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Environmental Stewardship and Climate Change Mitigation
At Aramex we take our commitment to environmental stewardship, mitigating climate change, and safeguarding the environment seriously, and 2023 was no exception. This year we continued to make progress on our commitments to reducing our emissions as per our goal to reach Carbon Neutrality by 2030 and Net Zero by 2050, as well as our science-based reduction targets set at 1.5 degrees for both scope 1 and 2 and at 2.0 degrees for scope 3[1] . We finalized our climate risk assessment (for more on the process, refer to our 2022 annual report pages 38-39), developed action plans to address prioritized risks and opportunities, and continued to invest in renewable energy, fleet electrification, and other initiatives.
Our goal is to consistently establish and exceed benchmarks within our industry and beyond, serving as a guiding force by exemplifying sustainable practices. As a part of the shipping and logistics industry, our biggest environmental impact stems from our emissions, as well as packaging and material use, as such we prioritize these matters as part of our business and sustainability strategy and our value creation.
Increase in electricity consumption is due to several factors, including new facilities, additional office and warehouse space, and enhancement in electricity usage measurement and reporting. Fuel reduction is due to enhancement in route optimization, operational efficiency, fleet electrification, and introduction of LEVs. Detailed initiatives can be found on page 38.
Read moreOur Climate
Risk Governance Structure
Aramex’s oversight of climate related risks and opportunities is embedded within our ESG Sustainability Governance structure. This includes joint collaborations between the Risk and Sustainability teams on climate risk plans, the upskilling of Climate Risk Champions to implement action plans, and the oversight from the ESG committee. We are continually evolving our Corporate governance structure in recognition of the urgency of climate action and in response to our increasing understanding of the impact of climate change on our business. Therefore, we present a holistic and transversal structure that maximizes the involvement and commitment of all internal stakeholders in the pursuit of the objectives set in sustainability matters. For more on our ESG governance structure, please refer to our Disclosures on Management Approaches on page 114.
Our Climate Risk Framework
As a result of our Climate Risk Assessment, we have developed a customized Climate Risk Framework, which is integrated into our enterprise risk management processes. This framework will allow us to regularly review previously identified climate risks, update the climate risk inventory if necessary, and ensure that suitable mitigation and adaptation plansare in place. To support the integration of our climate risk framework and promote climate risk understanding and awareness, we have developed a capacity-building program that was rolled out in 2023 for our internal stakeholders. These actions demonstrate ourcommitment to limiting the impact of climaterisks on our business and stakeholders and will ensure that we are in a position to take direct effective action moving forward.
