Old Dominion Freight Line is a publicly listed company headquartered in the United States of America. In 2021 its revenue was USD 5.26 billion. The company is based in Virginia and has been combining shipments to provide less-than-truckload transportation services for more than 80 years.
Old Dominion has not set any targets to reduce its emissions intensity. The company should develop a target that aligns with its 1.5°C pathway. Additionally, OD should set intermediate targets at gaps of no more than five years to incentivise near-term actions towards its longer-term goal. The company should clearly report its base year emissions and disclose the proportion of each target that will be met through direct action, rather than including offsets, to allow for a complete analysis of its targets and progress against them.
OD has implemented board-level oversight of climate change and one member of the committee was found to have relevant expertise. The company has identified short-term actions to tackle its emissions. However, the company has not developed a low-carbon transition plan. It can improve by establishing a time-bound action plan that outlines how it will transition to a low-carbon economy. This should include quantifiable KPIs and financial commitments. The plan should be informed by scenario analysis to ensure the plan’s ambition is sufficient for a 1.5°C pathway. Company incentives should then be aligned with its decarbonisation commitments.
There is a lack of evidence that OD is developing business models for a low-carbon future. To date, it has purchased one electric truck. As it replaces its fleet over the next five years, the company can seek to systematically introduce low-carbon vehicles and fuels. Using its telematics system and driver training, it can also practise route and speed optimisation. Finally, it can cooperate with other transport companies, such as rail operators, to shift to low-carbon intermodal freight transportation. OD should disclose the profitability, current size, potential growth and deployment schedule of new business models to demonstrate progress.
OD receives a trend score of -. If the company were reassessed in the near future, its score would likely decrease. OD is projected to exceed its carbon budget for 2021 to 2035. The company does expect to expand its use of low-carbon diesel from 20% and has bought one electric truck to trial. However, without ambitious emissions reduction targets or a robust transition plan this will not be sufficient to align with its 1.5°C pathway going forwards.
OD has not set any emissions targets nor developed a clear vision of what its business will look like in a low-carbon future. The company states it is identifying opportunities to expand its use of low carbon diesel but has not set targets for this expansion.
The company does not have a low-carbon transition plan and there is no evidence that it intends to develop one in the near future. However, the company anticipates replacing 10% of its fleet per year over the next five years. It also plans to expand its use of low-carbon diesel .
The company is trialling an electric truck and is working with manufacturers to customise existing trucks for greater efficiency. The company increased its use of renewable fuels from 0.6% to 3.7% between 2019 and 2020.
OD’s emissions intensity has been steadily decreasing since 2015. However, while investing in low-carbon fuels and fleet upgrades OD is still mainly operating internal combustion engine vehicles. Therefore, without setting targets and creating a robust transition plan the company may not see this trend continue.
No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.
No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue or engagement with stakeholders in its just transition planning.
No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.
No public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.
No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.
No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.
The company can strengthen its commitments to respecting human rights and the ILO fundamental rights at work. Furthermore, the company can increase disclosure on its human rights due diligence process and engagement with affected stakeholders. The company does, however, have a grievance mechanism available to workers and external stakeholders.
The company discloses that none of its employees are covered by collective bargaining agreements. No evidence in policy documents was found regarding a company commitment to respecting worker health and safety, nor was evidence found of a company commitment to gender equality and women’s empowerment. Furthermore, the company can increase disclosure on its living wage, working hours and workforce diversity fundamentals.
While the company has a policy prohibiting bribery and corruption, no relevant disclosure was found regarding corresponding clauses in its contracts with business relationships. Additionally, the company can strengthen disclosure on its global tax strategy, lobbying and political engagement policy and protection of employees’ and customers’ personal data.