Allcargo Group, a leading logistics company in India, recently published its Environmental, Social, and Governance (ESG) report for the 2023-2024 fiscal year, themed “Charting Sustainable Pathways with Ingenuity.” The report outlined the Group’s commitment to carbon neutrality by 2040 and set out its overarching ESG goals in areas of energy and emissions management, occupational health and safety, diversity, equity and inclusion (DEI), community development, labor practices, human rights, cybersecurity, and corporate governance.
Shashi Kiran Shetty, Founder & Chairman of Allcargo Group, is proud that the Group continues to pursue sustainability. “For Allcargo, sustainability is not about mere compliance; it’s about long-term value creation for people, the planet, and our stakeholders,” he said. The ESG report points to Allcargo’s commitment to building a sustainable and inclusive future as the Group operates on three core pillars: environment, social impact, and governance.
Allcargo Group’s environmental initiatives are a critical part of its strategy, with a particular focus on renewable energy transitions. The Group has committed to achieving 100% renewable energy at all owned sites by 2040, a goal that is underpinned by significant efforts such as doubling its solar energy consumption. Allcargo has also been successful in significantly reducing carbon emissions through the extensive use of electric material handling equipment (MHE) in its warehousing functions, thereby being one step closer to cutting scope 1 and scope 3 emissions, which is a major achievement. The Group is also a key player in sustainable ocean freight practices. ECU Worldwide has become the first independent cargo consolidator to offer renewable fuel options for maritime transport under its mother brand, Allcargo. This project enables customers to enhance the use of liquefied biomethane (LBM) in shipping, thereby reducing CO2 emissions up to 100%. ECU360, the digital platform launched by ECU Worldwide, is another step taken by the Group towards sustainability. The platform streamlines end-to-end shipping transactions and minimizes paper usage; today, 90% of all bookings are done online.
Allcargo Group’s focus on social responsibility has been manifest in its initiatives for community development, which impact several United Nations’ Sustainable Development Goals. These include Good Health and Well-being (SDG 3), Quality Education (SDG 4), Sustainable Cities and Communities (SDG 11), and Life Below Water (SDG 14). However, the efforts of the Group are not confined to merely environmental goals but go beyond in ensuring safety, diversity, equity, and inclusion at work.
Allcargo Group has clearly articulated its goals and targets for keeping high levels of compliance with regulations in the area of corporate governance. Some of the critical achievements here include the certifying of critical information assets and IT infrastructure to the highest standards of ISO 27001:2022 and ensuring that the handling of its data practices meet the standards of highest security and regulatory compliance. The Group also adheres to the Greenhouse Gas (GHG) Protocol and the Global Logistics Emissions Council (GLEC) Framework to calculate and reduce emissions across its operations.
One of the most noteworthy achievements reported in the ESG report is the Group’s performance in the S&P Corporate Sustainability Assessment (CSA) for FY 2023. Allcargo has achieved an impressive four-fold increase in its CSA score from last year, which reflects the commitment of the Group towards sustainable growth and responsible business practices.
Allcargo Gati, a subsidiary firm, has agreed to transition transportation fleet to alternative fuel vehicles in its quest towards carbon neutrality. It aims to transition an entire first and last mile delivery fleet to alternative fuel vehicles by 2026, which will support and aid India in its efforts on larger environmental goals. As the country is set to achieve a reduction in emission intensity by 45% by the year 2030, net-zero emissions are proposed by 2070 for India.
Another part of Allcargo Group’s ESG strategy is focused on the health and safety of the employees, where efforts continue to be made toward building good labor practices and human rights at all levels of the organization. In this respect, Allcargo Group puts its initiatives in line with international sustainability goals and presents itself as a leader in logistics both in India and within 180 countries across which the organization operates.
Moving ahead, Allcargo Group’s sustainability goals are very ambitious but the company feels positive that it will achieve it. The Group looks to carry forward the spirit of innovation through adopting sustainable practices at its facilities worldwide and developing ESG-driven partnerships with its associates. Work done by Allcargo Group in renewable energy, sustainable transport, and ethical governance has created an example for other organizations of how business growth can work together with sustainability.
In conclusion, Allcargo Group’s 2023-2024 ESG report is a remarkable milestone in the company’s journey to a more sustainable future. The report presents a wide-ranging approach to addressing issues related to the environment, society, and governance and continues to maintain a strong sense of value creation for the stakeholders. With ambitious targets set for the coming years, Allcargo Group is well set to lead the way towards sustainable logistics and inspire the rest of the industry.