ESG (Environmental, Social, and Governance) factors have spread globally as fundamental criteria for assessing the companies' sustainability and investments. ESG analysis provides valuable information on factors that can significantly impact a company's financial area and, therefore, helps to make better investment decisions.
Materiality is the principle of defining the social and environmental issues that matter most to the company and its stakeholders. The materiality assessment has allowed us to delve deeper into the context of Tennders and the logistics sector to determine the main environmental, social, and governance factors that impact our stakeholders.
The ESG concept started to become popular in the investment arena and has contributed to the evolution of Corporate Social Responsibility as a strategic business concept. The term CSR was consolidated in the wake of the 1999 United Nations Global Compact to refer to organizations' commitment, responsibility, and ethical behavior towards society and the environment.
The ESG criteria renew and update CSR by establishing the most relevant factors around three axes to define responsible and sustainable management. To this end, Corporate Social Responsibility becomes imperative, and monitoring actions and quantifying the social and economic impact becomes particularly relevant.
How did we do this?
Our objectives in conducting the ESG assessment were to determine the material impacts for all the company's stakeholders and to translate the results into an effective short- and long-term strategy. This will ensure that the entire organization is socially, environmentally, and economically sustainable and maximize social and economic benefits by incorporating the perspectives, needs, and concerns of all Tennders stakeholders.
In the report, we identified the relevant and priority stakeholders for our ESG strategy, which we can encompass in the following:
- Clients and customers
- Public administrations.
During the research process, we analyzed the key issues for each group using quantitative and qualitative techniques. Based on the results, we prepared the materiality matrix representing the issues or aspects with the most significant economic, social, and environmental impact for our stakeholders and Tennders.
Overall, the factors of greatest materiality or relevance identified were:
- Carbon emissions
- Energy management
- Safe working practices
- Data security and privacy
- Adaptation to digitalization
- Training and personal development
After determining the material impacts of greatest importance to our stakeholders, we were able to decide on our next steps and consolidate our strategy as we advance for the sustainability of Tennders and the road transport sector.
Our conclusions on the assessment
Our first ESG report has confirmed our perspectives on the sector, and we are on the right track. The collaboration with EADA Business School for the materiality assessment has given us a pivotal solidity to continue with our strategy and to do so, as far as possible, most transparently and realistically.
Sustainability in the logistics and transportation sector must be understood and embraced broadly. Although environmental factors represent the industry's main challenges, there are significant opportunities for improvement in the social and governance areas. Only by managing all three aspects together will the industry and any company that is part of it succeed in implementing a truly sustainable strategy.