How to Harness Sustainability to Drive Top Line Growth
As a transportation carrier, the topic of sustainability seems like it’s coming at you from all sides. Your Business Development team is fielding RFP requests that ask for specifics on your sustainability strategy. Operations and Procurement are working to stay compliant with state and local regulatory environments. Finance and IT are monitoring the pending SEC emissions disclosure requirements. HR is asking how sustainability aligns with the company’s core values and how it can be used to boost recruiting and retention.
Does any of this sound familiar?
The push to transform the transportation sector to near-zero emissions by 2050 is already underway and it’s going to be extremely disruptive. Buyers of transportation services are increasingly considering a carrier’s ability to partner on sustainability strategy in the RFP selection process. How can you consolidate fragmented one-off sustainability requests into a unified message that helps drive top line growth?
Current Efficiencies – What are your current operational efficiency best practices that have a sustainability component? Route optimization, reduced go-back and not-at-home rates, less idle time, fuel-efficient vehicles, LED facility lighting. All of these are already cost reduction strategies. Measure and track related energy and emissions reductions and incorporate these metrics into your sustainability message.
Take Inventory – If you are not already measuring your emissions footprint, you will be asked to do so soon, either by clients, states, or the SEC. Start by collecting basic data, such as fuel consumption and mileage, and use available resources to translate this data into an emissions baseline. EPA GHG Emission Factors Hub and EPA SmartWay are great places to start.
Strategic Next Steps – Determine two or three things you can do in the next year to elevate your sustainability profile as a company. If multiple clients are asking you for your EcoVadis score, consider investing the time and resources to complete the assessment. If you are working on CARB Advanced Clean Fleets (ACF) compliance you may invest in equipment pilots and associated grant applications for funding. Your near-term goals should focus on regulatory compliance and revenue generation with strategic client partnerships tied to sustainability.
Taking a few proactive steps to consolidate your strategy and messaging can pay dividends with your clients, particularly retailers who are facing increasing pressure from customers and investors to curtail their environmental impact. It will also position you as a leader and a carrier of choice in future discussions related to sustainable solutions.
Written for the National Home Delivery Association Newsletter (November 2023)