How emissions intensive is the production and delivery of your product?
We're based in Melbourne but also have Australian warehousing in Brisbane, Sydney, Canberra, Hobart, Adelaide and Perth as well as international warehousing in London, Los Angeles and Pennsylvania. Our manufacturer is based in China and we ship via sea freight directly into one of the ports nearest our warehouse locations.
For our Australian business, it may seem counter-intuitive, but the transport emissions incurred as a result of our shipping are slightly lower than they would be if we manufactured domestically in a single location and road-freighted stock across the country. To test this reasoning, we’ve commissioned an initial analysis of our Australian business by an external life cycle assessment group. This analysis has included modelling the environmental impacts of three production scenarios:
- Producing in China and sea freighting into each port
- Producing in Victoria and road freighting into the major cities
- Producing in Victoria and rail / road freighting into the major cities
The analysis included modelling outputs of global warming potentials, particulate matter, land use, and water scarcity. The results show that there are no substantial environmental benefits from shipping if we were to produce locally in Australia. This is largely because our operation minimises road transport emissions as much as possible by shipping directly into the major ports and distributing from there (sea freight miles are 6-10 times less emissions-intensive than road miles).
Please note that the above explanation holds true for our Australian operations. We have not yet completed a similar analysis for our North American and European operations but believe that the same logic would hold true. We intend to review this once we achieve sufficient scale in these markets.