Large companies around the world voluntarily report their business strategies to address climate change, their actual emissions, and their energy use to CDP, which then assigns ratings to the businesses and ranks them in the Carbon Disclosure Leadership Index and the Carbon Performance Leadership Index. The report generated from the findings serves as a way to analyze trends and outcomes of sustainable business models. According the CDP Global 500 Report 2011, companies that led the way in carbon disclosure and performance realized about double the average total return of the Global 500 from January 2005 to May 2011. While many factors play roles in determining the financial success of a company, this correlation suggests that implementing a carbon performance strategy and managing emissions contributes to stronger financial performance.

The benefits of creating emissions reduction initiatives extends beyond financial performance based on energy savings and into company image. From a consumer standpoint, working with a business that has expressed dedication to reducing carbon emissions feels like a responsible decision. When a company chooses to disclose its business strategies to address climate change, it indicates a degree of transparency to the consumer, leading to increased trust in the business as a whole and a greater likelihood that the consumer will purchase that company’s goods, services, or stock. Your company will benefit from the publicity attached to going green and the ability to remain competitive in the market. Even if you choose not to disclose your company’s specific emissions reduction strategies, letting your customers know you are setting targets and taking steps to green your operations assures consumers that you are aware and devoted to addressing one of the largest issues facing business today.

Creating a sustainable business plan may seem overwhelming, but ultimately, it is comprised of smaller steps that add up to greener operations. Your emissions reduction initiatives will have both short-term payback and longer-term payback. According to the CDP, of all the reported emissions reduction activities, 59 percent have a return period of three years or fewer while 41 percent have a return period of more than three years. For example, you can begin by implementing a more effective shipping strategy, such as direct shipping, to see immediate returns on your action through a demonstrated decrease in your company’s environmental impact while creating long-term strategies to reduce energy use in the business’ day-to-day operations. This balanced approach to your climate change strategy is key to long-term sustainability, as the costs for climate-sensitive materials and services will only increase as climate change continues.

The money used to purchase carbon offsets generally supports long-term projects, such as investment in earth-friendly technology or planting trees. Because these actions offer future returns–planted trees require at least a year before the returns begin–carbon offsets are months behind pollution from the very outset. Unless you purchase your offsets at least a year in advance, the pollution you create today will remain unmitigated for the immediate future. While a carbon offset standard exists for the compliance market, there are several certification standards for carbon offsets in the voluntary market, making it difficult to determine just how effective your purchase will be in helping the environment. Depending on the company through which you purchase the offsets, which answers first to investors, your money might not be making the difference you believe.

Critics of carbon offsets have argued further that such a system allows developed nations to continue unsustainable business models and lifestyles by funding carbon projects in developing countries. According to the Stockholm Environment Institute’s [SEI] “Making Sense of the Voluntary Carbon Market,” critics have even posited a new “carbon colonialism” as the countries where some carbon projects are developed see few, if any, benefits from the business. SEI’s report still champions the idea of voluntary participation in carbon offset programs, but recognizes the practice cannot substitute for a long-term dedication to sustainability.

This is why shipping greener right from the start makes sense. If you put less pollution into the air to begin with, through a more efficient shipping model, you’re reducing the environmental impact of your actions and working toward a more sustainable business model. Supplementing green shipping with voluntary carbon offsets offers a way to address the environmental impact of your business, but the process begins at the start of your shipping, not the end.

If you dig into how your current shipping company is routing your packages from, for example, New York to London, you’d probably see that they don’t just go from point A to point B. They also get routed through points C, D, and E. And that can mean that your package can take the scenic route over thousands of extra miles.

We go the distance, but without the extra miles.

First Global Xpress believes in shipping direct from point A to B, and that’s what we do for each and every one of our clients. We fly direct flights to move our shipments all over the world every single day of the year.

If you’re in New York and ship a package to London with an integrator such as FedEx, UPS, or DHL, that package will travel through a hub-and-spoke system, adding up to around 37 percent more miles than the same shipment with First Global Xpress. In the particular case of London, the integrator’s shipment will travel 5,419 miles, while the First Global Xpress package will travel just 3,452 miles.

Beyond the waste from extra mileage, factor in the following:

• Passing shipments through hubs means all packages must be sorted an extra four to five times.
• Passing shipments through multiple hubs means that your package requires at least two flights, not to mention two takeoffs, which are the most gas-guzzling portion of the flight.

Once these elements are included, you’re probably nearing the 100% mark. We believe that integrators such as FedEx use about twice as much energy to get a package to its final destination as FGX.
A 3-lb package that travels 5,419 miles on two flights is responsible for the release of 26.6 lbs of CO2 or more into the upper atmosphere. The same shipment given to First Global Xpress is responsible for the release of 17.1 lbs of CO2. This equation does not take into consideration the integrator’s energy usage at the many hubs, nor the fuel burn ratio for takeoff versus cruising altitude (FedEx uses two flights when delivering to London).

What impact does your choice of shipper have on the environment? (NYC-London)

The Wasteful Choice: The Typical Integrator:
1,000 shipments per year x 3 lbs per shipment = 3,000 lbs shipped per year
3,000 lbs shipped per year x CO2 released when traveling 5,419 miles NYC-Hub-London = 26,880 lbs of CO2 as a by-product, released directly into the upper atmosphere

The Greener Choice: First Global Xpress:
1,000 shipments per year x 3 lbs per shipment = 3,000 lbs shipped per year

3,000 lbs shipped per year x CO2 released when shipping direct 3,452 miles NYC-London = 17,123 lbs of CO2 as a by-product, released directly into the upper atmosphere

The Choice is Up to You
What does this mean for you? In the above example, you would remove 9,757 lbs of CO2 from being pumped out into the atmosphere (it takes approximately 550 trees a full year to neutralize the CO2 alone). And this does not include the resources used in a hub-and-spoke system that aren’t used when shipping direct.

If you want your company to choose the greener option for international shipping, then contact us at First Global Xpress to learn more. We are working hard to make sure that our business is making the right choices for the environment, and we want to help you make the right choices for yours as well.