ESG
What is ESG in Logistics?
ESG, which stands for Environmental, Social, and Governance, is a framework used to assess a company’s broader impact beyond financial performance. In the logistics industry, ESG principles are integrated into operational strategies to minimise environmental footprints, enhance social responsibility, and ensure transparent governance.
Key ESG Considerations in the Logistics Industry
Environmental Considerations
- Greenhouse Gas Emissions: Logistics companies, especially transportation, contribute significantly to carbon emissions. Reducing these emissions through initiatives like using electric vehicles, optimizing routes, and implementing alternative fuels is a key ESG aspect.
- Waste Management: Minimising waste production, while actively promoting recycling and reuse, plays a crucial role in mitigating environmental impact.
- Energy Efficiency: Improving energy consumption efficiency in warehouses and across logistics facilities helps further reduce operational energy costs and environmental harm.
Social Considerations
- Labor Standards: Ensuring fair wages, safe working conditions, and adherence to local and international labour laws is foundational to upholding social responsibility.
- Diversity and Inclusion: Actively fostering diversity and promoting an inclusive workforce enhances the social fabric within logistics companies and across their supply chains.
- Community Engagement: Strong relationships with local communities, addressing their needs and contributing positively, foster goodwill and improve operational outcomes.
Governance Considerations
- Transparency and Accountability: Logistics companies must operate transparently, demonstrating accountability in ESG performance and decision-making.
- Ethical Business Practices: Adhering to ethical business practices, such as ensuring fair competition and preventing corruption, is vital for maintaining integrity in operations.
- Risk Management: Identifying and managing risks related to ESG factors is essential for long-term operational success and sustainability.
Why Does Our Company Implement ESG?
Cost Benefits for Consumers
Optimising logistics operations offers cost-saving benefits that are often passed on to consumers. Route optimisation, for example, can significantly cut fuel consumption and reduce transportation costs. Implementing sustainable practices such as using renewable energy in warehouses and reducing packaging waste not only lowers operational expenses but can also lead to more affordable product prices and reduced shipping fees for consumers.
Service Quality Improvements
Faster, more reliable deliveries stem from route optimisation and improved energy efficiency. Consumers enjoy enhanced tracking and transparency throughout the delivery process, ensuring that they are informed and confident in their purchases. Moreover, ethical sourcing and responsible supply chain management improve product quality, driving customer satisfaction and loyalty.
Environmental & Social Responsibility
Through eco-friendly delivery options and sustainable packaging, logistics companies help reduce the carbon footprint of their operations. Furthermore, ensuring fair treatment, adherence to labor standards, and fostering diversity and inclusion strengthens the company's commitment to social responsibility. This approach aligns with the values of increasingly conscientious consumers, driving loyalty while contributing to broader societal and environmental goals.
ESG Activities
As part of our commitment to ESG (Environmental, Social and Governance), activities were organised by individual Branches across the Peninsula.
RTW Port Klang Joined PERKESO Run on 20 APR 2025 to Promote Health and Solidarity
On 20 April 2025, the Round-The-World Logistics Port Klang Team participated in the PERKESO Run 2025,...
RTW Penang Team Supports Animal Welfare with IAPWA Visit
On 27 September 2024, the Round-The-World Logistics Penang Team visited IAPWA (International Aid for...
RTW Johor Staff Participate in Beach Clean-up at Batu Layar Beach
On 8 September 2024, the Round-The-World Logistics Johor Team embarked on a meaningful day trip to Batu...
RTW Kuantan Team Leads Beach Clean-Up at Taman Gelora
On 20 July 2024, the Round-The-World Kuantan Team organized a beach clean-up at the scenic Taman Gelora...
RTW Port Klang Team Brings Festive Cheer to Local Welfare Home
On 28 April 2024, as part of our commitment to Environmental, Social, and Governance (ESG) initiatives,...