Green logistics and ESG Fintech enable sustainable financing
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 organization Green Freight Asia Network (‘ GFA’). The partnership centers around the aggregation of transport and logistics certifications on STACS’ digital ESGpedia register, which powers the Monetary Authority of Singapore’s (‘MAS’) Greenprint ESG register.
In a sector that traditionally lacks green certification and harmonized sustainability reporting standards to guide companies on their decarbonisation journey, GFA and STACS aim to empower companies in the sector to build resilience and transition to sustainability practices, through increased access to sustainable finance brought about by digital technology: logistics companies that have achieved the GFA certification can display it on their digital ESG profile, and use digital tools on the platform to better track and monitor their emissions reduction.
This is particularly important as the transport sector is one of the largest contributors to greenhouse gas emissions, accounting for 15% of Singapore’s carbon emissions, and is also highly vulnerable to global climate risks and disruptive shocks. In Singapore, the government has also announced its commitment to achieve an 80% reduction in carbon emissions for the sector by 2023.[1]
Recognized by banks, Green Freight Asia’s labeling and certification program certifies companies that demonstrate a commitment to and progress towards the adoption of green shipping practices. The GFA mark is an external validation of a company’s commitment to sustainability in the logistics sector. The four ratings for carriers and shippers include Minimum, Enhanced, Strong and Outstanding (Sheet 1 to Sheet 4).
These ratings encourage carriers to continually improve fuel and energy efficiency in their operations to increase their chances in carriers’ carrier selection processes, and also serve as proof of environmental compliance for shippers when contracting third-party logistics services. The GFA labeling and certification program 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 collects sustainability data including fuel consumption, carbon emissions and carbon intensity. It also provides analytics such as benchmarking against industry standards, as well as overall levels of carbon savings, providing increased visibility to companies looking to track their sustainability performance and carbon footprint. Through the partnership, companies that have obtained 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 emissions targets with clear digital tools.
Financial institutions can also access this data and use it to develop greener capital financing solutions that can help in the design of data-driven emission reduction strategies. Banks can also engage in positive screening of green logistics businesses that meet their ESG credentials criteria to engage in ESG financing.
This latest partnership marks further development in ESGpedia’s transport and logistics coverage, following STACS’ live use case with Singlife with Aviva and CO2 Connect (‘CO2X’) earlier last year[2]whereby Singlife leveraged CO2X’s logistical carbon emissions tracking capabilities and data on the ESGpedia register (obtained with the consent of policyholders) to effectively develop and better structure new green motor insurance policies.
Mr Krishan Kumar Ralhan, Director and CEO of Green Freight Asia Networksaid: “At Green Freight Asia Network (GFA), we seek to expand our network and collaborate with like-minded organizations to improve the sustainability performance of the freight, transportation and logistics industry in the APAC region. We are pleased to partner with STACS ESGpedia for to present our flagship certification program on the ESGpedia register This move will equip companies in the logistics sector with data digitization tools to achieve net zero emissions by 2050. We believe the GFA mark is a valuable contribution to the freight industry’s decarbonisation journey and we encourage more shipping companies to take this first step.”
Benjamin Soh, CEO of STACS, co-founder of CO2X said“The future we envision for Asia’s transport and logistics industry is one that leverages technology and quality data to spearhead sustainability and achieve its decarbonisation goals. With increasing regulatory pressure, there is a great 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 improved visibility, better data and emissions tracking on STACS’ ESGpedia register. With green capital as a key enabler in companies’ transition, ESGpedia also improves sustainable financing opportunities for GFA-certified companies in the register.”
