OIA Global takes a holistic approach to the supply chain, recognizing that environmental and social responsibility begins with raw material sourcing, is refined in packaging optimization and continues through managed transportation.The company’s ESG Initiatives are aligned with the UN’s Sustainable Development Goals to guide their social responsibility, emissions reduction strategy and manage their customer’s carbon footprint and supply chain performance.
Report and Set Targets
- Emissions are calculated using the GLEC Framework and the accredited EcoTransIT World tool, to report customers’ emissions for the public and the CDP. Customers benefit from accurate CO2e projected emissions at the time of quotation or booking, while having increased visibility to effectively manage their carbon budgets. OIA Global has improved capabilities to compile auditable data for third-party review, set reduction targets intelligently, and work with customers to identify supply chain solutions that reduce emissions.
- OIA Global has a 2019 reduction target of 5% CO2e across its Scope 1 & 2 emissions by 2025. Further, the company will reach that target by increasing the number of branches powered by renewable energy from 3 to 46 branches by 2030.
- As a supply chain provider with packaging optimization expertise, OIA Global optimized the space used to transport shoes for a global footwear retailer. In 2016, this retailer was able to ship 48% more units per m3, resulting in $1.24 million reduced transport costs and 43% lower CO2e emissions, or 152 grams per pair of shoes. The GLEC Framework was used to provide the client the CO2e emissions reduction which was converted to the per pair measure. OIA Global reduces supply chain costs and emissions through packaging optimization for a number of major international brands.
- As a supply chain provider with engineering expertise, OIA Global replaced plastic coat hangers with Ditto 100% recyclable fiberboard alternatives for a children’s apparel brand. In 2017, this brand moved more units per TEU saving more than 20% of space associated with rail, road and ocean transport and warehousing. Through optimized garment packing, $4.6 million was saved across the brand’s supply chain and CO2e emissions were reduced by 10 tonnes per year, or 15%.
- As a supply chain provider with logistics expertise, OIA Global conducted a mode shift analysis for a global menswear brand. In 2019, using the GLEC Framework to quantify a shift away from airfreight to a sea/air multi-modal routing, this brand reduced CO2e emissions by 25 tonnes a year, while respecting production transit time requirements.
- OIA Global actively encourages market change through carrier management. In 2019, 87% of shipments managed for clients are transported through carriers that meet the requirements of the United States EPA’s SmartWay for road, 70% Clean Cargo for maritime and 60% IATA Four Pillars for air freight.
- The company is active in the Sustainable Packaging Coalition to increase awareness and respond by implementing innovative packaging technology and recycling initiatives to the 5.8 billion units of packaging they manage annually.
- The company is also active in Clean Cargo, having hosted a 2019 Clean Cargo global meeting, and is a founding forwarder member of the Sustainable Air Freight Alliance (SAFA).
About OIA GlobalSince its founding in 1988, OIA has grown into a $1.3 billion supply chain management leader, delivering clients a unique combination of global logistics, packaging, and materials sourcing solutions. With over 1,200 professionals in 62 owned offices and a worldwide presence in 28 countries, OIA designs innovative solutions that optimize supply chains around the world. OIA is privately owned by Indianapolis-based LDI, Ltd., with more than a century of experience funding and operating high potential, middle-market companies. For more information, please visit www.oiaglobal.com and https://lacydiversified.com/.
ReferencesOIA Global 2019 Environment, Social, and Corporate Governance Report
OIA Global Sustainability Website
OIA Global presentation at the Clean Cargo Autumn Meeting 2019