XPO Logistics is a publicly listed company headquartered in United States of America. In 2021, its revenue was USD 12.81 billion. XPO operates freight transportation services in 29 countries across North America and Europe. The company specialises in road freight and has its own fleet of trucks.
XPO has not set any emissions reduction targets. The company should introduce targets to cover emissions from both its own and subcontracted operations (scope 3 emissions account for around half of the company’s total emissions). The company should ensure that this target aligns with its 1.5°C pathway. Furthermore, the company should set regularly spaced intermediate targets at gaps of no more than five years to incentivise near-term action.
XPO has implemented board-level oversight of climate change and has incorporated environmental metrics into its executive incentive programme. However, no evidence was found that XPO has a low-carbon transition plan. The company should establish a time-bound action plan that outlines how it will transition to a low-carbon economy. This should include short, medium and long-term targets, verifiable and quantifiable key performance indicators and financial commitments. The plan should be informed by scenario analysis to ensure that the plan’s ambition is sufficient for a 1.5°C pathway.
XPO expects all its suppliers (including subcontractors) to adhere to its code of business ethics, which includes reference to the environment. However, this does not contain any metrics to measure climate or wider environmental performance or include emissions reduction requirements. XPO should go further to encourage subcontractors to reduce their emissions. This could include encouraging suppliers to set science-based targets and developing and collaborating in low-carbon R&D projects.
XPO receives a trend score of -. If the company were reassessed in the near future, its score would likely decrease. XPO has not set any decarbonisation targets and has not developed a transition plan. The company has incorporated environmental metrics into its executive incentive programme and has implemented board-level oversight on climate change. However, there is no evidence that this has significantly influenced the company’s business model and strategy going forward.
XPO currently has 3 electric vehicles, which does not represent a significant share of its fleet. It is expanding its use of less carbon-intensive fuels such as biodiesel and natural gas. The company is also expanding its use of duo-trailers (one truck towing two trailers) and mega-trucks which have emission reduction potential compared to standard diesel trucks.
XPO acknowledges climate change as an issue but has not developed a strategy to reduce emissions from its own operations or to influence its subcontractors to reduce their emissions. There is little evidence that the company has integrated climate change into its business model.
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.
The company discloses the actions it takes to provide access to new types of jobs through training. It also discloses the measures it takes to ensure that these jobs embed equality of opportunity for women and vulnerable groups. In particular, it has a programme for military veterans and to take advantage of their specific skills. However, no evidence was found of the company committing to create and support access to green and decent jobs as part of the low-carbon transition. Furthermore, no relevant disclosure was found of the company’s assessment of employment dislocation risks.
The company discloses the actions it takes to provide education opportunities for workers and affected stakeholders. For instance, it offers training and certification courses for employees, and offer driver training schools for students. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to reskill or upskill.
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 commits to respecting human rights and offers a grievance mechanism to workers and external stakeholders. The company can however strengthen its disclosure to ensure the respect of human rights in its operations and supply chain.
The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. Furthermore, the company commits to increase the representation of women in managerial positions, and publishes some workforce diversity fundamentals, including the gender of its workforce by employee category. However, the company can strengthen its disclosure on these subjects and other key decent work issues including living wage and working hours practices.
The company commits to protecting personal data. However, no evidence was found of a privacy statement regarding the collection, sharing and access to personal data. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. However, the company can strengthen its disclosure on these subjects and other key ethical business topics including tax and lobbying and political engagement.