Understanding exactly what ESG is and how it can help companies in the logistics sector is one of today's main topics. You can learn more about this topic on Bertolini's blog.
An agenda that encompasses good practices can improve companies' relationship not only with the environment, but with society as a whole.
Anyone who thinks that discussing sustainability and environmental care within companies today is only about nature is mistaken. Positive leadership circles and social impacts are equally important. But for all of this to work, it's necessary to understand what ESG is and how this agenda can directly impact a corporation's market.
For example, considering a company in the Logistics Sector, thousands of goods circulate there every day. Therefore, techniques related to how to maintain reliable professionals on staff, and also knowing their importance to society, are extremely necessary today.
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Present in corporate world conversations since the beginning of the 21st century, ESG has been gaining more traction each year, demonstrating that companies need to update themselves. After all, today it's not just capital that matters, but also transparency and how they present themselves to society.
Today, on Bertolini's blog, we'll explain what ESG is and how it can impact business activities, especially when it comes to the Logistics Sector.
Welcome and have a good read!
Deciphering and understanding what ESG is
When we break down the acronym ESG, we find the following words: Environmental, Social, and Governance.
With just these three words, we can begin to understand what the agenda is about and also a little about what ESG is.
A study conducted by Grant Thornton interviewed around 5,000 businesspeople from more than 20 countries, of which almost 90% considered it important to invest in movements such as ESG for companies.
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It is a set of practices that companies must follow to become companies that value a healthy environment, not only in relation to nature, but also in relation to the place in which it is located and also in the way in which employees relate to each other, in addition to customers, of course.
If in the past what mattered was just selling to make a profit, today the issue is how to sell, how to deliver something to a customer that is truly positive.
Understanding a little more about each field of ESG
Now that we've covered the initial topic, let's understand a little more about each of the points that ESG addresses.
After all, these good practices are important for establishing a series of positive relationships with the planet, employees, and customers, and also for improving the company's image in society as a whole.
Environmental
When we're talking about environmental issues related to ESG, we're talking about everything a company does to preserve the planet. In other words, understanding the impacts a company has on the environment.
For example, care with water waste, gas emissions, energy consumption and also the way waste is disposed of.
Social
The social aspect primarily concerns how the company relates to its employees and customers. In other words, the legacy it leaves on each person responsible for any of its steps.
Good examples include the company's efforts to maintain a reliable team of employees and a client base that aligns with the company's operations. Respect for human rights and inclusion practices are also part of ESG's social actions.
Governance
The third and final topic concerns governance, but we're not talking about public spheres of power, but rather corporate leadership. Here, the main focus is on leaders maintaining legal behavior, that is, within the law. Accounting transparency is equally important.
Just as in the social field, in Governance, inclusive and diverse spaces must also be seen within the senior positions of a corporation, for example.
How can ESG impact the Logistics Sector?
Now that we understand exactly what ESG is and how it works in practice, it's time to take a step further and learn more about how this agenda can impact companies in the Logistics Sector.
Returning to the Grant Thornton study, more than 90% of respondents believe that investing in practices such as ESG can be a way to improve a company's image in society.
Therefore, when we talk about companies that operate in logistics, we also refer to those who have direct contact with consumers, since goods are stored in these companies. Therefore, trust is extremely important, not only in the relationship between companies, but also in the relationship between companies and consumers.
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Once trust is guaranteed, whether from an end customer or another company toward your logistics company, their loyalty will quickly build. And, as a result, they'll recommend your work, which will further help expand your operations.
Implementing ESG in the Logistics Sector requires detailed knowledge of each company function and that all processes are described.
Still, it's always important to invest in trustworthy employees who have excellent interpersonal skills.
Last but not least, ESG will help companies in the Logistics Sector reduce costs by improving product disposal. Furthermore, with the presence of reliable professionals, there will be no employee turnover.
Using ESG within the Logistics Sector is a union of attitudes towards the environment and also towards society, improving leadership positions and becoming increasingly empathetic to the world we live in.
