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Compliance partnerships help achieve ESG goals

When thinking about governance in the context of sustainability, most people would immediately associate it with reporting frameworks, transparency, tracking ESG targets, and adherence to key policies and regulations. But today, I’d like you to think about governance as an enabler to achieve your sustainability targets. Furthermore, I’d like you to consider how your logistics service provider (LSP) can play a crucial role in achieving those targets.

For a whole host of reasons – increasing calls for transparency, pressure of social media, shareholder activism – stakeholders are keenly aware of what organizations are doing and how they back up their claims to environmental and social responsibility with actions. Sustainability is a top priority for DHL and our customers because their customers demand it.

Investors are increasingly scrutinizing the sustainability of their potential investments. Our communities and our ecosystems are calling for immediate action. Everyone is conscious of the urgency of the sustainability agenda. The Governance pillar is deeply intertwined with the Social and Environmental sides of ESG because it provides the framework to demonstrate commitment to the sustainability agenda overall. This framework includes regulatory compliance, risk assessment and mitigation, remedial actions and awareness through training and communication, all of which are crucial influences to facilitate the achievement of all ESG targets.

Studies confirm the critical importance of governance and the systems that deliver it. Indeed, there is substantial empirical evidence that the ‘G’ in ESG yields better corporate returns. Governance data has been compiled over a longer period than social and environmental, which means the criteria for what comprises good governance and its classification has been more widely discussed and accepted.

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