Sustainability

To date we have installed 1,560 kW of solar systems on the roofs of our buildings, generating around 1.8 million kWh, about 36% of our total electricity consumption. At the end of 2025 we began a further photovoltaic project with a generating capacity of about 1.2 MW, due for completion during 2026. We also purchased 222 Renewable Energy Certificates covering part of our 2025 electricity consumption, which lower Scope 2 emissions under the market-based approach.

This year we did not move towards the target. We cut petrol consumption by about 7%, but diesel consumption rose by about 8% and Scope 1 emissions rose by about 7% against 2024, driven mainly by 15% growth in activity. Electricity consumption grew by about 57% while solar generation fell by about 10%, so Scope 2 emissions rose by 52%, or 44% once the certificates are counted. The total Scope 1 and 2 carbon footprint grew by about 25%, or 22% on the market-based calculation.

We are located close to Ashdod port to reduce the movement of goods, and the directly operated trucks meet the Euro 6 standard. Every company vehicle that is replaced is replaced with an electric one, and 50% of the passenger fleet is now electric. 100% of the company’s forklifts are electric, and during 2025 we invested around NIS 3 million in some 20 further electric forklifts.

100% of our cardboard, office paper waste and wooden pallets go to recycling, and more than 90% of total waste. The boxes we buy and our wooden pallets contain recycled material; in 2024 we replaced cartons with rigid, reusable plastic boxes and stopped using branded sealing tape. Collecting electrical products from consumers’ homes for recycling, together with pallet and cardboard recycling, produced around NIS 5 million in revenue in 2025. Our environmental conduct shows in zero fines for environmental non-compliance.

Environmental innovation is where we see the largest opportunity to improve. We have approached start-ups whose solutions may yield collaboration, and we are examining biodiesel and electric trucks, neither of which is commercially available in Israel today. In parallel we are expanding the recycling of plastic film and shrink wrap, and examining solar panels on the roofs of further buildings.

Before engaging a supplier or subcontractor we examine their ethical, environmental and social conduct, through a questionnaire covering the existence of a code of ethics, protection of human rights, fair and safe employment, and a policy for reducing environmental impact. We give preference to local suppliers.

At the contracting stage suppliers confirm our code of ethics and sign an agreement with clauses on ethical business conduct, human rights, fair and safe employment and sustainable environmental conduct. We have built sustainability clauses into the haulage contractors’ agreements as well, and in 2024 we developed a questionnaire to assess compliance with the company’s standards before and after engagement.

In day-to-day work we encourage suppliers and subcontractors to advance ESG through communication, training and conversation, and material suppliers complete an annual evaluation questionnaire. We invite them to propose sustainability ventures, we have communicated the importance of reducing emissions to the drivers, and we are examining digital applications that will help them choose routes. Together with the drivers we have continued to collect electronic waste from clients.

We are completing the rollout of AYAL, an application-based distribution platform that gives distribution teams, drivers and clients real-time information and manages distribution end to end. It cuts paper use substantially by digitising proof of delivery, bills of lading and price lists, and it carries a warehouse application, a dispatcher application, a driver application, a client portal and an agent portal, along with an AI-based interface for coordination and enquiries that has replaced processes previously handled by the service centre.

Ethical and fair business conduct, with transparency and integrity, has been at the heart of Sela Commerce and Logistics since it was founded. 100% of employees go through annual training on the code of ethics, which sets out our principles and values towards every stakeholder.

No incidents of bribery, corruption, anti-competitive conduct or breach of privacy have been recorded against the company, nor any incidents of discrimination, workplace abuse or harassment of any kind. We hold the ISO 9001 quality assurance standard and the ISO 27001 information security standard. The senior management team is 28% women.

In 2023 we updated the group’s procedures for ESG management and responsible supply chain; in 2024 we built a sustainability dataset and a dedicated dashboard into the company’s systems; and in 2025 we established working processes with the lead managers and stabilised the reporting system. In 2024 we also launched a sustainability forum for the logistics sector, for sharing insight and developing innovation.

100% of our procurement is from local suppliers in Israel, and our four material suppliers complete an annual ESG questionnaire covering environmental, social and corporate governance aspects.

Humanity is the first of the company’s values: protecting human rights, fair and equal employment, and a healthy, safe and respectful working environment. We make sure that activities and events for employees are run by small businesses — during the war, businesses owned by reservists — and that the gifts we give employees, clients and suppliers come from social organisations.

Women make up 39% of those employed at the sites, and 24% of the management tier. The second target has been met: for two consecutive years employees over 50 have stood at 28%. We currently employ five people with disabilities, and have set a target of growing that by a further 20 to 40%.

We invest around 9 hours of training per employee per year, some 3,852 hours in total, and safety training is held for contractor employees as well. The TRIR measure fell by about 29%, from 4.5 in 2020 to 3.2 in 2025, against a target of 2. Several vehicle accidents over the past two years slowed that improvement.

In 2025 we passed the target we set ourselves, with donations of about NIS 856.5 thousand, roughly 1.5% of pre-tax net profit, alongside some 115 employee volunteering hours. We supported more than 80 civil society organisations, non-profits and community bodies, and the work is governed by a donations committee that meets quarterly. Our focuses: the Opportunity Center in Ashdod for employment guidance, partnerships with businesses owned by reservists, and help with harvesting in the north and the south with HaShomer HaChadash and Leket Israel.

“HaKvutza”, the non-profit we founded in memory of Shimon Grinboim, offers direct and transparent help to families in need through social workers and in cooperation with the welfare authorities, by crowdfunding in which the donor chooses the case they support. Across its first decade the funds it raises have grown by 165% since 2022. In 2025 we ran four volunteering initiatives: harvesting with Leket Israel, packing gift parcels at the Ofek association, a logistics course at the Opportunity Center, and renovating buildings and classrooms at the S.O.S Children’s Village in Arad.