Allcargo Group’s ESG Report Highlights Carbon Neutrality Goals by 2040

Mumbai-based Allcargo Group, a global logistics conglomerate operating in 180 countries, has unveiled its Environmental, Social, and Governance (ESG) Report for the year 2023-24.

The report, themed 'Charting Sustainable Pathways with Ingenuity,' highlights the company’s commitment to achieving carbon neutrality by 2040 while detailing its comprehensive approach to sustainability.

As per the firm's statement, this initiative aligns with India’s ambitious goal of attaining net-zero emissions by 2070 and a 45 percent reduction in emissions intensity of GDP by 2030 from 2005 levels.

Commenting on the report, Shashi Kiran Shetty, Founder & Chairman,  Allcargo Group said, “ I am delighted to unveil our Environmental, Social, and Governance (ESG) 2023-2024 report, which reflects our steadfast commitment to building a sustainable and inclusive future for all. At Allcargo Group, we believe sustainability goes beyond compliance, it’s about creating lasting value for people, the planet, and our stakeholders. This report highlights our progress across three core pillars Environment (with a focus on renewable energy transitions), Social (ensuring employee safety, diversity, equity, and inclusivity, while driving community impact), and Governance (strengthening ethical practices, sustainable supply chain management, and data security)."

He further added, "With a global footprint spanning 180 countries and robust multimodal operations within India, we recognise our responsibility to lead by example. Guided by the theme, ‘Charting Sustainable Pathways with Ingenuity,’ we aim to drive innovation, adopt sustainable practices across our global facilities, and foster ESG-driven collaborations. Together with our partners, we will continue to advance our ESG goals, shaping a future where business growth and sustainability go hand in hand."

The report provides a detailed account of the Group’s ongoing efforts and future aspirations. A significant highlight is its transition to 100 percent renewable electricity at all owned sites by 2040, with solar energy consumption more than doubling in the past year. Additionally, Allcargo has converted its material handling fleet to fully electric equipment, drastically reducing Scope 1 and Scope 3 emissions within its warehousing operations. Through ECU Worldwide, the company has become a pioneer in sustainable ocean freight practices by offering renewable fuel options such as liquefied biomethane for maritime transport, enabling customers to cut CO2 emissions by up to 100 percent for less-than-container-load shipments.

Allcargo’s commitment to sustainable transportation extends to its domestic operations as well. Its express logistics arm, Gati, is working toward converting all first and last-mile delivery vehicles in India to alternative fuels by 2026. The company’s digital platforms, such as ECU360, are playing a pivotal role in optimising shipping transactions and reducing paperwork, with 90 percent of bookings now processed online.

"In 2023-24, Allcargo had a total GHG footprint of 1.90 million tonnes of CO2 e, marking a 9 percent increase compared to 2022-23. The increase was mainly driven by increased air and ocean transport," said the report.

As per the report, AllcargoGati has successfully equipped five of its facilities with solar power, collectively offering a total capacity exceeding 650 kWp. Additionally, one of ASCPL's warehouse locations is powered by solar energy, contributing to more sustainable operations.

On the governance front, Allcargo has made significant strides in adopting advanced protocols for emissions tracking based on the Greenhouse Gas Protocol and the Global Logistics Emissions Council framework. The Group has also achieved an almost four-fold increase in its score on the S&P Corporate Sustainability Assessment, reflecting its unwavering commitment to responsible business practices and sustainable growth.

The report underscores Allcargo’s intent to integrate sustainability across every facet of its operations. It highlights the Group’s role in driving innovation, fostering partnerships, and advancing toward its ESG goals. With a global footprint and robust multimodal operations within India, Allcargo Group aims to lead by example, ensuring that business growth and sustainability progress hand in hand.