On April 22, Wanwei Logistics released the first "Environmental, Social and Governance Report", disclosing the company's measures and progress in actively responding to climate change under the dual carbon goal.
It is understood that in order to thoroughly implement the principles of environmental, social and governance (ESG), Wanwei Logistics has built a top-down three-level ESG governance structure of "board of directors, ESG working committee and ESG implementation team", fully implemented the "ESG Work Charter", and laid a solid foundation for the smooth development of sustainable development.
Regarding the core issue of how much value ESG can be for the enterprise, on April 29, the ESG executive team of Wanwei Logistics said in an interview with a reporter from China Logistics and Procurement magazine, "ESG is the sustainable development concept that Wanwei Logistics has adhered to for a long time, and we need to look at it from a longer-term perspective. ”
Can ESG help companies make money?
In recent years, regulators and stock exchanges in various countries have also formulated relevant policies to strengthen the ESG information disclosure management of listed companies. However, due to the fact that ESG itself does not play a substantial role in corporate profitability, doubts have begun to emerge about it. The relevant person in charge of Wanwei Logistics pointed out that "whether ESG is helpful to profitability depends on the characteristics of the industry, the implementation strategy of the enterprise and what kind of perspective we use to look at it. ”
"In the short term, there may be additional costs and investments involved, but in the long run, investing in ESG can bring sustainable long-term returns and help us remain competitive in the industry in the long term, such as in the process of following ESG principles, we will find new ways to save costs and improve efficiency, and form corresponding operating systems, such as reducing operating costs by reducing energy consumption and waste generation; In addition, good ESG practices can significantly enhance our brand value and reputation, which is also essential for gaining the trust of our customers and enhancing our corporate image. The relevant person in charge of Wanwei Logistics pointed out.
In essence, ESG requires enterprises to gradually shift from efficiency first to the pursuit of sustainable development, from maximizing shareholder interests to taking into account the value of shareholders and other stakeholders, turning passive into active, actively assuming social responsibilities and formulating corresponding systems to ensure the good operation of the ESG system as an internal driving force.
ESG should form a triangular synergy
When it comes to ESG, the industry pays more attention to E, and pays less attention to S and G. But in fact, E, S, and G are indispensable, and they should form a joint force to bring greater development momentum to the enterprise.
"VX Logistics adheres to the comprehensive practice of ESG concept, which means that E, S, and G are taken into account and balanced practice." The relevant person in charge of Wanwei Logistics said that in terms of strategy, Wanwei Logistics is deeply integrated into the development goals of the national "double carbon" strategy, and takes into account the development of E, S and G. At the same time, VX Logistics examines and evaluates the company's development status from a comprehensive, systematic and scientific perspective of sustainable development, and obtains advantages in risk management, cost control, corporate reputation and market competitiveness by focusing on short, medium and long-term development strategies such as corporate governance, responding to climate change, and empowering employee development.
In the "Environmental, Social and Governance Report" released by Wanwei Logistics, Wanwei Logistics has established six sustainable development directions by focusing on corporate governance, responding to climate change, and empowering employee development: linking trust, linking green, linking win-win, linking responsibility, linking talents, and linking society, and has made remarkable achievements in energy conservation and emission reduction, green operation, technological innovation, and social responsibility.
E: It's not just green, it's also responsibility and win-win
In the "Environmental, Social and Governance Report", Wanwei Logistics classified the link green, win-win link and link responsibility into the category of E.
In the ESG framework, the environment (E) usually focuses on the impact of corporate activities on the environment, including energy conservation and emission reduction, resource recycling, green supply chain management, etc. It is obvious to put "link green" in the category of the environment, because it directly relates to the environmental impact of the company's practices.
In terms of green environmental protection, Wanwei Logistics has always insisted on actively responding to climate change, promoting green technology, deeply cultivating green design, practicing green operation, building a low-carbon park, and realizing the green and sustainable development of the whole process and life cycle. As of December 2023, the green building certification area is 8.6 million+ square meters, 108 projects have obtained green three-star certification, and 12 cold chain parks have received LEED Gold/Gold ratings (including 7 platinum and 5 gold). In terms of the exploration and application of green energy, 19 parks across the country have successfully achieved photovoltaic grid connection, with an installed capacity of up to 52.02 megawatts, and have contributed more than 22 million kWh of power generation, effectively reducing carbon emissions and promoting the optimization of energy use structure.
It is worth mentioning that in the face of the risks and opportunities brought by climate change, Wanwei Logistics has also incorporated climate change issues into the company's development and strategic planning. "We are well aware that climate change poses multiple risks to our business and could lead to climate transition risks with potential financial impacts. At the same time, climate change also creates opportunities for us to innovate in our business and help us transition to a low-carbon economic development model, giving us a leading edge in the market. The relevant person in charge of Wanwei Logistics told reporters that Wanwei Logistics has carried out a number of feasibility studies and pilots such as energy storage, new energy transport vehicles, and new energy charging piles, so as to obtain more climate-resilient supply chain advantages.
The reason why the link win-win, link responsibility into the scope of E, the relevant person in charge of Wanwei logistics believes that the sustainable development of the enterprise is inseparable from the health and green of its supply chain, Wanwei logistics strives to create a healthy development of the green supply chain management mechanism, the company and all suppliers (including contractors) signed the "Sunshine Cooperation Agreement", advocating the signing of a "green lease" with tenants, and jointly build a green, efficient and responsible logistics ecosystem. In addition, VX Logistics actively participates in the formulation of industry standards such as carbon neutrality and digitalization to promote the healthy and sustainable development of the industry. "We must actively fulfill our responsibilities in green development, and at the same time bring the benefits of green development to the whole industry."
S: Pay attention to the cultivation of talents in the industry and feed back to the society
"Last year, there were no confirmed violations of laws and regulations in terms of employment and labor practices, and we also attach great importance to the personal development and welfare of our employees." The relevant person in charge of Wanwei Logistics said.
In terms of employee safety training, the safety training coverage rate has reached 100%, there have been 0 general accidents and above safety accidents in parks across the country, and 3 parks have passed ISO45001 certification. In terms of talent training, we will create an incentive mechanism for employee promotion, such as awards, salary awards, and career development channels. Launched the "Voyage Plan" and the "One Specialty and Multi-ability" long-term training program for employees, with 858 employees participating. In terms of university cooperation, the company has launched the "Wanweisheng" cold chain talent school-enterprise cooperation project, and has established school-enterprise cooperation with 4 undergraduate colleges and 7 vocational and technical colleges. In 2023, a total of more than 150 Wanwei students will be jointly trained, which will not only cultivate a large number of available talents for Wanwei Logistics, but also for the cold chain logistics industry.
The relevant person in charge of Wanwei Logistics told reporters that Wanwei Logistics mainly focuses on people-oriented employee care this year, pays attention to the overall well-being of employees, and provides employees with a guaranteed working environment. "This year, we plan to equip each campus with ADE emergency medical equipment and provide first-aid safety knowledge training."
In addition, in terms of connecting society, during the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28), VX Logistics joined hands with representatives of zero-carbon communities from all over the world to jointly launch the "Global Zero-carbon Community Development Initiative". In the domestic park, since 2021, Wanwei Logistics has set up and operated the "Driver's Home" service station for a long time, setting up a rest station for drivers, providing a place for eating, drinking and charging.
G: Strengthen corporate governance and link trust
"Link trust mainly refers to compliance management and supervision, abiding by business ethics, risk management, and paying attention to data and privacy security." The relevant person in charge of Wanwei Logistics told reporters that compliance management is the cornerstone of the sustainable development of enterprises and the key to winning the trust of customers and partners.
Specifically, in terms of corporate governance, Wanwei Logistics adheres to the corporate culture spirit of building a "sunshine illuminates the system" to ensure the compliance operation of the enterprise; Build a risk control system, integrate risk management with business scenarios, cover key businesses, key links and key personnel, identify potential operational, financial and operational risks, and pay attention to the management and control of major risks and the rapid implementation of risk control decisions; Establish a whistle-blowing mechanism, resolutely resist 16 bad behaviors such as corruption and corruption, and carry out an annual integrity questionnaire; An information security and data security compliance team has been established to regularly inspect information security and data compliance to ensure the security of the company's information assets and the security of customers' personal information.
Through the continuous cultivation of the six major links, VX Logistics has brought benefits to customers and investors in terms of ESG.
The relevant person in charge of Wanwei Logistics told reporters that for customers, Wanwei Logistics mainly brings four benefits. The first is to improve the quality of service. "Working with a sustainable and responsible partner ensures the stability and reliability of the service. This is also the most fundamental reason why VX Logistics has been actively practicing ESG. "The second is brand value-added. Partnering with a socially responsible and environmentally conscious logistics partner can help customers enhance their brand image. The third is compliance. VX Logistics' ESG helps customers ensure that their supply chains meet increasingly stringent environmental and social compliance requirements. Fourth, innovative solutions. "Under the ESG framework, VX can develop innovative products and services to provide customers with more choices, such as UWD (unified warehouse co-distribution), BBC (drop shipping), carbon management platform data sharing services, etc."
From the perspective of investors, one is that it can reduce risks. Proactive, well-documented ESG and disclosures can reduce legal and reputational risks. The second is to obtain long-term returns. ESG focus is often associated with long-term stability and sustainable growth, making it appealing to investors looking for long-term investment returns. Third, it is more competitive in the market. "Through ESG measures, companies can stand out in the market, attract more customers and partners, and thus improve business performance." The relevant person in charge of Wanwei Logistics pointed out. Fourth, it responds to social trends, i.e., a company that actively responds to ESG challenges can attract investors who care about social and environmental impact. Fifth, it has policy advantages. Companies that adhere to ESG principles may benefit from policy support, such as tax incentives, subsidies, etc. (This article was published in the 10th issue of China Logistics & Purchasing magazine in 2024)