Improving ESG in logistics: Actionable strategies to help and support.

Recent reports reveal that around half of logistics companies have yet to implement concrete plans for Environmental, Social, and Governance (ESG) initiatives and decarbonisation. Meanwhile, the sector accounts for 7% of global greenhouse gas emissions—a clear wake-up call to develop more robust strategies. To meet the growing regulatory pressures, particularly around Scope 3 emissions, logistics firms must approach sustainability from both environmental and social perspectives.

Decarbonisation remains a crucial component of ESG, but it’s not the whole story. A strong ESG framework also encompasses worker satisfaction, skills, and engagement. Companies with a focus on ESG, for instance, report 14% better employee productivity, according to Marsh McClennan*. Furthermore, a McKinsey report shows that organisations with effective ESG initiatives experience up to a 60% boost in operating profits through cost savings related to better resource efficiency**.

Easy-to-Digest Action Points for Logistics Firms:

• Conduct a full organisational audit to assess carbon hotspots and areas for improvement.
• Engage every department in ESG efforts, ensuring accountability for emissions at all levels, including transport, warehousing, and procurement.
• Leverage technology like ESG dashboards to track and manage emissions, and implement workforce training to build sustainability awareness.
• Implement paperless processes and digitise workflows to cut down on carbon-intensive practices.
• Promote employee engagement by offering sustainability and emissions training, boosting both environmental outcomes and workforce satisfaction.

Looking beyond decarbonisation to focus on broader ESG impacts can lead to competitive advantages. According to McKinsey companies that prioritise ESG see 93% positive long-term impacts from social initiatives, including enhanced employee motivation and customer loyalty.

How Nvolve Can Help

Nvolve’s platform supports logistics companies by transforming the training and workforce engagement functions to 100%b paperless, improving accessibility, reach, sustainability and offering built-in ESG dashboards to measure and evidence carbon savings. Our tools empower your Learning and Development (L&D) departments to lead sustainability initiatives, helping to reduce carbon output and support your Scope 3 emission goals.