Transport and logistics companies are increasingly aware of climate risks - but do not take them sufficiently into account in their risk man

Extreme weather, damaged infrastructure, disrupted supply chains: German transport and logistics companies are increasingly feeling the effects of climate change. 67 per cent of companies were affected by a shortage of resources as a result of climate risks, for example due to supply bottlenecks or increased prices for raw materials or energy. More than half of companies (51 per cent) have experienced damage to infrastructure, for example to buildings or roads. 46 per cent complained about supply bottlenecks due to disrupted supply chains or a lack of materials. In addition to these operational effects, the majority of companies are also affected by more regulation: 75 per cent of companies stated that climate risks and consequential damage caused by climate change are noticeably leading to stricter laws and guidelines, for example through the Supply Chain Duty of Care Act or the Corporate Sustainability Reporting Directive (CSRD).

This is the conclusion of the study "Climate risks and consequential damage of climate change 2024" by KPMG AG Wirtschaftsprüfungsgesellschaft and Bundesvereinigung Logistik (BVL) e.V., for which over 90 decision-makers from the German transport and logistics industry were surveyed.

The study shows that, despite its high susceptibility to climate-related risks such as flooding or storms, the industry has a need to optimise its risk management. The majority of the companies surveyed do not take climate risks and consequential damage from climate change fully into account in their own risk management system: for example, only 37 per cent fully consider increased regulatory implications and ESG requirements. Other topics relevant to risk management are even less often fully mapped in the systems.

Even if there is a need for optimisation in risk management, companies are by no means inactive. Many of them have initiated measures to reduce consequential damage, such as emergency and crisis plans, insurance or infrastructural adjustments. Accordingly, 52 per cent are investing in more staff to implement regulatory requirements and decarbonisation strategies. Almost one in four companies (24 per cent) are prepared to spend ten per cent of their annual turnover on investments in the "green transformation". Other top investment targets include existing properties (69%), modernisation of the new vehicle fleet (67%) and digitalisation (64%).

Christoph Meyer, Managing Director of BVL: "It is a good sign that climate risks are already playing a role in sustainability investments. The study shows that the industry is making targeted investments in areas that offer great potential for CO2 reductions."

In contrast, most companies cannot imagine foregoing profits in order to reduce climate risks. Only four per cent of the companies surveyed are prepared to give up more than ten per cent of their profit margin. Only 7 per cent can imagine selling climate-damaging business units. And although 71 per cent of companies would like to become CO2-neutral, around two thirds of companies (66 per cent) see no (14 per cent) or rather no (52 per cent) willingness in the transport and logistics industry to pay more for CO2-neutral transport.

Even though the willingness to invest is increasing, only 25 per cent of those surveyed rate the impact of their own company on climate change as high. Conversely, a good one in four companies (27 per cent) in the German transport and logistics industry rate the impact of climate change and the corresponding risks on their own business model as high or even very high.

Clemens Reisbeck

Deputy Head Corporate Communications
KPMG AG Wirtschaftsprüfungsgesellschaft

T +49 89 9282 1722
creisbeck@kpmg.com