In It for the Long Haul: C.H. Robinson Takes on Sustainability
It鈥檚 not every day that an international company meets an ambitious sustainability goal two years early. But last May, that鈥檚 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 emissions鈥攖hose emissions generated by the company鈥檚 own operations鈥攐f 47% (more than the 40% targeted). C.H. Robinson had previously calculated meeting the objective by 2025.
Simple but effective: 鈥淢ost of it was looking at where we could find inefficiencies鈥 and correcting them, said C.H. Robinson Vice President of Environment, Social and Governance Rachel Schwalbach. Some changes came from suggestions 鈥渙ur own employees brought forward: LED lighting, responsible use鈥 of electricity.
- Efforts also included a marked increase in the company鈥檚 use of renewables generally. From 2019 to 2023, C.H. Robinson renewable-energy purchases rose 40%.
Not an either/or proposition: The Eden Prairie, Minnesota鈥揵ased company鈥攚hich solves logistics challenges for clients through freight forwarding and other innovative transportation solutions鈥攊s proof positive that businesses don鈥檛 have to choose between good environmental stewardship and profitability.
- In fact, 鈥渟ometimes the sustainable option is actually the less expensive option,鈥 Schwalbach told the 17吃瓜在线. 鈥淐.H. Robinson is working with suppliers every day to drive out waste, and often that鈥檚 been because we鈥檝e looked at it through a lens of cost savings or time reduction. Now it鈥檚 also through the lens of sustainability.鈥
- What鈥檚 more, 鈥渋f you鈥檙e approaching sustainability right, it should be tied to your overall business strategy. Sometimes it鈥檚 as simple as making sure you鈥檙e compliant with rules and regulations鈥 as you meet sustainability requirements.
A competitive advantage: Reducing the footprint of operations can be a competitive advantage for manufacturers, too.
- 鈥淲e get asked about sustainability by nearly all our stakeholders, so it really has to be a part of strategic decision making across the business,鈥 Schwalbach continued. 鈥淥ur shippers are also getting asked about [sustainability] by their investors and customers. People across the business are thinking about it, so it鈥檚 [to our advantage to] make sure it鈥檚 integrated across all areas.鈥
No business is an island: Businesses must keep in mind that sustainability is a shared interest, and the environment鈥檚 health is best served by teamwork, not isolated efforts, according to Schwalbach.
- 鈥淎s companies continue to put big [sustainability] goals out there, I cannot emphasize enough the need for collaboration across industries, as clich茅d as it sounds,鈥 Schwalbach said. 鈥淗aving people who are willing to come to the table and say, 鈥楬ey, let鈥檚 figure this out together,鈥 is going to be pretty critical.鈥
- 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 sector鈥檚 sustainability efforts.
- 鈥淎s we鈥檙e 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,鈥 Schwalbach said. 鈥淐ontinuing 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 doesn鈥檛 cause disruption to the supply chain and transportation.鈥
- Companies want clarity around regulations, too. 鈥淭here are so many [regulations] coming out right now, and companies want to know, 鈥楬ow do I get the right [climate-related] data? How do I make sure the data are accurate?鈥欌
In for the long haul: So what鈥檚 next for C.H. Robinson? A continued focus on conservation, for one thing.
- 鈥淵ou meet your goals, and that鈥檚 really exciting, but there鈥檚 no time to sit around,鈥 Schwalbach said, adding that the company is now in the process of figuring out 鈥渨hat new sustainability goals will look like for carbon reduction.鈥
- Ultimately, those goals will be met by ensuring a commitment to the environment remains a company-wide focus, she told us.
- 鈥淒oing sustainability well means it鈥檚 integrated. C.H. Robinson is a 119-year-old company, and sustainability is about making sure we鈥檙e going to be successful for another 119 years.鈥