Getting a grip on ESG with the right compliance tool

Sustainability has become a top priority for all companies, including air cargo carriers. ESG (environmental, social, and governance) criteria are increasingly viewed as core components of good corporate governance. However, many companies struggle to get to grips with their ESG responsibilities. There is often a focus on environmental aspects over social and governance issues and a focus on compliance and disclosure over systemic risk management. ESG criteria evolve to become material factors affecting the long-term viability and performance of businesses around the world.

This article offers a quick outlook on the different ESG dimensions. Furthermore, we will show you why the right compliance tool is essential for air cargo carriers striving to make a positive impact on the environment and human rights.

What are the main challenges and most pressing issues that air cargo companies face when dealing with the social aspect of ESG legislation and compliance? And how can these organizations overcome the most important social challenges? Read on to find out!

Impact on the environment

It can’t be denied that air cargo companies have a significant impact on the environment, especially when it comes to CO2 emissions. Air freight produces considerably more CO2 than transportation by ship. Because aircraft emissions are released higher in the atmosphere than ship or truck emissions, they also have a more profound effect on the earth’s atmosphere.

Major environmental factors that air cargo carriers have to deal with are:

  • Reducing CO2 emissions and improving fuel efficiency. More efficient aircraft and the use of sustainable aviation fuel (SAF) allow air cargo carriers to meet increasingly ambitious sustainability goals.
  • The reliability of e-waste transportation across borders is one of the key challenges faced by transporters such as air cargo carriers, especially since regulations for this type of cargo have gradually become stricter in many parts of the world.
  • Every year, more than 1.25 million shipments of dangerous goods are transported around the world by air. With the expected growth of air cargo volumes, the number of dangerous goods shipments will rise significantly. Transporting these goods in a sustainable, safe way and following the proper ESG reporting guidelines is incredibly important for modern and responsible air cargo carriers.

Impact on human rights

Human rights are a huge part of the social ESG equation. Air cargo carriers must comply with rights and prohibitions laid out in international rights agreements and fundamental freedom conventions. Examples are the right to life and security, the prohibition of human trafficking, the prevention of measurable environmental degradation (which robs people of natural resources, such as clean drinking water), and the right to enjoy just and favorable conditions of work.

Impact on governance

Governance refers to how a company is led and managed. Air cargo carriers must incorporate internal controls that promote ESG accountability and transparency. These control mechanisms allow stakeholders to see if the carrier’s policies, initiatives, and reporting align with the ESG interests that they hold in high regard.

the right compliance tool

ITTS: the right compliance tool that makes ESG reporting easy

Be Informed’s International Trade and Transport Compliance Solution (ITTS) helps air cargo carriers consolidate and orchestrate systems, data, and reporting, making it easier to improve the quality and consistency of ESG air cargo reporting. ITTS allows you to process data from different sources in an automated manner. You can also screen cargo loads, investigate risks, check licenses, and build comprehensive electronic dossiers for all your shipments. 

Curious to learn more about ITTS? Feel free to reach out to us.

Discover the possibility!

Speak to our experts about your issues on international trade and transport compliance.

Like this article?

Share on LinkedIn
Share on Twitter
Share on Facebook
Share on WhatsApp

Receive updates on our latest blogs

Let's connect!

Subscribe to stay updated

Receive one update, once a week, when we upload a new blog post. Never miss out on the newest content!