WHEREAS: The Intergovernmental Panel on Climate Change has advised that greenhouse gas (GHG) emissions must be halved by 2030 and reach net zero by 2050 to limit global warming to 1.5°C and avoid the most severe impacts of climate change. Transportation is the largest source of GHG emissions within the United States and accounts for nearly 25 percent of global carbon dioxide emissions.1
C.H. Robinson Worldwide Inc. (“Company”) is one of the world’s largest third-party logistics platforms, leveraging data insights and technology to arrange transport of customers’ freight and support supply chain optimization. It recognizes the risk of climate change, including the associated physical, transition, reputational and strategic risks in its 10-K and sustainability reporting.2 However, the Company’s climate mitigation strategy falls short of what is needed to manage its climate-related risks and meet stakeholder demands. The Company’s emission reduction goals do not include its scope 3 emissions, which make up over 99% of its footprint.3 C.H. Robinson reached its Scope 1 and 2 intensity reduction goal, and while it discloses its scope 3 emissions, it lacks science-based targets and a 1.5°C aligned transition plan.
As a non-asset based logistics platform, C.H. Robinson’s expertise and scale position it well to consolidate customer interest in decarbonization and support this transition, while also engaging with carriers to ensure adequate low-carbon solutions. Currently, 63% of its sales are from truck freight. Market-driving policies like the Clean Trucks Plan, and incentives from the Inflation Reduction Act and Infrastructure Investment and Jobs Act – which include billions in federal support for vehicle and battery manufacturers, purchasers, and charging infrastructure – will help lower the costs and barriers for carriers to deploy zero-emissions vehicles.
The Company risks falling behind its peers in setting holistic GHG reduction targets. For example, DHL Group has committed to reduce all logistic-related emissions to zero by 2050 and set interim science-based targets.4 Ramping up the scale, pace, and rigor of its climate-related initiatives may help prepare C.H. Robinson to mitigate transition risks associated with climate regulations; bolster resilience to the physical impacts of climate change; and capitalize on new opportunities or premiums driven by customer demand for supply chain decarbonization.