On December 15, at the 4th Annual Jie Mian Finance Conference in Shanghai, organized by the Shanghai United Media Group and Jie Mian News, FOR-U Smart Freight was named a winner in the Corporate ESG Practice of the Year category as part of the ESG Pioneer 60 for its outstanding performance in reducing road carbon emissions, improving the cost efficiency of the freight industry through the innovative use of technology, and protecting carriers' rights and interests.
"With regards to environmental responsibility, FOR-U Smart Freight has developed a smart dispatching system and reduced the empty run mileage per order by 22.7%,” the organizing committee stated in its award announcement. “FOR-U Smart Freight is also exploring autonomous driving, which can reduce fuel consumption and carbon emissions significantly, giving a strong boost to the green transformation of China's road freight industry.
Regarding social responsibility, FOR-U Smart Freight has adopted a technology-driven approach to reducing costs and improving efficiency in the freight industry through AI technology, while also improving job satisfaction among carriers. During the epidemic, the platform safeguarded the daily supplies for residents in affected cities, and actively advocated for the carrier community who rushed to fight the epidemic.
With regards to corporate governance, FOR-U Smart Freight is the only platform in the industry that implements smart pricing and has taken the lead in forming a standardized service system to help carriers and shippers negotiate deals fairly, transparently, and efficiently. It uses an array of initiatives to protect the professional dignity of carriers."
The 2021 ESG Pioneer 60 Awards aims to find green companies and industry pioneers that emphasize both economic returns and social responsibility.
The leading enterprises were selected based on five dimensions: basic ESG profile, environmental responsibility, social responsibility, corporate governance, and profitability. The information on each of the enterprises was collected from multiple channels to make sure the evaluation process was fair and objective, and to show the core competitiveness of enterprises in the era of carbon neutrality.
The ESG Pioneer 60 consists of six awards: Outstanding Environmental Responsibility, Outstanding Social Responsibility, Outstanding Corporate Governance, Corporate ESG Practice, ESG Green Finance, and ESG Explorer of the Year.
After several rounds of evaluation, FOR-U Smart Freight won the 2021 ESG Pioneer 60 Annual Corporate ESG Practice Award along with nine other companies, including DHL Express China, Cainiao Logistics, JD, Jinshan Cloud, Meituan, and China Merchants Bank. Among the winners, only FOR-U Smart Freight, DHL Express, and Cainiao Logistics were from the logistics industry.
Other award-winning companies included 3M China and BOE from the manufacturing sector, Amway (China) and Xtep from the consumer goods industry, Sequoia Capital China Fund and Standard Chartered (China) Wealth Management from the financial industry, Siemens Energy from the energy industry, as well as Shang Tang Technology, which is also named the "Four Little Dragons of AI", and NIO from the new energy vehicle sector.
In addition, 10 ESG leaders from academia, institutional organizations, government departments and social enterprises received the ESG Explorer of the Year Award, including Borger Brende, President of the World Economic Forum, and Ma Weihua, former President of China Merchants Bank.
According to MSCI's ESG Industry Materiality Map, in the freight sector, the key ESG assessment criteria include the environment: carbon emissions (23.7% of the overall score); social: labor management (24.1%); and governance: governance (41.6%).
As a technology-driven road freight platform, FOR-U Smart Freight helps reduce carbon emissions by using technology to enhance vehicle operations and fuel efficiency. FOR-U Smart Freight breaks the traditional dispatching model by using AI technology and algorithms to intelligently match orders to carriers, helping carriers to reduce empty run mileage per order by 22.7% in 2020. In addition, the platform also plans routes for carriers using intelligent algorithms to ensure on-time transportation and reduce fuel consumption.
As each step in a road freight transaction is standardized and digitalized, the FOR-U platform can capitalize on the capacity for flexible transport in our society so that spikes in transport demand can be bettered managed. At the beginning of the COVID-19 epidemic, as well as during the floods in Henan Province in July 2021, FOR-U Smart Freight joined the relief efforts immediately, opening transport routes and sparing no effort to support the front line.
FOR-U Smart Freight attaches paramount importance to the protection of the rights and interests of the carrier community and incorporates the principle of respecting carriers into its daily decision-making process and operations. Through smart pricing system, the platform allows shippers and carriers to avoid repeated negotiations over freight rates. It also uses smart dispatching to help carriers improve efficiency and increase their income. Through its quick settlement process and other measures, the platform eliminates the risk of overdue payment for carriers.
With an eye on carbon peak and neutrality targets, the freight industry will accelerate the decarbonization process. According to the Decarbonizing Road Freight Report, there are about 3 million freight companies and 217 million trucks worldwide, with the road freight industry accounting for 9% of total global CO2 emissions.
FOR-U Smart Freight insists on investing in the technology that drives it forward and will continue to promote the commercialization of autonomous driving through ongoing algorithm optimization and overall improvements in efficiency, while further focusing on sustainable development so the company may play a part in the new energy sector in the future.