Electric vehicle production begins with Neue Klasse

The transformation of BMW Group Plant Munich includes extensive modernisation, new production technologies and digital systems designed to increase efficiency, flexibility and automation. The company is investing around €650 million in the facility as it transitions towards exclusive production of all-electric vehicles from 2027.

The launch of BMW i3 production in Munich represents the next stage in the company’s Neue Klasse rollout across its global manufacturing network.

“We have been making rigorous preparations. With the BMW iFACTORY we have devised a consistent, strategic framework for our production,” explains Milan Nedeljković, Member of the Board of Management of BMW AG, Production. “We have paved the way for the upcoming start-ups in all our plants and have invested heavily in technologies, digitalisation and AI.”

The site will produce multiple Neue Klasse models in the coming years, with BMW confirming that the BMW i3 Touring will also be manufactured in Munich.

Major investment in a fully electric manufacturing site

The Munich plant has undergone a significant redevelopment programme while continuing production of up to 1,000 vehicles per day during the transformation process.

A new body shop and a modern vehicle assembly system have been installed, along with updated logistics infrastructure covering around a third of the plant’s footprint.

According to Peter Weber, Head of BMW Group Plant Munich, the transformation is already delivering operational improvements.

“We have considerably reduced production costs over recent years. With the start of production of the BMW i3, we will reduce overall production costs at the Munich plant by a further 10 per cent, bringing them below the level of the current vehicle generation,” says Peter Weber, Head of BMW Group Plant Munich.

Digital manufacturing strategy: BMW iFACTORY

The transformation of the Munich site is being implemented under the BMW iFACTORY framework, which focuses on efficiency, sustainability and digitalisation across the company’s global manufacturing network.

The approach aims to strengthen resilience and improve the company’s ability to deliver vehicles worldwide.

“We have rethought the entire value stream from supplier to finished customer vehicle. We have looked at every single process in detail and made optimisations. Now our plant is even more efficient, more flexible and even more digitised than ever before. We are thereby safeguarding the future viability of the plant,” adds Peter Weber.

Advanced production technologies and automation

The updated manufacturing processes at the Munich plant incorporate new levels of automation, robotics and AI-supported quality control.

In the press shop, steel and aluminium sheets are converted into tens of thousands of components each day using automated press lines. Standardised press and tooling systems across the global production network allow tools to be exchanged between sites and support workforce mobility.

An AI-assisted camera system performs quality control before an underground transport system moves components to the body shop. Scrap metal from the process is collected, sorted and reused to produce new steel or aluminium coils.

Robotics and digital twins in the new body shop

A newly constructed body shop developed using a virtual twin supports the production of Neue Klasse models.

The facility includes 800 new industrial robots responsible for joining processes, with automation levels reaching approximately 98 per cent.

Reducing the number of joining processes to five helps lower process complexity, while automated surface inspection systems assist with quality assurance. The building meets the KfW 40 EE energy efficiency standard and includes a photovoltaic system that generates electricity on site.

AI-supported paint shop and quality control

Digital and AI-based technologies also play a central role in the plant’s paint shop operations.

Automated surface inspection systems use cameras and artificial intelligence to identify even minor deviations on painted surfaces, while automated surface processing corrects detected variations during the running process.

The paint shop also uses the electrically powered eRTO process to purify exhaust air. Additional systems include heat and energy recovery technologies and water-saving production cycles.

Smart assembly and connected production systems

The former engine manufacturing area of the plant has been converted into a new assembly facility for Neue Klasse vehicles.

This assembly system is designed around end-to-end digital processes, linking vehicles, equipment and tools through integrated production data systems.

During assembly, the BMW i3 can transmit the status of up to 20,000 features directly to production systems. Digital live tracking and automated inline quality checks support employees on the assembly line.

Ergonomic workstations and height-adjustable systems are designed to improve working conditions, while training programmes prepare employees for new digital manufacturing processes.

Supply chain and logistics transformation

The transformation also includes major changes to supply chain and logistics operations at the Munich plant.

The facility handles approximately 2.5 million parts per day, with future operations expected to deliver around 70 per cent of components directly to assembly workstations.

A multi-storey logistics structure has been developed to support the plant’s urban location. Parts are delivered at ground level and transported by conveyor systems to upper levels, where they are distributed directly to production areas.

Automation in logistics is also increasing significantly. Automated supply systems, smart transport robots and driverless transport vehicles are expected to handle around 60 per cent of supply tasks, while a digital logistics control station manages operations centrally.

In-house seat manufacturing strengthens quality control

A dedicated in-house seat manufacturing facility forms a key part of the Munich production system.

Operating as a “plant inside a plant”, the facility produces seats for all vehicle versions manufactured in Munich and delivers them directly to assembly in sequence.

The seat manufacturing operation is regarded as a benchmark for quality assurance across the BMW Group. Automated processes support continuous quality monitoring, including fully automated end-of-line checks for safety-related components.

The facility also serves as a competence centre and innovation hub where new materials, technologies and manufacturing concepts are evaluated.

Regional supply chain for batteries and e-drives

BMW’s electric vehicle supply chain for the Munich plant includes regional production facilities for key drivetrain components.

High-voltage Gen6 batteries will be supplied from a new assembly plant in Irlbach-Straßkirchen in Lower Bavaria, located around 90 minutes from Munich. The facility will deliver batteries to Munich and other German BMW plants as part of a “local for local” production strategy.

Battery manufacturing incorporates inline quality controls, digital twins and artificial intelligence systems.

Meanwhile, the Gen6 electric motor for the BMW i3 will be produced at BMW Group Plant Steyr in Austria, a facility with more than 40 years of drivetrain manufacturing experience. The aluminium housing for the e-motor is supplied by the aluminium foundry at BMW Group Plant Landshut.

Sustainability and long-term production strategy

Sustainability is embedded within BMW’s broader manufacturing strategy and production network.

Within the BMW iFACTORY framework, plants worldwide are implementing site-specific solutions that support efficiency, digitalisation and sustainable production.

The transition of the Munich facility to exclusive electric vehicle production from 2027 forms part of the company’s wider commitment to sustainability across the full product lifecycle, from supply chain and manufacturing to end-of-life vehicle management.

Milestones of BMW Group Plant Munich

• 1922: Bayerische Motoren Werke AG establishes its headquarters on Lerchenauerstrasse in Munich, a few kilometres outside the city centre to the north of what is today the Olympic Park.
• 1923: The first BMW motorcycle, the R 32, is built. From the mid-1920s, the plant premises grow from 140,000 square metres to around 216,000 square metres.
• 1930: As well as in-line aircraft engines, BMW also builds radial power units. In 1934 production of the first large radial engine developed by BMW – and fitted in aircraft including the legendary JU 52 – begins in Munich and continues there until 1945.
• 1948: Post-war series production of vehicles starts with the launch of the R 24 single-cylinder motorcycle.
• 1952: For the first time, BMW cars are built in Munich. The first model is the BMW 501.
• 1954: Motorcycle production hits a new milestone of 30,000 units a year. However, as a result of the ‘motorcycle crisis’, sales slump to 5,400 units over just three years.
• 1955: Production of the BMW Isetta begins in April. The success of the model safeguards jobs at the Munich plant.
• 1962: The first Neue Klasse model, the BMW 1500, goes into production in mid-1962. The sporty, four-door, mid-size sedan lays the foundation for BMW’s economic success.
• 1965: The 100,000th Neue Klasse car is built in late August.
• 1968/69: The relocation of parts of production to Dingolfing and Berlin gets underway. Production of BMW motorcycles in Munich ends after 46 years.
• 1975: Production facilities at the Munich plant are reconfigured for the first BMW 3 Series. The change allows BMW to build cars to customers’ specific needs from as early as the body shop stage.
• 1977: After streamlining the plant structure, the BMW 3 Series range and all engines for BMW cars come from Munich.
• 1978/79: The BMW plants are adapted to meet the new production volumes. The look of the Munich plant changes quite a bit with the alterations and new constructions. These include tearing down and redesigning the South Gate on Dostlerstrasse, which was originally built in 1934.
• 1981: On 20th July, the original building at the Munich plant has to make way for structural changes.
• 1986: Although the development departments have gradually been moved to the new Research and Innovation Centre (FIZ), the only way to meet production targets at the plant, given its location in an urban neighbourhood, is to optimise and automate the production processes.
• 2001: The Plant Award in Gold – recognising the “Best Car Plant in Europe” – goes to the Munich plant for the first time in 2001. This attests to the premium quality achieved by BMW production.
• 2003: Plant Munich is presented with the City of Munich’s Environmental Award.
• 2008: As part of Project i, a small series of MINI E cars are manufactured at the Munich plant.
• 2010: The world premiere of the sixth-generation BMW 3 Series takes place at the Munich plant. A high-speed servo press is put into operation in the press shop.
• 2014: BMW Group Plant Munich wins the Lean Award in the OEM category. An all-electric truck is deployed to supply the parts required.
• 2015: In April, the foundation stone is laid for the new paint shop.
• 2016: The ten-millionth vehicle runs off the assembly line at the Munich plant. The plant is presented with the Ludwig Erhard Award.
• 2017: In May, the new paint shop, one of the most state-of-the-art facilities in the automotive industry, goes into operation. This investment is part of the plant’s preparations for the future.
• 2019: A package of investment totalling 200 million euros is channelled into the preparation – up to 2021 – of buildings, production facilities and logistics systems for series production of the BMW i4.
• 2020: The BMW Group announces that it will relocate its long-established engine manufacturing operations in Munich to BMW Group plants in Steyr (Austria) and Hams Hall (UK) by the middle of the decade. A new assembly and logistics facility entirely dedicated to electrified vehicles is built on what used to be the engine production site. The ambitious schedule for the work envisages just over two years from the first day of demolition to commissioning of the new facility and production of the first vehicles. At the same time, a new body shop is being built on the site of the old paint shop, which was decommissioned in 2018. The two new buildings will enable series production of the modern Neue Klasse at the Munich plant from 2026.
• 2021: The start of production of the BMW i4, the BMW Group’s first all-electric Gran Coupé, means that five different models with all the available drive system variants (internal combustion engine, plug-in hybrid and fully electric) are built on the same line at Plant Munich.
• 2022: Plant Munich celebrates its centenary.
• 2026: The new buildings for assembly and body construction, with a new production area covering 200,000 square metres, are completed and put into operation. In addition, the logistics systems for production at Plant Munich have been comprehensively modernised and integrated into the existing structures. Series production of the new BMW i3, the first Neue Klasse model to be manufactured at the Munich plant, will commence in the second half of the year.

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UK Government commits £1bn to accelerate transport electrification

The UK Government’s recent £1bn commitment to transport electrification marks a significant step forward in the transition to net zero. This funding underlines the scale of ambition to decarbonise the transport sector and accelerate the adoption of zero emission vehicles.

Since December 2025, the UK Government and industry have been engaged in several significant consultations. At last count, EO Charging has responded to at least six, including ESA requirements for interoperability, tariff interoperability, licensing conditions for operators of large loads (>300MW), security, EV tax (eVED) and a ZEV mandate for electric HGVs.

This represents significant effort and clearly demonstrates that the current administration is serious about achieving its net zero objectives.

Why decarbonising transport is critical to the UK’s net zero targets

January’s HGV consultation highlights these key framing principles:

The Climate Change Act 2008 commits the UK to achieving economy-wide net zero CO₂ emissions by 2050, with the decarbonisation pathway marked by legally binding five-yearly carbon budgets. Accelerating to net zero offers huge opportunities for the UK. Domestic transport is the biggest contributor to the UK’s greenhouse gas emissions (GHG), comprising 29% of emissions in 2023.

HGVs alone account for 16% of total transport emissions. By electrifying and therefore decarbonising the transport sector, the UK government has the opportunity to remove 30% of the country’s carbon output. This is a significant proportion of emissions and is entirely achievable with today’s technologies, the right policies and appropriate incentives.

Fleet electrification is already gaining momentum

Outside of these Government targets and incentives, UK commercial fleets (vans, trucks and HGVs) have already started to decarbonise.

Our research, conducted in collaboration with Vanson Bourne, surveyed over 300 fleet operators to understand the state of the market and found that what began as ambitious endeavours has now become a mainstream business strategy.

On average, more than half (53%) of organisations’ fleets are already electrified. This momentum is being driven by a powerful mix of factors, including financial savings, ESG (Environmental, Social, and Governance) commitments, a favourable regulatory environment and the desire to build a more responsible reputation.

As a result, the vast majority (84%) of organisations are at least partially implementing a net zero transportation initiative, clear evidence that electrification is no longer just about meeting targets but about driving transformation.

The three stages of fleet electrification adoption

The report shows that decarbonisation and electrification efforts have started within the fleet sector and that there is now significant momentum.

Of course, not everyone has achieved full electrification, and all organisations are on a journey. As with any change management exercise, there are those who lead the way and have already electrified (who we call ‘the Pioneers’), those who are actively progressing (‘the Navigators’) and those who are still developing their plans (‘the Transformers’).

Key barriers to EV fleet adoption

Along this journey, organisations face a series of practical challenges.

The first major hurdle is bridging the operational gap when operating a commercial EV fleet, with high upfront costs cited by 42% of respondents, difficulties in integrating EVs with existing systems reported by 38% and limited availability of charging infrastructure (36%).

Two of these three challenges – high upfront costs and access to charging infrastructure – are directly tied to finances.

While traditional fleets also faced significant upfront purchase costs, their refuelling infrastructure was typically outsourced to fuel retail stations. In contrast, electrifying a fleet requires organisations to invest in both new vehicles (such as vans, trucks and HGVs) and the supporting charging infrastructure, creating a very different financial and operational model.

Total cost of ownership and the long-term business case for EV fleets

Despite these hurdles, many Pioneers and Navigators have looked beyond the initial costs, recognising that the overall total cost of ownership (TCO) of an electric fleet is, or will soon be, lower than a conventional ICE fleet.

Long-term planning has given fleet operators at every stage – whether a Pioneer, a Navigator or a Transformer – the confidence to move forward, demonstrating that electrification is not only operationally viable, but also financially advantageous.

How the UK’s new electrification grants support fleet transition

Against this backdrop, the recent £1bn funding commitment is particularly encouraging.

The Department for Transport has made available the following grants:

• £81,000 off the heaviest zero emission trucks, covering up to 40% of upfront cost.

• £1 million toward installing depot charging infrastructure for vans, coaches, and HGVs, covering up to 70% of costs.

These represent a substantial financial incentive. Reducing 40% of a vehicle cost or reducing the installation costs by £1 million (or up to 70%) is a significant bonus.

However, no two customers are the same, and every site has unique operational needs. As a result, it is not possible to state exactly how much these grants will reduce TCO. Careful analysis for each customer will be required to determine the impact, but these funds should strengthen the business case for electrification.

Why businesses must act quickly to secure EV funding

The grants are already live, and such funding often has a limited time span. Therefore, businesses must act quickly and apply now to maximise their benefit.

There are now two major funding schemes covering both the purchase of vehicles and installation of EV charging infrastructure, creating strong alignment between the key challenges fleet operators have highlighted (high vehicle costs and access to EV charging infrastructure) and the support now available.

A new era for zero-emission transport

This is a standout moment in collaboration between government and industry to decarbonise the transport sector. Trials are conducted, challenges are highlighted and practical solutions are delivered.

Surely, this marks the start of a golden era for electrification and decarbonisation as the transition from fossil fuels to zero emission vehicles continues to accelerate.

The post OPINION: The Impact of the UK’s £1bn Investment in Transport Electrification – Richard Earl, EO Charging appeared first on Supply Chain Outlook.

A NEW ERA OF PHYSICAL AI

A new strategic partnership between Wiliot, a global leader in Physical AI for supply chains, and Databricks, a major data and AI company, is set to redefine how enterprises harness real-time data, unlocking a new era of Physical AI-driven supply chain intelligence.

The collaboration will see Wiliot’s Physical AI platform and supply chain automation solutions built on Databricks’ powerful data infrastructure, enabling organizations to seamlessly ingest, manage, and analyze vast streams of real-time data from the physical world.

At the heart of this innovation lies Wiliot’s pioneering IoT Pixels – battery-free, postage-stamp-sized sensors that transform everyday products into intelligent, connected data sources.

By integrating these capabilities with Databricks’ scalable lakehouse architecture, enterprises can unify granular, item-level physical data with enterprise systems faster and more precisely than ever before.

TURNING DATA INTO DECISIONS

The partnership enables companies to operationalize billions of real-time data points, applying advanced AI analytics to derive actionable insights across their operations.

Running on Databricks’ high-performance compute and storage environment, Wiliot’s platform ingests continuous data streams from Physical AI networks, empowering organizations to predict disruptions, automate inventory processes, and optimize complex logistics functions.

From cold chain monitoring to shipment verification, businesses can now move from reactive processes to proactive, intelligence-led decision-making.

Beyond analytics, the integration also supports the development of bespoke data applications built directly on physical assets, allowing organizations to tailor solutions to specific operational needs and drive continuous innovation.

REDEFINING SUPPLY CHAIN VISIBILITY

Wiliot’s Physical AI platform underpins five core solutions designed to disrupt traditional supply chain operations:

• Inventory Intelligence – delivers continuous visibility across storage areas, backrooms, yards, and vehicles without manual intervention
• Automated Receiving – confirms inbound shipments at pallet and case level, accelerating dock-to-stock workflows
• Automated Shipment Verification – ensures outbound shipments are accurate and compliant in real time
• Reusable Asset Tracking – monitors the movement and utilization of returnable assets across the supply chain
• Temperature Monitoring – safeguards perishables and sensitive goods through continuous environmental tracking

Together, these solutions provide a comprehensive, real-time view of supply chain activity, eliminating inefficiencies and enhancing operational resilience.

By leveraging Databricks as the underlying data platform, customers also benefit from a secure, governed, and scalable environment that simplifies data management while ensuring insights are accessible across departments – from logistics and operations to merchandising and sustainability.

THE NEXT FRONTIER OF DATA INTELLIGENCE

For Databricks, the partnership signals a significant step forward in bridging the gap between physical operations and digital transformation strategies.

From warehouse floors to retail shelves, the combined platform enables real-time visibility into product location, condition, and availability, helping businesses reduce out-of-stocks, minimize shrink, and deliver more personalized customer experiences.

Databricks’ continued leadership in the data space – including recognition as a Leader in the Gartner® Magic Quadrant™ for Cloud Database Management Systems for five consecutive years – further reinforces the strength of the collaboration.

SCALING THE FUTURE OF PHYSICAL AI

Wiliot’s growing ecosystem of technology partners reflects its broader mission to make the physical world fully visible, intelligent, and connected.

Already trusted by major global enterprises, including Walmart and Royal Mail, the company is driving digital transformation across retail, consumer packaged goods, and logistics sectors.

With billions of sensing events processed monthly across millions of products, Wiliot’s platform provides a scalable foundation for organizations seeking to integrate AI into their physical operations.

As supply chains grow increasingly complex, the convergence of Physical AI and advanced data platforms is poised to become a defining factor in operational success – and this partnership positions Wiliot and Databricks firmly at the forefront of that transformation.

The post Powering Physical AI at Scale: Wiliot Partners with Databricks appeared first on Supply Chain Outlook.

Real-world electric freight deployment

The report highlights the growing commercial viability of electric freight vehicles and draws on operational data gathered from UK logistics fleets participating in the Electric Freightway project.

Electric Freightway is part of the Zero Emission HGV and Infrastructure Demonstrator programme (ZEHID), funded by the UK Department for Transport and delivered in partnership with Innovate UK.

The programme brings together more than 30 industry partners, led by GRIDSERVE, to accelerate the adoption of electric trucks and the development of charging infrastructure.

To date, the initiative has deployed eHGVs across 25 hauliers operating on UK logistics routes, collectively covering more than two million zero-emission kilometres. The real-world trials have generated operational insights into vehicle performance, charging requirements and fleet integration.

Building the business case for electric freight

The fourth Electric Freightway report also explores the financial case for electrifying freight fleets. According to the findings, electric HGVs could reach cost parity with diesel vehicles in certain operating conditions, particularly where fleets operate high annual mileage and optimise charging between depot and en-route infrastructure.

Operational experience from participating fleets also indicates growing driver confidence, with many drivers reporting positive feedback on vehicle performance and drivability once they gain hands-on experience with electric trucks.

Nick Day, Director of Distribution, UK at ADM Milling, said:

“As a business, we are constantly seeking more sustainable solutions to service our customers’ needs and have been exploring ways to improve energy efficiency and reduce GHG emissions in our manufacturing processes for many years now.

“Using electric trucks was the natural next step in this process and so we started engaging with a third-party haulier to introduce electric trucks and charging solutions into our fleet and then expanded this capability through the ZEHID scheme.

“While we still have more work to do to fully embed eHGVs within our operation, we are encouraged by the progress we’ve made so far and the ZEHID project has been a great opportunity for us to gain hands-on experience operating them.”

Industry collaboration driving freight decarbonisation

The project also highlights the role of collaboration between logistics operators, infrastructure providers and technology companies in accelerating the transition to zero-emission freight transport.

Leon Clarke, Head of Operations and Delivery at Hitachi ZeroCarbon, said:

“Electric Freightway demonstrates what can be achieved when industry partners come together with a shared ambition to decarbonise road freight.

The collaboration between hauliers, infrastructure providers and technology specialists has been key to getting electric trucks on the road and generating real-world insights that will help the industry achieve its long-term net zero goals.”

Next phase: scaling zero-emission freight

With the initial deployment phase complete and electric trucks now operating across multiple fleets, the Electric Freightway programme will move into its next phase of development.

This stage will focus on collecting long-term operational data, refining charging strategies and supporting the wider transition to zero-emission freight transport.

Mike Biddle, Executive Director Net Zero at Innovate UK said: 

“Electric Freightway, led by GRIDSERVE in collaboration with principal partner Hitachi ZeroCarbon, has been instrumental in supporting the early efforts towards UK road freight decarbonisation, facilitated through the UK government’s Zero Emission HGV & Infrastructure Demonstrator (ZEHID) programme, delivered in partnership with Innovate UK.

This report reflects on the project’s extensive findings as it moves beyond the earlier deployment efforts into large scale data collection in real world operations for the next five years.”

The post Electric Freightway : Electric HGVs Could Save 1,000 Tonnes of Carbon Per Truck by 2034 appeared first on Supply Chain Outlook.

Flexible plastic packaging driving global pollution

The report has been endorsed by 47 businesses, NGOs, investors and academics, all supporting efforts to accelerate innovation in paper-based flexible packaging solutions.

Flexible plastics — including sachets, wrappers and pouches — are the fastest-growing type of plastic packaging worldwide. According to the report, these materials represent a major source of pollution in regions with limited waste management infrastructure.

In countries with low formal collection and recycling systems, flexibles make up around 80% of the plastic packaging that ends up in oceans. The report notes that small-format flexible packaging is widely used for everyday products ranging from snacks and shampoo to coffee and milk.

The Foundation warns that, without intervention, an estimated 20 trillion flexible plastic packaging items could enter the oceans over the next 15 years.

The potential role of paper-based alternatives

The report — titled Paper-Based Flexible Packaging – The role it could play in tackling small-format flexible plastic pollution in markets with high leakage rates — suggests paper could provide an alternative to plastic in certain applications.

Paper-based packaging can potentially be designed to be both recyclable and biodegradable. In markets where flexible packaging frequently escapes into the environment, these materials could reduce persistent plastic pollution while still allowing recycling once collection systems improve.

The research highlights that this approach could be particularly relevant in countries such as India, Indonesia, the Philippines, Thailand and Vietnam, where packaging leakage rates are high.

Safeguards needed to ensure environmental benefits

Despite its potential, the report warns that paper packaging must be carefully designed and sourced to avoid creating new environmental problems.

To address this, the report outlines six criteria for responsible paper-based flexible packaging:

• Responsibly sourced to avoid contributing to forest degradation.
• Responsibly produced to minimise pressure on climate and water resources.
• Meets technical, economic, and consumer needs to be viable in practice.
• Recyclable locally and supported by efforts to scale up collection infrastructure.
• Avoids hazardous chemicals and persistent plastic pollution. 
• Fits within a broader, socially inclusive circular economy strategy.

Sander Defruyt, Plastics Strategy Lead at the Ellen MacArthur Foundation, said:

“Flexible plastic packaging pollution is a systemic challenge – with an estimated 20 trillion items expected to enter our oceans over the next 15 years. There’s no silver bullet, therefore adding paper-based alternatives to the mix helpfully expands the toolbox, complementing other priority solutions such as reusable packaging.

“This will require major innovation and action from industry and policymakers to speed up development and scaling, guided by the six critical criteria in this report to ensure we don’t replace one problem with another.”

While innovation is progressing, the Foundation notes that paper-based flexible packaging solutions are not yet available at the scale, cost or performance levels required for widespread adoption.

Launched in 2010, the Ellen MacArthur Foundation is an international charity accelerating the transition to a circular economy – one that is globally resilient and thrives within planetary boundaries. 

Businesses explore next-generation packaging solutions

Major consumer goods companies are already exploring paper-based packaging technologies.

Pablo Costa, Global Head of Packaging, Digital & Transformation at Unilever, said:

“Next-generation paper-based flexible packaging is a key focus for Unilever and an industry-wide priority.

“This report is clear on the important role paper will play and what it will take to scale solutions that are desirable for consumers, better for the environment, and viable for businesses.”

Allison Lin, Global VP Healthy Planet at Mars said:

“Well-designed, responsibly-sourced paper, as laid out in this report, is one of the viable solutions against plastic pollution.

However, we need more innovation to broaden the scale and applications of paper-based packaging, including coating and adhesive technologies. We hope this report highlights the need for additional investments and innovation into this space, as well as the necessary guardrails.”

Gilles Demaurex, Head of Global Packaging Development at Nestle said:

“Nestlé believes paper-based flexible packaging can play a valuable role in addressing virgin plastic reduction and minimizing flexible packaging waste and pollution.

This report provides stakeholders with a much‑needed common vision and a clear set of criteria to ensure that paper‑based flexible packaging solutions are developed and deployed responsibly. We call on the entire value chain and policymakers to join us in taking action to accelerate innovation aligned with these criteria, while prioritizing collection and recycling systems for all packaging.”

David V Allen, Vice President Sustainable Packaging at Pepsico said:

“Business, governments, financial institutions and civil society all have a role to play to continue to drive packaging circularity.

We hope this report helps align all stakeholders behind a common vision and set of critical criteria to responsibly advance paper-based flexibles as one of the possible levers to support circularity.”

Research highlights need for innovation and collaboration

Experts say innovation across materials, design and supply chains will be needed to make paper-based flexibles viable.

Gaurav Goel, Professor at Indian Institute of Technology Delhi, said:

“This report, backed by evidence and stakeholder input, sets the initial canvas on challenges and critical conditions to turn the promise of paper flexibles into a scalable reality.

“It strongly emphasises the need to combine judicious material choice and radical material innovation with deep collaboration and data-driven assessment for engineering packaging solutions that protect the product and the planet.”

Erin Simon, Vice President and Head, Plastic Waste and Business WWF said:

“Small-format flexible packaging is a significant contributor to plastic pollution, particularly in high leakage markets, making it one of the most pressing challenges we face.

Material substitution has an important role to play in addressing this crisis, but it must be applied thoughtfully — alongside elimination and reuse solutions — to avoid unintended trade-offs. This report provides the much needed guardrails and practical guidance to ensure that any transition to paper-based packaging is pursued responsibly and delivers real environmental and social benefits.”

Paper packaging part of a broader circular economy strategy

The Ellen MacArthur Foundation stresses that paper alternatives represent only one part of a broader strategy to tackle plastic pollution.

Its research prioritises reducing reliance on small-format flexible packaging overall, including scaling reuse models alongside material innovation.

The new report forms part of the Foundation’s wider 2030 Plastics Agenda for Business, which identifies small-format flexible packaging as one of the key systemic barriers to achieving a circular economy for plastics.

How supply chains play a key role in paper based packaging

The report highlights that transitioning to paper-based flexible packaging is not simply a material substitution but a supply chain transformation requiring end-to-end coordination.

From responsibly sourced fibre and certified forestry inputs to converters, brands and retailers, every stage must align to ensure sustainability gains are realised.

The findings also point to significant downstream challenges, particularly the lack of collection, sorting and recycling infrastructure needed to handle paper-based flexibles at scale.

Without these systems, material innovation risks shifting environmental impacts upstream rather than reducing them.

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NETWORK GROWTH FOR SUMMER 2026 

IAG Cargo has revealed its summer 2026 flight schedule, expanding capacity across several major international routes and introducing a new transatlantic destination. 

The cargo carrier will operate its summer programme from April to October 2026, with frequency increases planned across a number of North American gateways.  

Flights from London Heathrow (LHR) to Chicago O’Hare International Airport (ORD) and Washington Dulles International Airport (IAD) will increase significantly, whilst services to San Diego and Austin will see frequencies double compared to the winter schedule. 

The airline will also introduce a new service between LHR and St. Louis Lambert International Airport (STL) from 19^th April 2026. Operating four times per week, the route becomes the company’s 27^th destination in the US and will provide a direct link between London and the Midwest region of the US, an area with strong manufacturing and aerospace activity. 

INCREASED FLEXIBILITY ACROSS HUBS 

Alongside its US expansion, IAG Cargo is increasing widebody capacity between LHR and Madrid, strengthening connectivity across its hub network. The additional capacity is expected to improve onward connections to long-haul destinations and provide freight forwarders with more routing options across Europe, North America, and Latin America. 

Madrid will also see the return of services to San Francisco, whilst in Asia, flights between LHR and Tokyo Haneda (HND) will increase to twice daily, adding further cargo capacity to the important Europe-Japan trade lane. 

In Canada, cargo capacity on flights to Vancouver International Airport (YVR) will also rise. LHR services will increase from seven to 10 flights per week, with frequencies rising further during the peak summer months of July and August. The company will also operate a seasonal daily service between London Gatwick (LGW) and YVR between May and September. 

Camilo Garcia Cervera, Chief Sales and Marketing Officer for IAG Cargo, commented:  

“This summer schedule is focused on giving freight forwarding partners greater choice and flexibility across key global trade lanes.  

“The addition of St. Louis opens up important access into the US Midwest, whilst increased frequencies across North America, expanded connectivity via Madrid, and additional capacity to Haneda and Canada ensure we can support a wide range of time-critical and high-value shipments.” 

SUPPORTING GLOBAL CARGO FLOWS  

IAG Cargo continues to operate a multi-hub network spanning London, Madrid, Dublin, and Barcelona, providing connections across six continents.  

London remains the company’s largest hub by capacity, whilst Dublin serves as an important transatlantic gateway. Madrid and Barcelona together provide extensive connectivity to North America, Latin America, and the Caribbean. 

In addition to network growth, the company is continuing to expand its specialist logistics services, including its recently introduced aircraft on ground (AOG) solution for the urgent transportation of critical aircraft components.

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DRIVING RESILIENCE IN GLOBAL TRADE

Digital Catapult has announced a £500,000 investment in Exabler, marking a significant step forward in the practical application of deep tech to transform cross-border trade and bolster industrial supply chain resilience.

As global supply chains face mounting pressures – from tariffs and regulatory complexities to ongoing disruption – Exabler is addressing these challenges with a proprietary software platform designed to simplify processes and streamline operations for business leaders operating across international markets.

International trade is often discussed at a macro level, yet many business leaders underestimate the direct impact that new policy decisions can have on their company’s commercial performance. In an increasingly precarious global environment, there is a growing need for valid and reliable data to help businesses mitigate trade disruption and maintain operational efficiency. Our solution addresses this challenge by providing critical support when it’s needed most. This investment will enable us to further develop the platform, expand our team and unlock new opportunities to grow our customer base and increase export activity.

– Chris Woodington, co-Founder and co-CEO of Exabler

BUILT WITH INDUSTRY LEADERS

Founded in 2015, Exabler previously participated in the Made Smarter Innovation | Digital Supply Chain Hub, delivered by Digital Catapult.

Through the accelerator programme, the company collaborated with major defence companies BAE Systems and Leonardo UK to develop its solution within the UK’s defence and security sector – considered to be one of the most highly regulated and operationally complex industries.

Today, Exabler is extending its impact across a range of sectors, including logistics, pharmaceuticals, and financial services, with its solution that uses advanced analytics to help businesses reduce costs, improve operational efficiency, and mitigate future supply chain disruptions.  

POWERING DATA-DRIVEN DECISION-MAKING

Exabler’s innovative platform leverages advanced analytics, artificial intelligence (AI), and machine learning (ML) to provide real-time optimisation of supply chain performance.

By integrating pre- and post-trade data from sources such as the Customs Declaration Service (CDS), and global financial systems, the solution delivers actionable insights, enhances decision-making, and enables businesses to proactively manage compliance and operational risks.

Successful cross-border trade is a key pillar of economic growth, and our solution means that business leaders have the data they need to overcome complex trade challenges with ease. Digital Catapult’s support has been critical to our success, providing invaluable technological consultancy, investment readiness support and now this investment. We will use the capital to expand into international markets, meeting global demand for our solution and ensuring that business leaders are empowered, informed and able to adapt quickly in an increasingly uncertain trade climate.

– Ramin Takin, co-Founder and co-CEO of Exabler

SCALING FOR GLOBAL DEMAND

Digital Catapult’s £500,000 investment – structured as a convertible loan note – will support Exabler’s international expansion and growth, particularly as demand for interoperable, data-driven trade solutions continues to rise.

The company is already attracting interest from organisations across the EU, Asia Pacific, the Middle East, and the US, with paid pilot schemes planned to demonstrate integration within large-scale enterprises with complex global operations.

Exabler has also gained early traction with key supply chain stakeholders – including a top five global freight forwarder – reinforcing the growing need for solutions that can seamlessly integrate into established business ecosystems.

SUPPORTING UK INDUSTRIAL STRATEGY

This investment aligns closely with the UK Government’s Modern Industrial Strategy, highlighting the importance of scaling deep tech startups that can strengthen critical supply chains and drive economic growth.

Digital Catapult continues to prioritise investment across key growth-driving sectors, including advanced manufacturing, digital technology, business services, and the creative industries.

For over a decade, Digital Catapult has worked to strengthen the resilience of the UK’s industrial supply chains. Our investment in Exabler will help businesses mitigate supply chain disruption and enable more seamless cross-border trade operations. This marks the sixth investment made by Digital Catapult under the Cross-Catapult Fund, as part of our mission to support deep tech companies to scale and help founders realise their commercial ambitions, and we are excited to partner with Chris and Ramin as Exabler enters this next phase of its growth.

– Susan Bowen, CEO of Digital Catapult

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ENABLING FASTER DELIVERY  

FedEx Corp. (FedEx) has recently announced the launch of FedEx SameDay® Local – a highly flexible and convenient delivery offering that helps businesses meet growing consumer expectations while balancing operational costs.  

Developed in collaboration with last-mile delivery solutions company OneRail, FedEx SameDay® Local allows shoppers to select two-hour or end-of-day delivery directly at checkout.  

The service connects FedEx customers to a national network of more than 1,000 delivery providers through intelligent orchestration technology, automatically matching orders with the appropriate vehicle and driver, dispatching deliveries quickly, and providing live tracking updates from pickup to delivery. 

“At FedEx, we’re supporting our customers in pushing the boundaries of their value proposition around speed and convenience.”  

“FedEx SameDay® Local will provide our customers with a scaled solution to give the delivery options customers want, without adding complexity to their operations – all backed by the confidence of working with FedEx,” comments Jason Brenner, Senior Vice President of Digital Portfolio.   

The service includes time-definite delivery windows, near real-time tracking, predictive estimated times of arrival (ETAs), proof of delivery, flexible integration through application programming interface (API) connections, artificial intelligence (AI)-driven delivery optimization, 24/7 support, and the ability to manage large or specialized deliveries. 

MEETING CONSUMER EXPECTATIONS 

Consumer expectations around delivery continue to evolve, with shoppers increasingly looking for greater choice rather than simply the fastest delivery option.  

Some purchases require immediate delivery, others must arrive within a precise time window, while some customers prefer a more economical option and are willing to wait longer. 

Research shows that 96 percent of shoppers define fast delivery as same-day, 80 percent want to see a same-day option at checkout, and nearly half are more likely to complete a purchase when same-day delivery is available. Delivery visibility is also becoming increasingly important, particularly when customers are given specific delivery windows. 

The FedEx Future of Logistics Intelligence Report found that 36 percent of consumers prioritize reliable delivery windows, yet only 59 percent of organizations use shipment data proactively to predict and prevent issues, and just 18 percent are consistently able to intervene to minimize the impact of delays.  

By providing near real-time tracking, predictive ETAs, and automated rerouting, FedEx SameDay® Local aims to help businesses reduce abandoned carts and improve customer loyalty. 

SUPPORTING END-TO-END LOGISTICS 

The launch of FedEx SameDay® Local expands the company’s capabilities across the full delivery lifecycle, from long-haul transportation to local last-mile fulfillment. Through its connected logistics ecosystem, the company aims to optimize delivery routes, reduce costs, and improve delivery reliability at scale. 

FedEx SameDay® Local forms part of the company’s broader strategy to support businesses with integrated transportation and digital logistics solutions, enabling greater efficiency and flexibility across supply chains. 

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Breaking down barriers to electrification

UK businesses are being offered this funding to accelerate the rollout of electric vans and trucks while expanding depot charging infrastructure. The initiative is designed to cut costs, support jobs, and reduce emissions across the logistics sector.

The funding is delivered through the Zero Emissions Truck and Van grants and the Depot Charging Scheme (DCS), addressing two major barriers to electrification: upfront vehicle costs and access to charging.

Investment: Reducing costs for UK businesses

Heavy zero-emission trucks can receive up to £81,000 in grants, covering up to 40% of the vehicle cost. Electric vans are eligible for up to £5,000 in savings.

Businesses and public authorities could also save up to £1 million when installing chargers for vans, coaches, and electric HGVs, with the government covering up to 70% of costs through the £170 million Depot Charging Scheme.

Aviation, Maritime and Decarbonisation Minister Keir Mather said:

“This £1 billion investment cuts cost for British businesses, supports jobs, cleans up our roads, and gives operators protection against shifting global fuel prices. The logistics sector is the backbone of the UK economy, worth £170 billion and supporting 2.7 million jobs. We’re helping them expand and decarbonise their fleets whilst saving them cash, driving growth up and down the country.”

Technology: Expanding Electric Fleet Capabilities

The funding supports adoption of electric vehicles and rapid charging infrastructure. Companies such as Wren Kitchens and Bedrooms have introduced 44-tonne e-trucks alongside charging facilities.

Lee Holmes, Transport and Logistics Director at Wren Kitchens and Bedrooms, said:

“Government investment gives businesses like Wren the confidence to accelerate fleet decarbonisation while maintaining operational stability, even in periods of economic uncertainty. With this support, we’ve brought a number of 44-tonne e-trucks into our fleet alongside a rapid charging infrastructure, reducing our reliance on traditional fuels and strengthening resilience and reliability against ongoing market volatility.”

Julian Bailey, Head of Group Transport at M&S, added:

“In 2021, we set ourselves the ambitious target of becoming a net zero business across our value chain by 2040. Since then, we’ve made some great progress, which includes the onboarding of 24 battery electric vehicles across our transport fleet. We welcome this investment which serves as a reminder of the importance of the logistics sector in the UK and its role in decarbonisation.”

What are the Zero Emissions Truck and Van grants?

The Zero Emissions Truck and Van grants reduce the upfront cost of electric vehicles:

• Truck grant: Up to £81,000 off the heaviest zero-emission trucks (up to 40% of the cost)
• Van grant: Up to £5,000 off electric vans

These grants tackle one of the biggest barriers to fleet electrification: the high initial cost of vehicles.

What is the UK Depot Charging Scheme (DCS)?

The Depot Charging Scheme (DCS) helps businesses and public authorities install charging infrastructure for vans, coaches, and electric HGVs. Funding covers up to 70% of costs, supported by a £170 million government investment.

Toby Poston, Chief Executive of the BVRLA, said:

“The Depot Charging Scheme is playing a vital role in helping fleet operators and rental companies to install affordable, reliable charging infrastructure at their depots. The vehicle rental sector faces one of the most challenging paths to decarbonisation, and this additional support for depot charging will play a major role in building confidence. It will encourage more rental operators – particularly SMEs – to electrify at scale, reduce costs, and contribute to the UK’s net zero goals.”

Industry Impact: Driving growth and jobs

The funding follows an £18 million uplift in January to further reduce costs for green lorries. Companies such as M&S and Wren Kitchens and Bedrooms have leveraged these grants to decarbonise fleets and reduce operational costs.

The government also supports wider EV adoption through the Electric Car Grant, which has helped over 80,000 drivers save up to £3,750. Over £600 million is being invested to expand charging infrastructure, building on more than 118,000 chargers already available nationwide.

By reducing costs and expanding charging access, the initiative strengthens business resilience while advancing the UK’s sustainability and net zero objectives.

Industry and Trade Association Lobbying

“For several years, EO Charging been lobbying the UK Government with our trade association partners (BEAMA and REA) to deliver a clear and consistent electrification strategy for fleets,” said Richard Earl, Director of R&D at EO Charging.

“This would then enable investors and operators to unlock the significant amounts of private investment required to decarbonise the transportation sector. Following on the commitment to the ZEV Mandate and the industrial strategy, today the UK Government has made another significant strategic step forwards to help the electrification of fleets by the announcement of £1b of funding.”

“EO Charging welcomes this significant boost from the UK Government. Our own research with Vanson Bourne shows that the tipping point of Total Cost of Ownership of a fleet has already tipped towards an electrified fleet. Therefore, with this additional funding available from the UK government, it is now clearer than ever that operating an electric fleet is not only good for the environment but it now makes compelling financial sense.”

“Many of our customers already reap the benefit of operating an electrified fleet – zero emissions, simpler maintenance and an overall better experience for the driver, passengers and other road users. With this additional funding, we now anticipate many more companies enjoying these benefits as well as improved financial performance.”

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Investment to transform manufacturing productivity

The combined £21.3m investment will increase capability and productivity at the company’s Advanced Blade Casting Facility (ABCF), which produces turbine blades for jet engines used in long-haul aircraft.

The investment will fund additional specialist equipment, enabling the site to double output by 2030.

Expanding turbine blade manufacturing capability

The Rotherham facility casts, machines and inspects intermediate and high-pressure turbine blades used in two of Rolls-Royce’s key civil aerospace engines: the Trent XWB‑84, which powers the Airbus A350‑900, and the Trent 1000 XE, which powers the Boeing 787.

Each high-pressure turbine blade generates the power of a Formula 1 car, with between 60 and 90 blades used inside each engine to generate the thrust required for large long-haul aircraft.

The ABCF employs more than 300 people, largely from the local area, and forms part of Rolls-Royce’s global network of advanced manufacturing sites. Opened in 2015, the facility supports the company’s wider UK manufacturing capability and relies on a complex international supply chain.

Regional support unlocking private investment

Nigel Bird, Executive Vice President, Turbine Systems at Rolls‑Royce, said the grant played an important role in supporting the investment.

“We’re grateful to South Yorkshire’s Mayor for his support. It’s a clear example of how regional government can generate confidence for private sector investment, helping to retain and expand this type of unique UK capability, and supporting UK exports.”

Bird added that the investment reflects confidence in both the workforce and the region’s advanced manufacturing expertise.

“Thanks to Rolls-Royce’s ongoing transformation we’re able to make this investment, which will bring benefits to the region and our customers. Our incredible team in Rotherham are making components every day that are pushing the boundaries of science. This investment is a vote of confidence in them and in the capability of the wider region to stay at the forefront of advanced manufacturing. We look forward to future collaboration that will help keep these valuable skills in the community.”

Strengthening the UK’s advanced manufacturing cluster

South Yorkshire Mayor Oliver Coppard said the investment highlights the region’s position as a major hub for advanced engineering.

“South Yorkshire is home to world-class engineering, world-class innovation and world-class talent.”

“I’m proud that our support will help to unlock growth, keep cutting-edge manufacturing here in South Yorkshire and further strengthen our role at the heart of the UK’s advanced manufacturing industry.”

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Global supply chains are facing unprecedented volatility. From geopolitical tensions and trade disruptions to the race to decarbonise industry, mounting global uncertainty has highlighted the precarity and fragility of traditional supply chains. This is driving many organisations to conclude that traditional supply chain models are no longer fit for purpose. 

As such, many business leaders are re-examining their supply chains and exploring how they could be adapted or enhanced using deep tech innovation. At Digital Catapult, we drive UK industrial supply chain resilience through targeted interventions, and in convening capabilities and accelerating the practical application of deep tech across industry, the next generation of industrial supply chains will be built on deep tech innovation. 

THE STRUGGLE WITH TRADITIONAL SUPPLY CHAINS

Supply chain disruption can be catastrophic for global business. Disruption might delay the delivery of defence and security assets, for example, limit energy resources and push up prices, or obstruct overseas travel. The latest conflict in the Middle East and the closing of the Strait of Hormuz pushed oil prices up by around 10-13 percent recently, and research has identified a 89 percent increase in attacks by artificial intelligence (AI)-enabled adversaries around the world.

Both examples highlight the fragility of traditional supply chain models and underpin the need to integrate and apply novel solutions that can mitigate risk.

The demand for innovative solutions is also influenced by a growing consensus that traditional supply chain models are fraught with vulnerabilities that range from a lack of valid data to weak adaptability. Recent geopolitical events have brought these weaknesses to the surface, complemented by research that spotlights the precarity of supply chains and the impact of disruption.

McKinsey, for example, reported that supply chain disruption now typically lasts around one to two months as a new normal, while around 80 percent of organisations reported experiencing supply chain disruption in the last year alone. The perceived benefits of adopting new supply chain solutions are increasingly driving many business leaders towards deep tech innovation.

THE VALUE OF DEEP TECH INNOVATION

In offering technological and innovation consultancy to businesses on how deep-tech innovation can strengthen supply chain resilience, I am starting to see the emergence of deep-tech-enabled supply chains. These are supply chains that leverage deep tech like machine learning and AI to adapt, predict, and respond to disruption before it can have a tangible impact on a business.

This is in line with broader industry trends towards embracing deep technologies, with 70 percent of companies investing in AI to mitigate supply chain disruption and 59 percent looking for ways to adapt existing resources to withstand market shifts. It’s not only AI-led solutions that are unlocking new opportunities, but areas of deep tech innovation like distributed ledger technologies (DLT), too.

Across Digital Catapult’s programmes, we enable deep tech startups with supply chain solutions to scale. This includes SMEs that have developed distributed ledgers that can facilitate secure data-sharing between businesses and drive efficiencies across the entire supply chain. Distributed ledgers have been found by researchers to enable the real-time tracking of goods, while reports also note their ability to create tamper-proof records that can improve traceability across sensitive and complex supply chains.

THE IMPORTANCE OF INTERVENTION

While deep tech innovation like AI, digital twins and DLT are essential in strengthening UK industrial supply chain resilience, without appropriate intervention, business leaders will lack the necessary means to trial new solutions or integrate them into existing workflows.

This is why Digital Catapult continues to intervene in this space, which has seen us trial pioneering solutions that offer a glimpse into the future of industrial supply chains in the UK. This includes the Logistics Living Lab project, which saw us collaborate with AF Blakemore & Son, the family-run owner of Spar supermarkets, to explore how a shared digital infrastructure system could establish more intelligent vehicle slot filling, routing, and tracking. The project achieved a 37 percent decrease in overall transport costs and a nine percent improvement in vehicle fill rate for the business, highlighting the value of deep tech innovation and the interventions that enable its practical application.

Providing infrastructure to trial and validate new supply chain solutions is equally important in driving UK industrial supply chain resilience. Digital Catapult, alongside partners across the Catapult Network and in collaboration with the Ministry of Defence (MoD), is delivering the Defence Testbed Accelerator programme to support the MoD and its manufacturing supply chain.

By creating a trusted environment in which digital design files can be securely accessed, stored and shared, this work is strengthening supply chain resilience and accelerating innovation by providing an independent testbed where teams can rapidly experiment and validate technologies in a fraction of the time required under traditional procurement. The success of the programme speaks to the future of supply chains in the UK, and the transformative role deep tech innovation will have in strengthening them.

As businesses consider new ways to mitigate disruption, the next generation of supply chains in the UK will be underpinned by deep tech innovation that ranges from AI and machine learning to digital twins and distributed ledgers.

If businesses are to integrate and apply new tech-enabled solutions, however, there must be opportunities for them to do so, and this is where interventions and infrastructure remain key. In convening these capabilities, the UK will be better equipped to manage disruption in the longer-term.

To learn more about Digital Catapult’s supply chain interventions, click here.

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A landmark for electric aviation

The programme began with a demonstration flight between Glasgow and Dundee and will expand to routes including Aberdeen, Inverness, Wick and Orkney.

The initiative aims to replicate the daily mail flights currently operated by Loganair, carrying representative letters and parcels while evaluating how electric aircraft could integrate into Royal Mail’s logistics network.

Testing electric aviation for essential mail services

The demonstration flights are designed to assess how electric aircraft could support Royal Mail’s Universal Service Obligation, which requires the delivery company to serve all 32 million addresses in the UK every day, including some of the country’s most remote locations.

Delivering mail across the Scottish Highlands and Islands relies on a network of road, sea and air transport, with Loganair providing essential regional air connectivity developed over six decades. The demonstrations will test how electric aircraft could operate on the same routes and from the same airports without requiring changes to existing infrastructure.

Aircraft technology and regional logistics

The flights use BETA Technologies’ ALIA CTOL, an all-electric conventional take-off and landing aircraft designed for regional cargo and passenger operations.

The aircraft operates from existing runways and can recharge in approximately 20–40 minutes using BETA’s fast-charging system. With a maximum demonstrated range of 336 nautical miles and payload capacity of up to 560kg, the aircraft is designed for the high-frequency regional routes that characterise Loganair’s Scottish network.

Luke Farajallah, CEO at Loganair, said:

“This is a landmark day for European aviation, and in-particular for Scotland’s airline Loganair. We are not talking about concepts, prototypes, or distant ambition, this is a real tangible programme of flying across our network which will provide invaluable data on how an electric aircraft could perform in a real commercial environment.”

Supporting net-zero logistics goals

The trials also form part of Royal Mail’s broader sustainability strategy. In 2024, the company announced it would halve its use of domestic flights as part of its Net-Zero by 2040 strategy, retaining only essential routes.

Electrifying some of these remaining flights could further reduce emissions from the company’s logistics network. The initiative builds on other decarbonisation measures already underway, including the deployment of 8,000 electric delivery vans and the use of drones to connect island communities.

Chris Paxton, Strategic Insight and Innovation Manager at Royal Mail, said:

“This is an important step towards making electric mail flights a reality for some of the UK’s most remote communities. By working with Loganair and BETA Technologies, we’re proud to be the first UK delivery company to test an electric aircraft, supporting our journey to Net-Zero by 2040 while continuing to serve all 32 million addresses across the UK.”

Collaboration to validate electric aviation

The project brings together regional airline operations with electric aircraft technology to assess how the new systems could perform in real-world logistics conditions.

Simon Newitt, Head of Sales and Support at BETA Technologies, said:

“Scotland’s geography makes it one of the most compelling environments for electric aviation anywhere in the world — short routes, existing infrastructure, and communities that have depended on reliable air connections for generations.”

“Flying real postal routes alongside an operator with Loganair’s experience is exactly how you validate this technology. We’re proud to be working with partners like Loganair and Royal Mail, who recognise that keeping these communities connected and doing it sustainably are not competing priorities.”

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A sustainablity milestone

Starbucks has achieved a major sustainability milestone as its polypropylene cold beverage cups have earned the ‘Widely Recyclable’ designation from How2Recycle, North America’s leading on-pack recycling label. The update means that more than 60% of U.S. households can now recycle these cups through curb-side or drop-off programmes which is a significant step toward reducing waste and supporting a circular economy.

This achievement was made possible through collaboration with multiple partners, including NextGen Consortium managed by Closed Loop Partners’ Centre for the Circular Economy, The Recycling Partnership, and WM, North America’s largest recycler. Through the partnership, these organisations have expanded recycling access to over 2 million new households in just four months.

Expanding access through collaboration

Polypropylene cups, widely used for cold beverages, historically faced limited recycling options compared with other plastics like HDPE (used in milk or detergent bottles). The collective effort of these partners addresses this gap by aligning design, infrastructure, and consumer education across the value chain:

• NextGen Consortium: Worked with major companies, including Starbucks, to develop solutions advancing circularity in foodservice packaging.
• The Recycling Partnership’s Polypropylene Recycling Coalition: Invested in recycling infrastructure, provided education and guidance, and supplied real-time system data.
• How2Recycle: Applied clear labelling standards to provide consistent guidance for consumers.
• Starbucks: Leveraged scale and commitment to sustainable packaging to accelerate adoption.
• WM: Developed end markets with KW Plastics, built processing infrastructure, and created pathways for curbside acceptance.

“Expanding access, improving infrastructure and strengthening consumer communications takes collaboration across the value chain,” said Paul Nowak, Executive Director of GreenBlue, the nonprofit behind How2Recycle.  “No single organisation can do this alone. The work we’re doing today has benefits beyond any single material. By investing in infrastructure and consumer-tested communications, we’re driving industry and behaviour change at scale.”

Closing the recycling gap

The Recycling Partnership reports that households generate as much polypropylene as HDPE, yet polypropylene recycling rates remain one-third of HDPE’s. Increasing polypropylene recovery reduces landfill waste, improves material quality, and lowers demand for virgin plastics.

“Achieving the Widely Recyclable designation for polypropylene cups is a significant milestone,” said Marika McCauley Sine, Chief Sustainability Officer at Starbucks.

“It reflects what’s possible when businesses, recyclers and communities work together to create solutions that can reduce waste and make recycling easier for customers who opt for to-go beverages. We’re committed to continuing our collective effort to build a circular system that can benefit people and the planet.”

A recycling milestone

“This recycling designation change for polypropylene cups marks an important step forward for the circularity of foodservice packaging in the U.S. The Closed Loop Center for the Circular Economy, through our NextGen Consortium, is proud to be a part of this work and to celebrate this milestone alongside key industry leaders,” said Kate Daly, CEO of Closed Loop Partners’ Center for the Circular Economy.

“Contributing to this work to make polypropylene cups widely recyclable is part of our broader work to accelerate the recovery, reuse and recycling of foodservice packaging. We look forward to continuing to expand recycling access for more packaging and materials – a critical part of building a circular economy.”

Next steps and finding the next level

While more than 60% of households can now recycle polypropylene cups, industry leaders acknowledge that further work is needed.

• Improve consumer education and engagement
• Expand infrastructure and curb-side programme adoption
• Promote better cup design and use of recycled content
• Support consistent recycling policies and community participation

How partnerships can make recycling more accessible

“Plastic to‑go cups becoming recyclable curb-side is a major milestone made possible by years of investment, innovation and collaboration,” said Tara Hemmer, Chief Sustainability Officer, WM.

“As the largest recycler in North America, we’re proud to help capture and recycle more of the everyday materials people rely on, and this achievement proves what’s possible when communities, companies and industry leaders come together to make recycling more accessible.”

The increased demand for recycling

“We have watched demand for post‑consumer polypropylene grow steadily over the last decade as more companies shifted toward lighter and more efficient packaging,” said Stephanie Baker, KM, Director of Advocacy & Marketing.

“That change increased the amount of polypropylene on store shelves and in recycling streams. It also created the need for strong domestic markets to keep this material from being exported at low value. By setting clear purchasing specifications and investing in the ability to recycle polypropylene at scale, we helped build a pathway that keeps this material in the United States where it can be reprocessed into something new.”

A powerful partnership to reach millions of households

“This is meaningful progress for polypropylene recycling,” said Kate Davenport, Chief Impact Officer at The Recycling Partnership.

“With 75.5 million households now able to recycle PP cups, we’ve reached the threshold for on-pack labeling — a critical tool for building consumer understanding. It’s a first step worth commending. But access alone is not enough. Only 20 percent of PP packaging is currently captured, and 76 percent of all recyclables are still lost at the household level. That’s why our focus remains on what it takes to move the system forward: clear communication, stronger engagement, and continued investment in communities. Backed by national recycling system data and close relationships with local recycling programs, we see both the gains and the gaps. The Partnership is committed to closing them.”

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Building continuous competitiveness in procurement

The collaboration follows nearly a year of joint development work and is designed to help organisations move beyond traditional procurement digitalisation towards a more responsive, intelligence-driven model.

The two companies say procurement functions are under increasing pressure to respond faster to market shifts, supply chain disruptions and emerging opportunities.

Through the partnership, Kearney and Beroe have worked with 13 global procurement organisations to develop new approaches that provide ongoing visibility into value creation opportunities, potential risks and areas where intervention could deliver the greatest impact across the value chain.

The initiative reflects a shared belief that the real potential of artificial intelligence lies not simply in digitising existing processes but in fundamentally rethinking how procurement work is carried out.

Using agentic AI alongside procurement expertise, the companies aim to help organisations analyse complex market dynamics and respond more quickly to changing conditions.

Applying agentic AI to procurement strategy

The partnership will focus on combining Beroe’s procurement decision intelligence capabilities with Kearney’s consulting expertise to support procurement teams in navigating disruption and identifying opportunities faster.

“Procurement processes in use today were built for a world that no longer exists. Markets move in hours, not years, and the window to act on an opportunity, or contain a risk, can close before a traditional process even gets started. Something fundamental has to change,” said Vel Dhinagaravel, founder and CEO of Beroe.

“True transformation isn’t about doing the same things slightly faster or slightly better. Rather, it’s about enabling decisions and outcomes that were previously impossible. That is the scale of change we believe procurement is now ready for. We are delighted to be working with Kearney and a cohort of leading global procurement organisations to make continuous competitiveness a reality.”

Supporting faster procurement decisions in volatile markets

According to the companies, many procurement teams are struggling to keep pace with rapidly shifting markets and supply chains that affect purchasing efficiency, supplier risk and competitive positioning.

Agentic AI, they argue, can provide procurement teams with faster insights and improved situational awareness, allowing them to act before opportunities disappear or risks escalate.

“Many procurement organisations are struggling to keep pace with highly volatile markets impacting their efficiency, effectiveness, and buying competitiveness. Agentic AI provides the awareness and speed needed to change that,” said Suketu Gandhi, co-leader of global strategic operations at Kearney.

“Through our partnership with Beroe, we are working on solutions that give procurement teams the tools they need to read the market, understand what matters, and act with confidence, enabling faster, more assured decisions without overwhelming teams with noise.”

A new model for procurement intelligence

The partnership reflects a broader shift in how procurement functions are using technology to support strategic decision-making.

By combining AI-driven intelligence with consulting expertise, Kearney and Beroe aim to help organisations develop procurement operations that are more agile, data-driven and capable of responding to constant market change.

The companies say the initiative will focus on helping procurement teams strengthen visibility, accelerate decision-making and maintain competitive advantage in complex global supply environments.

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Embedding climate action across operations

The strategy builds on the company’s existing climate commitments and integrates climate considerations into how it manufactures, distributes and invests across its global operations. The plan combines both emissions reduction and climate adaptation measures, reflecting the growing impact of climate change on supply chains, water resources and agricultural systems.

The Climate Transition Plan sets out a roadmap for reducing emissions through increased use of renewable energy, improved operational efficiency and changes to how products are manufactured, packaged and transported.

It will also continue working with suppliers, farmers and customers to address climate challenges across the value chain, recognising that large-scale impact requires collective action.

The three core principles

The strategy is guided by three core principles:

• Pursuing both climate mitigation and adaptation
• Focusing investment and effort where we can have the greatest impact
• Amplifying progress through collaboration across our value chain and beyond.

“Fundamental to the way we choose to do business”

Ewan Andrew, President, Global Supply and Procurement and Chief Sustainability Officer at Diageo, said climate considerations are embedded throughout the company’s business strategy.

“For Diageo, taking action on climate is embedded into how we plan our business delivery and manufacture and distribute our products — it is fundamental to the way we choose to do business, underpinning our success today and tomorrow,” Andrew said. “As you will see throughout this report, we view our climate strategy as an opportunity for innovation, reducing risk and building resilience into our value chain and operations.”

A strategy built on mitigation and adaptation

The company’s approach combines climate mitigation — reducing emissions — with adaptation efforts designed to manage the impacts already being felt across communities and supply chains.

Water stewardship is a particular focus area, as water is both central to beverage production and increasingly exposed to climate-related risks.

The strategy also integrates climate action with broader sustainability priorities, including agriculture, nature protection and circularity.

Andrew said the company’s climate goals have evolved since its initial commitments were introduced as part of the Spirit of Progress programme.

“In 2020, we set ambitious climate goals as part of our ‘Spirit of Progress’ action plan. I am proud of our accomplishments to date, but conditions remain challenging, and the topic is complex,” he said. “Six years on we have better data, deeper insights and a clearer view of the practical realities required to deliver net zero.”

Diageo’s emissions targets were revised in 2025 and validated by the Science Based Targets initiative, aligning them with the 1.5°C warming pathway set out in the Paris Agreement.

Why collaboration key to delivering climate goals

The company emphasised that collaboration across industries and institutions will be essential to achieving meaningful climate progress.

Andrew adds that partnerships with governments, NGOs, universities and other businesses will play an important role in scaling solutions.

“Collaboration in this context is essential. It is clearer than ever that we cannot achieve our climate goals in isolation,” he said. “It is important that we deploy our resources and skills in the areas where they can have the most impact and where it makes the most strategic sense to our business.”

Building a climate-resilient value chain

Diageo said the Climate Transition Plan is designed to strengthen the resilience of its supply chain while addressing climate-related risks that could affect its operations and communities.

Andrew described the plan as a “living roadmap” that will evolve over time as conditions change.

“This document represents an important next step in Diageo’s climate strategy. It illustrates how we will continue to reduce emissions across our operations and value chain, manage climate-related risks and adapt our business for a low-carbon, climate-resilient future,” he said.

Supply chain: Working with suppliers to reduce value chain emissions

Much of Diageo’s carbon footprint sits within Scope 3 emissions, making supplier collaboration essential to its climate transition strategy. The company works closely with suppliers of raw materials, packaging, logistics and services to support decarbonisation across the value chain while strengthening resilience against climate-related risks.

Through responsible sourcing and long-term partnerships, Diageo prioritises engagement with suppliers where the greatest emissions-reduction opportunities exist. Regular workshops, meetings and knowledge sharing help identify practical solutions, while improved product-level carbon footprint data is helping the company strengthen supply chain transparency and align progress with its science-based targets.

Many suppliers are already taking action, including improving manufacturing energy efficiency, switching to renewable electricity, increasing recycled packaging content and adopting regenerative agricultural practices.

Key focus areas when engaging with suppliers

• Collecting data from suppliers’ product carbon footprints (PCF) to improve supply chain transparency
• Increasing the number of suppliers with quantified decarbonisation roadmaps through targeted engagement
• Providing procurement training and capability building to support supplier decarbonisation efforts

Case Study: Johnnie Walker Ultra – The first ultra-lightweight whisky bottle

Johnnie Walker set out to rethink its iconic square bottle by dramatically reducing its weight. Glass production is energy-intensive, and heavier bottles require more raw materials, manufacturing energy and transport emissions.

Working with external glassmakers for more than five years, the team experimented with new design and production techniques, including hand-blown glass and a teardrop shape. The result was the Johnnie Walker Ultra bottle, unveiled at the London Design Festival in 2024. At just 180g, it demonstrated how significantly lighter whisky bottles could be in the future.

Although bottles of this weight cannot yet be produced at scale, the insights gained are already informing lightweight packaging projects across the wider Diageo portfolio. The company has also made the bottle’s intellectual property publicly available to encourage wider adoption across the industry.

Jeremy Lindley, Global Design Director at Diageo, said:

“Rather than hold this new knowledge close to our chest, we’re excited to be offering a royalty-free licence to our granted UK patent to the world. We hope that our discoveries will have a positive impact within the wider industry and help discover new possibilities for lighter, lower carbon packaging alternatives.”

Case Study: Regenerative barley farming in Ireland for Guinness

Guinness is working with farmers in southeast Ireland to explore how regenerative agriculture can reduce emissions while maintaining crop yields.

Launched in 2022, a three-year programme involving 44 farms across Carlow, Kildare, Kilkenny, Laois, Tipperary and Wexford began with detailed baseline assessments of soil carbon, emissions, water quality and biodiversity. Farmers then tested regenerative techniques such as optimised fertiliser use, cover crops and reduced tillage.

Early results suggest these interventions could reduce greenhouse gas emissions from spring barley production by up to 36%, while also improving soil health and reducing nutrient runoff. The programme is designed to create an evidence-based model for supply-chain decarbonisation while supporting long-term farm productivity and resilience.

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