What is ESG?

ESG is an acronym that stands for Environmental, Social, and Governance. It is a sustainable investment approach aimed at encouraging companies to demonstrate better responsibility in economic, social, and environmental aspects. ESG factors include a company’s performance in reducing carbon emissions, improving labor conditions, increasing transparency, and preventing corruption. ESG is also an important business trend as consumers and investors are increasingly concerned about a company’s social impact and ethical responsibility.

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.

Difference between CSR and ESG

CSR  (Corporate Social Responsibility) and ESG both refer to the concept of corporate responsibility in social and environmental aspects, but they have some differences. CSR usually focuses on a company’s social responsibility, including charitable donations, community involvement, and its role as a social citizen. ESG, on the other hand, focuses more on a company’s performance in environmental, social, and corporate governance aspects, including reducing carbon emissions, improving labor conditions, increasing transparency, and preventing corruption. Therefore, ESG is more comprehensive and can help companies achieve sustainable development and long-term success.

Value of ESG Concepts for Companies and Investors

ESG has value for both companies and investors. For companies, practicing this principles can enhance their social impact and image, reduce risk, create business value, and promote innovation. For investors, ESG can provide more comprehensive and sustainable information about companies, helping investors make more informed investment decisions. It can also help investors reduce risk, increase investment returns, and achieve long-term financial and social benefits.

ESG Policies in Logistics Industry

DHL: Set ESG Roadmap

DHL, the world’s leading logistics company, established their own ambitious sustainable development targets 4 years ago. DHL has promised to reduce carbon emissions to 29 million tons or below by 2030 and achieve net-zero emissions by 2050. For environmental aspect, DHL currently adopts strategies such as deploying zero-emission e-vehicles, adopting alternative aviation fuels, and investing in climate-neutral buildings to meet the carbon reduction targets of the company and the Paris Agreement. For social aspect, they will continue to expand the GoTeach program, which provides job opportunities and necessary working skills to young people, especially of those from socially disadvantaged backgrounds.

Kerry Logistics: Actively Fulfill Social Responsibilities

Kerry Logistics Network, an Asia-based company, is also actively promoting ESG. In environmental category, they are planning to use environmentally friendly refrigerants in warehouse operations to achieve carbon emissions reduction. Also, they have rolled out Hong Kong’s first two electric trucks after buying them with HK$3 million. To reach their carbon neutral target, the entire Hong Kong fleet will be converted into electric trucks within the next ten years.

ESG Rating Standards and Definitions

ESG rating standards may differ according to different frameworks and institutions. Generally, ESG rating standards include the following aspects:

• Environment: including carbon emissions, water resource management, waste management, etc.
• Social: including labor rights, human rights, community relations, supply chain management, etc.
• Corporate governance: including board structure, regulatory compliance, information transparency, anti-corruption measures, etc.

The definitions of ESG rating standards may differ according to different institutions and frameworks. Some major ESG rating institutions include Institutional Shareholder Services (ISS), MSCI, Dow Jones Sustainability Index (DJSI), etc.

FreightAmigo: AmiGo Green Achieves Goals for Our Clients

With carbon emission calculator and AI green freight route planning, AmiGo Green logistics technology solutions can fulfill your ESG responsibilities. We can help achieving energy savings and emission reduction goals. Operating costs can also be lowered, thus increasing operational efficiency! AmiGo Green has reduced over 120,000 KG of carbon dioxide emissions in just one month, which is equivalent to the amount absorbed annually by almost 727 trees!

Let’s achieve ESG goals with FreightAmigo and make trade greener together!