CARGOCONNECT-APRIL2025 - Flipbook - Page 22
COVER STORY : GREEN LOGISTICS
and investment in sustainability,” he notes.
Further, highlighting industry-wide e昀昀orts to promote
sustainability, Bhalla adds, “As part of the Warehousing
Association of India (WAI), we are working with the
Ministry of Commerce to create a rating and grading
system for warehouses, where sustainability practices
will be one of the key criteria.”
The Business Case for ESG Integration in
Logistics
importance of sustainable warehousing solutions. He
explains, “We recently built large green warehouses,
incorporating key sustainability principles. These
warehouses are Excellence in Design for Greater E昀케ciencies (EDGE) certi昀椀ed by the Indian Green Building
Council, supported by the US Green Building Counci
and World Bank.”
Elaborating the three pillars of EDGE certi昀椀cation,
Bhalla clari昀椀es, “The EDGE certi昀椀cation focusses on
three main areas: water conservation, alternative
energy, and reducing carbon footprint. We’ve implemented water harvesting
and recycling systems to
reduce water consumption. Our warehouses are
entirely solar-powered,
CRISIL reports that
significantly reducing
between 2024 and 2030,
energy use. Additionally,
India plans to spend a
we are focussed on using
record `143 lakh crore on
products with lower carbon
content in manufacturing
infrastructure
and freight to minimise
development, including
the carbon impact of our
`36.6 lakh crore explicitly
operations.”
designated for green
Bhalla also addresses
the cost implications of
projects. This marks a
green warehouses. “Building
five-fold increase from
a green warehouse typically
prior green
costs 20 to 25% more than
infrastructure budgets.
a conventional warehouse.
However, this comes back to
the idea of long-term value
22 | CARGOCONNECT APRIL 2025
Rajesh Srivastava, GM– NPR – Indirect Procurement
at Lupin, underscores the importance of integrating
Environmental, Social, and Governance (ESG) principles
into logistics operations. “ESG should not be reduced to
a mere slogan. It needs to be ingrained in every aspect of
an organisation’s operations. From a logistics perspective,
let’s focus on the ‘S’—sustainability. For example, are we
sourcing materials sustainably? Tools like the E-Way Bill
provide data that allows us to track cargo distances and
assess whether we can source materials locally instead
of relying on far-o昀昀 locations,” he explains.
Srivastava also highlights the role of innovation in
reducing environmental impact. “In cold chain logistics,
companies often send large consignments, such as
25 kg or 50 kg shipments. Could logistics partners
innovate by developing smaller, more e昀케cient containers? Collaboration between competitors can also drive
innovation. For instance, if multiple companies have
cold chain shipments with similar delivery dates, could
LSPs consolidate those shipments to reduce carbon
footprints?” he suggests.
On the social side of ESG, Srivastava emphasises fair
labour practices and compliance. “As principal employers,
we are responsible for ensuring that our LSPs follow
labour laws, such as minimum wage requirements
and Provident Fund (PF) contributions. In the future,
as regulations strengthen and digital systems become
more interconnected, compliance will become even
more critical,” he adds.
From Strategy to Impact: A Look at the JW
Sustainability Model
As India transitions to green transport, sustainability
is becoming a priority across supply chain, distribution
and logistics operations. Concurrently, building on the
importance of ESG integration, Gowri Shankar G, General Manager– Operations at JW Ventures provides a
practical example of how sustainability is being embedded
