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Sustainable Logistics
Best Practices from the Global Compact
WWS Series 2
November 2013
WWS Series 2
SUSTAINABLE LOGISTICS
Best practices from the Global Compact
November 2013
(second edition)
Ulrike Hoessle
TABLE OF CONTENTS
Introduction
Human Rights Relevant International Treaties
Relevant Certifications
Best Practices from Logistics Companies Worldwide
Labor Rights: Relevant International Treaties
Relevant Certifications
Best Practices from Logistics Companies Worldwide
Environment Relevant International Treaties
Relevant Certifications
Best Practices from Logistics Companies Worldwide
Anticorruption Relevant International Treaties
Best Practices from Logistics Companies Worldwide
Philanthropy Best Practices from Logistics Companies Worldwide
Conclusion
Appendix Initiatives for Sustainable Logistics (selection)
Footnotes
References
About the Author
4
INTRODUCTION
The term sustainability comes from forestry and describes the management of a forest’s
natural resources, not only for the benefit of the present generation, but also for the benefit of
future generations. Applied to business operations, sustainability means the ability to sustain a
business with a long-term perspective, taking into consideration economic, social, and
environmental issues, the so-called
“Triple P”: Profit, People, and Planet.
This paper gives an overview of the
international standards of sustainability
as well as their implementation in the
logistics industry. This overview
summarizes the analysis of sustainability
reports of the ten largest logistics
companies, as well as of logistics firms
that have participated at the United
Nations Global Compact for at least
four years. The description of
sustainable practices includes a variety
of issues in the areas of human rights,
labor standards, environment,
anticorruption, and philanthropy.
Sustainable logistics describes an economically viable business model that seeks to mitigate
negative environmental and human rights impact by implementing high ethical standards
throughout a company’s operations, with respect to the relationships with clients, employees, and
suppliers.
Good business conduct is neither a new concept, nor a strictly Western one. The ability to
do business “on a handshake” has been crucial for the sustained operations of any business since
the origins of exchanging goods and services. Many cultural and religious groups worldwide require
responsible business conduct with high moral and ethical standards, including giving back to the
community, especially to the poor and underprivileged.
5
Following the end of WWII, the United Nations created a set of universal rights and
obligations, in the areas of human rights, labor standards, anticorruption, and the environment.
Although almost every sovereign state has signed these conventions and regulations, their practical
implementation is still lacking. The implementation of international treaties is a governmental
responsibility. In the last two decades, however, civil society, the media, and academia have begun to
expect businesses to respect these standards within their spheres of influence, even in the absence of
governmental agencies to enforce them. Today, large companies with direct consumer contact are
often in the focus of civil society or media attention, due to unfair labor practices or environmentally
damaging operational practices. Therefore, companies attempt to focus on green procurement:
valuing and engaging with suppliers that can offer sustainable solutions.
In 1999 at the World Economic Forum in Davos,
Switzerland, then UN Secretary-General Kofi Annan called on the
CEOs of some of the largest multinational corporations to commit
to a global compact in order to mitigate the negative effects of
globalization. Eighteen months later, the United Nations in New
York launched the United Nations Global Compact. Today, the
Global Compact is the largest corporate responsibility initiative in the
world. More than 8,000 companies - including small and medium
enterprises [SMEs][1] - from over 140 countries are committed to the
ten Global Compact principles. These ten principles are based on
international treaties in the areas of human rights, labor standards,
anticorruption, and the environment. In order to operate a
sustainable business, it is important to know what these standards are
and how to incorporate them into everyday business operations.
The following overview summarizes best practices from the ten largest logistics companies
and from other transportation businesses that have committed to the Global Compact principles for
more than four years. It includes diverse experiences and practices from several countries such as
Argentina, Brazil, Bulgaria, China, France, Germany, Indonesia, Japan, Jordan, the Netherlands,
Panama, Switzerland, Syria, and the United States.
Former UN Secretary-General
Kofi Annan
6
HUMAN RIGHTS
Relevant International Treaties
The principal international treaties
and declarations concerning human rights
are The Universal Declaration of Human
Rights of 1948, as well as the International
Covenant on Civil and Political Rights (1966) and
the International Covenant on Economic, Social
and Cultural Rights (1966). This so called
International Bill of Human Rights - signed and
ratified by almost every sovereign state -
stresses independent rights for every
individual that are also relevant for business
operations.
Some articles from the
Universal Declaration of Human Rights
The right of life, liberty and security of person;
The right to equal and just remuneration ensuring a dignified living standard;
The right to leisure with reasonable limitation of working hours and periodic holidays
with pay;
The right to access to medical care and necessary social services;
The right to special care during motherhood;
The right to education;
The right to safe and healthy work conditions.
United Nations in New York
7
Since 2005, Prof. John Ruggie, the UN
Special Representative on Business and Human Rights had
organized a long-term consultation process with
several worldwide stakeholders on the topic of
complicity in human rights abuses. The outcome of
this process were the UN Guiding Principles on Business
and Human Rights that provide a framework for the
implementation of human rights throughout all the
business operations. Furthermore, the International
Code of Conduct for Security Service Provider and the UN
Basic Principles on the Use of Force and Firearms[2] might
be relevant for logistics companies that hire security
guards to protect their cargo.
Violating international standards can result in losing the social license to operate a business
and in litigations. One example is a lawsuit against the Canadian company Anvil Mining. Anvil
Mining provided logistics support for a military operation of the Congolese army that resulted in a
massacre. Another example is a lawsuit based on the U.S. Alien Tort Claims Act (ATCA) against
Royal Dutch Shell, an energy conglomerate, for its involvement in the execution of nine political
prisoners in Nigeria. The famous writer Ken Saro-Wiwa was among them[3].
The two human rights principles of
the Global Compact:
Businesses should
support and respect the protec-
tion of internationally proclaimed
human rights (principle 1);
make sure that they are not com-
plicit in human rights abuses
(principle 2).
Relevant certifications
OHSAS 18001 is a British standard recognized worldwide for health and safety.
SA 8000 is an auditable certification program based on several ILO-Conventions, the Uni-
versal Declaration of Human Rights and the United Nations Convention on the Rights of Children.
It is issued by Social Accountability International, a NGO based in the U.S.
Investors in People, a British accreditation instrument recognized worldwide, focuses on trans-
forming business performance through employees, targeting issues such as health and well-
being.
8
HUMAN RIGHTS
Best Practices from Logistics Companies Worldwide
Implementing safety measures
For logistics companies, one major concern is
keeping employees safe while operating vehicles.
Therefore, many companies intensively monitor the
injury rate in their operations, perform safety training
and organize safety programs in order to minimize or
eliminate safety hazards[4]. One example is steamship
lines whose routes lead through pirate-infested
waters. These businesses have created safe cabins
equipped with food supplies and communication
tools whereby the crew is secure until their rescue
(MOL 2012: 09; Cosco 2011: 300).
Training employees to avoid being complicit in human rights violations
If a company works in a country with low standards of human rights protection, it is
crucial that the employees know how to handle abusive situations. The German helicopter
charter company Helog (2009: 3), which operates in African conflict regions, encourages its
employees to report any violation and uses daily meetings to discuss human rights challenges.
Helog also refuses to transport passengers or goods in cases of a reasonable suspicion that the
action could be in violation of rules and procedures concerning human rights. The Brazilian
company Amara Brazil (2012: 8) trains truck drivers to report human rights violations that they
encounter during their travels through Brazil.
Somali pirates on the Faina before the rescue
9
Training security guards
One challenge for a transportation company is to ensure that employees and third-party
security firms comply with human rights requirements while guarding cargo on land and on sea.
Companies must organize training on the use of force and firearms, and regularly monitor operations
to ensure compliance with all requirements (Express Group 2012: 6; Cosco 2011: 304f).
Health insurance and health care
In addition to preventing accidents, some of the logistic companies actively promote healthy
work environments. This goes beyond health insurance that most companies of the sample offer to
their employees. It addresses work-related health concerns such as drivers experiencing back pain
from heavy loads, administrators in sedentary working environments and general stress symptoms.
Some logistics companies describe in their report the use of ergonomic equipment, regular fitness
training, massage treatments, health information and/or regular health checks for physical and
mental symptoms[5].
Avoiding layoffs
During the financial crisis of 2008/2009 the German company Hellmann (2011: 33), despite
the decline in business, decided against layoffs. Instead, Hellmann opted to implement reduced
working hours, and executives accepted voluntary pay cuts. In 2010, at the end of the crisis when
business activity rose sharply, the existing staff was able to handle the increased business. The
company avoided costs from hiring and training new employees (not to mention the high costs that
would have been incurred via layoffs, severance packages, and paperwork).
Promotion and training of employees
Most logistics companies that committed to the Global Compact describe in their reports
how they provide training, promotion and bonus schemes to support employee personal growth and
to become employers by choice [6].
10
Salaries that allow a life with dignity
One of the fundamental human rights is to receive a salary that meets the basic needs
of employees and their families, and provides a base for developing their individual potentials.
Some logistics companies pay salaries above the minimum wage that adjust automatically for
inflation. Other companies offer profit sharing and other bonus programs (e.g. 13th month
bonus), extra retirement provisions and graded anniversary bonuses. Other benefits include
employee housing, low interest credit lines, life insurance and scholarships for employees’
children[7].
Work life balance
The logistics companies that signed the
Global Compact principles typically offer a broad
range of benefits to support work life balance.
The Japanese transport company MOL (2012: 40)
implemented several guidelines to reduce
overtime work: no-overtime days, establishing
specific days when all employees leave at a certain
time, strengthening processes for approval of
overtime work and introducing extra holidays
(“refresh leave”) for employees after 15 years of
continuous service. In the context of childcare,
companies allow extra maternity leave, flexible
working hours (increasingly for fathers), part-time positions for mothers and/or possibilities
to nurse a child during the workday. Other companies finance childcare and/or accept extra
leave to take care of sick family members. Some companies offer days off for birthdays[8].
11
LABOR RIGHTS
Relevant International Treaties
The International Labour Organiza-
tion (ILO) founded after World War I,
acknowledged that social injustices were a
driving factor of conflict and war. The ILO
was incorporated into the newly established
United Nations in 1945 and has since devel-
oped nearly 200 sets of rules and norms for
labor standards. In 1998, the ILO summa-
rized core labor standards in The Interna-
tional Labour Organization's Declaration on
Fundamental Principles and Rights at Work.
The four labor principles of the Global
Compact:
Businesses should
uphold the freedom of association and the
right to collective bargaining (Principle 3);
eliminate forced labor (Principle 4);
abolish child labor (Principle 5);
eliminate the discrimination regarding
employment and occupation (Principle 6).
Relevant Certifications
SA 8000 (see Human Rights: relevant certifications);
The Fairtrade certification is a product certification that specifies certain environmental and
labor standards. The International Fairtrade Certification Mark is issued by the Germany-based
Fairtrade International. The Fair Trade Certified Mark for North America is issued by Fair Trade
USA/Canada.
Three United Nations conventions in the area of labor rights are relevant for ship owners:
International Convention for the Safety of Life at Sea (International Maritime Organization)
International Convention on Standards of Training, Certification and Watchkeeping for Sea-
farers (SAR) (International Maritime Organization)
Maritime Labor Convention (MLC) (International Labour Organization)
12
LABOR RIGHTS
Best Practices from Logistics Companies Worldwide:
Continuous dialogue with employee’s representations
Many companies that signed the Global Compact principles have established regular
dialogue forums with employee representatives or workers’ councils to discuss issues related to
the work environment and working conditions such as safety, business strategy, economic
performance, sustainability, health, salaries, and employee housing [9]. However, in some
countries, unions are either illegal or inactive. The Jordanian company Aramex (2012: 35) points
out that – without breaking local law – it respects all collective actions taken by employees and
works to ensure that their needs are met. The company uses team meetings, intranet services and
messaging systems to involve employees in decision-making processes.
Being alert to human trafficking as a modern form of forced labor
Most states have abolished
forced labor; therefore, companies are
not openly confronted with this form
of violation. However, a company
might not be aware that its suppliers
are involved in human trafficking by
using migrant workers who live and
work under deplorable conditions,
preventing them from leaving their
workplace.
The Seattle-based non-profit Businesses Ending Slavery &
Trafficking (BEST) created a set of tools to prevent human
trafficking.
13
Checking suppliers to avoid child labor
In certain countries, it may be necessary to
add a section in the supplier’s code of conduct that
forbids child labor. Cosco Group, a Chinese shipping
firm (2011: 303), has contracts that penalize any
suppliers that illegally employ child and youth labor.
Suppliers that violate this rule are reported to local
labor management departments.
Pursuing a policy by including minorities and raising awareness of
discrimination
Hiring and keeping the most talented
individuals is a crucial competitive advantage for
every company. This means that every employee
has the right to be respected and included
regardless of age, race, gender identity, ethnic
origin, sexual orientation, physical challenges, and
religious or political affiliation. In different
countries, the particular focus of a company may
vary. MIT, a Panamese container terminal
operator (2012: 39), collaborates with Servicios
Múltiples Kuna, S.A., owned and operated by
the local indigenous tribe of the Kuna. TNT
Bulgaria (2012: 9), the Bulgarian subsidiary of TNT, a major international courier, integrates
Roma into their workforce by offering internships with a possibility of long-term employment to
members of this ethnic group. TNT Bulgaria founded also the TNT Pride Network to promote
inclusion and support of gay, lesbian and bisexual issues. MRW (2011: 28), a Spanish courier,
offers workspace for physically challenged employees above the quota that is prescribed by law.
“The child shall have full opportuni-
ty for play and recreation...and shall not be
permitted to employment before an appropri-
ate minimum age.“ (from the Declaration of the
Rights of the Child 1959)
14
ENVIRONMENT
Relevant International Treaties
In 1992, the United Nations Conference on
Environment and Development in Rio de Janeiro ended
with the non-binding Rio Declaration on
Environment and Development that has become a
point of reference for environmentally sustainable
development. Furthermore, the United Nations
Partnership for Clean Fuels and Vehicles, developed
during the World Summit on Sustainable Development
(2002) in Johannesburg, is relevant to logistics
companies. It provides recommendations for the
reduction of air pollution in the transportation
sector (UNEP 2013).
The three environmental princi-
ples of the Global Compact:
Businesses should
support a precautionary approach to
environmental challenges (principle 7);
undertake initiatives to promote
greater environmental responsibility
(principle 8);
contribute to the development and
diffusion of environmentally friendly
technologies (principle 9).
Relevant certifications (selection)
ISO 14000 is a group of environmental management standards established by the International
Organization of Standardization, based in Switzerland.
Eco-Management and Audit Scheme (EMAS) is an environmental management system, devel-
oped by the European Union that integrates ISO 14001.
Leadership in Energy and Environmental Design (LEED) is a rating system for the construction
and operation of green buildings, developed by the U.S. Green Building Council.
Greenhouse Gas Protocol Certification is an accounting tool to quantify and manage greenhouse
gas emissions, initiated by the World Business Council for Sustainable Development (WBCSD) and
the World Resource Institute (WRI).
Two conventions of the UN International Maritime Organization are relevant for ship owners:
International Convention for the Prevention of Pollution from Ships (MARPOL) pre-
scribes the Energy Efficiency Design Index (EEDI) for new ships; and
International Convention for the Control and Management of Ships’ Ballast Water and Sed-
iments (BWM) (IMO 2013).
15
ENVIRONMENT
Best Practices from Logistics Companies Worldwide
Calculating CO2 and carbon offset
One of the basic steps towards green logistics is to
calculate how much CO2 is emitted via certain modes of
transportation. A Life Cycle Assessment (LCA) is an evaluation
that shows the complete CO2 emissions from vehicle
manufacturing, vehicle use, and vehicle disposal[10]. Some
companies (Austrian Post 2012: 12; Deutsche Post 2012: 9;
UPS 2012: 90) purchase carbon offsets to compensate for all
CO2 emissions caused by their business operations, some of
which cannot be reduced. A carbon offset is a financial
instrument aimed at a reduction of greenhouse gas emissions.
Its use is highly controversial (see Mukerjee 2009).
Route and load optimization
The first step for implementing cost and
energy saving measures is the introduction of routing
technology and telematics to optimize physical
logistics processes such as more efficient packing,
regrouping goods and route optimization (Schenker
2012: 28; Hellmann 2011: 19f; UPS 2012: 81).
Driver training
Driver training can reduce fuel consumption up to
10 percent. To maintain an eco-friendly driving style, it is
crucial to install technical equipment showing variable fuel
consumption at different speeds and monitoring the use of
heating and air-cooling systems [11].
NYK GROUP CO2 e-calculator
A glimpse into the future? Google self-
driving car in San Francisco.
16
Preferring rail, and improving rail transportation
Route optimization means taking into
consideration the environmental impact of different
modes of transportation. Rail freight is the most
environmentally friendly mode of land transportation,
but some companies seek to further improve its
efficiency. This might include more efficient utilization
of trains, modernization of facilities, use of low-
emission locomotive engines, installation of new
particulate filters, introduction of noise reduction
measures, training drivers, and equipping locomotives
with power systems that convert the kinetic energy of the train into electricity and feed it back
into the overhead lines while braking[12]. Companies use efficiency improvement initiatives to
mitigate negative environmental impact.
Low or zero emission vehicles for road transport
Companies can reduce the emissions of CO2 and
other air pollutants by replacing older vehicles with more
efficient ones, such as hybrid cars, that use alternatives
fuels and energy sources. In America, the U.S. Department of
Energy is establishing the Interstate Clean Transportation
Corridor which provides the necessary infrastructure for
liquefied natural gas (LNG). Some companies have
vehicles that use fuel from used animal fat and/or ethanol.
Alternatives for intra-urban distribution that have zero
pollution include electric vehicles (ideally charged via solar-
powered stations) or (for smaller loads) electric bicycles or
motorcycles[13].
17
Green ships
Ships are one of the most efficient modes of transportation on sea and inland waterways.
Reducing speed (slow steaming) is one of the most effective ways to reduce pollutant emittance,
particularly those that cause acid rain and soil acidification. A 15 percent reduction of speed
results in net savings of 30 percent of CO2 emissions. Other methods to reduce emissions include
route and trim optimization, and taking advantage of weather and sea conditions.
Some ports offer incentives for ships that rank high on the Energy Efficiency Design Index
(EEDI). Newer generation ships have even more options for minimizing environmental
effects: energy-efficient designs, modern machinery, low-pollution fuels, hydro and aerodynamic
improvements, cargo volume maximization, reduced wind resistance and fewer wetted surfaces.
To preserve marine life, ocean freighters can use non-toxic instead of traditional paints
and treat the ballast water according to international treaties, such as those promulgated by the
IMO. Some companies designed fully recyclable ships such as the Maersk Triple E class ships.
They avoid recycling facilities in countries like Bangladesh where ships are typically dismantled in
violation of international environmental and labor standards [14].
MOL, a Japanese
steamship line, (2012: 11, 33)
introduced the solar-powered
hybrid car carrier Emerald Ace,
equipped with lithium-ion
batteries that are charged at sea by
solar power generation systems.
The ship uses this power while at
berth and completely shuts off
diesel power generators. MOL is
working on another project that
integrates liquefied natural gas
(LNG) and waste heat. NYK
Group, a Japanese shipping
conglomerate, (2012: 13) aims to
develop by 2050 a vessel with
close to no CO2 emissions.
The NYK Super Eco Ship 2030 with close to no CO2 emissions
(Photo: NYK)
18
Fuel-efficient airplanes
Flight is the least energy-efficient mode of transport. Due to its speed advantage, there is no
viable alternative for some transported goods. Cargo planes using a combination of light carbon
fiber design, higher cargo volume, more economical engines, aerodynamically optimized winglets
and environmentally friendly paint decrease the negative environmental impact of flight
transportation. Take-offs and landings are particularly fuel-intensive. Air pollution is reduced by
shifting air freight along the main trade routes on direct flights, lowering flight speeds, using
single engines used to taxi, fuel-efficient towing tugs and alternative fuel for ground support
equipment[15].
Green office management
.
Companies can introduce a whole range of
measures to reduce environmental impacts and
conserve resources. A principal precautionary
measure is to save energy. Actions include
replacing old appliances with newer, more
energy-efficient ones, replacing printers and
copiers with multi-functional devices, setting the
default printing option as double-sided, installing
LED lighting and automatic switches, procuring
eco-friendly products and materials,
encouraging online communication between
companies and departments, using video and
telephone conferences instead of business trips, supporting flex-workflow and work-at-home
options, providing shuttle transportation for employees, encouraging employees to bike to work,
introducing paperless office procedures such as electronic filing and invoicing, and scanning
documents instead of printing. Internal campaigns, newsletters and e-learning raise awareness and
knowledge concerning the environment and ensure the day to day application of newly
introduced measures [16].
E-learning screen for CSR at NYK
19
Protection of biodiversity
Shipping companies must avoid inadvertently spreading invasive species. UPS (2012: 101)
describes the cooperation with the Animal and Plant Health Inspection Service (APHIS) of the U.S.
Department of Agriculture in order to prevent the spread of the Japanese beetle via air transport. To
preserve marine life, it is crucial that shipping companies carefully handle ballast water and choose non-
toxic paint.
Green warehouse-management
There are
numerous instruments
for reducing CO2
emissions. These include
the installation of
photovoltaic, wind and
solar energy systems, the
use of geothermal
energy, installation of
innovative lighting
systems, motion
detectors, utilizing
daylight, installation of
green roofs, using
insulation and efficient
heating systems,
installing natural cooling
systems, using electric or
hydrogen powered
forklifts, using efficient conveying technology and recycled cardboard pallets, increasing space efficiency
through higher stacks, installing fittings that save water, efficient washing machines, training on the use
of water, collecting rainwater for use in washing machines, improved recycling and planting trees. The
German Schenker (2012: 43) developed criteria for sustainable warehousing, and the Norwegian WWL
(2012: 7) received input from people all over the world to design its green terminal [17].
Eco-Terminal designed by Schenker
20
ANTICORRUPTION
Relevant International Treaties
The
Foreign Corrupt Practices Act of 1977
(
FCPA
) (15 U.S.C.§ 78dd-1, et seq.) forbids
American companies from corruption in foreign countries. In many European countries
“facilitation payments” were still tax-deductible until 1999. Only after 1999, most countries
included the penalization of foreign corrupt practices into their legal systems in accordance with
the OECD Convention on Combating Bribery of Foreign Public Officials and the 2003 United Nations
Convention Against Corruption.
The anticorruption principle of the Global Compact:
Businesses should
work against corruption in all its forms, including extortion and bribery (Principle 10).
The Berlin-based Non
-Profit Transparency
International provides
information on every
aspect of corruption in
every country and how
to prevent it.
21
ANTICORRUPTION
Best Practices from Logistics Companies Worldwide
Acceptance of gifts, giving of gifts
Some companies describe their explicit policies regarding the acceptance and giving of
gifts, entertainment, and other forms of benefits in order to avoid conflicts of interest (MRW
2011: 4; TNT 2012: 4).
Anonymous compliance hotline
Employees might feel insecure as to how to address issues
regarding the acceptance or giving of gifts. Through confidential,
anonymous hotlines, some corporations create a protected
environment where sensitive issues can be discussed (Transfesa 2011:
36; Deutsche Post 2012: 11).
Contribution to political parties and disclosure of lobbying activities
Some logistics companies explicitly state that they do not allow contributions to political
parties and/or to unions (Rhenus 2012: 7; Express Group 2012: 53). This policy varies according
to the political culture. In the USA, following the Supreme Court’s decision in Citizens United v.
Federal Election Commission (2010), UPS (2012: 36), for example, voluntarily increased its disclosure
related to accountability for corporate political spending and lobbying activities .
22
PHILANTHROPY
Best Practices from Logistics Companies Worldwide
Giving back to the community is part of running a successful and sustainable business.
Logistics companies that engage in philanthropy often choose issues, such as mobility and
transportation, that are related to their core business.
Logistical support in emergency situations
Some of the largest logistics companies provide storage capacity and/or transportation to assist
the International Federation of the Red Cross, the World Food Programme, World Vision International, and other
humanitarian aid organizations during emergency situations[18].
Assist persons gaining back their mobility
Several shipping companies support those who are challenged due to amputation or paralysis.
Some finance technical devices or software while others assist with transportation[19] .
Training, education and research on logistics
The Kuehne Foundation finances the Kühne Logistics
University, several other logistics professorships and established a
Research Center on Humanitarian Logistics (Kuehne Nagel 2012: 36).
Geodis (2012: 15) awards prizes for different sustainable
transportation initiatives.
Health support for mobile populations
TNT Express (2012: 36) created North Star Alliance (NSA), a public-private partnership with
the World Food Programme that offers health support for highly mobile populations, such as long-
distance truck drivers. The partnership provides access to basic health services through a network of
health clinics called Roadside Wellness Centers that focus on HIV/AIDS and other infectious diseases.
23
CONCLUSION
The analysis of the sustainability reports gives a rough overview of how the ten largest
logistics companies and dozens of other United Nations Global Compact signatories
implement human rights, labor, environmental and anticorruption standards. The best
practices of these
forerunners demonstrate
a broad varieties of
approaches to create a
sustainable logistics
company. No matter,
what innovation a
company plans to
implement, it is critical
that it raises client
awareness for “green”
logistics, develop and
market “green” logistic
products, and encourage
clients to switch to more
ecological modes of
transportation. Implementing sustainability standards is an ongoing process that requires
constant dialogue with all stakeholders: clients, employees, suppliers, shareholders,
community, civil organizations, governments, and business associations. Employee training,
stakeholder engagement, overview of business activities concerning sustainability, elaborating
a sustainability strategy, formulating and measuring sustainability goals, and implementing
codes of conduct are important steps toward a sustainable business.
24
INITIATIVES FOR SUSTAINABLE LOGISTICS (SELECTION)
Business for Social Responsibility (BSR): Working Group the Future of Fuels; Maritime Anti-
Corruption Network; Clean Cargo working group (http://www.bsr.org)
Carbon Disclosure Project (https://www.cdproject.net)
Ecotransit (Energy and emission calculation free of charge: www.ecotransit.org)
Global Reporting Initiative (GRI) (https://www.globalreporting.org)
Green Logistics (https://www.greenlogistics.org)
Green Shipping Summit (https://www.gssummit.org)
North American Council on Freight Efficiency (NACFE) (http://nacfe.org)
Smart green shipping alliance (https://www.smartgreenshippingalliance.com
Sustainable Packaging Coalition (SPC) (http://www.sustainablepackaging.org/)
Sustainable shipping: Online Forum (http://www.sustainableshipping.com)
Sustainable Shipping Initiative (SSI) (https://www.ssi2040.org)
United Nations Global Compact (http://www.unglobalcompact.org)
U.S. Department of Energy: U.S. Clean Fleets Partnership (http://1.usa.gov/hYn7Mk)
World Resources Institute, (Greenhouse Gas Protocols for supply chain reporting)
(www.wri.org/project/ghg-protocol)
25
FOOTNOTES
[1] The Global Compact distinguishes between company (more than 250 employees) and small and medium enterprise
(less than 250 employees) (UNGC 2013).
[2] The UN High Commissioner for Human Rights developed theses principles that demand a very restrictive use of
firearm making sure bystanders are not harmed and arrested person are treated according international habeas corpus.
The U.S. and the British secretary/office for foreign affairs based the Voluntary Principles on Security and Human Rights[2]
for mining, oil- and energy companies on them (U.S. Department of State 2013; OHCHR 2013).
[3] MONUC 2005: 8; Business & Human Rights Resource Centre 2013
[4] see for example: Deutsche Post 2012: 4f, TNT 2012:4; Transfesa 2011: 6; Covemat 2012: 3; Cosco 2011: 274;
Geodis 2012: 13; NYK 2012: 35; MRW 2011: 8, Austrian Post 2012: 54.
[5] Deutsche Post 2012: 4f; Geodis 2012: 14; ACP 2012: 41; Hellmann 2011: 37f; UPS 2012: 114; MTI 2012: 2; ACP
2012: 41; Bolloré 2012: 7ff; Cosco 2011: 300; CDN 2011: 4.
[6] UPS 2012: 119; Unimasters Logistics 2011: 4; MOL 2012: 42; NYK Group 2012: 14; TNT Express 2012: 31,
Kuehne + Nagel 2012: 34; Austrian Post 2012: 54
[7] Helog 2009: 6; CDN 2011: 3f; Express group 2012: 17, 22; Hellmann 2011: 35; Korail 2012: 54; CDN 2011: 4;
NYK Group 2012: 41
[8] CDN 2011: 4; MRW 2011: 9, 21, 30; Unimasters Logistics 2011: 3; MOL 2012: 41; TNT Argentina 2012: 17;
Hellmann 2011: 35; Korail 2012: 54; NYK Group 2012: 41.
[9] See for example: Deutsche Post 2012: 7; Geodis 2012: 14; Cosco 2011: 268; ACP 2012: 40: TNT Argentina 2012:
13; Covemat 2012: 4; Rhenus 2012: 6; Translyne 2012: 5; TNT 2012: 9; MOL 2012: 41; Korail 2012: 55.
[10] NYK Group 2012: 2; ACP 2012) 51; mti 2012: 2; Kuehne Nagel 2012: 40; Cosco 2011: 226
[12] Schenker 2012: 21, 27; Korail 2012: 35; Bolloré 2012: 6
[11] Schenker 2012: 27; TNT Express 2012: 33ff; Keolis 2011: 6f; Hellmann 2011: 19f
[13] Express Group 2012: 39; TNT Argentina 2012: 19f; Deutsche Post 2012: 9; Rhenus 2012: 6; TNT Express 2012:
33ff; MRW 2012: 24, 39; Unimasters logistics 2011: 4; Novea 2012: 3; Geodis 2012: 9; Keolis 2011: 8
[15] Schenker 2012: 47; TNT Express 2012: 33ff; UPS 2012: 76; Rhenus 2012: 7
[14] Gosselin Georgia 2012: 15; NYK Group 2012: 12, 26f; Schenker 2012: 30; Mol 2012: 34; Cosco 2011: 219, 227.
[16] Cosco 2011: 230; TNT Argentina 2012: 19f; Express Group 2012: 47; TNT Bulgaria 2012:12; Hellmann 2011:
19f; Rhenus 2012: 3; mti 2012: 2; Cosco 2011: 210; Bolloré 2012: 18; Unimasters logistics 2011: 4; Mol 2012: 32, 37;
MRW 2012: 39; Austrian Post 2012: 12; NYK Group 2012: 16, 27, 30.
[17] Schenker 2012: 18, 43; mti 2012: 2; Keolis 2011: 5; Express Group 2012: 42, 47; UPS 2012: 94, Hellmann 2011:
19f; Gosselin Georgia 2012: 15; NYK Group 2012: 13, 27; Express Group 2012: 43.
[18] UPS 2012: 12; TNT Express 2012: 36; Mol 2012: 12
[19] MRW 2012: 11; Geodis 2012: 15; Express Group 2012: 21; NYK Group 2012: 39
26
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29
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The author: Ulrike Hoessle has a Master Degree in Cultural Anthropology and a Ph.D. in Political
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governmental organizations and the United Nations, where she managed programs in the area of
human rights and environmental issues. With her doctoral research on the United Nations Global
Compact, she shifted her focus to businesses and the implementation of human rights, social and
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Impressum: Copyright 2013 by WWS Worldwide. ISBN: 978-0-9898270-1-0
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Hoessle, Ulrike (2013): Sustainable Logistics. Best Practices from the Global Compact (=WWS
Series 2). Seattle: WWS Worldwide.
Editing: Marilyn Spotswood; layout: Hillary Cachet.
Photography by the courtesy of: p. 5 Kofi Annan by Ricardo Stuckert (Agência Brasil), p. 6 by Row
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DOI: 10.13140/RG.2.1.4854.5362
30
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