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What impact does ESG have on global logistics?

What impact does ESG have on global logistics?
18/10/2023 zweiarts

More and more companies around the world are adapting to ESG (environmental, social and governance) standards, given the growing need to create a sustainable future for future generations, as well as countless other factors that improve the company’s governance system, making it more transparent and a better environment for all its stakeholders, but how do these ESG changes affect global logistics?

On the environmental side, ESG affects global logistics mainly in the search for more efficient means of transportation with lower carbon emissions. Delivery time remains one of the priorities, but having cleaner transportation makes not only the logistics company a greener company, but also the customer who is having their cargo transported. We can see this effect especially in more local deliveries, most of which are already starting to be carried out by electric vehicles with a lower carbon footprint.

While we can’t use electric vehicles in all possible areas of the market (trucks and airplanes, for example), we can still look for more efficient alternatives in terms of fuel and also stops for better environmental action.

On the social side, we mainly have a change in the way ESG affects global logistics with greater care for employees and suppliers, with the organization taking greater and more individualized care of each one, understanding that they are people and each one has their likes, dislikes and individualities that need to be dealt with, making the whole process increasingly humane.

Finally, on the government side, we have an increase in transparency and in the entire logistics process, which is one of the points on which ESG most affects global logistics. This increase in transparency implies an improvement in the location of each load, the modes being used throughout the process, as well as a change in the way certain stages of transportation are approached.

Adaptation to ESG standards will be felt mainly by clients of companies that are not yet following these standards, but in cases like MAC Logistic, which has been following and adapting to ESG standards for a long time, the changes and alterations that will take place in the way ESG affects global logistics will hardly be felt by our clients.