Why is ESG data critical for businesses, and what are the challenges in data gathering for the logistics sector?

This was a topic discussed among GLP colleagues and customers during a workshop at the recent GLP Global Customer Conference. 

Any ESG strategy needs to be backed by data. First and foremost, understanding the current business position on carbon requires measuring and recording the appropriate data. From there, data collection and analysis will make identifying areas that can and should be improved possible. 

Recording data means being able to track carbon reduction and other ESG targets. A simple example is capturing biodiversity gain. To do this, a simple calculation of how many trees have been planted in a particular timeline are needed for an assessment to be made.  

However, not all data collection is this simple. Questions that need to be resolved include: what will be measured, how and who will measure, and how will the data be used?  Understanding the use case helps determine what data to collect and the benefits of collecting data to help the case for investment.  Historical data can be collected to inform business processes and strategies whilst collecting current data can enable quick decisions such as energy cost savings. This could be whether to increase warehouse operations when electricity is cheaper, for example, if such a change is possible. However, the use case and benefits have to be clear before any change is put into place.  

Image of G-Park Pinto's EV Parking Spaces

There are practicalities in data collection that need to be considered, such as installing sensors and monitoring equipment and how that connects to existing data recording platforms and management reporting software. Existing data sets are often logged in silos across different parts of a business. Collating data into one centralised place requires collaboration and cooperation between teams. This is not about one person’s responsibility, getting teams on board with the process is all part of the overall programme.  

Some elements of data gathering remain time consuming but technological advances are helping with automation and eliminate manual gathering and data entry. Getting to the point of automation is an important step for any business and for the broader industry. 

Collating customer and supply chain data can add to the complexity. It is also important to consider confidentiality if sharing data from third parties such as setting up and using NDAs. 

The accuracy of data collection and input is critical as this is the basis for making decisions, so data needs to be checked and verified. Generating value from the data collected is a critical consideration so that it is not seen just as a cost. Rather than simply measuring performance data, if used strategically, data can drive efficiencies. 

While there isn’t necessarily a commercial value attached to delivering on ESG goals, these can deliver further operational efficiency by reducing operational costs. Having the right data can determine where savings are being made – and where they aren’t.  

Data will become increasingly important as more AI technologies are adopted given its dependency on large quantities of quality data for calculations, assessments and assumptions.  

As data requires storage, there is an additional sustainability burden that will need to be carefully managed alongside the data collection challenges. The need for ESG data collection isn’t going to go away, but there are questions that need be answered by business and teams to ensure they get the best results from their investment. 

Case Study 

In early 2024, GLP piloted the retrospective installation of (SmartCool) Smart Meters at four UK assets. Building 4400 at Magna Park Lutterworth and Units 1 – 4 at G Park Northampton. The installation of these meters enables the off-site monitoring of gas, electricity and water usage on a real-time basis.  

Image of a unit from G-Park Northampton

This brings a range of benefits to customers, who can not only monitor utility consumption remotely, but can also immediately see the benefit of any cost saving initiatives that might be introduced to a site. This includes energy efficient lighting, PIR sensors in the warehouse or if a customer has gas fired warehouse heating, the result of ensuring dock doors are promptly closed when not in use.  

For landlords and asset owners, the benefits are that the system interfaces with the GLP Global ESG data capture platform Sphera, preventing the need for manual meter reads and manual data inputting saving time.   

This technology provides accurate and reliable data at the push of a button that is needed for GRESB reporting as well as Scope 3 emission reporting for carbon reduction commitments. 

Another pilot of an alternative system (WIA) at two sites in the UK are about to start which works in a slightly different way in terms of the equipment, technology and contract modelling but holds the same purpose in achieving remote gathering of utilities data usage.

Click here to learn more about G-Park Northampton

Click here to learn more about Magna Park Lutterworth