Published 07 October 2024 –
ESGpedia was delighted to co-host an event titled “Green Logistics: Accelerating the Sustainability Transition with ESG Solutions” in September, bringing together prominent figures in the logistics and sustainability sectors.
Participants discussed the pressing need for ESG integration within the logistics industry — a sector often considered challenging to green due to its heavy reliance on fuel and extensive supply chains.
Industry leaders who gave presentations included Ricky Loo, President of the Container Depot and Logistics Association (Singapore) (CDAS); Devansh Mahajan, Sustainability Manager at Green Freight Asia (GFA); Daniel Chan, Director of Professional Services at Ascent Solutions; Benjamin Soh, Founder and Managing Director of ESGpedia; and Lim Meng Leng, Executive Director of the Global Wholesale Banking (GWB) Sustainability Office at OCBC Bank.
Each speaker provided unique insights into how logistics companies can navigate the complexities of sustainability reporting, leverage technology for carbon accounting, and access sustainable financing to facilitate their green initiatives.
Navigating the Urgency of ESG Reporting
Setting the tone for the event, Ricky Loo, President of the CDAS, made clear the immediate need for the logistics industry to embrace ESG practices: “[We] cannot afford to wait; we must proactively collaborate to address ESG challenges.”
As the President of CDAS and Chair of the Trade and Connectivity Committee in the Singapore Standards Council, Ricky highlighted the imminent regulations that will require large companies to conduct ESG reporting by 2025.
This mandate will have ripple effects, impacting small and medium-sized enterprises (SMEs) due to the interconnected nature of the logistics supply chain, while larger companies will inevitably demand ESG data from their suppliers to fulfill their Scope 3 emissions reporting requirements.
“Even if you’re an SME, larger companies will demand your ESG data,” he said, underscoring the importance for all players in the industry to start collecting and reporting their emissions data.
Ricky also addressed the challenges inherent in defining what “green” means within the logistics context. Given the industry’s traditional reliance on fuel, establishing sustainable practices is complex.
“There’s a pressing need to develop baseline standards to measure sustainability in logistics,” he said, citing the example of how the Singapore Standards Council is actively working to align with International Sustainability Standards Board (ISSB) guidelines.
He also discussed the potential for monetising sustainability efforts through mechanisms like carbon credits; as companies invest in costlier sustainable practices — such as electrifying fleets — they should be incentivised.
“There’s ongoing discussion on how companies can leverage carbon credits, either by offsetting carbon taxes or selling them to larger clients,” Ricky said.
Building a Network of Green Carriers and Shippers
Devansh Mahajan, Sustainability Manager at Green Freight Asia (GFA), introduced the audience to the mission and programmes of GFA, a non-profit association founded in 2013 that aims to drive fuel efficiency and lower carbon emissions across supply chains in the Asia-Pacific region.
“Our objective is to create a network of green shippers and carriers, fostering sustainable practices throughout the supply chain,” Devansh said, elaborating on GFA’s flagship initiative, the GFA Labelling and Certification Programme, which serves as a voluntary green certification guiding companies on their sustainability journey.
Companies can achieve certification levels ranging from Leaf One to Leaf Four, representing progressive stages of sustainability commitment and implementation.
“Our certification process is designed to encourage continuous improvement,” he said, highlighting that the criteria becomes more rigorous at each level, from initial data collection to the implementation of advanced fuel-efficient technologies and public reporting of Greenhouse Gas (GHG) emissions.
Devansh also explained the practical interventions promoted by GFA such as eco-driving training, the adoption of alternative fuels like biodiesel and electric vehicles, and the use of driver performance monitoring systems.
By fostering a network of certified companies, they aim to create a ripple effect that promotes environmental responsibility across the entire supply chain.
Addressing the business advantages of certification, Devansh pointed out that carriers with the GFA label gain a competitive edge when working with shippers who prioritise sustainability.
“Shippers increasingly prefer carriers implementing green solutions to reduce their Scope 3 emissions,” he said, encouraging companies to participate in GFA’s programmes and contribute to a more sustainable logistics ecosystem.
Leveraging Technology for Carbon Accounting
The conversation then shifted to technological solutions with Daniel Chan from Ascent Solutions, who presented innovative approaches to simplifying carbon accounting in the logistics industry.
Daniel underscored the significant carbon footprint of the logistics sector, noting that it contributes approximately 15 percent of global CO2 emissions: “Accurate emissions measurement is challenging, but IoT and automation can provide precise data across the supply chain.”
He shared a compelling case study involving prime movers, revealing that on average, one idling prime mover vehicle emits around 24 tons of CO2 equivalent annually, and that offsetting these emissions would require planting over 1,000 mature trees per vehicle per year.
Introducing Ascent Solutions’ CO2 Connect (CO2X) Platform, Daniel explained how the integration of IoT devices like GPS trackers and fuel consumption sensors enables real-time data collection and emissions calculation down to the individual trip level.
“Our platform provides detailed trip-level tracking for precise emissions calculations, helping businesses optimise operations and prepare for upcoming regulatory requirements on greenhouse gas reporting,” he said.
Looking ahead, the company plans for CO2X 3.0, which aims to handle carbon calculations across various transport modes — including road, sea, air, and rail — and comply with international frameworks like ISO 14083 and the Global Logistics Emissions Council (GLEC) standards.
Ascent is working towards a unified platform that simplifies data aggregation for Scope 1, Scope 2, and Scope 3 emissions across different logistics providers.
Unifying Data for Comprehensive ESG Reporting
Bridging the gap between data collection and actionable insights, Benjamin Soh, Founder and Managing Director of ESGpedia, talked at length on the importance of collaboration in achieving ESG compliance and sustainability goals.
“Everything we eat, drink, or wear is delivered through logistics. It’s a hard-to-abate sector, but that’s where we need to work together,” he said.
Benjamin introduced ESGpedia’s three-step action plan to support companies in their sustainability journeys:
- Data Creation: Assisting companies in generating essential ESG data, including GHG emissions and other key metrics.
- Data Compilation: Helping businesses compile this data into comprehensive ESG reports suitable for various stakeholders and in accordance with international and local regulatory frameworks.
- Enterprise Solutions: Providing tools for managing sustainability across entire value chains, supporting multi-entity and multi-supplier data integration.
Highlighting the integration with Ascent Solutions’ CO2X Platform, Benjamin explained that users could have their emissions data automatically transferred to ESGpedia.
This seamless data synergy enables companies to qualify for the ESCAP Sustainable Business Network (ESBN) Asia-Pacific Green Deal badges, as part of the ESBN Asia-Pacific Green Deal for Businesses program powered by ESGpedia’s platform.
“Our platform acts as a multi-plug travel adapter, allowing companies to adapt their ESG data to different country-specific standards,” Benjamin said, explaining how ESGpedia enables companies to report in accordance with various international reporting frameworks and standards including the Global Reporting Initiative (GRI), International Sustainability Standards Board (ISSB) formed by International Financial Reporting Standards (IFRS) , and the Singapore Exchange (SGX) core metrics.
Benjamin also addressed the financial benefits and incentives associated with comprehensive ESG reporting, as well as partnerships with government agencies like Enterprise Singapore (Enterprise SG) and the Infocomm Media Development Authority (IMDA) that provide grants covering up to 70 percent of costs.
“Companies in the logistics sector can not only comply with emerging ESG regulations but also gain competitive advantages through cost savings and enhanced market opportunities,” he said.
Financing the Green Transition
Rounding off the event, Lim Meng Leng, Executive Director of the GWB Sustainability Office at OCBC Bank, delved into the financial mechanisms supporting sustainable business practices.
She stressed the critical importance of data in sustainable finance: “Collecting and reporting emissions data is not only a regulatory requirement but also a business imperative.”
Meng Leng highlighted the increasing regulatory pressures, noting that from 2026 onwards SGX-listed companies are required to report Scope 3 emissions, which has significant implications for suppliers who must provide their Scope 1 and Scope 2 emissions data to enable accurate reporting.
“Your data matters, especially if you wish to continue your business relationships with larger companies,” she said, outlining OCBC’s suite of sustainable financing options including Green Loans, Social Loans, and Sustainability-Linked Loans (SLLs).
Green and Social Loans require that 100 percent of the loan proceeds fund eligible green or social projects, directly contributing to environmental or social benefits, while SLLs offer more flexibility allowing funds to be used for general corporate purposes as long as the company commits to specific ESG Key Performance Indicators (KPIs) and targets.
“By setting ambitious but achievable targets — such as increasing the proportion of electric vehicles in your fleet — you can access preferential interest rates,” she said.
She also highlighted the importance of third-party verification, recommending platforms like ESGpedia for data collection and Bureau Veritas for data verification.
Meng Leng detailed a case study of how OCBC successfully extended a S$16 million SLL to global textile and apparel manufacturer, Ghim Li, through a fully digitalised and streamlined process on the ESGpedia platform to manage their ESG data and emissions reduction targets.
“This demonstrates how companies can turn sustainability efforts into tangible financial benefits,” she said, urging companies to start their sustainability efforts immediately.
“The time to act is now. Engage platforms like ESGpedia, set your reduction targets, and explore sustainable financing options to support your ESG initiatives.”
A Collaborative Path Forward
The event underscored a unifying message: collaboration across industries, sectors, and digital platforms is essential to accelerate the sustainability transition, and taking action today is critical especially for large-emitting sectors like logistics, in order to maintain competitiveness and ensure profitability.
From establishing industry standards and adopting innovative ESG technologies to leveraging financial incentives and comprehensive ESG reporting tools, the path forward requires collective effort.
ESGpedia remains dedicated to supporting businesses in their sustainability journeys by providing end-to-end ESG digital solutions and fostering partnerships that drive meaningful progress. Get in touch to find out more.
By uniting technology providers, financial institutions, industry associations, and companies large and small, ESGpedia aims to make ESG reporting accessible, accurate, and beneficial for all stakeholders involved.
Logistics companies and individuals interested in advancing their sustainability initiatives are encouraged to:
- Join Certification Programmes: Participate in Green Freight Asia’s Labelling and Certification Programme to gain recognition and improve sustainability practices.
- Leverage Technological Solutions: Utilise Ascent Solutions’ CO2 Connect Platform for accurate emissions tracking and reporting.
- Leverage ESG Platforms: Engage with ESGpedia to streamline ESG data management and reporting, and to access government grants and incentives.
- Explore Sustainable Financing: Consult with OCBC Bank to discover sustainable financing options tailored to your business needs.
By taking these steps, businesses can not only comply with emerging regulations but also position themselves competitively in a market increasingly influenced by sustainability considerations.