Why Big Companies are Changing Logistics Partners: 3 Real Cases That Will Shock You
Hi there! It's your logistics sustainability expert from GLEC again.
"We just transport goods - why do we need to measure carbon emissions too?" This is what many logistics company CEOs ask me. But here's a reality check: 330 companies participating in the 2024 CDP Supply Chain program requested environmental information disclosure from 47,000 suppliers.
Let me share some real cases that might surprise you about why major corporations are suddenly being so picky about their logistics partners.
The Real Story: Why Companies Suddenly Got So Demanding
Apple's Scope 3 Dilemma
Here's something that will blow your mind: 75% of Apple's total carbon emissions come from Scope 3. This means no matter how much renewable energy Apple uses in their offices and factories, they can't achieve carbon neutrality without reducing supply chain emissions.
It's like someone trying to lose weight by eating only salads at home while ordering fried chicken when they're out. The overall goal becomes impossible to achieve.
That's why Apple set a goal for carbon neutrality across their entire supply chain by 2030, demanding the same level of carbon management from logistics partners. In fact, CDP B-grade or equivalent environmental certification has become essential for contracting with Apple.
Nike's Supply Chain Innovation Strategy
Nike introduced SCSI (Supply Chain Sustainability Index) that comprehensively considers environment, human resources, safety, and community standards when evaluating logistics service providers.
What's interesting is that logistics companies with excellent sustainability performance get allocated more volume. Since 2017, Nike has annually awarded SCSI awards to the highest-rated air and ocean freight providers and prioritizes innovation projects with them.
IKEA's Circular Economy Vision
IKEA declared their intention to become a 'circular business' by 2030. To achieve this, they need to minimize environmental impact throughout the entire process from product production to sales, delivery, and recovery.
As part of their 'People & Planet Positive' strategy, they require logistics partners to build systems that collect and recycle packaging waste generated during delivery. It's not just about transportation services - you need to become part of the circular economy ecosystem.
Regulatory Changes Creating Pressure
The Powerful Impact of EU CSRD
The EU Corporate Sustainability Reporting Directive (CSRD) implemented in 2024 completely changed the game rules. EU-listed companies must mandatorily disclose environmental and social impacts across their entire supply chain.
This means all suppliers dealing with EU companies, including logistics companies, need EU-level environmental information disclosure. In fact, Germany's BMW has started requiring logistics partners to provide environmental data that meets CSRD standards.
Ripple Effect of US SEC Climate Disclosure Rules
Although partially delayed, the US SEC's climate disclosure rules will mandate Scope 3 disclosure for US-listed companies. This means US companies will also start demanding accurate carbon emission data from their supply chain partners.
Changing Investor Perspectives
Surge in ESG Investment Funds
Global ESG investment funds surpassed $40 trillion in 2024. This represents about 30% of total investment assets. Investors are considering companies' ESG performance as a key factor in investment decisions.
Logistics companies are no exception. ESG ratings directly impact interest rates and conditions when attracting investment or loans. In fact, major domestic banks are expanding the proportion of ESG evaluation reflection in corporate lending.
Win-Win Strategy: Growing Together with Shippers
Joint Carbon Reduction Project Promotion
Partnerships where shippers and logistics companies jointly set carbon reduction goals and achieve them together is a new trend. This is an opportunity to develop into true business partners beyond simple client-vendor relationships.
For example, Hyundai Glovis and Hyundai Motor are jointly developing electric vehicle transportation-specific trailers. Through this, they're reducing carbon emissions in the transportation process while creating new business models.
Data-Based Efficiency Improvement
Accurate carbon emission data provided by logistics companies plays a key role in shippers' supply chain optimization. Based on this, Win-Win effects can be created in transportation route optimization and transportation method selection.
Looking at the collaboration case between DHL and Germany's Siemens, Siemens successfully reduced their entire supply chain carbon footprint by 30% based on detailed carbon emission data provided by DHL.
Joint Development of Eco-Friendly Technology
Combining shippers' technological capabilities with logistics companies' field experience for eco-friendly technology development is also an effective strategy.
The hydrogen truck transportation system developed through cooperation between POSCO and Hyundai Steel is a representative example. They dramatically reduced carbon emissions from steel product transportation while successfully commercializing new transportation technology.
Strategic Approach for Long-Term Contract Acquisition
Increase in ESG Performance-Linked Contracts
'ESG-linked contracts' where contract conditions change according to carbon reduction performance are increasing. It's structured to receive incentives when targets are achieved and penalties when not met.
But you don't need to see this as just a burden. For logistics companies that have built systematic carbon management systems, this can be an opportunity to secure competitive advantages.
Building Innovation Partnerships
Becoming an innovation partner for shippers beyond just being a service provider is the key to long-term success. You need to actively participate in joint R&D for achieving carbon neutrality goals and creating new business models.
Practical Action Guide for Logistics Companies
Step 1: Current Status Diagnosis
- Identify major customers' ESG requirements
- Analyze your company's carbon emission status
- Check position compared to competitors
Step 2: Response Strategy Development
- Set short/medium/long-term ESG goals
- Calculate required investment scale
- Organize dedicated teams
Step 3: System Construction and Implementation
- Introduce carbon emission measurement systems
- Write and submit CDP reports
- Strengthen cooperation systems with customers
My Personal Reflection
I've been working in this industry for years, and I've never seen changes this dramatic. What started as simple environmental compliance has become the foundation of business partnerships.
The reason shippers are demanding CDP from logistics partners isn't just regulatory compliance. It's become an essential condition for building true business partnerships and creating a sustainable future together.
The logistics industry also needs to shift from the mindset of 'just transport well' to 'sustainable transportation services'. Companies that don't fear change but embrace it as new opportunities will be tomorrow's winners.
In the next post, I'll share the 7 common mistakes logistics companies make when writing CDP reports and their solutions. I'll cover practical difficulties encountered in actual field work and ways to overcome them.
For carbon emission measurement consultation and inquiries, please visit the GLEC homepage.
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