Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social Capital
• Human Capital
• Business Model and Innovation
• Leadership and Governance

Environmental Achievements

• Planted more than 710,000 trees through Avashya Foundation’s Maitree initiative.
• Reduced carbon emissions by 3.4 million kilograms per annum by replacing reach stackers with Rubber Tyred Gantry Cranes (RTGs) at CFS facilities.
• Achieved more than INR 300,000 annual savings through solar energy at Gati-KWE’s STC in Ambala.
• Achieved more than INR 400,000 annual energy audit savings at Gati-KWE.

Social Achievements

• Launched RESTART- Back To Work Program for Women.
• Avashya Foundation impacted more than 360,000 lives.
• Achieved a Great Place to Work score of 83 (6-point increase).

Governance Achievements

• ISO27001 certified for cybersecurity.
• Cyber Exposure Score (CES) in the Low Risk category.
• Robust whistleblower policy in place.

Climate Goals & Targets

Environmental Challenges

• Lack of carbon accounting foundations.
• Over-reliance on secondary data.
• Uncertainties over cost and feasibility of decarbonization.

Mitigation Strategies

• Chairman signed a statement of support from the World Economic Forum to accelerate the net-zero transition.
• Implementing digitalization to optimize processes and reduce environmental impact.
• Facilitating the transition to electric vehicles for first and last-mile deliveries.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Certifications: ISO27001

Environmental Metrics

ESG Focus Areas

• Energy and Emissions
• Biodiversity
• Water and Waste
• Occupational Health and Safety
• Employee Wellbeing and Benefits
• Responsible Supply Chain
• Supplier Network
• Sustainable Sourcing
• Customer Relationship
• Community Development
• Human Resources Management
• Diversity, Equity and Inclusion
• Human Rights
• Corporate Governance

Environmental Achievements

• Planted over 860,000 trees (aiming for 1 million by 2023, 3 million by 2027, and 5 million by 2030 under Maitree initiative)
• Introduced 125+ EVs in Gati's fleet, reducing carbon emissions by more than 25,000 tCO2e
• Achieved a BitSight Security Rating of 750 for Allcargo Logistics Limited and 790 for Gati Limited

Social Achievements

• Achieved 33% female workforce rate
• Launched RESTART program for women returning to work after a career break
• Avashya Foundation positively impacted approximately 40,000 lives
• Allcargo emerged as a ‘Great Place to Work’
• Successfully trained more than 2,000 youths in different streams over the last 4 years, providing employment opportunities to more than 1,200 youths

Governance Achievements

• Reported zero cases of bribery and corruption
• Implemented a Whistle-blower Policy and established a Vigil Mechanism
• Implemented a Supplier Code of Conduct
• Established a robust Board of Directors with diverse skills and expertise
• Implemented an Enterprise Risk Management Policy in line with ISO 31000

Climate Goals & Targets

Environmental Challenges

• Increasing Greenhouse Gas emissions from transportation services and travel
• Potential reputational damage due to climate change impacts
• Implications of carbon tax
• Restrictions due to existing and emerging regulations on carbon emissions
• Potential risks to biodiversity from operations
• Potential risks of child labour and forced labour in the supply chain
• Cybersecurity threats and data privacy risks

Mitigation Strategies

• Setting a goal to achieve carbon neutrality by 2040 and 100% transition to renewable energy
• Developing decarbonisation strategies and investing in relevant tools
• Prioritising carriers and road freight partners using greener fuels
• Exploring possibilities like signing Power Purchase Agreements (PPAs) for renewable energy
• Developing a standalone Biodiversity Policy and conducting Biodiversity Impact Assessments
• Prioritising carriers complying with standards such as IMO, EEDI, and BWMC
• Implementing a Supplier Code of Conduct and conducting supplier assessments
• Implementing stringent measures to prevent child labour and forced labour
• Implementing robust cybersecurity frameworks and data protection measures

Supply Chain Management

Supplier Audits: Supplier assessments planned for the upcoming year

Responsible Procurement

• Supplier Code of Conduct
• Sustainable Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Carbon tax
• Regulatory changes

Opportunities

• Transition to renewable energy
• Sustainable transportation partnerships

Reporting Standards

Frameworks Used: GRI 2021 Standards, Business Responsibility and Sustainability Report (BRSR), United Nations Sustainable Development Goals (UN SDGs)

Certifications: ISO 27001:2013 (Information Security Management Systems)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 11
• SDG 13
• SDG 14

Various initiatives contributing to health, education, sustainable cities, climate action, and life below water.

Sustainable Products & Innovation

• Green portfolio-based services (planned)

Awards & Recognition

• Freight Forwarder of the Year
• LCL Consolidator Of The Year
• Women Icon of the Year
• Best Organisation for Women Empowerment
• Best CSR Impact Award
• Most Preferred Brands 2022 Award
• Corporate Social Responsibility Awards 2023
• World CSR Day 2023 Award
• LCL Consolidator of the Year - Eastern Star Awards 2023
• BT Best CEO Award
• Best Chemical Warehouse Service Provider
• Special Jury Citation for Supply Chain Risk Management
• Distinguished leader in Warehousing
• Best Warehousing Company of the Year
• Warehouse Excellence – Safety Champion Company of the Year
• Best Warehouse Company of the Year
• Special Jury Award, for Supply Chain Risk Management
• Best Service Partner and CX Top Contributor
• Certificate of Excellence and Silver Award
• Young Achiever of the Award
• Best Case Study of the Year
• Technology Services Provider of the Year
• Asia’s Best Employer Brand Award
• Top Most HR Leaders – ASIA
• Special Recognition for Smooth & Efficient Running of JNPA-CIDCO-ALLCARGO Multi-Skill Development Centre

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• 659 tCO2e in emissions avoided (vs 310 avoided in the previous year)
• 1 million trees planted
• 100% increment in renewable energy consumption
• 525 alternative fuel vehicles in operations
• First independent cargo consolidator to offer instant access to renewable fuel options for maritime transport (ECU Worldwide)

Social Achievements

• Launched and implemented Occupational health and safety framework across ACL and ASCPL
• Successful training program at the Nipun Computer Skill Centre in Tilpata- 22 out of 30 trainees securing employment immediately upon completion
• 35% of total employees are women (an increase of 6% from the previous year)
• 11 units run by all women workforce in AllcargoGati
• Maitree Project: 90% tree survival rate and long-term economic value for tribal farmers

Governance Achievements

• Certified for ISO 27001:2022 for IT Cybersecurity
• Supplier ESG questionnaire rollout implemented
• S&P Global scores saw a remarkable 300% increase, rising from 7 to 27 in FY 2023-24, aligning with the industry average of 27 for this period.

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions constitute 99% of total emissions
• Transitioning to a low-carbon economy presents hurdles, particularly in road and ocean transportation
• Electrification of long-haul fleet faces challenges due to limited charging infrastructure
• High emissions risk reputational damage and financial impacts due to carbon taxes and regulatory compliance costs

Mitigation Strategies

• Implementing intelligent route optimization algorithms
• Collaborating with vendors and carriers using alternative fuels
• Introducing rail operations (AllcargoGati)
• Exploring sustainable practices in maritime freight, including partnering with ship-liners adopting alternative fuels
• Deploying a decarbonization strategy with a goal to achieve carbon neutrality by 2040

Supply Chain Management

Supplier Audits: Self-assessments for 20% of tier-1 suppliers (Allcargo Logistics Limited and AllcargoGati). ESG questionnaire to be rolled out to 100% of tier-1 suppliers by 2040.

Responsible Procurement

• Supplier Code of Conduct
• Sustainable Procurement Policy
• Prioritizing recycled/part-recycled products
• Partnering with certified ITAD providers for e-waste handling

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, BRSR, UN SDGs

Certifications: ISO 27001:2022 (IT Cybersecurity), ISO 14001 (Nordicon), ISO 45001 (OHS framework)

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 7
• SDG 8
• SDG 11
• SDG 13
• SDG 15
• SDG 17

Initiatives contribute to these goals through community development, education, renewable energy, economic growth, sustainable cities, climate action, environmental protection, and global partnerships.

Sustainable Products & Innovation

• Alternative fuel vehicles (AFVs)
• Electric forklifts (E-Forklifts)
• Renewable energy solutions

Awards & Recognition

• Numerous awards received by Allcargo Group companies and individuals (detailed in the report)