Data show [1]that by 2050, emissions from the global transportation systems will increase by about 22%, while transportation is already responsible for about a fifth[2] of greenhouse gas emissions. The global urgency to reduce the environmental impacts on people, companies and countries motivated us to set goals and define a road map for a more urgent and accelerated reduction of our environmental impacts. In addition, we have identified business opportunities in more responsible and efficient environmental conduct.

The targets we set ourselves to promote environmental sustainability:

• Reducing carbon footprint by 50% by scope 1,2,3)
• Net Zero until 2050 (scope 1,2,3)
• 100% circularity (RRR) in waste treatment by 2030

We plan to achieve these goals according to a road map that we outlined to achieve the goal even before 2030, when a significant component of the plan is based on innovative technologies and applications that we are not yet familiar with.

We are proud of our progress in improving our environmental conduct, especially in the context of promoting the use of renewable energies.

To date, we have installed 1,167 kilowatts of solar systems (PV panels) on the roofs of our buildings in Sela 3, main logistic center and Bnei Darom, which produce about 1.8 kilowatts of electricity per hour. This production volume of renewable energy currently constitutes about 51% of our total electricity consumption.

It is important to emphasize that, unfortunately, we were unable to continue and expand the project of installing solar panels this year due to a limit on approvals for allocations from the Electricity Authority. However, we see the importance of continuing to promote the use of renewable energy and will continue to support installation of solar systems, as much as we can.

We are located close to the port of Ashdod in order to reduce the transportation of goods – both in terms of efficiency and emissions.Our trucks, in direct operation, are Euro 6 standard.

In 2023, we were able to reduce diesel consumption by 9% compared to the previous year, while maintaining gasoline consumption at a growth rate of about 2% – which resulted in a decrease in scope 1 emissions by 8% between the years 2022 and 2023.

On the other hand, our energy consumption from grid has increased and we are working to find ways to reduce it.

These days we are looking at ways to reduce the use of fossil fuels alongside using solar panels on four of the company’s trucks. In addition, almost all of the company’s forklifts are electric.

Along with these achievements, sometimes the increase in activity, customers and employees, leads to an increase in the use of materials and waste produced. We are exploring ways to improve our conduct in this area as well. For example, 100% of the cardboard left in our possession, 100% of our office paper waste and 100% of our wooden surfaces are recycled. We are proud that about 90% of our waste is recycled (office waste is still sent to landfill).

We try to ensure that some of the materials we purchase are also more environmentally friendly and contain recycled materials. For example, the cardboard crates we purchase contain recycled material and our new wood surfaces are recycled.

In addition, we divert electrical products from consumers’ homes for recycling, we expanded our activity by 35% between 2020 to 2023 alongside increasing the volumes of activity with Eco-mmunity – a social business for electronic waste recycling that employs people with disabilities. In 2023, along with recycling our wood surfaces, it resulted in 367% increase in environmental revenues, compared to 2020.

Our environmental conduct reflected in zero fines for environmental non-compliance.

During 2023, despite the  increase in our activity,  we managed to stabilize our total carbon footprint (scope 1,2) and achieve only 0% increase compared to the  the previous year.

Furthermore, during 2023 we concluded a pilot to examine the application of solar panels on the roofs of trucks, which allows the use of renewable energy directly to charge the truck’s battery. We are analyzing the pilots’ results. Learn more on the application on our partner’s website – APOLLO

One of the key areas in which we see the greatest opportunity to improve our environmental conduct is locating and implementing environmental innovation. In order to integrate new innovative applications and innovation into our operations, we approached a number of start-up companies that we believe the solutions they offer may yield collaborations in new areas. These potential innovative and alternative solutions will help us achieve our ambitious goals in the field. In parallel, we are constantly looking for new solutions alongside looking for opportunities to use biodiesel-based products, which are currently not sold for commercial use in Israel.

As part of our efforts to improve the company’s energy efficiency, fuel use and waste management, we promoted the following projects in 2023:

• Deciding to switch to an electric vehicle, whenever a company car is exchanged for an employee.

In recent years we have been looking at options for purchasing electric trucks. Unfortunately, as of today, a suitable truck for our needs has not yet been commercially marketed in Israel.

• Expanding recycling activities regarding the collection and handling of plastic ribbons and shrink wraps.
• Constant examination of options for expanding PV panels installation on additional company buildings’ roofs.

[1]Source: statista

As part of our procurement procedures, we implement several mechanisms to integrate sustainability with our suppliers as part of responsible supply chain management – socially and environmentally:

• Before contracting with the suppliers and subcontractors, we examine their conduct in several aspects – ethical, environmental and social conduct. This is through answering our pre-contracting questionnaire examining the existence of a Code of Ethics, guaranteeing human rights and fair and safe employment for employees, as well as a policy to reduce environmental impacts. In addition, we prioritize working with local suppliers.
• During the contracting phase itself – we ask the suppliers to confirm our Code of Ethics and sign an agreement that includes specific clauses regarding ethical business conduct, safeguarding human rights and fair and safe employment as well as sustainable environmental conduct.
• During our on-going work together with our suppliers and sub-contractors, we encourage them to promote ESG – through communications, trainings and conversations, as well as conducting an annual evaluation questionnaire to material suppliers.

Furthermore, we invite our subcontractors to propose ideas for innovative ventures for environmental sustainability and to improve our conduct in the field.

During 2023, we communicated to our drivers the importance of reducing emissions, as part of our commitment to raise awareness and to encourage drivers to find ways in which they can reduce fuel consumption and improve their environmental impact. Furthermore, we are examining the use of digital applications that enable our drivers to make informed decisions when choosing travel routes to improve environmental aspects.

At the same time, we continued to work harder together with the drivers to collect electronic waste from customers to promote its recycling.

We have also incorporated sustainability clauses into the agreements with our transport contractors to encourage involvement and implementation of practices in the field.

Ethical, fair business conduct with strict adherence to transparency and integrity is essential to Sela Trade and Logistics since its establishment and at the basis of our values ​​such as loyalty, responsibility, commitment, and transparency.

All our employees are trained on a yearly basis on our Code of Ethics that presents our principles and values in all our activities with all our stakeholders.

We are proud of the fact that no incidents of bribery, corruption, non-competition and violation of privacy were recorded against the company; Incidents of discrimination, abuse at work or harassment of any kind.

We comply with ISO 9001 quality assurance standards and ISO 27001 information security standards.

The company’s senior management team that leads its character design, values and culture consists of 33 (4 out of 12) women.

During 2023, we updated the group’s ESG procedures including management, responsible supply chain, and more. We are working to digitize the ESG data infrastructure collection and management through its integration in a.dedicated platform.

Humanity is the first and leading value in the company’s values ​​and accordingly, we see importance in maintaining human rights, promoting fair and equal employment as well as creating a healthy, safe and respectful work environment for all our employees.

We give special attention to the personal and financial well-being of our employees, encourage them to promote creativity, achievement, teamwork and reward our employees accordingly.

The mutual loyalty and commitment between our employees and us are additional values ​​on which our relationships with the employees in particular and the community that surrounds us in general – are based. Therefore, we make sure to nurture, enrich and empower our employees and make sure to support the community around us.

Our commitment to promoting diversity, equity and inclusion and our actions in the field in recent years bring us closer to the goals we set for ourselves – 50% women in the workforce and 25% over the age of 50. We are proud that our workforce is composed of 45% women, an increase of 23% from 2020. Moreover, 20% of our management level consists of women, a growth rate of 204% from 2020, and about 24% of our employees are over the age of 50.

We are also proud of achieving our second goal, when in 2023 we reached 27% of employees over the age of 50 in our workforce.

Our training activities focus on the health and safety of our employees. Safety trainings are also held for contractor employees.

We invest about 10 hours of safety training per year on average per employee. An activity that has grown year by year in accordance with the increase in the number of employeeswhen in 2023 an increase of 87% in total training hours was measured, compared to 2020.

Employees health and safety is managed in a structured and regulated manner in the company with a safety and security management system, work according to an annual safety plan, preparation of incident reports, annual risk survey, trainings, trainings and more. We are proud of the improvement that reflects our efforts in the field when between the years 2020 and 2023 we decreased the scope of accidents and accordingly, the TRIR index decreased by 50% from 4.5 to 2. 3. We aim to reach the goal of TRIR 2 and maintain it over time.

We believe in the importance of local communities’ resilience and maintain an open dialogue with them alongside investing in supporting solutions.

We contribute to the community in a variety of projects and are approaching the goal we have set for ourselves – to invest 1% of our net profit (before tax) in strengthening and empowering the communities that surround usIn 2023 we managed to achieve this goal and we will work to preserve it alongside expanding employee volunteering activities.

One of the flagship projects that we are very proud of is ‘The Group’ (Hakvutza’), a non-profit association established by us that represents a group of friends who offer direct help to those in need through social workers who bring the need to the benefit of crowdfunding. The donors choose the case for support by donating directly to that case, thus they guarantee that their contribution will be significant, direct, and accurate according to their choice.

‘The group’ association raised NIS 1.7 million in 2022 and NIS 3.2 million in 2023.

We support a variety of social associations active in the communities near our main operation sites. In addition, the company buys social gifts for employees from the ‘Bird of the Soul’ and ‘A Small Place in the Heart’ non-profit organizations – associations that employ people with special needs.

The company promotes employee volunteering from time to time. During Passover, about 30 of the company’s employees took part in preparing food baskets for needy families in cooperation with the ‘Hasadi Bar’ association.

During the ‘Iron Swords’ War, which broke out on the seventh of October 2023, the company helped its surrounding communities by sending 1,000 hot meals to soldiers; The company’s trucks assisted in the transfer of equipment to the army bases in the south of Israel and, a truck was sent with empty cartons to pack equipment for reservists.