Integrating ESG Principles into Smart Logistics: Toward Sustainable Supply Chains

Angelo Leogrande

MPRA Paper from University Library of Munich, Germany

Abstract: The integration of Environmental, Social, and Governance (ESG) principles into smart logistics represents a transformative approach to supply chain management, offering solutions that address critical challenges in sustainability, ethical labor practices, and transparency. With the increasing awareness of climate change, social inequalities, and governance issues, companies worldwide are turning to advanced technologies such as artificial intelligence (AI), big data, blockchain, and the Internet of Things (IoT) to embed ESG principles into their logistics operations. This article explores the role of smart logistics in promoting sustainability and aligning supply chains with ESG goals. It highlights the environmental aspect by showcasing how AI and big data-driven route optimization can reduce fuel consumption and lower carbon emissions. The use of electric vehicles (EVs) and hybrid trucks is also discussed, particularly for last-mile deliveries, as part of efforts to minimize the carbon footprint of logistics operations. Additionally, smart warehouses equipped with IoT devices, automation, and AI-driven systems significantly contribute to improving energy efficiency and reducing waste, further advancing the sustainability agenda. Social responsibility in the context of ESG is equally emphasized, particularly regarding labor practices in global supply chains. Technologies such as blockchain enhance transparency by allowing companies to trace the origin of products and verify adherence to fair labor standards. AI and data analytics are also crucial for monitoring supplier compliance with social standards, reducing risks associated with unethical practices. Governance, the third pillar of ESG, plays a critical role in promoting transparency and accountability across supply chains. Smart technologies help improve oversight, ensure compliance with regulatory requirements, and mitigate risks related to corruption and fraud. In conclusion, the article underscores the importance of integrating ESG principles into smart logistics as a strategic imperative for companies looking to enhance their competitiveness, resilience, and long-term success in the global marketplace

Keywords: Logistics; Warehouse; Management (search for similar items in EconPapers)
JEL-codes: L90 L91 L92 L98 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-ene, nep-env and nep-tre
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