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ForwardOur 2020 Environmental, Social and Governance (ESG) report. OIA GLOBAL FORWARD 2020, Published September 2021
Who We AreOIA Global was founded in 1988. Back then, we specialized inexporting perishable foods from the United States and wewere more commonly known as Oregon InternationalAirfreight. Now, we are a global leader in supply chainmanagement, with more than 1,200 passionate employeesacross 27 countries, with annual revenue exceeding a billiondollars.We deliver innovative and resilient solutions that optimizecustomers’ supply chains.As an asset-light company, we offer customers exceptionalservice through global logistics, packaging design andoptimization, and material sourcing solutions, in additionto emerging fourth- and fifth-party logistics outsourcing.For more information, please visit www.oiaglobal.com. OIA GLOBAL FORWARD 2021What’s new in our 2020 report:Employee EngagementOIA Global is seeking ways to improve our culture in inclusive, meaningfuland measurable ways.Business ContinuityIn 2020, OIA Global partnered with Castellan to examine, expand and testour business continuity plans. Our teams are more confident and preparedto handle the unexpected.Carbon Reporting ValidationOIA Global’s carbon reporting tool and methodology has been validatedby the Smart Freight Centre.Scope 2 EmissionsOIA Global offices around the world increased recycling by 26% andreduced paper consumption by 55%. With employees working remotely,our emissions dropped 20% in 2020.
Our VisionThe pandemic has changed our lives, ourrelationships and the way we think about work.In the face of uncertainty, we experiencedunique challenges and setbacks. Our entireleadership team is proud of how employeessupported and encouraged one another throughsignificant change.During the pandemic, our organization's ESGefforts diverted from the expected path. Instead,we made a commitment to invest in ouremployees' well-being and professionaldevelopment. Many of our employees are stillworking remotely, and this change haselicited progress toward our sustainabilitytargets: reduced Scope 2 emissions, increasedrecycling and a notable drop in paperconsumption. We intend to reach our 2025targets through meaningful, long-term changesin the way we work.In 2022, we will begin assessing our officenetwork and identifying opportunities to switchto renewable energy sources. Additionally, ourorganization will consider different global hybridwork policies to keep OIA attractive to global OIA GLOBAL FORWARD 2021talent, wherever they may reside. We areconfident in this report's featured engagementaction plans, and many of our short-term actionplans are already in progress. I look forward tosharing more details in 2022.Our customers will benefit from several changeshighlighted in this report: new businesscontinuity plans, an expanded sustainability teamand a carbon reporting method validated by theSmart Freight Centre.As we explore new ways of working, our vision isto build smart, resilient supply chain solutions.Every step will be powered by intent andpurpose to make our world a better place.Tim SetherEVP, CFO
GovernanceScope 3 ReportingEmployee EngagementEstablished in 2020, our Environmental andSocial Governance (ESG) committee issponsored by Tim Sether, EVP, Chief FinancialOfficer, and guided by our Board of Directors atLDI, Ltd.Employee DevelopmentEmissions & FuelVendor ManagementCorruption (FCPA)Diversity & InclusionCircular PackagingEnergy EfficiencySocial ResponsibilityHuman RightsSupplier ManagementResource Consumption and CircularityLife Cycle AnalysisMODERATESignificance to ClientsMateriality MatrixLacy Diversified Industries (LDI, Ltd.) is an Indianapolis-based family office with more than a century of experience fundingand operating high potential, middle-market companies. LDI leads with integrity, encourages innovation, and is dedicated togrowing great companies into companies of greatness. For more information, please visit https://lacydiversified.com. OIA GLOBAL FORWARD 2021Climate ChangeIndustry CollaborationSignificance to OIA GlobalOur materiality matrix highlights the initiatives weare currently working on. Our goal for the 2021ESG report is to provide readers with a road mapof intended actions, in addition to actions takenthat address initiatives within the materialitymatrix.Occupational Health & SafetyComplianceThe ESG committee is represented by HumanResources, Compliance, Finance, Operations andIT to address customer inquiries, emissionsmeasurement and reporting, employee training,compliance and employee engagement.Our 2020 goal was to fully implement and refineour carbon reporting tool, EcoTransIT, for allcustomers. In 2021, we pursued GLEC-compliantreporting validation from the Smart FreightCentre. In 2022, we will build a global traininglibrary for standardized education on emissionsand reporting, and to elicit compliance acrossour organization.Data SecurityHIGHVERY HIGH
OIA Global seeks to be a more progressiveorganization. We are recommitting to ourvision of a better world in service to ourenvironment, employees, customers,suppliers and communities.The pandemic taught us to explore newways of working, to invest in our employees,to build clear policies, practices andprocesses, and to strive to meet the needsof global supply chains in the most efficientand economical means possible.Since the pandemic, four key issues havebecome increasingly essential:Occupational Health & SafetyWe continue to follow and enforce guidelinesfrom global, national and local healthauthorities to prevent the spread of coronavirusand its emerging variants.However, we must approach work in a differentway to develop flex work guideline that addresslong-term work-life balance and health and safety. OIA GLOBAL FORWARD 2021Employee EngagementOIA Global is seeking ways to improve our culturein inclusive, meaningful and measurable ways. In2019, OIA Global partnered with QuantumWorkplace to conduct our first annual employeeengagement survey and establish baselinemetrics for employee satisfaction.When favorability worsened in 2020, we tooktargeted measures to improve the employeeexperience. We held more than 40 focus groupsto collect additional feedback from employees,with representation from all offices in our network.We took that information and developed 23 actionplans for 2021. Actions include updates to ourcode of conduct, the development of flex workguidelines, the implementation of salary gradestructures, increased communicationpathways and furthertraining and resources foremployees.Training ComplianceOIA Global is proud to report thatnewly implemented training onDiversity, Equity and Inclusion,Foreign Corrupt Practices Act andAnti-harassment have a 99%participation rate or higher.Scope 3 ReportingWhen OIA Global first implemented EcoTransITWorld, a carbon reporting tool, only 63% ofcustomers required carbon reporting. Now, OIAGlobal offers carbon reporting for all customers,down to the shipment level. In 2021, our processfor delivering carbon reporting was validated bythe Smart Freight Centre. In 2022, we will addCO2e emissions estimates at the time of shipmentquoting.
MembershipsThe energy required to manufacture, packageand transport cargo around the world adds torapidly increasing global greenhouse gasemissions. To mitigate the impact on climatechange, we support industry research andcollaboration while promoting responsibledecision-making across the supply chain.Through these memberships, we’re able to offercustomers more sustainable supply chainservices. Whether it’s switching to 100%recyclable packaging materials or choosing roadfreight carriers with an energy-efficient fleet, wefind sustainable ways to decarbonize supplychains. OIA GLOBAL FORWARD 2021Clean CargoWe are active membersof Clean Cargo, a BSRbuyer-supplier initiativededicated to reducingthe environmentalimpacts of globaltransportation andpromoting responsibleshipping.Smart Freight CentreA non-profit organization dedicatedto creating a zero-emissions globallogistics sector through the onlyglobally recognized methodologyfor harmonized calculation andreporting of logistics emissionsacross the multi-modal supplychain: the Global LogisticsEmissions Council (GLEC).Sustainable AirFreight AllianceWe are active members ofSAFA, a BSR buyer-supplierinitiative dedicated toreducing emissions from airfreight and promotingresponsible freighttransport.EPA SmartWaySustainablePackagingCoalitionThe SPC is amembership-basedcollaborative thatbelieves in the power ofindustry to makepackaging moresustainable.BSRAn organization of sustainablebusiness experts that works with itsglobal network to build a just andsustainable world. OIA Global is oneof 250 member companies thatsupport the research and industrycollaboration required to shift to aninclusive, net zero economy.We use United StatesEnvironmental ProtectionAgency data and partnernetwork to select carriersthat meet the EPA’s higheststandards in environmentaland energy efficiency.Nearly 75% of theshipments we manage inthe United States aretransported by an EPASmartWay approved roadfreight carrier.
Tracking Scope 2 EmissionsIn 2019, OIA Global recorded Scope 2 emissionsbaseline at 6,581,984 MT. Our target is to reduce CO2eemissions 5% by 2025. We are hiring an additionalsustainability role to drive the organization towardmore aggressive, science-based approaches andtargets in 2022.Like many companies during the pandemic, OIAGlobal experienced a drop in global emissions asmost employees worked remotely.We will continue our progress in 2022 byincorporating Scope 1 emissions, identifyingwhich offices can switch to renewable energysources, as well as improving recycling andreducing consumption.Total Scope 2 Emissions (MT)2025 Targets5% Reduction in Scope 2 emissionsBaseline: 6.5m MTDuring the time spent away from the office, OIAGlobal saw a 26% increase in offices that offerand encourage recycling, and a 55% drop inpaper consumption.EMEA RegionAmericas Region1,021,388Goal: 6.2m MT3,167,3592020 Insights60% Branches offer recyclingBaseline: 30%EMEAGoal: 100%6,442,07675% Branches powered by renewable energy sourcesBaseline: 35%Goal: 75%APAC Region55% Decrease in paper consumption2,253,379OIA Global’s Scope 2 emissions baseline measurement was documented in 2019. Scope 1 emissions are considered nominal, we will assess and include Scope 1 emissions in future reporting. OIA GLOBAL FORWARD 2021
Tracking Scope 3 EmissionsOIA Global follows the Global Logistics EmissionsCouncil‘s (GLEC) framework to calculate andreport carbon emissions across multi-modalsupply chains.The GLEC framework was developed by theSmart Freight Centre, in alignment with theGreenhouse Gas Protocol, the UN-led GlobalGreen Freight Action Plan and the CarbonDisclosure Project reporting. The framework isdesigned to inform business decisions and steerefforts toward efficient, zero-emissions globalfreight and logistics.AIRIATARP 1678RAILOCEANEcoTransITSmartWayClean CargoIMOTRANSSHIPMENTCENTERSROADWith this framework and through industrycollaboration, OIA Global can identify multimodal supply chain partners to transport ourcustomers’ freight.Green LogisticsGreen EffortsEPA SmartWayEN 16258INLANDWATERWAYSIMOSmartWay OIA GLOBAL FORWARD 2021
Scope 3 Emissions ReportingOIA Global has implemented an interface from aSmart Freight Centre-accredited tool provider tocalculate and track greenhouse gas (GHG)emissions data by leveraging shipment data fromour transportation management system (TMS).In 2019, we adopted EcoTransIT World and theClean Cargo methodology to conform with theGLEC Framework, the only globally recognizedmethodology for harmonized calculation andreporting of logistics GHG footprints acrossmulti-modal supply chains. EcoTransIT World wasintegrated directly inside of our TMS system,where it could deliver shipment-level metricsfrom multiple legs through an API.Before full implementation, system parameterswere established and then tested using a varietyof movements. The first GHG calculation outputswere reported in January, 2020.Smart Freight Centre has reviewed the systemand confirmed that the input and output dataflows are sound for all modes, and that finalemission values are calculated in accordancewith the GLEC Framework. OIA GLOBAL FORWARD 2021Adopting the GLEC Framework allows OIA toimprove customer reporting and offer anefficient, reliable, auditable solution to recordGHG emissions.Following the technical review and datavalidation by Smart Freight Centre, OIA will workwith SFC to implement continuous reportingfunctionality, improve data accessibility andexplore GHG emissions transparency for moreaccurate calculations going forward.To standardize and accelerate reporting practicesacross the industry, the Data Access & ExchangeGLEC project is developing data exchangeguidance and standardized protocols.
Business ContinuityAmidst unprecedented pandemic-relateddisruption, OIA Global activated contingencyplans for the first time in our 30-year history.We diversified one customer’s manufacturingoutside of China in less than one month, wesourced 4 million at-risk materials in backupcountries when Italy shutdown, and we leveragedagreements with strategic airline partners topreserve space during extreme competition andskyrocketing prices.Business continuity plans (BCPs) provide aframework for protecting daily operations duringunanticipated events. In the supply chainindustry, BCPs are critical because they canprovide flexibility and equip operational staff tonavigate evolving situations with concretedirectives.OIA Global partnered with Castellan to examine,expand and test our business continuity plansand capabilities. As a result, our teams are moreconfident and prepared to handle theunexpected.“OIA’s leadership was extremely engaged andcommitted to building a culture focused onresilience,” stated Brian Zawada, Castellan’sChief Operating Officer and one of theconsultants that helped design and implementOIA’s business continuity program. “The effortstarted with inventorying existing capabilities,identifying vulnerabilities and gaps inpreparedness, and then over the past year,closing the highest priority gaps and preparingfurther via tests and exercises. OIA’s customersare more resilient because the organization’sinvestment in business continuity.”Castellan is the largest provider of business continuity and operational resilience solutions – spanning consulting, software, managed services, andstaffing – Castellan is uniquely positioned to help clients find the right balance of risk tolerance and resilience to protect their employees, brand, andbottom-line. Leveraging a proprietary proven process for driving business continuity success, Castellan partners with clients to establish a clear vision,drive real results, and provide on-going support from their community of business continuity experts. Castellan helps clients replace uncertainty withconfidence. Now you’re ready.TM Castellan is strategically and financially backed by Resurgens Technology Partners. For more information, visitcastellanbc.com. OIA GLOBAL FORWARD 2021
Let’s continue to move forward, together. OIA GLOBAL FORWARD 2020
our carbon reporting tool, EcoTransIT, for all customers. In 2021, we pursued GLEC-compliant reporting validation from the Smart Freight Centre. In 2022, we will build a global training library for standardized education on emissions and reporting, and to elicit compliance across our organization. Our materiality matrix highlights the .
