PETALING JAYA: Local logistics company, Diolko Logistics Malaysia Sdn Bhd, is making strides in sustainable logistics by integrating public transportation and electric vehicles (EVs) into its delivery network.

The company has already demonstrated a 70% reduction in carbon emissions during its pilot phase and aims to push the figure to 80% through strategic expansion and operational optimisation.

CEO and co-founder Yoann Gueguen, chief operating officer and co-founder Onno Pfeiffer both said that Diolko employs a data-driven approach to measure its environmental impact, tracking key performance indicators such as carbon emissions, fuel consumption, and delivery efficiency.

“By aligning with international reporting standards, including the Global Logistics Emissions Council (GLEC) framework, ISO 14083, and the Greenhouse Gas (GHG) Protocol, the company ensures transparency and credibility in our sustainability reporting,” they told SunBiz.

They said, through the collaboration with Prasarana Malaysia Bhd from July 2024 to February 2025, Diolko achieved a 70% reduction in carbon emissions across 3,000 deliveries.

“This success is attributed to the integration of two LRT lines for parcel transportation, coupled with the deployment of EVs for last-mile deliveries,” they added.

Looking ahead, they noted that their recent ambitious plans to establish 15 additional hubs across the Klang Valley by 2027, will significantly increase its capacity to handle over 100,000 parcels monthly.

“This expansion aligns with the company’s ambitious carbon reduction goals, with some regions expected to see emissions drop by as much as 80%.

“Diolko’s commitment to green logistics also extends to its fleet, which consists entirely of electric vehicles, including eVans and eBikes. We continuously evaluate new EV models and alternative fuel vehicles to further enhance sustainability and reduce its carbon footprint,” they explained.

Beyond emissions reduction, they said Diolko supports circular economy practices by utilising equal transport capacity in both directions along LRT routes, facilitating both delivery and pickup services.

“While packaging remains the responsibility of customers, the company provides guidance on sustainable packaging choices to encourage environmentally friendly practices.

“Employee well-being is also a priority. We are not only focusing on the ‘environmental’ part in environmental, social and governance (ESG), but Diolko also ensures safe working conditions, fair wages, and optimised delivery routes to avoid long return trips and minimise excessive overtime.

“By leveraging virtual hub technology, we assign efficient delivery routes that can be completed within a standard workday, promoting work-life balance for its drivers,” they added.

They highlighted that Diolko’s long-term vision includes expanding its logistics network beyond Malaysia, with potential entry into major Southeast Asian cities such as Singapore and Hong Kong.

“We also plan to integrate other public transport networks locally, including the MRT, KTM, and KLIA Ekspres, to further enhance service coverage,” they disclosed.

Gueguenn and Pfeiffer said, to support the ambitious growth plans, Diolko is preparing for fundraising efforts through Seed and comparable investment rounds.

“These funds will drive the company’s expansion, strengthen its technological capabilities, and accelerate its mission to revolutionise urban logistics through green solutions,” they added.