ESG-reporting in the transport sector: A necessary shift towards sustainability
With the impending requirement for CO2 reporting starting in 2024, the transport sector faces a significant challenge that demands immediate action. Transport companies are encountering escalating demands to reduce and document greenhouse gas emissions (GHG) associated with their activities. This shift leads to demands for carbon declarations and documentation of targeted climate initiatives, not only towards customers, partners, investors and authorities, but also internally within organisations.
Under the EU directive, numerous companies are already required to report their scope 1, 2 and 3 carbon footprint to authorities. This means that freight forwarders and their customers now need clarity on the CO2 emissions associated with transporting goods, highlighting the urgent need for digitalisation.
Digitalization as the Solution
Our intelligent charge management enables companies to map and calculate their carbon footprint. By utilising green data, they can simultaneously reduce and report their carbon footprint. A key solution as governments, industry organisations and regulators increasingly demand climate reporting as an integral part of annual reports.
Having clarity and transparency around carbon emissions is the first crucial step towards realising a company’s climate ambitions.
Our solution: Intelligent Charge Controller
With our intelligent charge controller with built-in data logger, businesses can monitor their vehicles’ CO2 savings in real-time via our app, which offers global monitoring 24/7, 365 days a year. When you download a report, you’ll get details on how much CO2 has been emitted and how much diesel has been saved with our solar solution.
Is your company ready for CO2 reporting?
The impending requirement for CO2 reporting is inevitable, making it crucial for transport companies to prepare for this transition. By implementing intelligent and digitized solutions, companies can not only meet legislative requirements but also take steps toward a more sustainable future. Is your company ready to embrace CO2 reporting and contribute to shaping a greener transport sector?
What is ESG?
ESG stands for Environmental, Social, and Governance. It is a set of criteria used to evaluate a company’s performance and impact in these three key areas. Investors and stakeholders use ESG criteria to assess the sustainability and ethical practices of a company.
- Environmental (E): This aspect focuses on how a company manages its environmental impact. It includes considerations such as carbon emissions, energy efficiency, waste management, and other ecological factors.
- Social (S): The social component examines a company’s relationships with its employees, customers, suppliers, and the communities in which it operates. Issues like diversity and inclusion, labor practices, human rights, and community engagement fall under the social category.
- Governance (G): Governance assesses the company’s internal structures, policies, and leadership effectiveness. It includes aspects such as corporate governance, transparency, ethical business practices, and the quality of management.
ESG criteria are increasingly considered by investors and businesses as they aim to align their practices with broader social and environmental goals, emphasizing long-term sustainability and responsible corporate behavior.
When do the new requirements apply?
From 2024, all listed companies with more than 500 employees, banks, mortgage lenders and insurance companies must report on sustainability within ESG. From 2025, all companies – both listed and unlisted – with more than 250 employees must report on sustainability. In 2026, the remaining listed companies will be covered, with the exception of micro-businesses.
Is your company ready to embrace solar energy, engage in CO2 reporting, and contribute to shaping a greener transport sector?
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