability of advanced technology solutions to reduce charging times and enhance performance. 

A recent survey revealed that global CO₂ emissions from trucks increased by 2.4% to 1.8 billion metric tons in 2022. Battery electric vehicles can cut these emissions by at least 63% compared to diesel vehicles.

In China, EVs now account for over 80% of warehouse-to-store deliveries in major cities. Superdrug, Savers, and ICI PARIS XL use electric vans and e-Cargo bikes in Central London and the Netherlands. Watsons China, Singapore, and Taiwan have also introduced electric vans and motorbikes for online deliveries.

Additionally, brands like Superdrug and Savers are also shifting to greener fuels such as liquefied natural gas (LNG) and compressed natural gas (CNG). 

AS Watson has diverted over 95% of warehouse waste from landfills and reduced virgin plastic use in online packaging by 50% year-on-year.