Environmental, Social, and Governance (ESG) Metrics and Integrated Reporting in Logistics: A Comprehensive Overview

The logistics sector, being a part of global supply chains, is under increasing pressure to incorporate sustainability in its operations with the growing emphasis on Environmental, Social, and Governance (ESG) metrics. This paper addresses the uptake and use of ESG metrics in logistics with a particular emphasis on how integrated reporting frameworks can be used to bring transparency and sustainability to the sector. The study is mainly concerned with the effectiveness of the ESG reporting procedures in logistics firms, transport, storage, and distribution, and examines the application of integrated reporting frameworks in addressing global sustainability needs. The study used a quantitative approach in researching, utilising a survey method in collecting data from 350 South African logistics firms. The study analyses opportunities and challenges to the adoption of ESG, creates best practices in making reporting more reliable, and establishes a conceptual framework for including ESG indicators in logistics reporting. The findings reference the challenges of logistics companies in embracing ESG practices, particularly concerning financial constraints, technological challenges, and regulatory challenges, and introduce innovations such as digital traceability systems and artificial intelligence-based analytics that could drive improved decisionmaking and reporting procedures. Lastly, the paper aims to contribute to the body of work from scholars and practitioners with an in-depth comprehension of how ESG factors can be best applied in logistics operations for aiding corporate social responsibility and sustainable development.