Expectations of Customers
While many CLDA members haven ’ t faced these requests by current customers , Stockman believes it ’ s just a matter of time . “ Companies who haven ’ t been confronted by their clients may think it ’ s not that important . Don ’ t go by what your current customers are asking for now ,” he cautions . “ The issue just hasn ’ t trickled down to them yet . It will . If you ’ re in growth mode and your clients are big - either big public companies or big retailers and big brands - you will be confronted with this .”
Stockman acknowledges that companies big and small don ’ t have the tools to track and aggregate their emissions . “ There ’ s no question that one of the challenges is finding a way to quantify this . My biggest concern is that it ’ s not even on the radar for many software companies currently serving the industry . Probably because their customers haven ’ t asked for it yet . But they will when shippers start requiring the information to hire or retain them .”
Stockman forecasts the evolution of a whole industry to support the reporting mechanisms that will soon be required , mostly by public companies and investment firms . “ I think shippers are going to want to work with the providers who can track those emissions . The more data these companies can get from every provider in their supply chain , the more likely they are to choose the ones who can support their mission to reduce their overall carbon footprints ,” he says . “ I can forecast that some CLDA members will see this in their next round of contracts . These will not only come from new customers but from renewals , even from those customers they have had for years .”
Stockman ’ s company , OnePak , is already looking at their vendors to see what their ESG ( environmental , social and governance ) scores are . Emissions falls under the environmental category . “ For our delivery partners we have a vested interest in them following ESG principles ,” he says . “ If they don ’ t come along , we ’ re not going to use them . At this point , we ’ re calculating the emissions for them . In the future , we ’ ll be expecting that to be something they do as part of their standard operating procedures .”
He points out that OnePak has received RFPs from three computer-related companies and one of the country ’ s biggest shippers requiring that they see their ESG metrics . “ These are the big boys who are looking for vendors to go out and pick up stuff . You can bet that we ’ re going to turn to our network of providers to help us flesh out those metrics so we can respond to the RFPs .”
Interest from Venture Capitalists
Stockman also expects data about emissions to be something venture capitalists will consider before acquiring last-mile companies . “ Venture capitalists think 10 years ahead , so you can expect emissions to be on their radar when considering whether they will acquire a company ,” Stockman says . “ They are the first ones to be hit with SEC regulations . Any investment fund that is going out and buying companies or stock in companies will have to report on how sustainable those companies are . Their investors want to know how green their portfolios are . So , if last-mile providers want their companies to be attractive to these investment firms , they can expect them to ask for those numbers . It ’ s coming . You just can ’ t escape it .”
Get Ahead Of It Or Get Left Behind
Stockman acknowledges that for many CLDA members , ESG issues like keeping track of their carbon footprints are not top of mind today . But he warns that they will be confronting them sooner than they expect . “ You can either be ahead of ESG issues or behind them . The easiest way to start is to develop a system for keeping track of the emissions your drivers are putting out . That way you put your company in a position where you can tell your prospective customers you know it ’ s coming and you ’ re willing to do it . Or you can ignore it , hope it goes away and not go after contracts that require it .” CLDA
30 customized logistics & delivery Magazine I winter 2023