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Integrating ESG Principles into Smart Logistics:Toward Sustainable Supply Chains
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Submitted:
15 November 2024
Posted:
19 November 2024
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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
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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.
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:
Subject: Business, Economics and Management - Business and Management
Copyright: This open access article is published under a Creative Commons CC BY 4.0 license, which permit the free download, distribution, and reuse, provided that the author and preprint are cited in any reuse.
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