• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Blogs » Think Tank » Logistics Companies Are Primed for ESG Success

Think Tank
Think Tank RSS FeedRSS

Logistics Companies Are Primed for ESG Success

July 24, 2022
Nancy Korayim, SCB Contributor

The impacts of consumer demand on our planet are more apparent than ever, evidenced by dwindling natural resources and environmental pollution. Yet, capitalism isn’t beyond redemption. Companies that adopt an environmental, social and governance approach (ESG) are finding ways to do business that are healthy for their bottom lines and the planet, as Fortune 500 companies like HP are learning.

ESG frameworks provide a way of measuring the social good that companies do beyond maximizing profits on behalf of shareholders and standards gauge a company’s socially conscious behavior. The environmental part of that looks at steps that companies take to safeguard the environment, such as corporate climate change policies, careful energy usage, and the conservation of natural resources. The social component of ESG relates to how companies manage relationships with people, organizations and communities with which they do business. Finally, the governance part of ESG addresses ethical leadership and includes taking measures to ensure transparency, diversity, and accountability from the top down.

For conscious consumers, companies that embrace ESG provide a more appealing alternative to those that put profits alone front and center. Many investors too are opting for companies with a focus on ESG, making it increasingly profitable for companies to do good. For example, brokerage firms, investment advisors, mutual funds, and even public pension funds now commonly offer investment opportunities in companies that employ ESG standards — often through so-called “green funds” or “sustainable investments.”

That’s smart business on their part too, as ESG standards can prevent investment losses from unethical practices on companies’ part. A survey of Investopedia and Treehugger readers revealed that interest in ESG continued to grow in 2020, with nearly a fifth of respondents incorporating ESG standards into their investment strategy, and 67 percent saying they planned to invest in more companies that use the ESG framework.

Embracing ESG

Logistics companies, especially those focused on hyperlocal delivery, batching and fulfillment are in an opportune position to easily embrace ESG criteria and support the business community with their efforts. How? The answer is by increasing efficiencies around deliveries.

By grouping goods going to the same neighborhoods together and delivering them from micro-warehouses near dense metropolitan hubs in smaller vehicles, companies can reduce the distance that goods travel in large, gas-guzzling trucks and the total miles driven to get their goods to consumers. That strategy makes good business sense, as it lowers the cost of deliveries and speeds up delivery time, resulting in happier customers. But it also means companies are using less fuel, and creating less carbon emissions.

Even better, short-delivery routes and smaller deliveries offer the opportunity to use small, energy-efficient vehicles such as electric cars and trikes. Reducing emissions is a goal almost everyone can get on board with; after all, most people who live in or have visited large cities are well acquainted with the problem of tailpipe emissions.

Working with fuel economy specialists to monitor carbon footprint and track environmental compliance, and using platforms that allow for detailed and accurate carbon dioxide emissions accounting can help companies not just move in the right direction, but track their progress towards specific ESG goals. Remember, you need to be able to measure it in order to manage it. Doing that also demonstrates a level of transparency and accountability that conscious consumers and investors are likely to value highly.

But let’s not confine the conversation to consumers and investors, because there’s a much larger conversation to be had here, too. The United States ranks lower than most developed economies in emissions, renewable energy, and climate policy. Sustainable investing is vital to sustainable growth. Both private investors and the government have all become increasingly focused on funding and supporting sustainable solutions and climate-supportive actions, such as through electric mobility programs, charging stations, and sustainable food and clothing initiatives. Such moves have made the path forward less challenging for the entire delivery ecosystem.

So now, it’s a question of what we do with it. ESG must become part of companies’ DNA, not because we know the business benefits of ESG — facilitating long-term growth, attracting great talent, reducing costs, and building a sense of trust among stakeholders — but because it’s the right thing to do. Business leaders — and all of capitalism — find themselves at a critical choice point: evolve or face possible collapse under our own weight. We have the incentive, the knowledge, and the technology to embrace ESG in hyperlocal fulfillment, and to lead the way in sustainable business and growth.  

Nancy Korayim is founder and CEO of MetroSpeedy.

Logistics Transportation & Distribution Sustainability & Corporate Social Responsibility

RELATED CONTENT

RELATED VIDEOS

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • karen-jones.jpg

    Watch: Four Industry Disrupters Impacting Logistics

    Data Management (Big Data/IoT/Blockchain)
  • THE SPACE AROUND A COMPUTER KEYBOARD IS CLUSTERED WITH IMAGES GENERIC SHIPPING BOXES

    How Suppliers Can Overcome E-Commerce Supply Chain Challenges

    Data Management (Big Data/IoT/Blockchain)
  • A CSX TRAIN IS SEEN FROM THE FRONT

    CSX’s New CEO Has a Big Idea for Railroads: Carry More Freight

    Rail & Intermodal
  • A SEATED PERSON HOLDS A SMARTPHONE, SHOPPING

    Retail Consumer Data: The Key to Personalization, or Privacy Violation?

    Regulation & Compliance
  • A ROBOT ARM AND A HUMAN ARM ALMOST TOUCH FINGERS

    AI + SCM: A Formula for Automation and Optimization

    Supply Chain Planning & Optimization

Digital Edition

Scb q1 2023 cover

2023 Supply Chain Management Resource Guide: Packing for a Difficult Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Holman Logistics Honeywell Intelligrated
IFM Infor Inmar
Keelvar Kinaxis Korber
Lean Solutions Group 2H Liberty SBF Locus Robotics
Logility LogistiVIEW Lucas Systems
MCA Connect MPO Nvidia
Old Dominion OpenText ORTEC
Overhaul Parsyl PMMI
QIMA Redwood Logistics Ryder E-commerce by Whiplash
Saddle Creek Logistics Schneider Dedicated Setlog Holding AG
Ship4WD Shipwell Shyft
Sourcemap Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing