20 March 2023
Green Freight Asia (GFA) and STACS partner to enable companies in the logistics sector to build resilience and transition to sustainability.
Hashstacs Pte Ltd (‘STACS’), a leading Singapore-headquartered environmental, social, and governance (‘ESG’) FinTech firm today announced its partnership with green logistics certification body and non-profit association Green Freight Asia Network (‘GFA’). The partnership centres around the aggregation of transportation and logistics certifications onto STACS’s ESGpedia digital registry, which powers the Monetary Authority of Singapore’s (‘MAS’) Greenprint ESG Registry.
In a sector that traditionally lacks green certification and harmonised sustainability reporting standards to guide businesses on their decarbonisation journey, GFA and STACS aim to empower businesses in the sector to build resilience and transition to sustainability practices, through enhanced access to sustainable financing brought about by digital technology: logistics businesses that have attained the GFA certification can showcase it on their digital ESG profile, and utilise digital tools on the platform to better track and monitor their emission reduction.
This is especially key as the transportation sector is one of the largest contributors to GHG emissions, accounting for 15% of Singapore’s carbon emissions, and is also highly susceptible to global climate risks and disruptive shocks. In Singapore, the government has also announced its commitment to achieving 80% reduction in carbon emissions for the sector by 2023.
Recognised by banks, Green Freight Asia’s Labelling and Certification Programme certifies companies that demonstrate a commitment to and progress toward the adoption of green freight practices. The GFA Label is an external validation of a company’s commitment to sustainability in the logistics sector. The four rankings for Carriers and Shippers include Minimum, Enhanced, Strong, and Outstanding (Leaf 1 to Leaf 4).
These rankings encourage Carriers to continuously improve fuel and energy efficiency in their operations to increase their chances in Shippers’ carrier selection processes and likewise serve as proof of environmental compliance for Shippers when contracting third-party logistics services. The GFA Labelling and Certification Programme fosters close collaboration between Carriers and Shippers to advance their sustainability performance, thereby reducing the carbon footprint of road freight logistics in the APAC region.
ESGpedia aggregates sustainability data including fuel consumption, carbon emissions, and carbon intensity. It also provides analytics like benchmarking against industry standards, as well as overall levels of carbon savings, which provide enhanced visibility to companies who are looking to track their sustainability performance and carbon footprint. Through the partnership, businesses which have attained the GFA Certificate can choose to create a company ESG profile on ESGpedia for free, where they can upload and showcase their various sustainability efforts, as well as better track their emission targets with ready digital tools.
Financial institutions can also access this data and use it to develop greener capital financing solutions that can help in the formulation of data-driven emission reduction strategies. Banks can also engage in positive screening of green logistics businesses that meet their ESG credential criteria, to engage in ESG financing.
This latest partnership marks further developments in ESGpedia’s transport and logistics coverage, following STACS’s live use case with Singlife with Aviva and CO2 Connect (‘CO2X’) earlier last year, whereby Singlife leveraged CO2X’s logistics carbon emissions tracking capabilities and data on ESGpedia registry (obtained with consent from insurance policyholders) to efficiently develop and better structure new green motor insurance policies.
Mr Krishan Kumar Ralhan, Director and CEO at Green Freight Asia Network, said: “At Green Freight Asia Network (GFA), we seek to expand our network and collaborate with like-minded organisations to improve the sustainability performance of the freight, transport, and logistics industry in the APAC region.
We are pleased to partner with STACS ESGpedia to feature our flagship certification programme on the ESGpedia registry. This move will equip companies in the logistics sector with data digitization tools to achieve net-zero emissions by 2050. We believe that the GFA Label is a valuable contribution to the freight industry’s decarbonisation journey, and we encourage more freight companies to take this first step.”
Benjamin Soh, Managing Director at STACS, Co-Founder at CO2X said, said: “The future we envision for Asia’s transport and logistics industry is one that leverages on technology and quality data to spearhead sustainability and achieve its decarbonisation goals. With increasing regulatory push, there is a dire need for businesses in the sector to build resilience in today’s climate. Our partnership with Green Freight Asia (GFA) is highly strategic, combining GFA’s certification program for the logistics sector with enhanced visibility, better data, and emissions tracking on STACS’s ESGpedia registry. With green capital being a key enabler in businesses’ transition, ESGpedia also enhances sustainable financing opportunities for GFA-certified companies on the registry.”