How to integrate logistics environmental sustainability into corporate strategy? An Italian perspective

Purpose Addressing logistics environmental sustainability is a big concern for practitioners and policymakers, and companies need to concretely turn sustainability into action by aligning green logistics practices with their corporate strategy. However, many companies struggle with achieving this alignment. We are experiencing an “understanding into action conundrum” characterised by “a clear understanding of what should be done and why, but less clarity in terms of how to go about it”. The purpose of this study is to explore how companies can effectively integrate logistics environmental sustainability into corporate strategies. Research Approach We conducted multiple embedded case research, considering both logistics service providers (LSPs) and shippers active in the Italian context. Italy is one of the European countries with the highest traffic volumes, and forecasts suggest a further increase in logistics activities in the next few years. We selected 13 companies (including 6 LSPs and 7 shippers) which acknowledge sustainability as a strategic priority, and conducted semi-structured interviews to collect rich empirical data and elaborate the existing theory. Findings and Originality A framework is proposed to describe the integration of logistics environmental sustainability into corporate strategy according to five main dimensions: degree of awareness, degree of formalisation, objectives and measurements systems, organisational structure and accountability, and budget allocation. Results highlight that companies seem more motivated by the need of aligning with regulations or by their willingness to obtain a green image, rather than by a genuine understanding of the actual need for sustainability. Research Impact From an academic perspective, this study reviews previous contributions and collects empirical insights to foster our understanding about how to integrate environmental sustainability into corporate strategy in the logistics industry. It also offers a framework with quality descriptors to identify low, medium, or high performance with respect to the identified integration-related dimensions. Practical Impact The study provides practitioners with insights that could support green logistics operationalisation, fostering the alignment between environmental targets and actual companies’ actions. Both perspectives of LSPs and shippers are illustrated and discussed. Findings could help companies shape their logistics environmental strategies, offering guidance to managers willing to innovate organisations and mitigate the negative environmental effects of logistics activities.