Exploring the impact of green logistics practices and relevant government policy on the financial efficiency of logistics companies

Abstract

The coexistence of carbon neutrality and capitalism can be realized if environmentally friendly management is proven to enhance profitability. The focus of green logistics practices (GLPs) is on maximizing energy efficiency in logistics services, potentially leading to cost reductions for companies. Such practices can be supported through public reports, such as Environmental, Social, and Governance (ESG) reports, and government policies, including government certification. The primary objective of this study is to investigate whether the financial efficiency of logistics companies can be improved through the implementation of GLPs and a relevant government policy. To achieve this objective, a two-stage analysis was conducted using Data Envelopment Analysis - Slack-Based Measure (DEA-SBM) and Tobit regression analysis. The DEA-SBM was employed to assess whether the financial efficiency of logistics companies adopting GLPs and a relevant government policy was superior to that of companies not adopting such practices. Additionally, Tobit regression analysis was employed to analyze the effects of GLPs, ESG reports, and a government policy on the financial efficiency of logistics companies. The findings of the study indicate the necessity for collaboration between the private and public sectors to implement GLPs in a financially positive manner. In conclusion, the research demonstrated that the implementation of GLPs, coupled with public disclosure through ESG reports or equivalents and a government policy, had a positive impact on the financial efficiency of logistics companies.

Keywords

• Green logistics practices
• Logistics company
• Financial efficiency
• Government policy