Forwarders should take advantage of digital solutions as a matter of urgency ahead of new sustainability reporting regulations coming into effect across the US and EU, according to Lionel van der Walt, chief growth officer at intelligent logistics platform, Raft.
He told attendees at Multimodal 2023 that, as the industry draw closer to regulations being finalized, forwarders must prioritize finding an emissions reporting method to provide accurate and compliant data as required by the new laws.
"The US climate regulations set to be published imminently, alongside those already in place in the EU, are predicted to have a major impact on the logistics industry, yet most forwarders are either unaware, don't understand, or are purposely ignoring these regulatory changes until they must comply," van der Walt said as he spoke on the 'Creating a Sustainable Multimodal Future' panel at the Multimodal 2023 event.
"Time is running out for companies to adjust to the new era of reporting, and collecting, managing, calculating, and reporting the required Environmental, Social, and Governance (ESG) data, including Green House Gases, can overwhelm most forwarders who lack the knowledge or resources to do so quickly and accurately," he added.
In the coming weeks, the Raft executive said the U.S. Securities and Exchange Commission (SEC) is expected to introduce its final corporate climate disclosure rules, which will require listed companies (US 10-K filers and foreign private issuers who submit 20-F forms to the SEC) to report a wide scope of information related to their emissions, including Scope 3 data.
Van der Walt stressed that boards and executive teams need to pay close attention, as digital platforms will become imperative to ensuring the required comparability, consistency, and enhanced quality in ESG reporting across the industry.
"Sustainability reporting is not just a matter of compliance, but it's also a competitive advantage for freight forwarders," he said.
"Using a digital solution to provide accurate and transparent data for forwarders will allow them to provide better customer service, both by supporting their customers to meet regulatory requirements and to demonstrate to potential customers, employees, and investors that they are responsible partners, and how they are acting upon sustainability targets."
