ESG意義與倉儲物流
ESG Significance and Warehouse Logistics

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ESG Significance and Warehouse Logistics

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Key points

• The ESG significance to warehouse logistics sector have become necessity for companies to follow

• Warehouse logistics industry are part of several ESG certificates which the companies can choose to pursue their strategy to align with difference ESG framework

• Tritax big box is one of the example that actively follow the ESG goals and proven with several certification achieved

    In the rapidly changing contemporary environment, the adoption of ESG practices in logistics is becoming increasingly vital. This shift is driven by a convergence of factors, including the necessity to adhere to strict regulations, adapt to evolving consumer preferences, and harness the significant potential for cost savings and streamlined operational processes. By giving precedence to ESG principles, logistics firms can not only prosper in the current market but also showcase their dedication to sustainability, social responsibility, and enduring success. While transportation is often considered the primary influencer in logistics, it’s crucial not to underestimate the significance of warehousing in this field. In the realm of warehousing, the adoption of ESG practices has transitioned from being optional to necessity with numerous frameworks are now accessible to provide guidance and support for the evaluation and overhaul of practices. By doing so, operation can achieve operational efficiency, mitigate risks, adn build a robust relationship with stakeholders.

    According to Deloitte, Businesses can choose to follow different sustainability framework including LEED for building design construction which measure factors such as efficiency, water conservation and waste management ment, BREEAM for Industrial Buildings which share similar focus to LEED but mostly recognized in Europe and internationally. BREEAM has been adopted to various types of building included warehouse. WELL Building Standard is a framework for measuring and monitoring the features of a building that impact the health and well-being of the people who occupy it and other elements related to sustainability. ISO 14001 is a globally recognized framework for environmental management systems which can be use to assess and improve the environmental performance of warehouse operation. 

    For the environment aspect, many warehouse and logistics companies have address the challenge and overcome it by limited the warehouse size to the right size and up for reusable alternatives with the term call Returnable Shipping Assets (RSAs) or Reusable Handling Units (RHUs), and Right-Sized Packaging (RSP). The benefits of following these key terms are it help companies pursue greener supply chain, reduce carbon footprint, decrease costs, improve competitiveness by enhancing efficiency and productivity, and minimize the damage along with creating less waste. With the above mentioned action, the benefits will directly align with LEED and ISO14001 which result in achieving certification and gaining How2Recycle Label. In the aspect of the warehouse and logistic system the companies can choose to reduce the IT-OT CO2 footprint through reviewing the infrastructure system such as data center operations or storage and network hardware. By incorporating different solutions to the system such as renewable energy resources and optimizing software for energy efficiency, this effect lead to the company ability to achieve different certificate such as The Green Grid. In terms of finance, the financial companies are looking for services that are environmental friendly suhc as net-zero or comply to a project that generate positive impacts on local communities through the creation of job opportunities, infrastructure improvement, and the reduction of health risks which can align with the UN SDGs. These benefits can be align with BREEAM certification or Climate, Community and Biodiversity Standard (CCBS), with these certification marks a significant achievement of the companies in reducing greenhouse gaas or reducing carbon footprint. 

    In terms of social aspect, focusing on social or well-being of people employed in warehousing, inclusivity and promoting diversity while giving back to the community. There are couples of solutions the companies can follows, Neurodiveristy (ND) refers to Autism, the group of autism are suffering from high unemployment rate which the companies can decide to include them into the workplace for example working in the back-office or operations. The companies can offers workforce deployment and training through variety of program such as regular training programs or apprenticeships programs in order to create engagement and dynamic in the work place while allowing a space to create new opportunities to new people and the companies. Health, safety and well-being plays big role in S part of the ESG as moden warehouses are taking a step further by integrating wellbeing practices as shown in BREEAM and WELL frameworks, the companies may choose to integrate the framework to the organization and produce a strategy in order to maintain their goal anc achieve the certification. On the other hand, to maintain the strategy the companies must ensure fairness and safety within organizationt through policies, procedures and structure. In achieving the governance part has benefit in meeting stakeholder expectation, companies’ reputation and comply with legal and regulatory requirements. 

    Each company may have chosen different focus to attain their ESG goals for example, Tritax big box, a logistic company based in United Kingdom have put ESG as one of the company goals with an ambition to demonstrate leadership in sustainable logistics. Their main goals included to ensure and demonstrate the sustainability, resilience and safety of our asset through sustainable buildings, to achieve net-zero carbon across direct operations, to enhance biodiversity on land and ensure the wellbeing of our stakeholders, and create and measure social value through company investment. The company regularly provided report and updated the users on completing the ESG target, for example, on the sustainable building goal, the company have updated on the websites that they achieved an improvement of GRESB score to three Green Stars and currently working on ensure all new development assets in the portfolio have a green building certification. These activities came from the company’s strategy and business model in placing ESG at the core with four questions: How we invest, How we manage, How we add value, and How we innovate. Based on these four questions, the company come up with strategy based on green initiative to achieve the goal and working with stakeholders suchas as joining the Sustainable Logistics Alliance in 2020 and provided the first white paper on Net Zero in Construction to create a sustainable approach to developing net zero carbon logistics buildings. Apart from that, the company also engage with the UK GReen Building Council by becoming signatories to the World Green Building Council’s Advancing Net Zero Commitment and an active member at the UK Business Council for Sustainable Development which participated in the 2021 COP26 Climate Change talks in Glasgow. Moreover, the company also eachied numerous ESG certificate such as MSCI ESG Ratings AA and GRESB 4 green stars. 

Photo credit

(https://www.esgtoday.com/dhl-develops-400000-square-meter-carbon-neutral-logistics-warehouse-portfolio/)

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來源 References

Deloitte. (2023). Deloitte Global Report. https://www2.deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/about-deloitte-global-report-full-version-2020.pdf 

ESG - tritax big box. Tritax Event Lockup Hero Gold Rgb. (n.d.). https://www.tritaxbigbox.co.uk/esg/our-approach/ 

Aimpavee Kiratiakkrasak was a content writer for the Taiwan Architecture and Building Center. She recently graduated with a Master degree in Urban Governance from National Taipei University. Her interests are in international development and urban policy particularly in demographic policy, sustainable policy and resilience city. She is currently work in youth organization on raising awareness of city issues in Southeast Asia.