PODCAST: Why the path to net zero is taking so long

Companies have been publicly committing to net-zero carbon emissions, but are these targets realistic given what’s been achieved so far in the logistics sector?

Chief among the main factors hindering progress is the “say-do gap” among companies, where their actual investment in ESG lags behind their public commitments to sustainability goals, says Gerry Mattios, Partner at management consulting firm Bain & Company and Director of Bain’s Global Sustainability Innovation Center.

“[Decarbonization] is a balance sheet exercise,” says Mattios. “Very few companies are willing to risk their balance sheets just to pursue decarbonization.”

Having a clear strategy on the decarbonization journey is therefore imperative, with the first step being laying out the company’s goals. “You need to be able to take that ambition and break it down to specific targets for your supply chain,” says Mattios.

But loopholes still exist such as the lack of governance in terms of tracking carbon emissions. So what are the possible solutions to these roadblocks and what else can companies do to expedite the decarbonization of logistics?