Green Logistics | Carbon Reduction Benefits All Industries

Author Name: Tiffany Lee – Marketing Analyst at FreightAmigo

Global warming is receiving active attention from the world. As a member of the earth, you certainly cannot avoid it. As an enterprise, you must take an active role and serve as an example of sustainable development. Let’s learn more about the effects of carbon neutrality and carbon reduction policies on industry sectors with FreightAmigo and make trade greener together!

Benefits of Carbon Reduction Policies

Enhance Brand Reputation

Companies can enhance their brand reputation by adopting carbon neutrality and carbon reduction strategies. Through prioritizing the environment, enterprises can gain public’s trust and confidence for their brands. For instance, Unilever, the producer of Dove, claims that brands who emphasize sustainability can sell more quickly than brands that do not. Nowadays, consumers become more aware of the catastrophic damage caused by global warming, result in growing popularity of carbon reduction awareness. They are expecting businesses to go green and reduce carbon emissions, or else, they will stop purchasing goods from them.

Attract Global Investors

Companies with excessive carbon emissions are now losing investors because they do not pay attention to ESG issues. A total of 415 investors, with combined assets of $32 trillion, came together at the 2018 United Nations Climate Change Conference (COP24). They demanded governments to take action and fight against global warming. Therefore, carbon reduction policies can help companies in building reputation for sustainability and attracting investors.

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How Industry Sectors Reduce Carbon Emissions?

Fashion and Clothing Industry

When you go shopping, do you ever consider the environmental cost behind every piece of clothing? The cost of a pair of jeans? Or a pair of socks? According to Ellen MacArthur Foundation, the fashion and clothing industry, the third-largest industrial sector in the world, is responsible for 10% of global carbon emissions, greater than international travel and shipping all together. The Fashion Industry Charter for Climate Action was created in December 2018 to address climate change and gained endorsement from 125 brands, including Adidas, CHANEL, and H&M. By 2030, H&M is cutting carbon emissions by 56% and reaching net-zero emissions by 2040.

Logistics Industry

The World Economic Forum estimates that the logistics industry is responsible for 5.5% of the world’s carbon emissions, of which road transport accounts for 50%. Although carbon emissions decrease with transit distances, the combined carbon footprint of production and transportation cannot be ignored. Yossi Sheffi, a professor at MIT, observed that emissions also increase with speed. Many transportation companies are now considering the options of electric vehicles (EVs) to minimize the carbon footprint of road transportation.

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Benefits Of ESG Practices For Companies:

Improved corporate image: Enhance a company’s social impact and reputation, attracting more consumers and investors.
Reduced risk: Reduce the legal, environmental, and social risks that companies face, thereby lowering costs and losses.
Creation of business value: Promote a company’s long-term stable development, enhance its business value and competitiveness.
Promotion of innovation: Stimulate a company’s innovative potential, drive improvement in technology, products, and services, thereby enhancing its market position and profitability.

Importance Of ESG Practices

ESG practices are crucial for both companies and society. For companies, practicing ESG principles can enhance their social impact and image, reduce risk, create business value, and promote innovation. For society, ESG practices can protect the environment, promote labor rights, maintain social justice, and prevent corruption. Therefore, companies should incorporate ESG into their business strategy and management and commit to practicing ESG principles to achieve sustainable development and mutual prosperity.

ESG Brings Many Opportunities And Risks. Here Are Some Common Examples:

Opportunities:

Innovation opportunities: Stimulate a company’s innovative potential, drive improvement in technology, products, and services, thereby enhancing its market position and profitability.
Investment opportunities: ESG investment is a rapidly growing market that can bring stable long-term returns for investors.
Brand building: Practicing Enhance a company’s social impact and reputation, attracting more consumers and investors.

Risks:

Legal risks: Failure to comply with ESG principles may expose companies to legal lawsuits and fines.
Environmental risks: A company’s environmental impact may lead to risks such as environmental pollution, climate change, and ecological damage.
Social risks: Failure to address labor rights and social justice issues may expose companies to risks such as reputational damage and social opposition.
Investment risks: The investment may be affected by risks such as policy changes, market volatility, and unpredictable events.

To assist people from industry sectors in achieving their green goals, FreightAmigo has made no compromises in launching AmiGo Green, a project aimed to reduce carbon emissions. AmiGo Green offers digitized shipping documents, green freight route quotations, and carbon emission calculators to support your company’s efforts to reduce carbon emissions and save energy. Let’s achieve carbon emission reduction goals with FreightAmigo, and make trade greener together!

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