Environmental, Social & Governance (“ESG”) Policy Statement Revised 7.14.23
MODE Global, LLC (“MODE”) is a premier non-asset-based multi-modal brokerage provider that leverages its leadership in multimodal delivery, proprietary technology, and scale to provide value to a diverse group of stakeholders. At MODE, we are committed to a culture of sustainable business practices and share your excitement in creating a better world it fuels our efforts as we work together to create a sustainable business model to transition towards a low-carbon and just future.
We know our actions today will impact the environment and society we leave for tomorrow. Our responsibility is to make thoughtful decisions that respect and support human rights and promote sustainability through commitments to use our world’s resources sensibly
Environmental Sustainability
MODE is committed to operating in an environmentally responsible manner to reduce our impact on climate change, conserve natural resources, and to conduct business in compliance with environmental regulations. This includes, but is not limited to, considering environmental, public health, safety, and social issues and their impact on our operations.
Reducing greenhouse gas emissions
As a third-party logistics provider, we recognize that the first step towards environmental sustainability is to reduce our overall GHG emissions. We at MODE enable shippers to reduce their carbon footprint by utilizing environmentally friendly modes of transportation, such as intermodal and ocean, because of our longtime relationships with rails and ocean carriers. We reduce greenhouse gas emissions by working closely with our customers and transportation partners to find the best logistics solutions that minimize environmental impact and maximize business success. For truckload and less-than-truckload (LTL), we work to optimize route selection and make the most of efficiencies that can help chart a path toward a cleaner Earth.
MODE’s key focus for 2022 and 2023 has been on Greenhouse Gas Emissions (GHGs). We engaged an ESG advisor to assist with calculating our carbon footprint, including defining our Scope 1 and 2 emission sources. As part of this, we collected, and compiled relevant data to quantify our emissions, and established a carbon accounting methodology consistent with the GHG Protocol. The outcome was a baseline carbon footprint for MODE, which serves as a springboard as we evolve. Our initial disclosures are located within the MODE Progress Report, available on MODEGlobal.com. MODE is working toward further enhancing disclosures to map to international ESG frameworks as relevant to our business. Following our establishment of a baseline for our energy consumption and emissions, we
are working toward developing and implementing a concrete and measurable strategy to reduce our GHG emissions. In addition to these Scope 1 and Scope 2 emissions reduction commitments, we are also creating a management approach regarding our Scope 3 emissions to reduce our total carbon footprint.
Reducing environmental impact at our offices
Through the efficient use of technology, we at MODE enable our employees to telecommute when appropriate and needed to reduce the environmental impact of commuting to offices. We also actively promote recycling within our office locations When selecting new offices, we seek out buildings with ecological certifications and firm commitments to sustainability policies, with a proven reduction in environmental impact As part of our Dallas corporate office buildout, we partnered with an industry leader in sustainable design. We switched from conventional light bulbs to LED light fixtures, installed motion-sensitive lights, and incorporated low VOC materials and reclaimed wood throughout the facility
Ensuring environmental sustainability is a core governance priority
We seek to grow and improve for long-term sustainability and benefit multiple stakeholders on our journey. To that end, we will work through appropriate governance structures (e.g., board of directors) concerning environmental sustainability, including greenhouse gas emissions, energy efficiency and renewable energy, as well as sustainable resource management and waste reduction, along with public health, safety, and social issues, to improve performance and minimize adverse impacts in these areas.
Decarbonization
We prioritize energy efficiency and carbon footprint reduction in our operations and encourage various partners and stakeholders to adopt sustainable practices.
Water
We promote responsible water management and support efforts to conserve water resources within our operations.
Responsible Chemical Management
While our direct involvement with chemicals may be limited, we prioritize responsible chemical handling, storage, and disposal practices in accordance with relevant regulations.
Biodiversity, Land Use, Deforestation, Soil Quality, Noise Emissions, and Animal Welfare:
While our core operations as a non-asset based third-party logistics company may not directly involve these areas, we recognize the importance of environmental sustainability and ethical considerations. We commit to supporting and promoting responsible practices
within our operational scope and advocating for sustainable approaches throughout our supply chains, where applicable. Our aim is to contribute to a positive environmental and social impact while ensuring the efficient and reliable delivery of logistics services.
Social Responsibility
Being a socially responsible employer is core to who we are. Our employees provide the crucial link between the world’s shippers and carriers, sourced materials, and the products that end up in our homes with our families. Our people are vital to building a sustainable future. They understand that loads are not just pallets–that logistics and transportation enable many other businesses, providing jobs for employees and products and services that keep our economy moving. Recognizing our impact on people, profit, and the planet, we embrace our responsibility to the environment and commit to proactively supporting the communities that sustain us.
Upholding the Universal Declaration of Human Rights (UDHR – 1948) at the workplace and throughout our supply chain
We respect the human rights of those affected by our activities, including our employees, consumers, and community. We also seek to do business with companies that do not utilize modern slavery, child or forced labor, tolerate human trafficking, or maintain discriminatory practices. We participate in industry-wide partnerships to eradicate human rights violations in the supply chain.
Ensuring Diversity & Inclusion in the workplace and our supply chain
As part of our commitment to strengthen the communities in which we live and work, MODE established a Diversity, Equity, and Inclusion (DEI) Committee in 2021. We know that the principles of diversity, equity, and inclusion not only strengthen our employees and enhance our communities but also drive business innovation and improve our results. We value human rights and are committed to fostering a healthy, safe, and supportive collaborative, and supportive environment of diversity and inclusion in our workforce. We recognize the need to address lack of diversity within our industry, especially the lack of representation at all levels from women and people of color, including among senior management.
Eliminating unconscious bias and discrimination across all levels
We recognize that talent acquisition is vital in establishing a diverse talent pool. We utilize a service that aggregates our job postings and shares them with the service’s Global Diversity Network. To eliminate unconscious bias in the selection process, we strive to create gender-neutral and inclusive job descriptions. This effort includes using a decoder tool to highlight gendered language so we can revise job descriptions to be more inclusive. We are also putting significant effort into focusing on inclusion and career development to address current gaps in representation at the leadership level.
Prioritizing the mental health of employees and promoting optimum work-life balance
We have taken steps to adapt how we operate to provide our employees with greater flexibility, stability, and work-life balance. Allowing employees to work remotely during the
pandemic has provided them with the freedom and ability to serve the needs of their families and their responsibilities at MODE Our organization also enhanced its wellness offerings during the pandemic through virtual fitness programs, team-building activities, a stipend for remote work resources, and an extra half-day of paid time off to support the mental health of our employees.
Minimizing the economic impact of the COVID-19 Pandemic
MODE recognizes that the COVID-19 Pandemic will have a lasting social and economic impact on the world, whether through financial hardship, mental distress, or personal loss. We are dedicated to working with our stakeholders to harness our business expertise, including, but not limited to, supporting our employees' health (including mental wellness) and safety. We believe that our value depends on the success of our people, and we recognize the many challenges our employees have faced during the pandemic.
Governance
MODE recognizes that corporate governance and ethical conduct are essential to the success of our business. Our board of directors and executive leadership set the tone at the top by conducting our business ethically and complying with legal requirements.
Epitomizing high standards of ethical behavior in business
We are committed to building a culture dedicated to ethical business behavior, including but not limited to providing a web and phone-based ethics hotline reporting system available to employees and third parties to anonymously report any suspected violations or ask for guidance about actions or behaviors that are not aligned with our values or code of conduct, and related ethics and compliance policies, or that do not comply with applicable laws. We do not tolerate any retaliation taken against an individual who, in good faith, has reported a suspected violation. We also use a third party to conduct surveys that periodically measure the pulse of our organizational ethical conduct, and we share aggregated feedback and analysis from the survey across the business.
Ensuring our business strategy remains in line with our core mission and vision
We have in place a robust governance structure that includes management responsibility for ensuring the effective execution of our overall business strategy, ensuring the incorporation of our mission and vision into our long-term strategy, and providing adequate resources and funding to achieve these outcomes. We also provide information to MODE’s equity owner concerning the matters addressed herein and work diligently to foster transparency about our activities.
Establishing an ESG Committee to monitor and oversee MODE’s ESG strategies, policies, and initiatives
MODE has demonstrated its commitment to driving strategic ESG initiatives, including forming an ESG Committee with more than 20 members to support MODE’s efforts to improve environmental performance, health and safety, and corporate social responsibility. MODE’s ESG Executive Sponsors set our overall sustainability strategy and periodically report progress to executive leadership and the board of directors. The ESG
Executive Sponsors work to identify ESG risks and opportunities, execute ESG initiatives and provide insight into identified ESG themes
Promoting leadership-level engagement on all ESG initiatives of the organization
The Board and CEO of MODE oversee the implementation and impact of MODE’s ESG initiatives, and in partnership with the Executive Sponsors, encourage meaningful dialogue on these issues among our employees and other stakeholders.
Ensuring compliance at all regulatory and governance levels
MODE remains committed to compliance with applicable national, state, and local labor laws in the countries where we do business. We support the payment of competitive wages and benefits to employees and provide safe and healthy workplace conformance with national and local law.
MODE maintains policies that prohibit bribery and other improper payments to public officials consistent with the U.S. Foreign Corrupt Practices Act, similar laws in other countries, and the OECD Anti-Bribery Convention.
Adopting responsible sourcing and procurement policies to establish sustainable policies across the supply chain
MODE believes in responsible sourcing, procurement, and supplier management, and we implement that belief through third-party due diligence and monitoring.
Cyber Security and Privacy
We realize the importance of implementing proactive measures to protect the security of our employees and supply chains. Accordingly, we work diligently to enhance our cyber capabilities to detect and defend against threats to our systems. Our security standards cover personnel security, access control, physical security, information security, security awareness training, incident reporting and analysis, and audits.
Maintaining the privacy and protection of personal information and data within and outside US Borders, using internal routine assessments, audits, and employee trainings and publicprivate partnerships
At MODE, we implement a variety of standards and rules, and we diligently monitor MODE’s technology systems. We periodically assess the success of our security efforts through assessments and audits, including third-party cybersecurity assessments, and we take action designed to mitigate risk.
MODE provides mandatory annual and ongoing security and privacy training to all employees. We also issue company reminders and apply periodic phishing tests to our network.
MODE also participates in the Customs-Trade Partnership Against Terrorism (CTPAT), a government-business initiative to build cooperative relationships that enhance and strengthen the international supply chain and U.S. Border security. We have also been involved in security development projects such as the Air Cargo Advance Screening
MODE reserves the right to amend this policy at any time.© 2023 MODE
Program developed by the CPB and TSA, and the Certified Cargo Screening Program, which requires MODE to adhere to a rigorous TSA-approved security program that includes stringent chain of custody requirements
Educating our stakeholders on how their data is used, protected, and managed through MODE’s Privacy Statement
As part of MODE’s privacy compliance framework, MODE has developed a Privacy Statement describing how we collect, use, and disclose personal information. The Privacy Statement is updated annually and specifies MODE’s commitments concerning personal data collected during our business.
Continuous Improvement
We are committed to ongoing improvement in our ESG performance. We will regularly review and update our policies, goals and practices in effort to align with evolving ESG practices and stakeholder expectations, as applicable to our business needs. We will continue to measure and report on our ESG performance in effort to ensure accountability and transparency.
Conclusion
This ESG Policy Statement lays out the ESG guidelines that MODE will endeavor to utilize in conducting our affairs domestically and abroad. MODE is committed to integrating ESG factors into our internal analysis of business practices. The examples described in this Statement address the most frequently requested subject areas from our customers and other key stakeholders and are not exhaustive. We expect this policy statement to be upheld by our employees, executives, suppliers, and partners. For more information on the progress of MODE’s ESG initiatives, see MODE Progress Report available on MODEGlobal.com.
Checklist Summary of MODE ESG Policy 2023
Environmental Sustainability
Reducing greenhouse gas emissions
Reducing environmental impact at our offices
Ensuring environmental sustainability is a core governance priority
Decarbonization
Water
Responsible Chemical Management
Biodiversity, Land Use, Deforestation, Soil Quality, Noise Emissions, and Animal Welfare
Social Responsibility
Upholding the Universal Declaration of Human Rights (UDHR – 1948) at the workplace and throughout our supply chain
Ensuring Diversity & Inclusion in the workplace and our supply chain
Eliminating unconscious bias and discrimination across all levels
Prioritizing the mental health of employees and promoting optimum work-life balance
Minimizing the economic impact of the COVID-19 Pandemic
Governance
Epitomizing the highest standards of ethical behavior in business
Ensuring our business strategy remains in line with our core mission and vision
Ensuring leadership-level engagement on all ESG initiatives of the organization
Ensuring compliance at all regulatory and governance levels
Adopting responsible sourcing and procurement policies to establish sustainable policies across the supply chain
Cyber Security and Privacy
Maintaining the privacy and protection of personal information and data within and outside US Borders, using internal routine assessments, audits, and employee trainings and publicprivate partnerships
Educating our stakeholders on how their data is used, protected, and managed through MODE’s Privacy Statement
Continuous Improvement
Ongoing improvement in ESG performance
Regular review and updating of policies
Continue to measure and report on ESG performance in connection with accountability/transparency