Several countries report that transportation accounts for approximately 25% of their total emissions, which is not surprising given global dependency on the number of options and routes to transport both people and cargo, whether by air, sea, or land. There is increasingly high regulatory and social scrutiny on carbon emissions, labor and safety, and competition. This creates a huge opportunity for the transportation sector to influence sustainability and ESG commitment practices, not just within the industry but beyond.
The public companies are increasingly required to publish their ESG strategy and reporting both for government and investors. Investors are asking for ESG commitments before investing in the company and regulators are pressurizing for the transparency of the ESG reporting. The survey of the CEOs with strong ESG commitments is pointing to significant market cap increase (for some as high as 10%) for the companies who are committed and investing into ESG programs.
The industry is installing ESG-minded best practices and initiatives, pledging to reduce emissions, utilize alternative non-carbon fuel sources such as biofuels and ethanol, improve commitment to diversity and inclusion, and improve reporting on key metrics and even carbon footprint reporting for commercial flights.
Transportation Industry is gathering data across warehouses, transportation logistics, employees, and supply chain initiatives.
- Reduce greenhouse gas emissions, waste generation, energy and water consumption in procurement, manufacturing, and distribution operations
- Increase utilization of renewable energy sources and recyclable materials, and improve environmental performance of the supply chain, transportation logistics, recycling and disposal of pharmaceutical and chemical products
- Develop greener product packaging to reduce environmental impact or address environmental challenges
- Improve affordability of products for underserved populations
- Increase diversity and inclusion in workforce composition, and patient access from financially and socially underserved communities
- Conduct humane and ethical research & development
- Maintain privacy policies
- Support employees, community health, and wellness initiatives
- Establish sustainability policies and monitoring processes
- Provide transparency and accountability in ESG information
- Comply with Federal, State, and Local laws and regulations
- Set up awareness training to prevent, notify, and action for employee harassment
- Set up controls and governance
- Set up a Dedicated ESG Platform to gather ESG data from across the company