Responsible Investing Case Studies

Bradford Airport Logistics

Sector: Business & Consumer Services

Head office: Houston, Texas, USA

Acquisition date: August 2023

Headcount: 680

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Formed in 2000, Bradford Airport Logistics (“BAL”) is the leading operator of Centralized Receiving & Distribution Centers (“CRDCs”) within the global aviation industry.

BAL’s turnkey services include technology, sustainability, security, supply chain management, and consultancy. The Company currently operates 22 airport contracts in the United States and also manages operations at London Heathrow Airport and Vienna International Airport.

Through its CRDCs, the company screens all consumable goods entering airport terminals, provides critical recycling and sustainability solutions, while increasing safety, security and efficiency in fulfilling its purpose: “Helping Airports Run Great.” BAL’s sister company - known as Bradford Consolidation Logistics – has developed a Consolidation Center model for corporate campuses – with its first client being Google.

"In carrying out our mission to “Help Airports Run Great,” Bradford Airport Logistics drives greater efficiency and lower carbon emissions by removing up to 80% of the commercial delivery vehicle traffic from airport roadways and airfields. We are proud to partner with Sagemount on sustainability and ESG initiatives."

David Fitzgerald

CEO - Bradford Airport Logistics

Sustainability Rationale

As a well-established operator of CRDCs at airports, BAL holds a proven track record of meaningful environmental and social value through its operations. Sagemount identified multiple areas to drive additional sustainable value creation:

Delivery Centralization

By consolidating external deliveries, BAL decreases the number of vendor trucks entering airport terminals, leading to significant reductions in vehicle emissions, idling time, and traffic congestion.

Green Building Development

BAL is operating the world’s first U.S. Green Building Council LEED Gold-certified CRDC facility and aims to design, operate and manage new CRDC buildings with LEED certification during the holding period.

Workforce Safety and Engagement

With a strong culture of safety that is underpinned by employee engagement and compliance, BAL aims to be an employer of choice across all its global facilities. BAL has been the recipient of multiple employer workplace awards.

Decarbonization Commitments

As 80% of BAL’s pipeline customers have public decarbonization commitments[[1]], BAL is well positioned to win future contracts with further sustainability improvements.

Key Developments & Highlights in 2024

Defined Sustainability and Decarbonization Strategy:

In 2024, the company developed a five-point sustainability strategy focused on:

Creating a safe and healthy workplace
Being an inclusive and diverse organization
Strengthening governance policies and procedures
Focusing on energy efficiency and GHG emissions management
Fortifying data/information security with its recent certification of ISO 27001

Quantifying Avoided Emissions Impact

BAL conducted an external assessment to measure emissions avoided through CRDC implementation. Findings revealed that CRDCs can lower fleet-related emissions by 60–80% compared to traditional market alternatives. Additionally, CRDC-led recycling services drive up to 90% in waste-related emission reductions, reinforcing BAL’s position as a lower-carbon alternative. One of BAL’s customers, Salt Lake City International Airport, featured BAL’s work on quantifying the impact of CRDC’s in the airport ecosystem in its 2023 Sustainability Report alongside partners such as Delta Airlines.

Green Fleet at Heathrow

By moving its entire fleet at London Heathrow Airport’s Consolidation Centre from diesel to Hydrotreated Vegetable Oil (HVO), BAL reduced freight-related emissions by 87% in 2024.

60 - 80%

reduction in fleet-related emissions via CRDC model versus alternative[[1]]

People and Workplace

The company developed a group-wide health and safety policy in 2024, conducts regular employee surveys noting an above-benchmark eNPS score in 2024 (54 points ahead of the portfolio average of 34), and ensures strict labour law compliance in all of the regions where it operates. Within the last 12 months, BAL has had 18 internal promotions to management and continues to foster a robust career development program. Regular health & safety audits are conducted across all US locations by its longstanding Professional Employer Organization, which BAL has retained for 22 years. BAL’s CRDCs also conduct monthly safety committee walk-arounds of each facility. BAL’s injury rates are less than half of the industry benchmark – only one lost time injury for every 3,070 hours worked.

EMPLOYEE NET PROMOTER SCORE

26%

VOLUNTARY TURNOVER

70%

EMPLOYEE ENGAGEMENT SURVEY RESPONSE RATE

56%

FTE GROWTH SINCE ACQUISITION

Scope 1 & 2 emissions (tCO2e) 2024

3606.8

1644.6

1962.2

Scope 1 & 2 emissions (tCO2e) 2024

Scope 1

Scope 2

Climate Risk Preparedness

BAL has detailed site-specific business continuity plans including standard operating procedures to manage situations such as severe weather events and irregular operations in airport locations. By proactively evaluating physical climate risks, and addressing risks in its business continuity plans, the company has been able to reduce insurance premiums by 20% year-on-year. The company additionally maintains flood, fire and pollution coverage as part of its property insurance for all locations.

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