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Tag: ESG

Scope 3 Regulatory Pressure Mounts on Ports

Posted on by David Priestman

A UK Supreme Court ruling has sent shockwaves through the infrastructure world, making downstream emissions, known as Scope 3, legally mandatory in Environmental Impact Assessments (EIAs). For the shipping and ports industry, the implications are immediate and unavoidable. As lawsuits surge, EU regulations tighten and green investors demand full transparency, PortXchange is urging ports to stop delaying and start measuring what matters most.

“Ports don’t operate in a vacuum. They are central to global supply chains and the emissions those chains produce,” said Sjoerd de Jager (pictured, below), Managing Director and Co-Founder of PortXchange. “This ruling confirms what many of us have argued for years, if we want real decarbonisation, Scope 3 can’t be ignored. The industry needs to move from reporting what’s easy to measuring what matters.”

The Supreme Court’s decision in Finch v Surrey County Council Invalidated a fossil fuel permit for failing to assess emissions from the fuel’s end use. That precedent is now fuelling active legal challenges against North Sea oil and gas developments, including Rosebank and Jackdaw, with Greenpeace, Uplift and Friends of the Earth all filing suits. Their position is unequivocal: if emissions are generated, they must be assessed and mitigated. The same principle applies to port expansions and infrastructure development. This legal strategy is gaining momentum, and ports are firmly in scope.

Yet many ports continue to publish ESG reports that overlook the largest source of their emissions: the ships that call, the trucks that queue, and the rail networks on which they depend. This selective reporting is no longer acceptable to courts, regulators, or the public.

Adding urgency, the European Commission is now reviewing key components of its Fit for 55 climate package, with strong indications that ports will be required to track and report vessel emissions at berth as part of the expanded EU ETS (Emission Trading System) and MRV (Monitoring, Reporting, Verification) schemes. For ports that haven’t digitised emissions tracking or haven’t addressed Scope 3 emissions, this won’t just be a legal risk; it will become a commercial one.

“Ports that fail to act now are going to find themselves locked out of the next wave of green growth,” said de Jager. “Scope 3 isn’t just about compliance, it’s about credibility, capital and competitiveness.”

That commercial pressure is already here. Institutional investors and green bond providers are starting to reject infrastructure projects that exclude Scope 3 emissions from their ESG disclosures. To access EU taxonomy-aligned or sustainability-linked finance, ports will be expected to show end-to-end emissions transparency. “Pretending it’s someone else’s footprint won’t fly with lenders anymore,” he added.

Even as this pressure mounts, the UK Government last week announced a £30 million funding package to accelerate maritime decarbonisation, investing in shore power, clean fuels, and digital infrastructure. While PortXchange welcomed the move, de Jager warns that grants and pilots won’t be enough on their own.

“We applaud the investment, but innovation without accountability is a missed opportunity,” he said. “Ports need full visibility into their emissions profile and the ability to act on it. That’s exactly what EmissionInsider delivers.”

PortXchange’s EmissionInsider platform provides real-time, multimodal emissions tracking across ships, trucks, and rail, producing a complete, defensible view of Scope 1, 2, and 3 emissions. With built-in tools for scenario modelling, heatmap detection, and compliance-grade reporting, EmissionInsider is already helping leading ports close the Scope 3 gap before regulators or litigators do it for them.

PortXchange is actively working with ports, terminal operators, and regulators across the UK, Europe and the Americas to overhaul their emissions strategies and align with today’s rapidly changing legal landscape. The company is now offering rapid onboarding and support for port executives preparing for infrastructure permits, investor reporting, or green finance audits. “Ports don’t get to call themselves sustainable while ignoring 80% of their emissions,” said de Jager. “Scope 3 is where the accountability is. It’s where the credibility is. And now it’s where the law is.”

Pallet Pooler’s Sustainability Progress

Posted on by David Priestman

The latest sustainability report from a leading European pallet pooling specialist reveals a collective saving of more than 40,000 tonnes of CO₂ emissions – the equivalent of 177 million miles of driving.

IPP, which has its UK base in Coventry and specialises in providing reusable wooden pallets for major manufacturers and FMCG brands, is part of Faber Group, which has published its third annual sustainability report. IPP operates a closed pallet pooling network throughout Europe and its pallets – known as load carriers – are built using FSC/PEFC certified timber and maintained to optimise their lifespan.

Faber Group supported 131 million load carrier movements across Europe in 2024 – a substantial increase of 11 per cent, or 13 million movements compared to 2023 – all while successfully reducing overall carbon emissions. The companies have implemented an Environmental, Social and Governance (ESG) strategy with three clear sustainable development goals to help them achieve an ambitious target of becoming net zero by 2045.

The three key areas it is working on to improve sustainability include responsible production and consumption, climate action and partnerships.  Priority actions include reducing transport emissions via its pallets, reducing the footprint of its logistics operations by 30 per cent by 2030 and maximising the lifespan of its pallets to reduce production and consumption.

IPP has already made substantial progress to reduce emissions from its logistics operations by becoming the first company to achieve a European two-star Lean and Green rating. The Sustainability Report 2024 demonstrates that its circular economy business model is driving real change and real benefits for the environment.

Andy Maddock (pictured), regional managing director for IPP UK&I, said: “The third edition of Faber Group’s Sustainability Report shows the further integration of our ESG pillars across the business and how they are delivering sustainable value for IPP and our customers. We are proud of our collective progress in reducing our carbon emissions while working towards our goal of net zero. Collaboration, digitalisation and sustainable procurement will continue to be key drivers in enabling us to realise our ambition and deliver change with real impact.”

Ingrid Faber, CEO of Faber Group, said: “In 2024, we were able to help our customers avoid more than 40,000 tons of CO₂ emissions through our circular pooling model, a steady increase of more than eight per cent of saved emissions in comparison to 2023. We also retained our EcoVadis Platinum rating, placing Faber Group in the top one per cent of its industry for the fourth consecutive year. The launch of our tech division Faber LABS and investments in digitalisation further strengthen the company’s ambition to become Europe’s most sustainable pooler.”

IPP has a wealth of eco credentials, including a platinum Ecovadis sustainability rating, a Lean and Green two-star European rating and is a signatory to the United Nations Global Compact – a voluntary initiative to implement universal sustainability principles.

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Asda Invests in new Bio-LNG Refuelling Stations

Posted on by David Priestman

Asda is investing in two new Bio-LNG (liquefied natural gas) refuelling facilities, as the retailer continues to make progress towards reducing overall carbon emissions.

Working closely with Gasrec – a major fuel provider for commercial vehicles in the UK – the new refuelling facilities in Warrington and Dartford now mean Asda has thirteen fully operational Bio-LNG stations strategically located across the UK.

With over 780 vehicles, Asda operates the largest fleet of LNG fuelled trucks in the UK, with this type of fuel a leading, lower carbon alternative to diesel. Through the new infrastructure, Asda will continue its efforts to decarbonise its operations, aiming to achieve net zero operations by 2040.

Earlier this year, Asda revealed in its annual ESG report it had reduced operational carbon emissions (scope 1 & 2) in 2023 by 41% since 2015, with a target to achieve a 50% reduction by 2025.

John Rogerson, Central Fleet Operations Manager at Asda, said: “LNG trucks are currently the leading alternative fuel option for operators like ourselves and with over 780 LNG vehicles, we operate the largest fleet of LNG fuelled trucks in the UK. Our continued investment in a UK-wide LNG distribution network forms an essential part of our objective to reduce overall carbon emissions across our operations, and towards building a sustainable business for the future.”

James Westcott, Chief Commercial Officer of Gasrec, says: “We have forged a strong relationship with Asda and it’s a real pleasure to be able to deliver these two latest facilities for them, as they continue to expand their growing gas fleet and invest in a cleaner and greener fuel source.

“As one of the UK’s largest retailers, Asda understands the urgency in the need to cut emissions from its fleet as we all work towards a more sustainable transport sector. Bio-LNG remains a leading alternative to diesel for long-haul operations and will continue to be so for the foreseeable future.”

This investment comes after Asda recently launched a new sustainability-linked enhancement to its Supply Chain Finance scheme in partnership with HSBC UK. Launching in January 2025, the facility will see the retailer use financial incentives to encourage better sustainability practices within its supply chain.

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Scope 3 CO2 Reporting is in the Spotlight

Posted on by David Priestman

With the second deadline for Corporate Social Responsibility Directive (CSRD) compliance on the horizon, now is the time for shippers that qualify as “large undertakings” to take action – or risk not meeting the impending deadline, as Eric Geerts (pictured), Senior Director of Product Management at Descartes, outlines.

The second wave

Sustainability has long since ceased to be a semi-vague term that companies use within their marketing and corporate communications to appease customers, partners and investors. Today, sustainability must be tangible and demonstrable in terms of performance and ethics. Stakeholders not only want to see the finances, but also want to know, for instance, a company’s CO2 emissions, increasingly important in the context of so-called Scope 3 emissions – indirect emissions caused by another organisation’s activities in another’s value chain, such as the transport of goods.

To regulate this, the European Union has developed a reporting requirement – the Corporate Social Responsibility Directive (CSRD). Under CSRD, from January 2024 the first wave of businesses – those listed on an EU-regulated market exchange – had to comply with disclosure requirements across 12 European Sustainability Reporting Standards (ESRS), covering four categories:
• Cross-cutting: General principles and general disclosures.
• Environmental: Climate change, pollution, water and marine resources, biodiversity and ecosystems, resource use and circular economy.
• Social: Own workforce, workers in the value chain, affected communities, consumers and users.
• Governance: Business conduct.

From January 2025, the second wave of EU-based business – those classified as “large undertakings” (any listed or non-listed company that has at least EUR 25 million in total assets; and / or at least EUR 50 million in net turnover; and / or at least 250 employees (average) will also have to be able to report on these disclosure requirements. Non-EU companies (including EU subsidiaries of a UK parent) that operate in the EU may now also fall under the CSRD scope. They shall be required to provide sustainability disclosure if:
• their net turnover generated in the EU (at the consolidated or individual level) exceeds EUR 150 million for each of the last two consecutive financial years
• they have at least one subsidiary (listed or defined as a “large undertaking”) in the EU or an EU branch with an annual net turnover exceeding EUR 40 million in the previous financial year.

For shippers, this means having the capability to provide detailed information on their Scope 3 CO2 emissions. And of course, this can only be done on the basis of the right data and insights. In most organisations, this should be well on the corporate agenda. But for those who have yet to start, it is now five minutes to midnight – and the clock is ticking.

Lack of data and insights

Being able to measure Scope 3 CO2 emissions is a challenge. Typically, companies do not have sufficient data or fail to extract the right insights from that information. Moreover, the CSRD requires far more accurate data reporting than has previously been expected of them. Historically, for example, organisations may have relied on the emissions of one container to determine the impact of hundreds of others. In practice, however, numerous factors affect emissions; factors such as type of vessel, route, weather, speed, or load. You also need a solution for the different transport modes. Under CSRD, extrapolation of data won’t be an option; everything will have to be done at a far more granular level.

Everything, therefore, starts with the right data: both in-house data and data coming from external parties, such as carriers. On top of that you need a lot of master data, such as for example the carbon intensity indicator of every vessel, and the right calculation algorithms. All that then needs to be integrated to generate insights for reporting and compliance. Manually collecting this information and tying it together in an Excel sheet is obviously a hopeless task. Fortunately, technology can lend a hand. Many organisations – particularly those who became bound by the compliance requirements of CSRD in wave one – have therefore opted for a Transport Management System (TMS) to gain access to a vast amount of accurate data and CO2 reports, saving a vast amount of time and money in making that information transparent.

Transport Management System

So what exactly does such a TMS do? A TMS is a software application that manages the planning, execution and tracking of physical movements of goods, as well as the freight settlement. The technology helps with various challenges facing shippers: from order planning and transport selection to transport execution and financial settlement. A TMS brings together business-critical data and saves organisations a huge amount of administrative work such as transport documentation, cost calculation and invoicing, but also in preparing CO2 reports.

A TMS is therefore an indispensable tool to aid with CSRD compliance (and other sustainability reporting standards, such as IFRS S1 and IFRS S2 – as well as future standards being assessed). However, as with most software systems, a TMS implementation can easily take three to six months. So to be ready by January 2025, businesses due to comply need to get started immediately.

Turning an obligation into an asset

Companies that fail to comply with the reporting obligation may face unpleasant penalties. First, non-compliance will be made public. In a market increasingly striving for sustainability, this can obviously cause severe reputational damage. After all, you don’t want to be a violator of CO2 measures. In addition, organisations also risk legally imposed fines. And while these amounts have not yet been officially established, it is estimated that they could be at least tens of thousands, if not several million euros. In addition, depending on the jurisdiction, there is the treat of imprisonment for company directors to keep compliance and legal teams on their toes.

Of course, many organisations have been working on their sustainability credentials and value proposition for some time; well presented and demonstrable, sustainability is without doubt an asset to gain a competitive advantage. Customers actively seek out companies that care about the planet. They want to get sustainable delivery options and be able to choose the solution with the smallest ecological footprint. So those businesses that have detailed information from a TMS and can offer the right options have more than one advantage over competitors that don’t. In turn, this will also improve financial figures – after all, eco-friendly delivery options are a lot more efficient and make it possible to consolidate deliveries.

Don’t be put off by the looming deadline of CSRD compliance. With the right data and insights, being able to show sustainability throughout the supply chain accurately and with transparency offers a raft of opportunities. So take advantage now to embrace compliance ahead of time and gain a strategic edge over the competition.

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Sustainable Supply Chain Insights

Posted on by David Priestman

Woodland’s second annual Sustainability Report delivers insights and guidance on how to proactively improve your supply chain and implement ESG developments, consequently assisting to keep your workforce motivated, engaged, and committed to reaching ambitious targets. The importance of integrating ESG goals and initiatives remains vital in ensuring a sustainable economic future.

Accurately measuring and reporting on carbon emissions is crucial to navigate government and industry regulations and meet sustainability goals and stakeholder expectations. Thorough carbon calculations provide complete visibility of your business’ carbon footprint while customizable shipment carbon reports facilitate tracking emissions from door-to-door. Calculations can include transport distances, freight weight, greenhouse gas emissions, and air pollutants, and when both Tank-to-Wheel and Well-To-Wheel reporting is provided, globally consistent calculations can be formed.

Tank-To-Wheel refers to the actual transport, fuel consumption, fuel quality, and processing as well as emissions classification by country worldwide. Well-To-Wheel calculations encompass the emissions generated during production and transportation of the fuel, up to the point it enters a vehicle for use. An advanced, accredited carbon calculator can determine railway and airport transfer points and automatically detect stopovers based on available flight numbers. Woodland Group’s sustainable supply chain management support is based on the use of its carbon calculation tools, which align with ISO 14083 and GHG Protocol Corporate Accounting Standards.

Creating legitimately feasible routing options is a key step in delivering sustainable supply chains, and in achieving net zero by 2050. The most environmentally sustainable route may not always be feasible to implement because of the associated increase in cost or length of time the shipment takes, further aggravated by external factors such as political or environmental changes impacting routing and availability. To implement truly sustainable solutions, hypothetical carbon calculations are the most effective way to not only provide feasible routing options but also emission differences, factoring in lead time and cost.

Equally, the growth of alternative transport options presents significant opportunities to reduce the carbon footprint of the logistics industry. Choosing rail and short sea transport can further reduce your business’ carbon footprint as both inherently offer lower carbon emissions in comparison to road freight. Shifting freight volumes to these modes unlocks a substantial reduction in the logistics sector’s environmental impact while maintaining efficient movement of goods.

Implementing sustainable Supply Chain solutions are integral to meeting feasible net zero targets. These can include the expansion of rail and short freight as opposed to road, use of LSTs (Longer-Semi Trailers), and HVO (Hydro-Treated Vegetable Oil) as an alternative fuel to mineral diesel. Woodland Group’s recent GLEC membership enables the global company to proactively contribute to shaping sustainable logistics practices. The supply chain sector is grappling with rising fossil fuel costs, driven by supply chain disruptions and impact of carbon pricing. By adopting a circular economy model, the industry can move towards a resource-efficient and sustainable future. Woodland Group takes a proactive approach towards mitigating risks of disruption to shipping routes, creating a more sustainable sea freight model and supply chain infrastructure, which otherwise could be impacted by extreme weather and intensified climate change for example.

Packaging optimization and responsible waste management can help create a more circular economy, a model centered on resource reuse, repair, and recycling. By moving away from ‘take-make-dispose’ and keeping resources in circulation whilst minimizing waste and pollution, a path for environmental and economic prosperity can be created. Whilst actioning environmentally sustainable practices remains the focal mission, supporting communities and creating a workplace where employees feel valued, included, and empowered is equally fundamental in building a sustainable business.

Creating diverse candidate pools through a variety of external job posting sites and recruiting channels is a proactive practice to reach underrepresented groups and expand talent pipelines. Good practice in maintaining Diversity, Equity and Inclusion principles in the recruiting process is achieved through training managers guiding HR teams to recognise and mitigate unconscious bias throughout candidate screening and interview processes. Collecting and analyzing demographic data from across your workforce can also help in shaping DEI initiatives and assist in monitoring changes over time. Company-wide staff satisfaction surveys will assist in implementing improvements, monitoring trends, and gauging the impact of newly introduced benefits.

To achieve diversity and inclusivity within your workforce, relevant policies can support an all-inclusive working environment in which all employees feel valued and free from discrimination. Through feedback received from keeping an open dialogue with employees and data collected from staff surveys, you can implement staff-led positive change, and make everyone feel included and empowered to be able to feed into initiatives affecting all aspects of their life. Fostering transparency is key in establishing your workforce’s credibility and customer trust. Open communication and regular reporting on financial performance, sustainability metrics, and operational decisions will allow employees to feel empowered and respected.

Engaging with online platforms to improve and distribute ethical practices in global supply chains is a proactive way to facilitate compliance whilst minimizing business disruption as well as staying up to date with ESG regulations. Woodland Group is committed to transparency in business facilitated through effective online platforms, a practice that has been supported by suppliers, such as Sedex. As an organization working to improve ethical practices in supply chains, Sedex offers an online platform where businesses can share information about labour rights, safety, environmental impacts and ethical sourcing. Engaging with this organization means you can assess suppliers’ practices and further promote transparency throughout the supply chain as well as contributing to a sustainable future in business.

In the workplace, upholding the highest ethical standards means to encourage all employees to speak up and report any concerns that they may have regarding suspected wrongdoing or potential risks. Through an open dialogue and a Whistleblower Policy, a trustworthy channel for employees can be provided to voice concerns without the fear of retaliation. Woodland Group is constantly evolving ideas to make reporting more accessible and easy for employees, for example through online QR codes. Threading ESG aspects into your business and your business culture will encourage a proactive attitude towards a more circular economy and support the implementation of sustainable practices.

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Enter the Eco-Digital Era

Posted on by Keith McKinley

New research by Capgemini reveals that the eco-digital economy is expected to double in the next five years to almost $33 trillion (€30.5 trillion), but that the UK is lagging behind.

The untapped potential of digital technologies is vast, and the eco-digital economy, driven by digital and sustainability, is expected to double by 2028. That’s according to the Capgemini Research Institute’s latest report, ‘The Eco-Digital Era: The dual transition to a sustainable and digital economy’ developed in collaboration with the Digital Value Lab at the Digital Data and Design Institute at Harvard. Implementing digital technologies has enabled organisations to reduce their energy consumption by almost a quarter and delivered a 21% reduction in greenhouse gas (GHG) emissions in the past five years, cites the report.

In this new era of a dual transition to an eco-digital economy that delivers not only economic value, but also environmental and social value, the scaling up of digital adoption will propel economic growth with sustainability at its core.

More collaborative and platform-driven than ever before, this eco-digital era is giving rise to new business models and revenue streams, as well as enhanced cost efficiencies, all driven by data utilisation, cloud technology, collaborative ecosystems, and connected products and services. According to the report, seven in 10 organisations agree that digitally-driven business models will become a key contributor of revenue growth in the next three to five years. Furthermore, 60% expect digitally driven business models to generate more revenue than their traditional business models.

“In the eco-digital era, there is greater exploration of digital technologies’ value to business – for instance by the scaling of data and cloud, and by having digital technologies play a crucial role in achieving sustainability goals,” comments Dr. Suraj Srinivasan, Philip J. Stomberg, Professor of Business Administration at Harvard Business School and Head of the Digital Value Lab at the Digital Data and Design Institute at Harvard. “There is also a fast evolution of emerging tech such as generative AI and synthetic biology, and greater collaboration giving rise to digital ecosystems. This shift is truly fundamental, cross-sectoral and global in nature. One of the biggest questions that organisations have to address and manage, as they scale, is knowing what to centralise and what to decentralise in terms of platform architecture, and most importantly, data governance.”

UK Lagging Behind

While global organisations are prioritising investment into evolving technologies such as generative AI or edge computing, to decrease costs and increase efficiencies, the UK landscape paints a different picture for some of its technologies – one that is lagging behind the rest of society.

The UK findings suggest UK organisations shows similarities with the global average for GenAI and edge computing implementations (13% vs. 15%, 13% vs. 14%), but only 6% of organisations in the UK are currently implementing digital twin technologies (vs. 13% globally), and only 8% even have a roadmap to do so. Instead, as many as 43% say they are only currently thinking about it (vs. 25% globally).

The picture is similar with blockchain technology, with only 4% implementing this technology, and AR/VR/Metaverse technologies (5%) – again, the difference appearing to be that the UK is far more likely to be stuck in the ‘thinking about it’ stage. Given the worldwide focus on sustainability, the low implementation number for climate/clean tech is particularly concerning – with only 5% of UK organisations currently implementing such technologies (vs. 13%), and as many as 37% still in the planning stage.“

The eco-digital economy is unlike anything that has come before it, and society has harnessed only a fraction of the overarching potential that mainstream technologies such as cloud, AI, and automation hold,” said Fernando Alvarez, Chief Strategy and Development Officer at Capgemini and Group Executive Board member. “Organisations will need to leverage focused efficiencies in their core business, enabled by digital, in order to free up investment to support their dual transition. We are at the dawn of a new transformative era and we have only scratched the surface of how digital technologies can help expedite the delivery of substantial economic, environmental, and societal benefits.”

Maritime Safety Enhanced for NZ Port

Posted on by David Priestman

RightShip, a leading global environmental, social and governance (ESG) focused digital maritime platform, has today announced a partnership with Napier Port to implement RightShip’s innovative RightPort risk solution at the New Zealand port. This agreement will make Napier the first port in the region to adopt the cutting-edge technology, which aims to enhance maritime safety and sustainability.

RightPort is a transformative digital solution that screens inbound vessels against risk-based criteria tailored to a port’s requirements. It enables ports and terminals to streamline their pre-arrival processes, reduce administrative workload, and improve communication with vessels. RightPort also connects users to a global network of ports, allowing them to access feedback reports and vessel insights from other ports and terminals.

Todd Dawson, Chief Executive of Napier Port, said: “We are delighted to partner with RightShip and leverage their expertise and experience in maritime risk management. RightPort will help us to further improve our operational efficiency, safety standards, and environmental performance. It will also support our vision to be a long-term partner for our customers and our community, by providing a reliable, resilient, and sustainable port service.”

Andy Symonds, Head of APAC at RightShip, said: “We are excited to welcome Napier Port as the first port in the region to adopt RightPort. This partnership demonstrates Napier’s commitment to enhancing maritime safety and sustainability, and aligns with RightShip’s mission to create a safer and greener maritime industry. We look forward to working with Napier Port and supporting them with our data-driven solutions and global network.”

Napier Port is New Zealand’s fourth largest port by container volume. We are the gateway for Hawke’s Bay and lower North Island’s exports and operate a long-term regional infrastructure asset that supports the regional economy. Its strategic purpose is to collaborate with the people and organisations that have a stake in helping the region grow.

Commit to Supply Chain Efficiency

Posted on by Keith McKinley

TradeBeyond has announced that OBI, Germany’s top DIY brand and a major player in home and garden retail across Europe, has selected TradeBeyond’s multi-enterprise platform for an extensive supply chain digitalization project. TradeBeyond’s CBX Suite will help OBI to optimize its supply chain end-to-end, from supplier management to its sourcing, quality, order management, and production processes for their own sourcing organization OBI Group Sourcing (OGS) in Asia.

TradeBeyond will replace OGS’s manual systems with efficient, interoperable cloud-based solutions based on real-time data, allowing the company to bring products to market faster and more cost effectively. The decision to partner with TradeBeyond comes at a crucial time, as OBI seeks to modernize its operations and maintain its competitive edge in a rapidly evolving market while moving beyond analogue systems that create inefficiencies and data re-entry challenges.

OBI’s adoption of TradeBeyond comes as tightening ESG regulations across Europe, including the new German Supply Chain Act (LkSG) and the European Union’s impending Corporate Sustainability Due Diligence Directive, are necessitating higher standards and more rigorous data collection from retailers than ever before. These legal requirements align with OBI’s commitment to social responsibility, which is why the company has made ESG an integral part of its future strategy.

“We recognized early that manual supply chain processes were inefficient and no longer up to the task of ensuring the sustainable products that our customers expect,” said Thorsten Bauer, Managing Director and Vice President Asia from OGS. “We were impressed by TradeBeyond’s deep understanding of the complexities of global sourcing, and by the company’s strong presence in Asia. Our partnership with TradeBeyond demonstrates our commitment to a more efficient, responsible supply chain, and to our customers. We’re proud that as we continue to scale, we’ll be able to ensure we do so sustainably.”

“Retailers across the globe, and especially across Europe, are realizing that outdated, legacy supply chain processes fall short in monitoring compliance and managing the mounting complexities created by new global supply chain due diligence laws,” said Tim Chiu, Senior Vice President at TradeBeyond. “By choosing to partner with TradeBeyond, OBI has reinforced its commitment to sourcing to the highest standards of responsibility, while staying at the forefront of supply chain innovation. It’s a privilege working with such a respected, forward-looking retail institution.”

OBI’s implementation of TradeBeyond will unfold in phases over the next year, with the first release set to go live by early 2024. TradeBeyond’s tailored implementations allow brands and retailers to address their greatest needs first so they can realize rapid efficiencies and cost-savings from the platform sooner.

Logistics with Heart: Charity Initiatives

Posted on by Keith McKinley

The international transport and logistics provider cargo-partner has made significant contributions to various charity projects throughout the past year, reflecting its commitment to social responsibility and community engagement.

Most recently, the Austrian team worked with the Mary’s Meals initiative to transport 3,825 backpacks filled with school supplies and clothing to Malawi (pictured), fostering education for children in need. In February, when Türkiye was hit by devastating earthquakes, cargo-partner’s local team and corporate management worked side by side to provide strong support for local relief efforts: from sending trucks with much-needed supplies to collecting a total of 200,000 € in donations.

The Slovakian team supported the “Koľko lásky” (How much love) project, which collects Christmas gifts for senior citizens. For the past few years, cargo-partner has provided the organization with free warehousing at the iLogistics Center Bratislava and contributed 4,000 € in donations as well as gift boxes prepared by employees. The Manchester office in the UK raised 300 £ for Macmillan Cancer Support through their annual coffee morning to help individuals affected by cancer, while in Ireland, cargo-partner donated 1,000 € to Focus Ireland, an organization that supports homeless people, and also helped raise donations at its anniversary dinner.

In Bulgaria, the company supported the Council of Refugee Women by facilitating the transport and storage of winter clothing and shoes donated by UNICEF. In Bosnia and Herzegovina, cargo-partner transported T-shirts for the humanitarian race organized by “Srce za Djecu” (A heart for children), with some colleagues buying T-shirts and participating in the race.

The company also donated New Year’s gifts for children in cooperation with “Ruku na Srce” (Hand on heart). And cargo-partner Serbia joined forces with the Sport for All association to facilitate the opening of an eco-recreational summer camp at Lake Perućac, promoting environmental protection and a healthy lifestyle for young people.

In addition, cargo-partner’s headquarters will support the association “Die Nachbarinnen” (the neighbours) with a donation of 30,000 euro in January 2024. This association empowers migrant women to cope with challenging situations and improve their integration into society. The employees, themselves migrant women, act as companions and offer their support. In Austria, members of this association also produced laptop bags and pencil cases from truck tarpaulins that were used as give-aways at transport logistic in Munich.

cargo-partner has been supporting the daycare centre and kindergarten for Roma and Sinti children at the Orechov Dvor settlement in Nitra, Slovakia in cooperation with Jugend Eine Welt since 2014. In 2023, cargo-partner contributed 25,000 euro to the Roma project.

Asia: acts of kindness across borders

Across Asia cargo-partner teams demonstrated their dedication to social responsibility through a variety of initiatives. In Singapore, employees volunteered at the Willing Hearts soup kitchen, waking up early to cook hot meals for marginalized citizens. cargo-partner Myanmar cooperated with Apex International Inc. in Japan to facilitate a donation of furniture, clothing, bags and books to Agape Children’s Home in war-torn Myanmar. cargo-partner Malaysia participated in a recycling initiative with Lovely Disabled Home, collecting 150 kg of recyclable materials to help provide employment opportunities for physically and mentally challenged individuals.

cargo-partner Korea also found innovative ways to combine team building with a good cause. In May, the team went on a “plogging” trip, a combination of jogging and litter picking, to promote physical fitness while contributing to a cleaner environment. In September, the team organized a pre-owned item exchange at the office, combined with donations in kind to a local charity. The cargo-partner team in Thailand initiated a project to transform discarded plastic into valuable resources, including monk’s robes and hospital pillows. Finally, cargo-partner’s Xiamen office in China organized a beach clean-up to help combat marine pollution.

USA: lifting spirits and raising awareness In the USA

cargo-partner showcased its commitment to making a positive impact in local communities. The Chicago office welcomed the Matsiko World Orphan Choir, contributing to its mission of uplifting vulnerable children through the unifying power of music while raising awareness of child poverty. Meanwhile, the New York team partnered with the River Fund charity, donating clothes and books to support poverty alleviation initiatives in the heart of the city.

cargo-partner’s Founder and CEO Stefan Krauter said: “I am proud to see the diverse and creative community initiatives undertaken by our teams around the world. These projects reflect our commitment to social responsibility and embody our core value, ‘we take it personally,’ which inspires our teams to give their best every day. Our commitment is not just about transporting goods, it’s about delivering hope and building a better future.”

Supply Chain Trend Predictions

Posted on by Keith McKinley

Mark Morley, Senior Director, Product Marketing at OpenText, provides his supply chain trend forecast for the year ahead.

1. Embracing conversational AI across tomorrow’s supply chains: Companies have been embarking on a journey of digitizing their supply chains for many years. In fact, that journey started in the 1960s as large companies around the world started to embrace EDI communication and document standards. It is surprising today how many companies have not completely digitized their supply chain operations, and as a result, they are not able to realize the significant benefits and ROI that digitizing the supply chain can bring. In 2024, we will see more companies looking to obtain greater value and insights from the data being exchanged across their business ecosystem. As a technology, ‘Big Data’ has been around since 2010, but in 2024, we will see explosive growth in the use of Generative AI solutions and especially Conversational AI solutions in the supply chain sector. The ability to have a ‘conversation with a business network’ that is connected to all your business systems and your external trading partner community will be of tremendous value to companies of all sizes, offering accelerating supplier onboarding to optimizing logistics flows, from improving inventory management to accelerating payments between parties. Conversational AI is set to change how users interact with their business networks.

2. Leveraging a business network for ESG and SCOPE 3 reporting: Business networks connect global supply chains across many different sectors, they are pervasive and reach into almost any business system and out to any trading partner or information source. Companies using business networks have been able to obtain an indirect benefit for many years, digitizing and automating paper-based processes helps to save paper and of course billions of trees around the world. Developing more sustainable supply chains has been the goal of all supply chain and procurement leaders around the world. With the introduction of new ESG mandates worldwide, companies are being forced to make significant changes to their supply chain operations. Business networks allow companies to not only exchange information digitally, but they can also derive powerful insights to help optimize up and downstream processes and comply with regional compliance mandates. From adhering to the Dodd Frank Conflict Minerals law in the US to ensuring that all companies in Germany embrace the ‘Act on Due Diligence in Supply Chains’, ethical and sustainable sourcing will become a required business practice moving forwards. In 2024, we expect more companies to draft similar regulations, which are expected to include the newer SCOPE 3 regulations. Companies will become responsible for monitoring the carbon emissions produced at every tier of their supply chain and transporting goods across each tier. Business networks will become central to the exchange of ESG and SCOPE 3 information, and we will likely see new EDI transactions emerge or existing transactions updated to include information about ESG and SCOPE 3 reporting.

3. How intelligent command centres provide supply chain leaders with actionable insights: As global supply chains strive to mitigate the risk and impact of disruptive events; visibility is key to making timely and accurate decisions. However, simply having access to relevant information is not enough, but users will need to identify the right information to focus on at any given time based on their role and responsibilities. Supplier risk indicators, performance benchmarks, extreme weather phenomena, labour disputes, and many other pieces of information are all potentially relevant to supply chains operations, but only meaningful if you can identify how they will impact your business and what steps can be taken to mitigate these impacts. To move from simply having information to leveraging it to drive meaningful action, organizations will need enabling technology. In 2024, we are likely to see the traditional supply chain control towers increasingly being replaced or complemented by intelligent command centre capabilities that go beyond KPI tracking by allowing users to access more insights and get guidance on where they need to focus. This will require bringing together various technical capabilities from role-based access and diverse data integration to specialized user interfaces and AI-assisted analytics features. As with most complex IT solutions, one size will not fit all, and flexibility and adaptability will be crucial for success.

4. Rebalancing B2B resources to meet the needs of tomorrow’s integration activities: With the global business landscape undergoing major changes, companies need to be able to adapt quickly to stay competitive. Technology plays a key role in this. Pressures around digital transformation are impacting businesses of all sizes, and despite the economic headwinds faced by most companies, the level of investment in digital technologies remains high. While modernization and new technology adoption create many opportunities, they also increase complexity and create a need for more integration between different systems and applications—both internally and across the extended business ecosystem. As we move into 2024 and beyond, companies need to adjust their IT resources to match the changes in requirements. This includes rebalancing their B2B integration resources to meet the demand around increased connectivity and process automation with external business partners. Yet, due to the diverse nature of B2B connectivity, it’s becoming increasingly difficult to hire and retain staff with the right skills and expertise to manage complex integration projects. As many seasoned professionals around some of the core technologies still actively used today are retiring from the workforce, companies need to identify a continuity plan for B2B integration. This will drive many organizations to partner more closely with managed service providers that can offer the range of skills needed on an on-demand basis to ensure both availability and optimal utilization of the required resources.

5. Digital Product Passports will simplify the journey towards the Circular Economy: Digitizing a product is not a novel concept as the digital twin has gained traction in product design, testing and usage. But adding in the identity-centric models, such as a digital passport adds new use cases and also some new challenges. 2024 will see a renewed interest in digital twins leveraging the digital passport to drive sustainability projects, especially those mandated by government regulations. The Ecodesign for Sustainable Products Regulation in the European Union is a good example of these regulations. The proposal for a new Ecodesign for Sustainable Products Regulation (ESPR), is the cornerstone of the Commission’s approach to more environmentally sustainable and circular products. One of the key challenges is governing who should have access to the digital passport data, such as location or the personal data of the user of the product. This could be especially problematic in highly regulated industries such as healthcare where patient data must be protected but still be utilized by the authorized groups. The digital passport needs a strong governance and authentication system for its true value to be realized. If implemented with a strong security posture it can be a key part of a product’s digital transformation that gives insight into the initial use and throughout the product’s lifecycle. Digital passports will give manufacturers of any size, valuable data that can be used to improve product design as well as enhance the customer experience.

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