Neglect ESG strategy at your peril

ESG [environmental, social and governance] is a term we’ve all become familiar with in recent years –although when it comes to implementation, some businesses are further down the line than others. For many, it is yet to make it onto the agenda at all.

volumes of customer returns, or to minimise energy consumption during warehousing, as well as lowering material usage during fulfilment. Should their partners fail to deliver on these elements, a retailer’s own ESG strategy – and its performance – will also be impacted.

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Recent figures from financial analyst Morningstar were optimistic, with statistics showing that 90% of companies either have a strategy in place to manage ESG, or are in the process of developing it. Those 10% lagging behind their competitors risk not only losing ground, and being outshined and outperformed, but could see permanent damage to their brand and reputation, as well as a negative bottomline impact.

Developing, implementing and measuring an ESG strategy is undoubtedly a tricky task for logistics operators, yet businesses are understandably keen to make sure they’re keeping pace with their peers and meeting stakeholder expectations. This is because a logistics operator’s role extends way beyond its own back yard, impacting not just its own business, but also the operations of its customers.

For example, retailers are increasingly keen for logistics partners to reduce carbon emissions during the transportation of goods. They may also expect partners to help prevent harm throughout their global supply chains, guarding against risks like modern slavery, exploitation, or damage to natural resources. Additionally, retailers will turn to logistics partners to solve issues of product waste associated with growing

Logistics operators play a major role in supporting thousands of businesses to meet and exceed their ESG objectives and, as the focus on ESG continues to grow, so too will the part it plays within the procurement process. Operators that neglect ESG risk ruling themselves out as viable partners who can support constantly evolving retail goals built around purpose and positively contributing to the communities and places that consumers care about.

While ESG is a complicated beast to tackle, it presents a real opportunity for logistics operators to set themselves apart. Forward-thinking companies can show clients that they understand their priorities, both short and long-term.

Whether helping to develop more efficient supply chain processes, utilising bespoke technology to prevent items ending up in landfill, or creating a reliable flow of data that enhances supply chain visibility and traceability, operators can ensure that a supply chain becomes the backbone of progressive and accountable ESG practices.

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