CJ Logistics Deploys Recycled Plastic Pallets in Indonesia... Leading Global ESG Efforts

A scene of using Carbon ZERO pallets made by upcycling waste plastics at CJ Logistics Indonesia logistics center.
Photo by CJ Logistics

[Asia Economy Reporter Hyunseok Yoo] CJ Logistics is expanding its ESG (Environmental, Social, and Governance) management to the global stage by introducing eco-friendly recycled pallets made from waste plastic at its logistics center in Indonesia.

On the 30th, CJ Logistics announced that it has deployed 400 'carbon-zero pallets' made from waste plastic at its logistics center in Jakarta, Indonesia. By introducing eco-friendly recycled pallets, the company aims to reduce carbon emissions while also improving operational efficiency by replacing the commonly used but less durable wooden pallets in Indonesia.

Pallets are platforms used for stacking and transporting goods in logistics sites. While most countries primarily use plastic pallets, some countries like Indonesia use wooden pallets due to the initial purchase cost burden. However, demand for plastic pallets is increasing even in regions using wooden pallets due to durability issues and large-scale deforestation concerns.

Especially in tropical climates like Indonesia's hot and humid environment, wooden pallets often suffer from decay and pest problems, leading to short-term use and disposal. Therefore, CJ Logistics plans to enhance operational efficiency at Indonesian logistics sites by introducing durable plastic recycled pallets.

The carbon-zero pallets were created by combining leftover plastics from CJ Logistics’ client ‘Lock&Lock’ with green new technology from the pallet manufacturer ‘Sangjin ARP.’ Lock&Lock provided 12 tons of leftover plastic from its production process free of charge, and CJ Logistics collaborated with Sangjin ARP to transform it into 400 eco-friendly recycled pallets. The delivery of the carbon-zero pallets to Indonesia was carried out in cooperation with KOTRA. KOTRA plans to support Sangjin ARP in pioneering overseas export routes for the carbon-zero pallets, further strengthening their collaboration.

Each carbon-zero pallet can reduce carbon emissions by 67.3 kg. Producing 400 pallets from waste plastic is expected to reduce approximately 26,880 kg of carbon dioxide, equivalent to the amount absorbed by 8,960 pine trees over one year.

The carbon-zero pallets also provide additional carbon reduction benefits during actual use after deployment. Applying Sangjin ARP’s internationally patented modular pallet technology, damaged modules can be replaced individually to restore the pallet, and the damaged parts can be recycled. Compared to previous products that were entirely discarded when damaged, this approach offers additional cost savings and carbon reduction effects.

After using carbon-zero pallets at domestic logistics centers for the past year, CJ Logistics confirmed that despite being made from recycled plastic, their performance and strength matched those of standard pallets capable of carrying up to one ton. The production cost was also similar to that of regular plastic pallets, leading CJ Logistics to plan to accelerate the on-site introduction of carbon-zero pallets in the future.

Kim Jinmok, head of CJ Logistics Indonesia Corporation, said, “With the commercialization of carbon-zero pallets at the Indonesian sites previously operated only with wooden pallets, we have achieved both carbon reduction and operational efficiency. As a global leading logistics company, we will continue to practice ESG management not only domestically but also at global sites.”

This content was produced with the assistance of AI translation services.