Corporate Social Responsibility (CSR) refers to business practices involving initiatives that benefit the society. It has particular relevance in today’s changing logistics sector.
The past 50 years have seen unprecedented, rapid economic expansion; however, because the world depends on oil and fossil fuels for 90% of its energy, this exponential global expansion has fueled a drastic growth in greenhouse gas (GHG) emissions.
NASA statistics show that, while the earth’s climate has changed throughout history, the current escalating pace of global warming is the fastest in 10,000 years. Since the 19th century, the earth’s surface temperature has increased by some 2-degrees F (1-degree C), driven by increased greenhouse gas emissions and other anthropomorphic (human) activities. Global records show 2023 was the warmest year since record-keeping began in 1850: 2.12 °F (1.18 °C) above the 20th-century average of 57.0°F (13.9°C).
According to Smart Freight Centre [1], 11% of global GHG emissions can be attributed to the logistics industry.
Yet, while logistics – in particular freight transportation – are a major source of greenhouse gases, the sector is also highly vulnerable to the impacts of climate change. Increasing incidents of extreme weather hammer ports, highways, and factories worldwide, disrupting global supply chains.
Recent crises such as the COVID pandemic and extreme weather events have exposed the cracks in corporate supply chains, while emphasizing their importance in the functioning of virtually all social and economic structures.
In recent years, weather-related climate change disrupted essential economic activities around the globe:
In the last decade, governments, international agencies, trade organizations, and businesses have increased their measures to mitigate climate change. The most notable of these was drafted at the 2015 United Nations Climate Change Conference (COP21) in Paris, France, and is commonly referred to as The Paris Agreement.
Negotiated in 2015 by 196 parties and ratified in 2016 by 195 members of the United Nations Framework Convention on Climate Change (UNFCCC), the treaty focuses on three scopes:
The Paris Agreement also seeks to keep the rise in global surface temperature to well below 2 °C (3.6 °F) above pre-industrial levels -- preferably limiting the increase to only 1.5 °C (2.7 °F). Reaching these goals would mean achieving collectively net zero carbon by 2050.
In addition, the UN’s 2030 Agenda for Sustainable Development, including 17 Sustainable Development Goals (SDGs), recognizes that ending poverty and other deprivations depend on strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve oceans and forests. The annual High-level Political Forum on Sustainable Development is the central UN platform for the follow-up and review of these SDGs.
Commitments by companies and governments to reduce environmental impact and align with increasingly structured international frameworks are intensifying.
CEVA deploys low-carbon solutions for its global ground, sea, and air transport to reduce its GHG emissions, and indirectly those of its customers. The company’s goal to reach net zero by 2050 is already well underway: in 2023, CEVA’s overall CO2 footprint was 6.0 Mt CO2e, marking a reduction of 200,000 tons compared to 2022.
Our sustainability approach rests on three key areas.
1) Making energy efficiency and decarbonization improvements in our nearly 1,000 global warehouses.
2) Investing in electric and low emission vehicles for our CEVA fleet of trucks and vans.
3) Engineer more sustainable solutions for the transport we purchase from carriers for our customers.
In recent years, increased consumer awareness of issues such as climate change, income inequality, unfair labor practices, and gender inequity has been a factor in businesses’ embracing CSR practices. Today, 64% of CEOs say that CSR is a core part of their business.
In addition, 88% of business school students think that learning about social and environmental issues in business is a priority . Harvard Business School’s sustainable business practices courses points out some of the bottom-line benefits deriving from CSR policies:
Social responsibility is now more than a duty; it is a means of securing a competitive advantage, provide flexibility, reduce employee turnover, and increase sales and profit. Climate change is a long-term challenge, and progress depends upon a company’s ability to innovate and collaborate, with accountability and on-going measurement.