Post-Covid challenges and opportunities: rethinking ESG performance in the logistics sector

Abstract

In the post-COVID era, the logistics sector faces significant challenges and opportunities. These are mostly due to disruptions in global supply chains and a rise in e-commerce demand. To overcome these issues, companies need to adopt digital technologies, reshape consumer demand, and implement flexible work arrangements, with a focus on sustainability. This transition bolstered attention on Environmental, Social, and Governance (ESG) considerations. In this study, we introduce new metrics to evaluate ESG performance in the logistics sector. To resolve inconsistencies in existing approaches, we propose the Standardised Unitless Rating (SUR) methodology, which combines satisfaction scores and criterion relevance. We employed the Interval Type-2 Fuzzy Analytic Hierarchy Process (IT2FAHP) to calculate the relative weights of ESG criteria. The results show that newly established companies with innovative technology have performed better than traditional companies. This proposed method has been validated by comparing it with existing methods. Additionally, we observed the importance of relative weight as compared to criteria with equal weight. The findings suggest that incorporating process metrics could help companies enhance their ESG performance.