ARTICLE • 5 min
Are you looking to accelerate your sustainability journey?
See how we can help.
See how we can help.
Products
Materiality
Impact MaterialityFinancial MaterialityDouble MaterialityCSRD Double MaterialitySocial Impact
Social ImpactIn today’s rapidly evolving business environment, sustainability is no longer a choice for logistics companies; it’s a necessity. As global trade expands, so do the expectations for companies to mitigate their environmental and social impact. With regulations tightening, customers becoming more eco-conscious, and stakeholders demanding greater transparency, logistics companies face an urgent need to prioritize sustainability.
The newly released Logistics Industry Materiality Benchmarking Report provides an in-depth look at how the top 300 global logistics companies are addressing sustainability. Based on materiality assessments—a tool companies use to identify and prioritize key sustainability topics—the report sheds light on the most critical ESG (Environmental, Social, and Governance) issues confronting the logistics sector. Here’s a breakdown of the report’s key findings and what they mean for the future of logistics.
Materiality assessments are critical for businesses to identify which sustainability topics have the most significant impact on their operations, finances, and reputation. For logistics companies, a sector that operates in highly regulated environments and has far-reaching environmental impacts, materiality assessments provide strategic direction.
By focusing on material topics, companies can streamline their sustainability efforts, ensuring they address the issues that truly matter to their stakeholders. As the report outlines, logistics companies are adopting materiality assessments at varying levels. Some are leading the charge, while others are still catching up. But why is this so important?
Materiality ensures that companies:
Logistics companies that excel in materiality are better positioned to navigate sustainability challenges and opportunities, ensuring long-term business success.
The report highlights the top 10 material sustainability topics that logistics companies are prioritizing. It’s no surprise that employee-related issues dominate the list, given the labor-intensive nature of the industry. However, some environmental concerns, such as greenhouse gas emissions and energy management, ranked lower than expected, raising questions about the sector’s readiness to address its environmental footprint.
Here’s a quick overview of the top 3 material topics and what they reveal about the sector’s sustainability priorities:
At the top of the list is Employee Recruitment, Development & Retention, a topic identified by 123 logistics companies. This highlights the industry's urgent focus on human capital, reflecting broader challenges such as labor shortages, high turnover, and the need for specialized skills in areas like supply chain management and transportation.
Logistics companies are investing heavily in talent acquisition, training, and retention strategies. Given the sector's dependency on a skilled workforce, addressing this issue is not only about maintaining operational efficiency but also ensuring future competitiveness.
Business Ethics & Transparency is the second most frequently reported material issue, identified by 88 companies. This reflects growing pressure on logistics companies to operate ethically and transparently, especially as they navigate complex global supply chains.
As logistics companies expand their operations across borders, ethical business practices are essential for maintaining customer trust, complying with local regulations, and managing reputational risks. Transparency also extends to how companies disclose their sustainability practices and the impact of their operations, making this a critical area for ongoing improvement.
Surprisingly, Community Relations ranked third, with 79 companies identifying it as a material issue. Logistics companies are recognizing the importance of maintaining good relationships with the communities they operate in, particularly as their hubs often intersect with residential areas, contributing to congestion, pollution, and noise.
Building strong community ties is increasingly seen as vital to smooth operations and long-term success. This focus on social impact represents a shift in how logistics companies view their role in the broader societal landscape.
While employee-related issues and business ethics dominate the materiality rankings, environmental topics, such as greenhouse gas emissions and energy management, ranked lower than expected. Greenhouse Gas Emissions came in at number nine, identified by only 47 companies, while Energy Management ranked tenth, identified by 43 companies.
This is concerning, given the logistics sector’s significant environmental footprint, especially in terms of fuel consumption and emissions. The relatively low prioritization of these topics suggests that while companies recognize their environmental responsibilities, other operational challenges may be overshadowing long-term climate considerations.
The report hints at a potential misalignment between current corporate strategies and the urgent global focus on climate action. Logistics companies need to integrate climate risks into their core business strategies to remain competitive and meet regulatory requirements, especially as the pressure to decarbonize intensifies.
The report’s analysis revealed three distinct groups within the logistics sector based on the number of material topics they identified:
These group dynamics reflect varying levels of maturity in sustainability reporting across the sector. The companies in Group 3, while proactive, may face difficulties in maintaining focus, while those in Group 1 may risk overlooking critical issues that could affect their long-term resilience.
Materiality benchmarking is a crucial tool for logistics companies to compare their sustainability practices with industry peers and global standards. The report emphasizes the importance of benchmarking, which helps companies identify gaps in their sustainability strategies and uncover opportunities for improvement.
By benchmarking against competitors and aligning with recognized standards such as SASB, GRI, and ESRS, logistics companies can ensure they are meeting both regulatory requirements and stakeholder expectations. The report’s findings highlight significant opportunities for improvement, especially in areas like greenhouse gas emissions, energy management, and automation—all of which will be critical for the future of logistics.
Two key topics that are notably absent from the top 25 material issues are automation and the circular economy. Given the growing reliance on technology and automation in logistics—from autonomous vehicles to warehouse robotics—this omission is surprising.
Automation is critical for improving efficiency, reducing operational costs, and addressing labor shortages, yet it doesn’t seem to be a priority for many companies. Similarly, the circular economy, which promotes resource efficiency and waste reduction, is becoming increasingly important in logistics, particularly in areas like reverse logistics and sustainable packaging.
Logistics companies that fail to prioritize these areas may miss out on significant competitive advantages, especially as sustainability and technological innovation become increasingly intertwined.
The Logistics Industry Materiality Benchmarking Report provides valuable insights into the sector’s current sustainability priorities, but it also highlights areas where companies can do better. To remain competitive and compliant in a rapidly changing global landscape, logistics companies must take a more holistic approach to materiality.
Here are a few key takeaways for logistics companies looking to improve their sustainability strategies:
This article has only scratched the surface of Socialsuite’s Logistics Industry Materiality Benchmarking Report. For a comprehensive analysis of the material issues shaping the future of the logistics sector and detailed insights into the top sustainability challenges, download the full white paper here.
Whether you’re a logistics company looking to refine your sustainability strategy or an investor seeking to understand the sector’s sustainability risks, the report offers invaluable insights that will help you navigate this complex and rapidly evolving landscape.
Whether it’s a public company, a private company, or a charity, Socialsuite has the right solution for you.