Why are ESG matters important to you?
This webpage resource aims to demystify ESG including the journey to net zero emissions, providing practical information and guidance while exploring various initiatives in which businesses are already investing to reduce their environmental impact.
Businesses in the global supply chain will be increasingly aware of Environmental, Social and Governance (ESG) challenges and the role that they will inevitably play in the coming years. In particular in terms of the “E”, the drive towards net zero emissions, if not already, will become a feature of day to day business strategy. This is a complex topic and understanding what it means for your business, what positive impact your business can have and options available can all be confusing.
Working with our Members and the wider industry, we have developed a series of case studies that outline real examples of projects and initiatives that have positively impacted ESG issues. We will continue to build on this resource, profiling all such initiatives - big, small, low cost or blow out - to help our Members achieve their ESG targets.
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Sustainable Development Goals
The quest of net zero is not an independent goal. It is fundamentally connected to the broader framework set out by the United Nation’s Sustainable Development Goals (SDGs). Therefore, targeting and delivering on your net zero goals contributes both directly and indirectly to the overall achievement of the SDGs.
The Paris Agreement
The Paris Agreement was signed by governments of over 190 nations in 2015, who agreed to limit global warming to less than 2 degrees C and attempt to limit it to 1.5 degrees C above pre-industrial levels. The agreement also extended the scope of reduction commitments to include emissions from international shipping and aviation. It mandated the International Maritime Organisation (IMO) and the International Civil Aviation Organisation (ICAO) to develop and implement binding measures to achieve comparable reductions in these modes of transport.
What is climate change?
Climate change refers to long-term alterations in Earth's average weather patterns, primarily driven by the increase in greenhouse gas concentrations in the atmosphere. These gases, such as carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O), trap heat from the sun that would otherwise escape into space, leading to a warming of the planet.
Net zero emissions
As nations around the globe ramp up action their against climate change and move their economies towards net-zero greenhouse gas (GHG) emissions, new practices, opportunities and indeed challenges are likely to arise for their respective ports and logistics operations. However, every journey will be unique, knowing what to consider and where to start will be starkly different for a freight forwarder versus a port or container terminal.
Science Based Targets
Science-based targets initiative (SBTi) are specific, measurable goals that organizations set to reduce their greenhouse gas emissions in alignment with the latest climate science and the global effort to limit global warming. These targets are designed to ensure that emission reduction efforts are consistent with the goals of the Paris Agreement.
Sustainability reporting and accountability is an important component of climate change mitigation strategy. The Intergovernmental Panel on Climate Change (IPCC) reported in 2018 that industry is globally responsible for 21% of direct greenhouse gas emissions, one of the largest contributors measured. As societies plan the journey to net zero, it is essential for governments, investors and consumers understand how business contributes to emissions so that they can make informed decisions about how to govern, invest and consume. For this to happen, sustainability reporting must be standardised and accurate.
Carbon offsetting vs. capture
In brief, carbon offsetting involves compensating for emissions by supporting external projects, while carbon capture is about capturing and managing emissions directly from your own operations. Both approaches play a role in reducing a company's overall carbon impact, but they target emissions at different stages of the carbon lifecycle.
Combatting modern slavery
Modern slavery, also known as contemporary slavery, refers to various forms of exploitation and coerced labour, despite being legally abolished in most countries. This violation of human rights involves the control and ownership of individuals through various means, often depriving them of their freedom, dignity, and basic rights.
As a result of escalating concerns over the consequences of global climate change, various regulatory frameworks have emerged. As scientific consensus solidifies around the human influence on rising temperatures, policymakers worldwide are facing an urgent mandate to design and implement measures that curtail carbon emissions, promote sustainable practices, and safeguard vulnerable ecosystems.
ESG case studies
How engineered cargo protection can dramatically improve your sustainability and ESG performance
Cargo securing is not only relevant to ESG because the international maritime industry incurs losses of about $6 billion each year because of incorrectly packed or documented cargo (TT Club 2021) but also because of the consequences of additional CO2 emissions generated for the reworks of damage products and subsequent additional shipments.
Freightsafe have reimagined safe and secure truck parking, with modular sites that can be delivered in just 3 months from first agreement, costing significantly less to procure than traditional parking sites and providing a more complete safety and security program for users.
Saving energy with eco-driving
The implementation of Rombit's DriveDigital Driver Coach in the logistics sector has yielded instant results, by promoting "eco-driving" in warehouses. This innovative solution not only enhances safety but also significantly reduces energy consumption, making it a win-win for logistics companies.
Recruiting and retaining talent
When speaking with Members and industry stakeholders, one clear challenge faced is around attracting young talent to the industry, training them and importantly retaining that resource. Woodland Group explains how apprenticeships can be the key to tackling this challenge.