In It for the Long Haul: C.H. Robinson Takes on Sustainability
Its not every day that an international company meets an ambitious sustainability goal two years early. But last May, thats exactly what happened at 119-year-old transportation logistics provider C.H. Robinson.
- The goal under discussion: a company-wide reduction in intensity of Scope 1 and 2 emissionsthose emissions generated by the companys own operationsof 47% (more than the 40% targeted). C.H. Robinson had previously calculated meeting the objective by 2025.
Simple but effective: Most of it was looking at where we could find inefficiencies and correcting them, said C.H. Robinson Vice President of Environment, Social and Governance Rachel Schwalbach. Some changes came from suggestions our own employees brought forward: LED lighting, responsible use of electricity.
- Efforts also included a marked increase in the companys use of renewables generally. From 2019 to 2023, C.H. Robinson renewable-energy purchases rose 40%.
Not an either/or proposition: The Eden Prairie, Minnesotabased companywhich solves logistics challenges for clients through freight forwarding and other innovative transportation solutionsis proof positive that businesses dont have to choose between good environmental stewardship and profitability.
- In fact, sometimes the sustainable option is actually the less expensive option, Schwalbach told the 51勛圖厙. C.H. Robinson is working with suppliers every day to drive out waste, and often thats been because weve looked at it through a lens of cost savings or time reduction. Now its also through the lens of sustainability.
- Whats more, if youre approaching sustainability right, it should be tied to your overall business strategy. Sometimes its as simple as making sure youre compliant with rules and regulations as you meet sustainability requirements.
A competitive advantage: Reducing the footprint of operations can be a competitive advantage for manufacturers, too.
- We get asked about sustainability by nearly all our stakeholders, so it really has to be a part of strategic decision making across the business, Schwalbach continued. Our shippers are also getting asked about [sustainability] by their investors and customers. People across the business are thinking about it, so its [to our advantage to] make sure its integrated across all areas.
No business is an island: Businesses must keep in mind that sustainability is a shared interest, and the environments health is best served by teamwork, not isolated efforts, according to Schwalbach.
- As companies continue to put big [sustainability] goals out there, I cannot emphasize enough the need for collaboration across industries, as clich矇d as it sounds, Schwalbach said. Having people who are willing to come to the table and say, Hey, lets figure this out together, is going to be pretty critical.
- For C.H. Robinson, that means engaging with customers, carriers and a broad range of other stakeholders.
Supporting climate-friendly practices: The right moves by policymakers can also help support the private sectors sustainability efforts.
- As were looking increasingly at alternative fuels and electric vehicles here in the U.S., we need an electric grid that can support the transition to a lower-carbon economy, Schwalbach said. Continuing to invest in [strengthening] the grid will help us invest in the right technologies. We need to be able to move forward quickly in a way that doesnt cause disruption to the supply chain and transportation.
- Companies want clarity around regulations, too. There are so many [regulations] coming out right now, and companies want to know, How do I get the right [climate-related] data? How do I make sure the data are accurate?
In for the long haul: So whats next for C.H. Robinson? A continued focus on conservation, for one thing.
- You meet your goals, and thats really exciting, but theres no time to sit around, Schwalbach said, adding that the company is now in the process of figuring out what new sustainability goals will look like for carbon reduction.
- Ultimately, those goals will be met by ensuring a commitment to the environment remains a company-wide focus, she told us.
- Doing sustainability well means its integrated. C.H. Robinson is a 119-year-old company, and sustainability is about making sure were going to be successful for another 119 years.
