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ESG in the supply chain. A guide for procurement and logistics departments
The era when carrier selection was based solely on rates and delivery time is gone forever. In 2026, EU CSRD regulations and the mandatory Scope 3 emissions reporting shifted ESG criteria from boardrooms directly into the spreadsheets of procurement departments. As a multimodal operator, Euro24 serves companies that face this requirement daily in the automotive, chemical, electronics, and other industries.
For companies exporting to Western European markets, the lack of verification of logistics subcontractors now means a real risk of being eliminated from tenders. Not because anyone wants it, but because the recipient on the other side must demonstrate the compliance of their own supply chain.
In this article, we demonstrate how to practically verify TSL (Transport, Shipping, Logistics) suppliers for ESG: from CO2 emissions and transport modalities, through labor standards, to operational transparency.
What is ESG and why does it apply to logistics?
ESG stands for Environmental, Social, and Governance -the three areas used to evaluate companies: environmental impact, social responsibility, and corporate governance. Through this lens, investors, auditors, logistics professionals, and procurement departments now assess a company’s stability and operational risk. In logistics, each of these pillars is reflected in specific procedures and certifications. Furthermore, they are the deciding factors in qualifying a TSL (Transport, Shipping, Logistics) supplier for a tender.
E for Environmental – emissions, modality, and rising regulatory costs
Road transport accounts for 73% of emissions in the entire EU transport sector, which is the largest source of greenhouse gases in the European Union. For a logistics or procurement department verifying suppliers under Scope 3, this means one thing: every transport unit moving components to a factory appears in the client’s climate report with a specific carbon footprint that must be accounted for. This is no longer just a branding issue. As of 2026, road transport is included in the EU Emissions Trading System (EU ETS), meaning carriers will incur real costs for every ton of CO2 emitted. These costs will translate into freight rates. Companies that optimize their transport modality today will face lower invoices tomorrow.
The simplest and most immediate tool for emission reduction in the supply chain is shifting a portion of the volume from road to rail. According to European Environment Agency data, rail emits several times less CO2 per ton-kilometer than road transport. On routes such as Poland–Germany, Poland–Benelux, or Poland–Italy, intermodal transport allows for combining cost-efficiency with a real emission reduction that can be reported in an ESG report with concrete figures. (source: EEA, Sustainability of Europe’s mobility systems, 2025)
Euro24 has been offering rail freight services since 2026, including connections on the Poland–Germany–Western Europe route and imports from China to Poland via the New Silk Road. Thanks to this, clients reporting Scope 3 emissions can shift part of their volume to a modality with a lower carbon footprint without changing their logistics partner. The European Union has set a goal to reduce emissions by at least 55% by 2030 and 90% by 2040. Regulatory pressure will rise rapidly. Companies that begin optimizing their supply chain carbon footprint today will have significantly less work to do three years from now (source: European Environment Agency – Greenhouse gas emissions from transport in the EU, by transport mode and scenario, European Environment Agency – Sustainability of Europe’s mobility systems 2025, European Climate Law – Komisja Europejska)
S for Social – people, procedures, and working conditions in the supply chain
In logistics, the social aspect is, above all, about human and operational risk management for corporate procurement departments (Procurement Compliance) and logistics teams. Clients in industries such as automotive or aviation verify suppliers based on rigid safety procedures, employment legality, and work standards, both in the office and on the road.
Driver safety procedures
For routes to the United Kingdom, which are strategic for Euro24, the «S» pillar is directly linked to the legal requirements of The Carriers’ Liability (Amendment) Regulations 2023 (SI 2023 No. 29). These regulations impose an obligation on logistics operators to prove that their drivers are implementing rigorous anti-immigration and customs procedures.
At Euro24, this responsibility has been transformed into a closed operating system based on the following procedures:
- Examination and certification: Every driver handling UK routes undergoes personalized training concluded with a 22-question multiple-choice knowledge test. Without passing the exam, the driver is not authorized to carry out the transport.
- 12-point inspection and logging (Standard Checks): Drivers are obligated to verify 12 critical vehicle points (including the condition of the curtain, TIR cord, storage compartments, and the interior of the trailer) at every stop, documenting seal numbers in the Seal Register.
- Final Check procedure and photo verification: At the last safe parking area before the border zone, the driver performs a full vehicle inspection and mandatory photographic documentation (including the roof from the inside and outside, the chassis, and closed doors with a visible seal number). The photos are sent for verification before entering the border control point.
Employment standards and employee development
The safety of drivers and cargo on the route is supervised by a 24/7 monitoring department (also known as our Control Tower, which operates in a 3-shift system, 8,760 hours per year). It provides direct operational support for drivers on the road. In the event of an incident, curtain cutting, or unauthorized access attempts, the Control Tower immediately takes over the coordination of activities, securing the driver and the reporting procedure to local services. Employment standards and social dialogue at Euro24 are subject to regular, external assessment. In the international EcoVadis rating (report published in November 2022), Euro24 scored 70 out of 100 points in the Labor & Human Rights category, placing the company in the top 6% of logistics operators rated globally. This result confirms that HR declarations are fully reflected in the organizational structure:
Sustainable staff development: Every employee pursues goals based on Individual Implementation Plans (IPW) and Development Plans (IPR), supported by internal mentoring.
Transparency of pay and promotions: The formal Competence Model for the Transport Monitoring Department introduced in the operations department directly defines requirements at every level (from junior transport monitoring specialist to manager), establishing equal criteria for compensation adjustments, bonuses, and career paths.
Business relations at Euro24 are based on a foundation that our clients value: culture and respect. This is confirmed by the results of the «Service Quality Survey» conducted for us in 2026 by the University of Information Technology and Management in Rzeszów. In the assessment of the respondents, the personal culture and courtesy of our employees received the highest marks, which translates into meeting client expectations in this area at a level exceeding 97%. It is this attitude, combined with our professionalism, that builds trust, thanks to which we have been successfully cooperating for years.
For a manufacturing company verifying a logistics operator in the «S» (Social) area, evidence (Actions & Results), not intentions, is of key importance. Euro24 meets these requirements with a complete set of verifiable documents: a nominal register of driver certifications for UK routes, an independent EcoVadis audit with a score of 70/100 (top 6% of companies in the industry) in the labor area, and an implemented Competence Model structure.
G for Governance – transparency, procedures, and organizational order
Organizational order is the area of logistics that is most difficult to assess from the outside and, therefore, the easiest to ignore when choosing an operator. Quality certificates, anti-corruption policies, and risk management procedures sound abstract until something goes wrong. In practice, G determines whether an operator acts predictably and transparently, or whether every non-standard situation ends in chaos. In the modern logistics market, corporate governance has ceased to be an exclusively internal domain; due to regulations such as the EU CSDD (Corporate Sustainability Due Diligence) Directive or tightened regulations regarding international sanctions, corporations are legally and reputationally responsible for the standards of their subcontractors. Choosing a freight forwarder without verifying the operator is, for the Procurement department, an agreement to unverified areas and risks for the company.
At Euro24, the organizational order structure is based on full systemization and measurable indicators. Every order executed, regardless of whether it concerns express road transport, air freight, or the newly introduced sea and rail services, is subject to rigorous operational supervision.
A key element of risk management is our independent, three-shift Control Tower 24/7/365 department, which ensures active monitoring of routes and transport conditions annually, eliminating information gaps and guaranteeing proactive reporting directly to the client.
In the context of Governance, the Control Tower is not just a GPS tracking tool, but the operational arm of the system that controls transport compliance with safety procedures (e.g., anti-immigration and customs guidelines SI 2023 No. 29 on routes to the UK) in real-time and immediately initiates escalation procedures in crisis situations.
All compliance procedures are integrated directly with the TMS system and verified at the billing department level, which cuts off the risk of documentation errors and secures the confidentiality of trade data within the supply chain. The transparency of our operations is confirmed by hard, external data: as early as 2022, in an independent global EcoVadis audit, Euro24 achieved a high score of 64/100 in the overall assessment, including 60/100 in the Ethics category (top 24% globally) and 50/100 in the Sustainable Procurement category (top 16% of rated entities). This last indicator is of critical importance to auditors; it confirms that Euro24 has implemented mechanisms for constant verification and filtering of its own network of carriers regarding employment legality, labor law compliance, and tax regulations. This is proof that corporate governance at Euro24 is based on facts, not marketing materials.
Subcontractor Selection and Verification Strategy at Euro24
The supply chain security of our clients is based on a selected network of subcontractors, managed by a dedicated Carrier Specialist. Their role in the Euro24 structure goes beyond simple administration; it is a vital element of operational control, allowing us to verify the credibility of each partner even before accepting the first order. We base this process on systematic filters concerning operational stability, business continuity, and current OCP insurance coverage. Furthermore, our cooperation with subcontractors is a continuous process, not a one-time verification. We do not only limit operational risk, but we also act preventively. If any anomalies are detected in one of our partners, we launch corrective procedures, protecting the continuity of our clients’ business processes against the influence of external factors.
Proactive Risk Management in the Euro24 Supply Chain
Our approach to legal safety is not limited to monitoring basic documents. An example of proactive risk management was the verification of our subcontractor network for compliance with the requirements regarding second-generation intelligent tachographs (G2V2). For a client, a carrier’s lack of compliance with regulatory requirements does not necessarily mean an immediate administrative risk, but it can become a real operational risk. A vehicle stop during a roadside inspection can delay a delivery, disrupt a production schedule, generate additional organizational costs, or affect the timeliness of deliveries to subsequent consignees. In response to regulatory changes, we verified the status of tachographs among our partners and limited cooperation with carriers who did not meet the required standards. This is an example of compliance understood not as a formality, but as a practical tool for protecting supply continuity.
Building Regulatory Awareness in the Supply Chain
The proactive approach to compliance is also visible in Euro24’s educational activities. When the Mobility Package 2026 introduced the obligation to install second-generation intelligent tachographs (G2V2) in vehicles performing international road transport, Euro24 did not limit itself to internal operational adjustments. Our Branch Managers conducted a dedicated webinar for clients and subcontractors, discussing the practical effects of the new regulations from the perspective of road safety, driver working time, and EU compliance. Materials from the webinar and the article are available on the Euro24 website.
WATCH WEBINAR – Mobility Package
A similar educational role is played by the Euro24 webinar dedicated to customs clearance (Customs clearance – webinar), which familiarizes clients and subcontractors with customs procedures in international transport, building awareness of formal requirements that affect the safety and timeliness of deliveries.
For a principal verifying a carrier in terms of G [Governance], the key questions are: does the operator ensure supply continuity through a dedicated 24/7 monitoring structure, do their ESG certificates come from an independent, external audit, and do they have an internal compliance control system (including Sanction Screening against EU/US/UK sanctions lists) covering the entire spectrum of the multimodal supply chain, as well as what the dynamics of reaction to regulatory changes look like.
How much does the lack of ESG cost – a real risk for manufacturing and export companies
Lack of ESG compliance has ceased to be just an image issue. Today, it has a measurable price and appears in several places at once.
Tender risk
Companies exporting to the markets of Germany, France, the Benelux countries, or Scandinavia increasingly receive ESG questionnaires from their recipients even before being invited to a tender. A lack of Scope 3 emission data, the absence of a logistics operator certificate, or missing documentation of safety procedures may mean elimination from the process. This is not because the offer is too expensive, but because the documentation is incomplete.
Regulatory and cost risk
From 2026, road transport will enter the EU ETS system, and carriers will bear real costs for every ton of CO2 emitted. These costs will go directly into freight rates. Companies that are not optimizing their transport modality today will pay for it twice: with higher invoices from carriers and with the costs of emissions they failed to reduce. (source: EU Emissions Trading System – Komisja Europejska)
Legal risk
On routes to Great Britain, The Carriers’ Liability (Amendment) Regulations 2023 require loaders and carriers to document their vehicle security check procedures. Failure to provide this documentation when an illegal entrant is detected results in a financial penalty, regardless of whether the operator was aware of the incident. The penalty for inadequate vehicle security is up to £6,000 per responsible person. If an illegal entrant is detected during an inspection, the penalty increases to up to £10,000 for each individual found, with separate fines imposed on both the transport company and the driver. When several individuals are found inside the trailer, the total penalties can amount to tens of thousands of pounds for a single journey. Euro24 has implemented the Final Check Protocol, consisting of five mandatory steps to be completed before every border crossing into Great Britain: (source: The Carriers’ Liability (Amendment) Regulations 2023 (SI 2023 No. 29))
| Procedure step | Operational action | Goal |
|---|---|---|
| Seal verification | Checking the number against the register and taking a photo of the seal against a board | Securing cargo integrity |
| Curtain inspection | Curtain inspection: damage over 25 cm disqualifies transport | Ruling out interference by third parties |
| Chassis inspection | Checking lockers, deflectors, and the space under the semi-trailer | Elimination of hiding spots |
| Interior verification | Physical check of the roof and areas invisible from the outside | Confirmation of the absence of unauthorized persons |
| Documentation | A complete checklist with date, time, and driver’s signature | Proof of due diligence |
Contractual risk
An increasing number of contracts with corporate customers include ESG clauses requiring proof of environmental and labor compliance throughout the entire supply chain. Breach of such clauses may result in contractual penalties or the termination of a long-term contract. For a manufacturing company exporting to Western markets, this is not a theoretical risk. It materializes with the next request for quotation, when the documentation is simply missing.
ESG in logistics tenders
What do procurement departments require from operators today?
The role of the procurement department has changed fundamentally. Previously, its main task was cost optimization. Today, it is also responsible for business risk, regulatory compliance, and the implementation of the entire organization’s ESG strategy. In practice, this means that every logistics operator becomes part of the client’s environmental report and must be able to document it.
A manufacturing company exporting components to Germany may today receive an inquiry from a recipient containing, among other things:
- What percentage of transport is carried out intermodally.
- What are the average CO2 emissions per ton-kilometer.
- Whether the operator has an independent ESG rating (e.g., EcoVadis).
- Whether drivers undergo certified training in safety procedures.
- Whether the operator can provide emission data in a format compliant with the GHG Protocol.
Without this data, entering a tender is increasingly difficult today, not because the rate is too high, but because the documentation is incomplete.
When choosing a logistics operator from an ESG perspective, it is worth checking:
| Criterion | What to verify |
|---|---|
| Emissions and modality | Does the operator offer rail or intermodal transport? Can they provide CO2 emissions per ton-kilometer? |
| ESG certification | Do they have an independent rating, e.g., EcoVadis? What are the results in individual categories? |
| Labor standards | Do drivers have documented training? Does the company have an employee development model? |
| Subcontractor verification | Does the operator check licenses, carrier liability insurance (OCP), and trade registers before the first order? |
| Operational transparency | Does the client receive data for Scope 3 reporting? Is there a Control Tower monitoring every order? |
| Regulatory compliance | Does the operator meet the requirements of the Carriers’ Liability Regulations on UK routes? |
Is ESG in logistics a cost or an insurance policy?
This question is asked regularly, and the answer is unambiguous: in the perspective of the coming years, ESG is ceasing to be a choice and is becoming an operational requirement. Granted, in the short term, implementing procedures or an audit is an investment of time and resources. However, the calculation changes diametrically when we switch to the language of TCO (Total Cost of Ownership).
From 2026, road transport will enter the EU ETS system, and every ton of emitted CO2 has its market price. Companies that do not optimize their transport modality will pay for it twice: with higher freight rates and emission costs that they failed to reduce before a contractor’s audit. At Euro24, we mitigate this risk by offering rail and sea freight, which realistically reduce the carbon footprint of the supply chain.
What’s more, a lack of ESG documentation is today a risk of being «cut off» from revenue. More and more procurement departments are excluding suppliers from tenders before the question of price is even raised. If a contract with a customer from Western Europe depends on the compliance of the entire supply chain, saving a few percent on freight loses its significance compared to losing the contract. For us, emission data and safety procedures are not «paperwork,» but access to markets that remain closed to your company without this documentation.
How to calculate the transport carbon footprint?
The transport carbon footprint is the amount of CO2 emissions generated during the transport of cargo over a specific distance. The basic indicator is emissions per ton-kilometer (tkm), which is the CO2 generated when transporting one ton of cargo over one kilometer of the route.
The transport carbon footprint is calculated using a simple formula:
CO2 emissions = activity data × emission factor
In other words: cargo mass (in tons) × distance (in kilometers) × emission factor for a given type of transport (in g CO2/tkm). The result is given in kilograms or tons.
The result is influenced by several factors:
- Type of transport (road, rail, sea, air).
- Cargo mass and vehicle loading level.
- Length and type of route.
- Vehicle type and engine emission standard.
- Type of fuel or energy source (especially important for rail – emissions depend on the energy mix of a given country).
How to do it in practice:
- Define activity data – how much cargo, on what route, by what means of transport.
- Find the emission factor – for road, rail, or air transport, these are available in certified databases, e.g., the ICAO Carbon Emissions Calculator for air freight.
- Calculate emissions – multiply activity data by the emission factor; for other greenhouse gases (e.g., methane), convert them into CO2 equivalent (CO2e) using the GWP (Global Warming Potential) factor.
Why is this important in practice? Because Scope 3 requires the presentation of concrete figures, not declarations that «we try to limit emissions». A Western European recipient may ask for average CO2 emissions per ton-kilometer for a specific route and type of transport. An operator who cannot provide these figures will be dropped from the tender.
A good logistics operator should be able to provide emission data in a format ready for direct entry into a Scope 3 report without the client having to do it themselves. Euro24 provides such data as a standard element of customer service.
What does ESG look like in your supply chain?
A good logistics partner today is not just one who delivers goods on time. It is an operator that understands the business, reliably documents its actions, and takes full responsibility for its fragment of the supply chain. At Euro24, operating since 2007, we know this best, supporting our 1,710 clients in 43 countries, providing solutions where fast quoting (15–30 minutes, also in the evenings and on weekends) is a standard, and it is no exception.
Market changes pose a challenge of efficient process adaptation for producers and logistics operators. At Euro24, we understand that ESG in logistics is not a one-time certificate, but a continuous process, which is why, as a multimodal operator offering road, air, sea, and rail freight, we ensure full visibility of processes. Our operational heart is the Control Tower, which works 24/7/365, monitoring your cargo for 8,760 hours a year. Thanks to this, every transport is under constant care, and emission data necessary for your Scope 3 reporting is provided to you as a concrete result of our daily work, and not an estimated value. By choosing Euro24, you gain a partner for whom logistics is a combination of multimodal flexibility with technology that realistically secures the continuity of your production.
FAQ
Scope 3 is a category of indirect emissions in the GHG Protocol standard, the most widely used greenhouse gas emission accounting system in the world. It includes all emissions generated in a company’s value chain over which it does not have direct control. Transport carried out by external logistics operators falls precisely under Scope 3 and, for many manufacturing companies, is the single largest item in the entire emission report.
The CSRD directive has been mandatory for large companies since 2025 and is gradually being extended to smaller entities. It requires reporting on environmental, social, and governance impacts, including Scope 1, 2, and 3 emissions. For companies exporting to Western European markets, this means in practice that their recipients will require ESG data from the entire supply chain, including logistics operators.
The most reliable method is to verify an independent ESG rating, e.g., an EcoVadis certificate, which includes an audit in four areas: environment, labor rights, ethics, and sustainable procurement. It is also worth checking whether the operator has documented subcontractor verification procedures, current quality certificates, and whether they can provide emission data in a format compliant with Scope 3 reporting requirements.
The consequences are multi-level. On routes to Great Britain, a lack of documented vehicle security procedures means a fine of up to 6,000 GBP for inadequate security and up to 10,000 GBP for each illegal passenger detected, imposed separately on the company and the driver. In a broader ESG context, missing documentation may mean elimination from a tender, breach of contract clauses, or problems during an audit by a corporate recipient.
The basic indicator is CO2 emission per ton-kilometer (tkm), which is the amount of CO2 generated when transporting one ton of cargo over one kilometer. The result is influenced by the type of transport, cargo mass, route length, vehicle type, and loading level. An ESG-compliant logistics operator should be able to provide this data in a format ready for entry into a Scope 3 report.
ISO (e.g., ISO 14001 for the environment) confirms that a company has implemented a specific management system. EcoVadis assesses actual results and actions in four ESG areas based on an external audit and compares them with an industry benchmark. For procurement departments, EcoVadis is more useful because it provides a specific percentage score and industry percentile, rather than just confirmation of system implementation.
An EcoVadis audit usually takes 4–8 weeks from the moment documentation is submitted. An internal procurement department audit of a logistics supplier, including verification of procedures, certificates, and documentation, can be carried out within 1–2 weeks with an efficient flow of documents.
In the short term, implementing procedures and audits is an investment of time and resources. However, from 2026, when road transport enters the EU ETS system, emission costs will be passed on to freight rates. Companies that optimize their transport modality and ESG documentation today will have lower costs and a better competitive position in 2–3 years.
The GHG Protocol is the most widely used greenhouse gas emission accounting standard in the world. It defines three emission scopes (Scope 1, 2, and 3) and specifies the methodology for calculating them. It is important for logistics companies because their clients report Scope 3 emissions according to this standard and require data in a format compliant with it.
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