Photo by Alena Koval: https://www.pexels.com/photo/person-s-left-hand-holding-green-leaf-plant-886521/
ESG: The Other Bottom Line
As we get further and further into the 2020s, all stakeholders within companies are caring more and more about ESG: Environmental and Social Governance, as well as several related concepts:
- Corporate and Social Responsibility (CSR)
- Sustainable Development Goals (SDGs)
- Environmental and Social Governance (ESG)
And we’re seeing it from all stakeholders:
The fact is, that if your company doesn’t focus on ESG, it’s likely to have a smaller valuation, have more trouble hiring, and increasingly lose customers.
Today we’re going to focus on
- one specific sector: Last-Mile Logistics
- one specific part of ESG: The Environment
Photo by RODNAE Productions: https://www.pexels.com/photo/a-deliveryman-carrying-a-package-7363098/
The Tradeoff
Typically, logistics companies think of this as a tradeoff: How much should we invest in Sustainability to get the best return?
How much should we invest in Sustainability to get the best return?
And in general, they’re right.
Most pro-environment initiatives that a distribution company can put in place cost money:
- Buying carbon credits
- Purchasing Electric Vehicles (with shorter range and longer refuel times)
- Purchasing add-on-devices to post-process vehicle exhaust emissions
But, what if I told you about This One Weird Trick Which Improves Your ESG AND Saves You Money?
Route Optimisation
Okay, okay, so maybe it’s a little coy to say this, since we make Route Optimisation software, but the point remains:
Route Optimisation reduces the number of Kilometres you drive.
This has a few effects:
- You reduce costs, since you can perform more deliveries with the same fleet.
- You reduce your emissions per delivery.
- You reduce your fuel consumed per delivery, which also reduces cost per delivery.
So it’s pretty simple:
Optimise your routes to reduce costs and reduce emissions.