innovation

Will parcel lockers replace couriers? The future of last-mile delivery in the age of smart cities, automation, and green logistics

2025-08-20 przez Krystian Palica

Automation in the last mile: are parcel lockers the new standard?

Just a decade ago, automated parcel machines (APMs) were a niche solution. Today, they are central to last-mile operations. In the OOH model, parcel lockers function as hyper-local microhubs, enabling mass deliveries to a single location and dramatically reshaping the economics of last-mile logistics.

In peak periods, an InPost courier can deliver up to 1,500 parcels per day to lockers – compared to just 150–250 for traditional door-to-door routes.

But parcel lockers are not just physical infrastructure. Thanks to integration with IoT, predictive algorithms, and real-time slot management tools, operators can:

intelligently manage parcel flows,
dynamically reroute congested locations,
optimise delivery routes in real-time.

From an environmental perspective, the advantage is equally clear. According to the Last Mile Experts report, OOH delivery can reduce CO₂ emissions by up to 82% compared to home delivery – driven by parcel consolidation, reduced failed delivery attempts, and growing rates of foot and bicycle pickups.

Smart cities & parcel lockers: a seamless fit

Progressive cities are no longer treating logistics as an external utility but as a strategic pillar of urban infrastructure. OOH delivery, particularly via parcel lockers, is becoming embedded in urban planning, transport policy, and climate action strategies.

Strategic locker placement – near transport hubs, along pedestrian or cycling routes, and in everyday access points like stores or petrol stations – is not coincidental.

The report notes that 62% of Polish users collect parcels “on the go”, drastically minimising the need for separate travel or vehicle usage.

With average distances to lockers of just 350 meters in Polish urban areas, OOH is arguably the most accessible delivery model in Europe.

Multifunctionality is also accelerating. Lockers now offer:

standard and refrigerated parcel pickup,
EV charging (bikes, scooters, cars),
fully automated returns and dispatch points.

In Western Europe and Scandinavia, parcel lockers are increasingly evolving into urban microservice hubs, aligned with climate strategies and low-emission transport zones.

Open locker networks: the infrastructure response

Interoperability is fast becoming a necessity. In Poland, Orlen Paczka opened its locker network to GLS, setting a precedent for shared access. Similar partnerships are emerging in Italy and Iberia (e.g., DHL + Poste Italiane / CTT Expresso), reducing redundant infrastructure and optimising urban space.

Poland: a blueprint for Europe’s OOH logistics

Poland has become the reference market for OOH implementation — leading in infrastructure density, delivery efficiency, and consumer adoption. As of 2024, the country boasted:

45,000+ parcel lockers (APMs) and
21,000+ PUDO points.

With 11.8 APMs and 5.6 PUDO points per 10,000 inhabitants, Poland surpasses countries like Austria (1.0) or Finland (2.0), despite their developed logistics sectors.

Poland’s model demonstrates that automation, scale, and customer-centric design can converge into a replicable, future-proof last-mile system. For other European operators and policymakers, this is not just a success story — it’s a proven framework for adoption.

What’s next for couriers? A changing role

Despite the rapid rise of OOH infrastructure, couriers are not disappearing — but their role is being redefined. The future points toward a hybrid delivery model where:

APMs and PUDOs handle the bulk of B2C and C2C volumes efficiently,
Couriers serve high-touch, niche segments: large items, elderly customers, COD deliveries.

In this future, door-to-door service becomes a premium, not default, offering.

The bottom line: OOH as a strategic advantage

With failed delivery costs surpassing €14 in Germany and £11.60 in the UK, and one courier handling 10x more parcels via lockers, the economic case for OOH is clear. Add to that:

higher first-time delivery success rates,
fewer returns and complaints,
better customer experience and loyalty.

OOH delivery doesn’t replace couriers — it optimises their role and repositions them within the logistics value chain. In a world driven by speed, cost efficiency, and decarbonization, the OOH model is no longer optional — it’s inevitable.

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Last Mile Experts: OUT-OF-HOME DELIVERY IN EUROPE 2025, PUDOs and Automated Parcel Machines

7 out of 10 shoppers want AI in their shopping journey

2025-08-20 przez Krystian Palica

71% of consumers want generative AI in shopping

According to Capgemini’s 2025 report, 71% of consumers want generative AI integrated into their shopping experiences, both in digital and physical stores. The survey, covering over 10,000 participants across 13 countries, confirms that AI is no longer seen as futuristic but as an expected part of customer experience.

66% of Gen Z and 65% of Millennials expect hyper-personalised recommendations driven by generative AI — tailored not only to past purchases, but also to mood, location, and seasonal trends.
In Poland, Focus on Business reports that 7 in 10 consumers already use AI tools in everyday life — often unknowingly, through smart filters in shopping apps or marketplace recommendation engines.

Business takeaway: AI integration is no longer a competitive edge; it’s the market baseline. Retailers that don’t implement intelligent search, recommendations, and customer support risk losing their most valuable segments, especially younger generations.

70% of shoppers expect smart, personalised features

The DHL “E-commerce Trends 2025” report reveals that 70% of consumers expect online stores to offer AI-driven shopping features such as visual search, contextual recommendations, personalised offers, or voice commerce.

This expectation spans all age groups: even the 45+ demographic increasingly uses AI when tools are simple and deliver clear value, like finding product equivalents via image search or instantly comparing offers across retailers.
KPMG data shows 61% of consumers see personalised shopping experiences as a key purchase driver.

Business takeaway: AI-powered features are no longer a “premium add-on” but a core requirement for modern e-commerce. Deploying visual search, voice commerce, and dynamic recommendations must be a strategic priority to remain competitive and increase customer loyalty.

AI boosts engagement, but conversion needs work

Adobe’s 2025 e-commerce trends report shows that AI shopping tools directly impact user behaviour. Retailers that adopted generative AI recorded:

+8% longer average session duration
+12% more pages viewed
–23% lower bounce rate

AI clearly drives engagement and exploration. However, conversion rates remain below e-commerce averages. Many shoppers treat AI as a source of inspiration and make purchases later, sometimes in different channels.

46% of surveyed consumers trust AI more than friends when choosing fashion items.

Business takeaway: AI drives engagement but must be paired with conversion strategies. Seamless omnichannel journeys, limited-time offers, and strong CTAs are essential to monetise AI-driven interactions.

Consumers are already using AI and want more

A US study found that 39% of consumers have already used generative AI tools in shopping, from chatbots and recommendation engines to visual search. Another 53% plan to use them this year.

In Poland, 70% of consumers already interact with AI in daily life, through marketplace algorithms, dynamic pricing engines, or smart product filtering.

Business takeaway: customers are not waiting for AI to “arrive” in e-commerce, they’re already using it. Not offering AI tools means losing share to competitors that deliver smarter, more interactive shopping experiences.

AI as a trusted shopping advisor

Consumer trust in AI has grown significantly. In categories like fashion, beauty, and electronics, AI is increasingly the “first consultant”, filtering, suggesting, and guiding purchases.

Business takeaway: growing trust in AI allows brands to strengthen loyalty through transparency. Explaining why a product is recommended (“because it matches your style and recent searches”) builds credibility. Transparent AI will become a cornerstone of brand–customer relationships.

Start with AI where it matters most: delivery

You don’t need costly or complex integrations to bring AI into your store. Start with the foundation of a great shopping experience: fast, reliable, predictable delivery. AI-driven shipment automation shortens fulfillment times, increases customer satisfaction, and drives loyalty.

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How to reduce “Where is my order?” enquiries and enhance customer experience?

2025-05-09 przez Krystian Palica

The power of real-time tracking: why is it a game changer?

Real-time shipment tracking transforms the post-purchase experience by delivering full visibility into the order lifecycle. Customers gain instant access to accurate, real-time information on their shipments, from dispatch to final delivery. This heightened transparency alleviates common frustrations related to uncertainty and waiting.

When customers no longer need to ask “Where is my order?”, businesses experience a tangible reduction in inbound enquiries. The freed-up capacity enables customer service teams to address higher-value tasks, such as handling exceptions and resolving complex issues.

Additionally, proactive updates foster trust, positioning your brand as reliable and customer-centric.

Key benefits of real-time tracking:

Reduces WISMO enquiries by providing instant, automated updates at every delivery stage.
Enhances customer satisfaction by offering visibility and control.
Optimises support operations by reducing repetitive enquiries and enabling focus on escalated cases.
Strengthens brand loyalty through consistent, proactive communication.

Real-time tracking in action: boost profits and win customers loyalty

When real-time tracking becomes part of your customer experience strategy, the effects go far beyond reducing enquiries. It delivers measurable business outcomes, shaping both cost structures and customer perceptions.

Tangible benefits for your organisation:

Lower operational costs: automating delivery updates can lead to significant savings. Companies utilising automated customer communications reduce service-related costs by up to 30%. This allows businesses to reinvest in more strategic initiatives.
Boost in customer loyalty and trust: transparent, proactive communication builds stronger relationships. Brands offering real-time shipment updates enjoy an average 16% higher Net Promoter Score (NPS) compared to competitors.
Minimised disputes and friction: by clearly communicating delivery statuses and milestones, companies see a marked reduction in customer complaints and unjustified claims. This not only decreases resolution costs but also shortens return and refund cycles, resulting in happier, more loyal customers.

Hypothetical case study: how a mid-sized retailer achieved breakthrough results

The following case study is fictional and designed to illustrate best practices and potential outcomes.

A mid-sized European electronics retailer decided to overhaul its post-purchase communication process by implementing a comprehensive real-time shipment tracking system. The project was executed in three critical phases:

Full Carrier Network Integration: the retailer integrated its order management system with 10 national and international carriers, providing end-to-end shipment visibility from warehouse dispatch to customer delivery.
Multi-Channel Automated Notifications: customers were given the flexibility to choose between SMS, email, and in-app notifications. Automated messages were sent at key delivery milestones: order confirmation, dispatch, in-transit, out-for-delivery, and delivery confirmation.
Exception & Delay Management Module: the company implemented real-time alerts for failed delivery attempts, transit delays, and incomplete addresses. Customers were empowered to take corrective action (e.g., reschedule delivery) through self-service portals.

Results (6 months after implementation):

38% reduction in WISMO-related enquiries to customer service.
Operational savings of 20% due to reduced contact volumes.
Over 65% customer opt-in rate for proactive delivery notifications.
CSAT improvement by 15%, with customers highlighting communication transparency as a key driver.

This hypothetical scenario demonstrates how thoughtful implementation of real-time tracking combined with automated, personalized customer communication can deliver measurable improvements in both efficiency and customer satisfaction.

3 essential steps to implement real-time tracking

Integrate with major carriers – ensure seamless data flow by connecting your platform with key domestic and international logistics partners.
Enable omnichannel communication – offer customers flexibility to receive notifications via their preferred channels, including SMS, email, push notifications, or a web portal.
Set up proactive alerts – automate status updates and alerts, covering key milestones such as order confirmation, dispatch, delivery, and potential delays, to create a transparent and reassuring customer journey.

A strategic advantage for modern e-commerce

Real-time tracking helps reduce the volume of customer service enquiries, enhances operational efficiency, and improves customer satisfaction. Automating delivery communications drives both internal cost savings and better customer experiences.

Moreover, deploying such a system doesn’t have to be complex or time-consuming. Alsendo Innoship offers ready-made integrations with major carriers and automates customer notifications—without the need to develop proprietary IT tools. This enables businesses to launch real-time tracking quickly and see tangible results in a short time.

Benefits of implementing Alsendo Innoship:

Seamless integration with leading carriers,
Automated customer notifications without overloading your IT team,
Omnichannel communication with customers,
Reduction in customer service enquiries,
Improved customer experience (CX) and increased loyalty,
Rapid deployment without lengthy implementation projects.

In a market where speed and transparency are critical, real-time tracking becomes an essential element of competitive advantage. Leverage this solution today to stay ahead of the competition.

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Sources:

How changing delivery expectations shape customer loyalty in e-commerce?

2024-01-08 przez Michał Wójcik

Multiple delivery options continue to drive purchases

Over the past years, online shoppers have greatly appreciated the variety of delivery and collection options available in online outlets. In both 2021 and 2024, more than half of respondents considered them an incentive to buy online. This consistency highlights the importance of flexibility and choice in meeting consumer expectations and ensuring customer satisfaction.

Variety in delivery methods is not just a convenience but a key factor in retaining customers. Research shows that loyal customers spend more on brands that consistently meet or exceed their expectations. Providing diverse delivery options is a practical way to enhance the customer journey, making it more likely that satisfied customers will return for repeat purchases. For example, offering express delivery, same-day shipping, or environmentally friendly options can significantly improve the overall customer experience.

The dominance of parcel lockers

In 2021, parcel machine delivery was already the most popular method of collecting online purchases. It was used by 65% of consumers, with direct delivery chosen by 50%. The third most popular method was delivery by a postman (30%), followed by delivery to a partner outlet (20%) and to a post office (8%).

A survey conducted three years later (2024) highlights some clear trends. Parcel machines are now used by up to 84% of shoppers. Direct delivery by courier is chosen by 40% of respondents, which indicates a decline. Partner outlets are used by 18% of shoppers, while 16% still prefer the postman. Only 5% of online shoppers now visit post offices to collect their purchases.

This shift underscores the growing demand for convenient, flexible, and environmentally friendly delivery solutions. Parcel lockers, with their 24/7 availability, have become a preferred option for engaged customers seeking minimal effort and maximum flexibility in the delivery process. Retailers that prioritize these delivery methods are more likely to build a loyal customer base.

The role of delivery in building customer loyalty

Consumers increasingly expect smooth and reliable delivery experiences. According to industry reports, 80% of shoppers consider delivery options as important as the product price. This statistic underscores the impact of delivery services on customer satisfaction and customer retention strategy.

To improve customer loyalty, online retailers must focus on the following:

Fast delivery: 68% of customers state that fast delivery encourages repeat business.
Affordable shipping costs: high delivery costs are a primary reason for cart abandonment.
Eco-friendly options: over 45% of consumers are willing to pay more for sustainable delivery solutions, reflecting growing environmental awareness.

By addressing these priorities, businesses can retain customers and increase customer lifetime value, ensuring their most loyal customers remain engaged over time.

Personalization of delivery as a loyalty strategy

Personalization is a crucial element of modern customer loyalty strategies. Providing tailored delivery options, such as preferred time slots, delivery locations, or packaging choices, can significantly enhance the customer experience. For instance, offering “green” delivery for environmentally conscious customers or priority shipping for loyalty program members strengthens brand relationships.

Impact of customer loyalty programs on delivery choices

Loyalty programs can also influence delivery preferences by offering incentives for specific methods. For example, some retailers provide discounts or bonus points for using parcel lockers, which are more cost-effective and sustainable compared to direct delivery.

Key benefits:

Promotes cost efficiency for retailers.
Encourages eco-friendly consumer behavior.
Builds long-term customer relationships through rewards and personalized benefits.

A successful loyalty program integrates seamlessly into the customer journey, ensuring that every interaction -from purchase to delivery – enhances customer engagement.

Social media and WOMM in delivery perception

Positive delivery experiences often lead to word of mouth marketing, where satisfied customers recommend brands to friends and family. According to recent data, 64% of consumers trust peer recommendations over traditional advertising, making delivery performance a critical aspect of building brand advocacy.

Retailers can amplify positive feedback by encouraging customers to share their experiences on social media. For example, campaigns highlighting hassle-free delivery or the use of eco-friendly packaging can attract new customers while reinforcing loyalty among existing ones.

Modern technologies in delivery and their impact on customer loyalty

Innovative technologies play a growing role in enhancing the delivery process and cultivating customer loyalty. Key advancements include:

Real-time tracking: 88% of shoppers value the ability to monitor their package status.
AI-powered delivery predictions: artificial intelligence improves accuracy in delivery time estimates, reducing customer effort.
Drones and autonomous vehicles: emerging technologies promise faster, more sustainable solutions, aligning with the expectations of tech-savvy customers.

Moreover, the introduction of warehouse robotics and automated sorting systems is revolutionizing order fulfillment. These technologies enable companies to reduce processing times by up to 30%, ensuring faster deliveries. Additionally, AI can analyze customer data to predict demand patterns, allowing businesses to optimize inventory levels and improve delivery efficiency. Such advancements not only enhance operational efficiency but also significantly contribute to satisfaction, making it easier to build and maintain a loyal customer base.

These innovations improve convenience, ensuring that happy customers are more likely to remain loyal.

Metrics to measure loyalty in delivery context

To understand the impact of delivery services on customer loyalty marketing, businesses should track key metrics, such as:

Repeat purchase rate: this metric helps evaluate how often customers return to make additional purchases. A higher repeat purchase rate indicates strong customer retention and satisfaction with the overall experience, including delivery.
Delivery satisfaction scores: these scores measure customers’ perception of the delivery process, including speed, reliability, and communication. Surveys and post-delivery feedback can provide valuable insights into areas for improvement.
Net Promoter Score (NPS): this widely used metric evaluates customer loyalty by asking how likely customers are to recommend the service to others. A high NPS indicates that customers are satisfied with their delivery experience and are likely to advocate for the brand.
Customer effort score (CES): this metric assesses how easy it is for customers to interact with the delivery service. Simplified processes, such as easy returns or hassle-free tracking, can significantly boost this score, directly impacting customer engagement.
First-attempt delivery success rate: this metric tracks the percentage of deliveries successfully completed on the first attempt. Higher rates of first-time success reduce customer frustration and operational costs, improving overall satisfaction.
Time-to-resolution for delivery issues: the speed and efficiency with which delivery problems are resolved directly impact customer experience. Quick and effective issue resolution builds trust and promotes customer loyalty.

By analyzing these metrics, businesses can identify strengths and weaknesses in their delivery processes, refine their customer loyalty strategy, and ultimately create a seamless, satisfying experience for their customers.

The future of delivery: trends and opportunities

The delivery landscape is evolving rapidly, with new trends reshaping consumer expectations. Future innovations include:

Same-hour delivery: catering to urban customers with immediate needs. As urbanization increases, the demand for same-hour delivery is expected to grow, particularly for essential items and groceries. Retailers investing in local warehouses and micro-fulfillment centers can meet this demand effectively, ensuring customer satisfaction and loyalty.
Sustainable practices: expanding the use of recyclable packaging and carbon-neutral transportation. Sustainable practices not only meet the expectations of environmentally conscious consumers but also enhance brand reputation. Companies that integrate electric delivery vehicles, implement carbon offset programs, or partner with green logistics providers can attract a loyal customer base that values sustainability.
Subscription-based models: offering unlimited delivery for a fixed fee to encourage repeat customers. Subscription services like Amazon Prime have proven highly successful in fostering customer loyalty. By providing predictable costs and added benefits such as faster delivery, subscription-based models create a sense of exclusivity and convenience, which encourages customers to remain loyal to the brand.
Flexible delivery options: allowing customers to choose delivery windows, locations, or even change preferences mid-shipment. Flexibility caters to diverse customer needs and builds trust by demonstrating that retailers prioritize convenience and satisfaction.

Retailers that stay ahead of these trends will secure a competitive advantage and grow their loyal customer base. By investing in innovation and aligning with customer values, businesses can create a delivery experience that not only meets but exceeds expectations, turning satisfied customers into lifelong advocates.

Changing consumer expectations of delivery present both challenges and opportunities for online retailers. By prioritizing convenience, personalization, and sustainability, businesses can enhance customer engagement and foster lasting loyalty. In an increasingly competitive e-commerce landscape, the ability to deliver exceptional service will determine which brands thrive and which fall behind. Investing in innovative delivery solutions and robust loyalty programs is not just a strategy for retention but a pathway to long-term success.

Sources:

How are global brands adapting to sustainability requirements?

2023-12-04 przez Alsendo

Amazon’s ambitious goals

US Amazon certainly deserves its title of giant. The company has set itself an ambitious goal – to achieve climate neutrality by 2040. To this end, it is investing in renewable energy, such as the 3,900 solar panels that power its robotics centre in Świebodzin. The company is also committed to green transportation. It plans to be using 100,000 electric vehicles by 2030 to reduce CO₂ emissions by several million tons. In addition, Amazon is constantly improving its supply chain, promoting eco-friendly packaging and the idea of recycling¹.

Sustainability by Allegro

How is sustainability being implemented by Polish giants? Let us take a look at the 2022 ESG report presented by Allegro. In terms of ecology, it says that 98% of the warehouse waste generated by the company is recycled. Allegro boasts a 10.4% reduction in CO₂ emissions in its supply chain, as well as the introduction of nearly 4 million eco-friendly packages into the market.

There is an eco-friendly tint to Allegro’s One Box parcel lockers, as while they are powered by electricity from the grid, the company purchases energy certified with green certificates. In addition, the lockers are covered with vegetation and measure air quality in the area.

ESG strategy at Alsendo Group

The development of ESG initiatives is a priority for the Alsendo Group. Our business models are developed and implemented in accordance with UN recommendations aimed at minimizing the negative impact of businesses on the global environment. Demonstrating a strong commitment to environmental protection and social responsibility, we are committed to sustainability and environmental neutrality in every aspect of our operations. Part of this process is an emphasis on developing low-carbon forms of courier services, launching educational projects to promote environmentally friendly forms of sending and picking up parcels, and driving change in our daily work. The effects of our decisions are already visible – we have sent more than 50,000 emails encouraging the use of PUDOs and parcel lockers as the most environmentally friendly courier service option, our paper consumption has been reduced by 35%, and electricity by 15%. Alsendo Group expects to continue its sustainability strategy by launching new projects in the area of environmental impact, labour and social relations, and corporate governance.

Sources:

https://mycompanypolska.pl/artykul/7-sposobow-na-zrownowazony-rozwoj-w-e-commerce/12553

Logistics is getting closer to going paperless

2023-03-30 przez Alsendo

Why should logistics go paperless?

Time is critical in logistics – all parties want the goods to be delivered as soon as possible. Each successive link in the supply chain involves many formalities. It takes a long time to complete them all using conventional methods, which is why many different solutions have been created to digitise and automate the preparation and exchange of documents. Unfortunately, many documents are still used in paper form, e.g., consignment notes, external issue documents or pallet receipts.

Surveys conducted by GS1 Poland[1] showed that out of almost 30 thousand participants (manufacturers, logistics service providers, chain stores, etc.), 70% want to take part in the Paperless Project. So far, this has not translated into any actual actions.

The Paperless Project – how is paper use reduced in logistics?

The Paperless Project initiated in the middle of 2021 is based on standardised digital documents – the DESADV system, which includes many different electronic EDI messages. This can eliminate paper documentation, automating and streamlining the flow of goods and documents.

Thanks to the Paperless Project:

the accounting and payment process is quicker and shorter,
the delivery process is initiated faster,
manufacturers and suppliers can sooner notify the customers of any difficulties and take adequate action,
manufacturers and suppliers can better predict their orders and adapt the availability of products in a flexible manner,
delivery queues are shortened, enabling more effective planning of unloading operations,
costs of document printing are eliminated,
the amount of waste and negative environmental impact are reduced.

Activities in the logistics industry aimed at switching to the paperless model to streamline costs and processes are not only cost-efficient and convenient – they have become a necessity today.

Source:

https://logistyka.rp.pl/produkty-i-uslugi/art19138821-dostawy-bez-papierowych-dokumentow.

How cloud technology supports logistics operations?

2023-03-24 przez Alsendo

How is cloud technology used in logistics?

Logistics requires stable, resilient technological solutions for ongoing monitoring of the goods at every stage of delivery. However, creating and maintaining own IT resources is expensive and time-consuming. That is why the representatives of this sector follow the general trend and switch to cloud technology. This technology enables:

the quick implementation of the required applications and systems, e.g., ERP, DMS or CRM, enabling the continuous monitoring of all business operations,
using advanced software to manage supply chains,
an efficient, available and secure data exchange inside and outside the company,
the automation of formalities (e.g., creating and submitting documents),
advanced analytics, enabling the monitoring of the situation at the company and more informed business decisions.

The cloud for logistics – what are the benefits?

The cloud is an environment that makes it easier to take on the challenges faced by the logistics industry. After implementing this technology, the company can expect many different benefits, the most important of which include the following:

simplified management – better planning and fulfilment of designated tasks in real time;
scalability and flexibility – the infrastructure adapts to changing demand and unforeseen circumstances,
lower costs – investing in new solutions provides tangible profits in the long run and helps to reduce expenses;
lower risk of errors and faster response to disruptions – access to advanced analyses and continuous monitoring to help predict risks and solve problems;
security – data kept in the cloud are protected against unauthorised modification, loss, leaks or theft.

Thanks to cloud technology, the logistics sector can grow dynamically to make deliveries even faster, safer and more profitable.

Increasing importance of rating and ESG indicators

2022-12-29 przez Alsendo

What are ESG indicators and ratings?

ESG is an acronym for the parameters that help to produce ratings (risk assessments) and non-financial assessments of companies, but also of institutions, organizations, states, etc. As the name suggests, they consist of issues related to:

E – environment (climate issues and good environmental practices),
S – social responsibility (equal treatment of employees and shareholders, taking into account their health and safety),
G – corporate governance (innovation that uncovers different opportunities and creates more jobs).

Based on these, investors can compare different investment directions, with the possibility of comparing the available options on a single level.

Why are ESG indicators becoming increasingly important?

The outbreak of the COVID-19 pandemic put companies in virtually all industries to the test and shook the stability of the global economy. However, the research showed that companies taking ESG factors into account performed better in crisis management and were less affected by the consequences associated with current difficulties and new challenges. This was because the units were less exposed to disruptions related to, for example, technological constraints or the need to comply with new regulations. Data analysis minimises the impact of the crisis and speeds up the process of implementing solutions to rebuild losses and better cope with new conditions.

ESG parameters are also worth taking into account when making investment decisions, as in this way more long-term sustainability projects can be acquired, mobilising the capital needed to meet the Green Deal objectives, etc.

How are the ESG analyses performed?

ESG analysis is difficult because this type of data is not always available and, in addition, often only shows a historical perspective. As they tend to be qualitative in nature, it is also not possible to apply a standard approach to them, such as in the analysis of financial data. For this reason, more and more entities are using the services of rating agencies.

Investors want to invest their capital in the best possible way, which is why they are keen to finance companies that boast good ESG parameters. However, it is worth being aware of the fact that they do not treat them as a direct indicator. Rather, they are treated as a source of baseline data, which is the starting point for subsequent analyses from which, for example, KPIs (key performance indicators) are created.

What is interesting is that there is no one-size-fits-all methodology for analysing ESG data. Because of this it is possible that if you use several agencies, they may give different ratings for the same entity. Entrepreneurs often decide precisely to seek further ‘opinions’ in order to gain as much data as possible.

Why should you order an ESG rating?

Joining the ESG rating helps to improve a company’s image, putting it in a better light for shareholders, but also of course for investors, business partners and customers. As a result, a greater chance of new investment and a lower cost of capital are gained.

Support for strategic business decisions is also a very important issue. The analysis of ESG parameters allows you to run and develop your business in a fully informed manner, limiting the risk of loss and maximising the chances of earning.

Moreover, in recent years, consumers have also been incorporating ESG aspects into their choices. Growing public awareness of the need to care for the environment means that customers are increasingly examining the business models of companies and brands and are more likely to choose those that focus on ecology and sustainability.