Government attitudes, regulations shift from sustainability

Advocates in the air cargo industry worry that regulations promoting sustainability in the United States and European Union could be weakened as politicians’ attitudes shift. But even if the U.S. and EU backtrack on sustainability regulations, companies must continue to explore and implement sustainable practices, panelists agreed at the AirCargo Conference in Dallas on March 4. [caption id="attachment_57149279" align="aligncenter" width="1920"] Caption: Sustainability experts discuss best methods for companies in the cargo sector to become more sustainable at the AirCargo Conference 2025 in Dallas. (Photo/Cargo Facts)[/caption] The European Commission 's omnibus package, proposed Feb. 26, modifies the EU’s Corporate Sustainability Due Diligence Directive (CS3D) and Corporate Sustainability Reporting Directive (CSRD). The omnibus package reduces the number of organizations subject to mandatory sustainability reporting requirements by about 80%. “It's a huge gutting of those bills that really were putting good things in place,” Jason Bailer Losh, director of business development at shipping company Dietl International Services and director of environmental affairs at Global Critical Logistics , said in a session at the conference. While California's SB253 and SB261 are like CS3D and CSRD, Losh worries President Donald Trump ’s administration may seek to weaken their effect. SB253 and SB261 were signed into law in October 2023. “Those [bills] are going to essentially put into effect reporting standards across anybody who does business in California,” he said. “Now the issue with our current administration is: What pushback might we get interstate transfer-wise? And I think that that's a big question mark.” ‘Politically unpopular’ Losh believes sustainability may be Trump’s next target after he dismantles diversity, equity and inclusion (DEI) policies and practices. “The EU regulations are much stronger than what the U.S. regulations are, except for California, and even with California, the government will probably start requiring them to pull back on some of their initiatives, and I worry about that,” he said. But is the new administration’s attitude regarding sustainability about practice or nomenclature? Before it was called sustainability, companies called these practices “corporate social responsibility,” a term that was changed because it wasn’t descriptive enough, John Bys, executive sales leadership at EcoVadis, said in the session. Paris-based EcoVadis assesses companies’ actions and provides a sustainability rating. “We're getting away from the word sustainability because it's tied to DEI and it's politically unpopular, at least for this administration,” Bys said. “OK, does it change that it's the right thing to do? “The terminology is going to change,” he said. “But does it change that companies that are looking after our environment, that are trying to create products that are better for our environment, better for our business practices, are companies we want to do business with? It's a lens as opposed to a complete change.” “Maybe it won't be called sustainability next year. Maybe we won't use DEI. But this isn't going away.” — John Bys, executive sales leadership at EcoVadis Considering recent changes and attitudes, the Airforwarders Association’s (AfA) Sustainability Committee is more dedicated than ever to promoting sustainability, Kendra Tanner, president and CEO at freight forwarder Allstates WorldCargo and AfA board member, said in the session. “There's not going to be as much focus from this new administration on sustainability,” she said. “So, we all came to the consensus that now that just means more focus is on us to drive that narrative.” Employee attitudes Companies need to prioritize sustainability, not just for the planet but for their future workers, panelists agreed. “Kids coming out of college today, they want to know they're going to work for a company that is sustainable,” Bys said. “We want the best and the brightest. They want to work for companies that they see as part of their future, their children's future.” Shipping company Estes Express Lines uses its sustainability goals and actions as a recruitment and retention tool, Sara Graf, Estes’ vice president of sustainability, culture and communications, said in the session. “Being able to put out campaigns, going to colleges, partnering with colleges to bring in intern programs focusing on sustainability ... make a difference,” Graf said. For employees and leaders reluctant to embrace sustainable practices, Graf suggested involving everyone in the company’s sustainability plan through collaboration and education. For instance, Estes has a sustainability task force that includes people from every department. Losh also suggested highlighting the financial benefits of sustainability. While some sustainability actions cost money in the short-term, they will pay off in the long-term, he said. “Money talks,” he said. “And when the clients see that they can save money, or if the leadership sees that there are places to save money in the long term, they're going to be interested in it too.” Register now for Cargo Facts' essential regional events for industry stakeholders: Cargo Facts Asia 2025 on March 24-26 at the W Shanghai in China; and Cargo Facts EMEA 2025 on May 6-8 at the Shangri-La Bosphorus in Turkey.

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