Many logistics companies are actively working to transition from diesel-powered vehicles to greener and more sustainable transportation options. This shift is driven by several factors, including environmental concerns, regulatory changes, cost savings, and the growing demand for eco-friendly shipping solutions. We spoke to Charlie Shiels, CEO of ArrowXL, about the role of logistics in society, social responsibility and ESG.
Charlie, what has made social responsibility so important for logistics companies?
There is a growing global awareness of the environmental impact of logistics and transportation. As a responsible business, we take the principle of environmental sustainability seriously. We recognise our responsibility to the environment and are committed to lowering our carbon footprint.
Recent economic and political instability have undeniably posed a challenge for businesses trying to be socially responsible. We’ve had to deal with increased interest rates, geopolitical issues, the wars in Ukraine and the Middle East. Economic indicators are pretty grim at the moment and that affects everyone’s priorities.
Companies are focused on survival and consumers are nervous about spending.
Logistics companies work with very small margins and we can’t afford vanity projects or investments that don’t generate profit. The right thing for us at the moment is to make sure that the company is here in the long term.
How about engagement with all the stakeholders – internal and external?
We reviewed our ESG agenda two years ago and spoke to our clients about their priorities and sustainable strategies. They all had very different ideas. For some ESG was a priority whereas for others they didn’t have a tangible plan.
Engagement needs to be driven by the Executive Team and filtered through every department. We produce a monthly report on our energy usage which gives us a great overview of our buildings, operations, procurement processes and our people.
I see lots of engagement and great initiatives in our industry. We’re very strong on building energy focus and recycling but the elephant in the room, remains LGV’s and alternative fuel truck options.
In 2022, 96.6% of registered LGVs were diesel which remains the favourite for resilience, reliability and cost effectiveness. In our business the priority has to be MPG efficiency.
You can watch the full video interview with Charlie Shiels now. We speak about how companies can invest in their ESG efforts, who should lead it and the importance of not focusing on vanity projects just to appear green. ✷