Green finance and ESG orientation to sustainable business performance through green logistics: A conceptual framework for the courier industry

Abstract

This conceptual paper presents a theoretical framework elucidating the manner in which green financing facilitates sustainable business outcomes within the parcel sector. The swift growth of e-commerce has markedly amplified the ecological impact of the package and logistics sector, leading to elevated carbon emissions, urban congestion, and packaging waste. As authorities enforce more rigorous environmental restrictions and stakeholders advocate for enhanced sustainable supply chain practices, parcel operators encounter mounting pressure to adapt their operations for sustainability. Nonetheless, the significant financial outlay necessary for projects like fleet electrification, circular packaging systems, and intelligent logistics infrastructure sometimes surpasses the limits of conventional funding methods. Utilising literature from green finance, Environmental Social Governance (ESG), green logistics, and sustainable business performance, the framework connects essential green financial instruments, such as green bonds, sustainability-linked loans, and blended finance, to vital sustainability initiatives in parcel operations. The manuscript suggests that green finance promotes environmental investments and expedites green logistics, hence improving sustainability performance and aiding the shift to net-zero logistics. This research enhances the dialogue on sustainable business performance by integrating green finance within the parcel industry and lays the groundwork for future empirical studies investigating the influence of financial instruments, ESG, and green logistics on sustainable business performance throughout logistics networks.