Message from the CEO – Sela Trade and Logistics joins the global efforts to reduce its environmental impacts in particular and to promote ESG in general
The robustness of local and global supply chains is essential for continued commercial activity and a strong economy in Israel and around the world. In recent years, the supply chains have faced challenges arising from climate change, the COVID-19 crisis, wars that have affected the trading activity between countries and also, harmed the guarantee of life-saving supplies to various populations around the world. At the same time, new opportunities have arisen in the development/acceleration of electronic commerce, technological progress that improves and reshapes the sector and enables continuous improvement for successful navigation in a frequently changing business environment.
In parallel, the expectations of many stakeholders is that alongside continuing to strengthen the resilience of the local and global supply chain, a deep commitment and significant action is required to reduce the environmental impact of the supply chains. Data show that by the year 2050, emissions from the global transportation systems will increase by about 22%, while transportation is already responsible for about a fifth of greenhouse gas emissions. This trend alone requires all of us to look for opportunities to improve and optimize supply and transport operations while reducing the use of fossil fuels and, as a result, reducing the scope of emissions. All this alongside the continued promotion of fair, equitable and safe, local and empowering employment; Continue striving for operational excellence and cost reduction/efficiency; Continued implementation of innovation, flexibility, reliability and constant adaptability; continued improvement of service levels; Continuation of ethical, fair and transparent business conduct; Continuing to strengthen the supply chain while ensuring locality, diversity and reducing environmental impacts.
Sela Trade and Logistics is committed to business conduct that guarantees our long-term success, that is, by meeting the expectations of all stakeholders, including the employees, the community within which we operates, and the planet itself. Accordingly, we developed a business and sustainable strategy that are integrated together and refer to short, medium and long term considerations to ensure sustainability and resilience at the core of the strategy. Our goals in the field help us measure our activity and make sure that we are promoting the road map we defined for ourselves.
We are committed to persevere in locating and examining innovative developments that will allow us to improve our conduct throughout our value chain – starting with the selection of partners and suppliers, continuing with improving our practices in our owned sites and assets and at the end point with our diverse customers.
We are committed to examining and providing sustainable supply and logistic solutions that match the environmental and social challenges alongside establishing strong transportation and supply networks even when climate and environmental conditions change.
We seek to continue to establish trust with our business partners, suppliers and customers, with the aim of producing cooperation that will strengthen the business, social and environmental environment in which we operate for the benefit of our mutual success.
Sela Trade and Logistics ESG Strategy
During our 45 years of activity, as a family company founded on community and environmental values, we made sure to listen to all of our stakeholders and to create an open, fair and direct dialogue to ensure our joint success. Our stakeholders include employees, customers, end consumers, subcontractors and suppliers, communities, investors and shareholders, forums and professional associations, regulatory and government bodies and more.
During the last year, we decided on the development of a business strategy that is integrated together with our concept of promoting economic, environmental and social responsibility as one and on the analysis of material focus areas that we carried out. In addition, we defined goals and formulated action plans to achieve them.
Our strategy is based on four main pillars:
Sela Trade and Logistics ESG targets
The targets we set for ourselves until 2030 are:
Reduce environmental impacts
Lead responsible and environmental supply chain
Ethical, transparent and fair business conduct
Empower and promote people
• Reducing carbon footprint by 50% by 2035 (scope 1,2,3)
• Achieving Net zero by 2050 (scope 1,2,3)
• At least one innovation venture will be in POC status each year
• 100% circularity (RRR) in waste treatment
• Policy implementation for suppliers and subcontractors
• 100% annual supplier evaluation and carbon footprint measurement
• 100% employee training on the Code of Conduct
• Zero customer complaints
• Reduction of LTIR to 2
• 50% women in workforce; 25% over age 50
• 1% of the net profit (before tax) will be invested in community resilience initiatives
Our Organizational structure for managing and promoting ESG:
- Sustainability is managed by a senior manager (Chief Operating Officer) at Sela Trade Logistics.
- The field is closely supervised and accompanied by the CEO of Sela Trade and Logistics.
- All activity is presented to the company’s management and board of directors with an emphasis on promoting the field of environmental sustainability
Our main achievements in our four pillars
Data show that by 2050, emissions from the global transportation systems will increase by about 22%, while transportation is already responsible for about a fifth of greenhouse gas emissions. The global urgency to reduce the environmental impacts on people, companies and countries motivated us to set goals and define a road map for a more urgent and accelerated reduction of our environmental impacts. In addition, we have identified business opportunities in more responsible and efficient environmental conduct.
The targets we set ourselves to promote environmental sustainability:
- Reducing carbon footprint by 50% by 2035 (complex 1,2,3)
- Net Zero until 2050 (complex 1,2,3)
- 100% circularity (RRR) in waste treatment by 2030
We plan to achieve these goals according to a road map that we outlined to achieve the goal even before 2030, when a significant component of the plan is based on innovative technologies and applications that we are not yet familiar with.
We are proud of our progress in improving our environmental conduct, especially in the context of promoting the use of renewable energies.
To date, we have installed 1,167 kilowatts of solar systems (PV panels) on the roofs of our buildings in Sela 3, main logistic center and Bnei Darom, which produce about 1.8 kilowatts of electricity per hour. This production volume of renewable energy currently constitutes about 84% of our total electricity consumption and it helped us reduce our carbon footprint (scope 2) by 18% between the years 2020 and 2021, despite the increase in consumption due to the expansion of our activities.
We are located close to the port of Ashdod in order to reduce the transportation of goods – both in terms of efficiency and emissions. Today, 68% of our fuel consumption is intended for trucks in direct operation, with the Euro 6 standard. These days we are looking at ways to reduce the use of fossil fuels alongside launching a pilot to add solar panels to four of the company’s trucks. In addition to that, all of the company’s forklifts are electric (there are 6 that are diesel-powered, which constitute 4% of all forklifts, which will also be replaced soon).
Along with these achievements, sometimes the increase in activity, customers and employees, leads to an increase in the use of materials and waste produced. We are exploring ways to improve our conduct in this area as well. For example, 100% of the cardboard left in our possession, 100% of our office paper waste and 100% of our wooden surfaces are recycled. Along with paper waste and wooden surfaces, we are proud that about 95% of our waste is recycled (office waste is still sent to landfill).
We try to ensure that some of the materials we purchase are also more environmentally friendly and contain recycled materials. For example, the cardboard crates we purchase contain recycled material and our new wood surfaces are recycled.
In addition, we divert electrical products from consumers’ homes for recycling, and in this area, we expanded our activity by 39% from 2020 to 2021 alongside increasing the volumes of activity with Eco-mmunity – a social business for electronic waste recycling that employs people with disabilities.
Our environmental conduct reflected in zero fines for environmental non-compliance.
Our total carbon footprint, despite the significant increase in our activity, increased by only 1% between 2020 and 2021 and we are in the midst of moves that will bring significant improvement in the coming years.
These days we are in the middle of a pilot to examine the application of solar panels on the roofs of the trucks, which allows the use of renewable energy directly to charge the truck’s battery. Learn more on the application on our partner’s website – APOLLO
 Source: The World Resource Institute’s Climate Data Explorer and International Energy Agency (IEA)
As part of our procurement procedures, we implement several mechanisms to integrate sustainability with our suppliers as part of responsible supply chain management – socially and environmentally:
- Before contracting with the suppliers and subcontractors, we examine their conduct in several aspects – ethical, environmental and social conduct. This is through answering our pre-contracting questionnaire examining the existence of a Code of Ethics, guaranteeing human rights and fair and safe employment for employees, as well as a policy to reduce environmental impacts. In addition, we prioritize working with local suppliers.
- During the contracting phase itself – we ask the suppliers to confirm our Code of Ethics and sign an agreement that includes specific clauses regarding ethical business conduct, safeguarding human rights and fair and safe employment as well as sustainable environmental conduct.
- During our on-going work together with our suppliers and sub-contractors, we encourage them to promote ESG – through communications, trainings and conversations, as well as conducting an annual evaluation questionnaire to material suppliers.
Furthermore, we invite our subcontractors to propose ideas for innovative ventures for environmental sustainability and to improve our conduct in the field.
Ethical, fair business conduct with strict adherence to transparency and integrity is essential to Sela Trade and Logistics since its establishment and at the basis of our values such as loyalty, responsibility, commitment and transparency.
These days we are refreshing our Code of Ethics that presents our principles and values for our activities with all our stakeholders.
We are proud of the fact that no incidents of bribery, corruption, non-competition and violation of privacy were recorded against the company; Incidents of discrimination, abuse at work or harassment of any kind.
We comply with ISO 9001 quality assurance standards and ISO 27001 information security standards.
Our board is diverse – 33% women (2 out of 6). Moreover, we are proud that our board of directors’ chairperson is a woman.
Humanity is the first and leading value in the company’s values and accordingly, we see importance in maintaining human rights, promoting fair and equal employment as well as creating a healthy, safe and respectful work environment for all our employees.
We give special attention to the personal and financial well-being of our employees, encourage them to promote creativity, achievement, teamwork and reward our employees accordingly.
The mutual loyalty and commitment between our employees and us are additional values on which our relationships with the employees in particular and the community that surrounds us in general – are based. Therefore, we make sure to nurture, enrich and empower our employees and make sure to support the community around us.
Our commitment to promoting diversity, equity and inclusion and our actions in the field in recent years bring us closer to the goals we set for ourselves – 50% women in the workforce and 25% over the age of 50. We are proud that our workforce is composed of 40% woman and about 24% of our employees are over the age of 50.
Our training activities focus on the health and safety of our employees. We invest about 7 hours of safety training per year on average per employee. An activity that has grown year by year in accordance with the increase in the number of employees. Safety trainings are also held for contractor employees.
Employees health and safety is managed in a structured and regulated manner in the company with a safety and security management system, work according to an annual safety plan, preparation of incident reports, annual risk survey, trainings, trainings and more. We are proud of the improvement that reflects our efforts in the field when between the years 2020 and 2021 we decreased the scope of accidents and accordingly, the LTIR index decreased by 50% from 4.5 to 2.2. We aim to reach the goal of LTIR 2 and maintain it over time.
We believe in the importance of local communities’ resilience and maintain an open dialogue with them alongside investing in supporting solutions.
We contribute to the community in a variety of projects and are approaching the goal we have set for ourselves – to invest 1% of our net profit (before tax) in strengthening and empowering the communities that surround us. Already today, we stand at a rate of 0.9% in financial donations to support the community.