ID Logistics, a contract logistics operator, summarizes the progress in implementing its Corporate Social Responsibility (CSR) strategy, one year after its announcement and the setting of 10 goals.
“A year after announcing the CSR goals, ID Logistics is well on its way to achieving them, as 9 out of 10 goals are being implemented in accordance with the action plan until 2030, or are even ahead of schedule. The Group, committed from the beginning to a responsible and sustainable approach, will make every effort to become one of the leading CSR players,” says Eric Hémar, Chairman and CEO of ID Logistics.
3 pillars of the strategy
The CSR strategy of the ID Logistics Group is based on 3 pillars: social, environmental, and societal.
• Focused on social issues: promoting internal promotions, integration, and reducing workplace accidents (goal: -40% in 2027 vs. 2018)
ID Logistics supports the social advancement of employees while promoting the integration of people with disabilities and diversity. It aims to be a role model in the industry regarding occupational health and safety. One of the key goals is a commitment to reduce accident rates by 40% by 2027 for all employees, both permanent and temporary. The company has expanded its internal training program, conducts constant measurements and monitoring of indicators, and implements technological solutions developed by innovation teams.
• Focused on the environment: reducing utility consumption and waste (goal: 40% reduction in CO2 footprint in warehouses in scopes 1 and 2 by 2030 vs. 2018)
The Group is implementing a policy aimed at reducing energy consumption and waste generation, as well as reducing the carbon footprint of its operations by 40% by 2030, excluding offsets. Each warehouse manager can identify factors supporting CO2 emission reduction and compare them with other branches. ID Logistics reduces energy consumption according to the specifics of the facilities and strives to decarbonize its energy mix. During tenders and contract renewals, it offers clients low-emission solutions.
• Focused on the local community
The Group encourages the implementation of local initiatives based on the values of Entrepreneurship and Support. Examples of projects: the creation of the NGO IDEBRA in Brazil, supporting youth education in favelas; entering into a partnership in France with an association promoting culture among young people from disadvantaged backgrounds; and signing an agreement with AGEFIPH for the integration of employees with disabilities in warehouses. The company implements such projects in the countries where it is present.
10 Goals – progress and implementation
• Social
1. Code of Ethics – ahead of schedule: 100% of members of national executive committees were trained in 2021;
2. Code for Service Providers – on track: 90% of suppliers from France and Spain signed the document by the end of 2021;
3. Health, safety – ahead of schedule: reduction in accident frequency and severity rates by 33% and 45% in 2021 vs. 2018. The goal is to reduce these rates by 40% by 2027 for all employees;
4. Employees with disabilities for supervision: the employment rate of people with disabilities fell by 15%, which shows the diversity of the approach and changes in the employment structure in different countries, as well as how CSR priorities are managed. In France, the employment rate in 2021 at 4.6% represents an increase of 9% vs. 2018;
5. Internal promotion – on track: 60% of warehouse managers took their positions as a result of internal promotion
• Environmental
6. Waste – on track: improvement in the waste sorting rate by 12 points since 2018;
7. Commitments to the client – on track: over 10% of warehouses initiated an environmental project in cooperation with the client;
8. Carbon footprint – ahead of schedule: reduction of CO2 emissions from logistics operations per prepared pallet by 24% in scopes 1 and 2 in 2021 vs. 2018, excluding offsets. The goal is to reduce the indicator by 40% by 2030;
9. Energy – on track: reduction in energy consumption per sqm by over 6%.
• Societal
10. Local engagement – ahead of schedule: 100% of countries where the Group operates will initiate projects involving local communities by 2025.
“This year of implementing the CSR strategy has brought many new experiences and challenges. We have started implementing the goals defined for our branch, although we have had to operate in a difficult context. The events of 2022 made us realize how deeply our values are rooted in our CSR approach. The outbreak of the war in Ukraine mobilized us and our clients to organize help for colleagues and associates and to support foundations providing aid to refugees. Rising energy prices accelerated work on finding innovative solutions to limit consumption and use more sustainable sources. We have improved safety in warehouses, which is shown by the drop in accident rates, and we have organized a series of training sessions for employees, taking into account their individual needs and development potential in the organization. The training plan will be supplemented with new modules and continued. In the coming year, the challenge for us, in addition to reducing utility consumption, will be to verify the assumptions of the circular economy; we are already effectively segregating waste, enabling its subsequent recovery, and now we intend to limit its generation. A key area for us will be increasing diversity in employment, especially enabling work and helping to integrate people with disabilities,” says Agata Głąbińska, CSR Manager, ID Logistics Poland, summarizing the implementation of the CSR strategy in Poland:
The consistency of the ID Logistics strategy and the monitoring of CSR progress and indicators have been positively received and have contributed to improving the non-financial ratings of rating agencies. MSCI has awarded ID Logistics an A rating.
Next stage
The CSR Department is responsible for managing the CSR strategy, and the Group’s Executive Committee oversees its implementation. All branches have set goals and committed to implementing them. Since 2022, the results of CSR goal implementation have been included in the calculation of variable remuneration for managers and adjusted to the salary levels of each function. Where goals have already been achieved, the Group will review the assumptions and increase its ambitions. ID Logistics is checking the possibilities of getting involved in other areas and projects, such as the SBTi (initiative to fight global warming).
Additional information on the assumptions and implementation of the ID Logistics CSR strategy is available at the link.