Environmental sustainability has permeated companies of all sizes in recent years. As of April, though, only about 3,300 companies globally have formally certified themselves as B Corporations.
Flock Freight, a startup focused on converting less-than-truckload (LTL) shipping into full truckloads, is the latest company, and the first freight shipping company it claims, to be named a B Corp company.
“As the first freight shipping company to gain B Corporation status, Flock Freight is setting the standard for sustainable shipping practices in the trucking industry with our shared truckload shipping solution,” said Oren Zaslansky, founder and CEO of Flock Freight. “Sustainability is an integral component of Flock Freight’s business model, and the B Corporation certification validates our commitment to transforming the freight industry with shared truckload shipping, which makes shipping freight sustainable, affordable and efficient.”
B Corp companies must achieve a minimum score from an online assessment of social and environmental performance, integrate B Corp commitments to stakeholders into company governing documents, and pay an annual fee determined by sales. The program is operated by B Lab, a nonprofit that focuses on using businesses as a force for good. The group’s initiatives “include B Corp Certification, administration of the B Impact Management programs and software, and advocacy for governance structures like the benefit corporation. B Lab’s vision is of an inclusive, equitable, and regenerative economic system for all people and the planet.”
“We are thrilled to welcome Flock Freight to the B Corp community. Flock Freight’s dedication to transforming the freight industry and its impact on the environment through its shared truckload solution is a game-changer. Flock Freight’s commitment to supporting its employees, community and the environment perfectly aligns with the B Corp’s mission to prioritize both purpose and profit,” said Pooja Dindigal, senior associate of business development at B Lab.
Flock Freight said its commitment to its employees was part of the reason it earned the certification. “All in” is a value it embraces, the company said.
“Flock Freight prioritizes the comprehensive well-being of its entire team and is dedicated to providing competitive benefits, generous time off, stock options, retirement plans and company-sponsored perks,” the company said in a release.
Flock Freight is seeking to disrupt LTL shipping by pooling freight. In May, it announced it had reached 12,000 total shipments since 2017. It’s hubless pooling technology utilizes algorithms to eliminate terminals by combining LTL and partial truckload shipments that are going in the same direction onto one truck. Its flagship product, FlockDirect, guarantees hubless transit and full truckload service for all shipments, regardless of size. The company said this approach provides carriers with fair rates and improves shipping times, reliability and damage rates for shippers while reducing carbon emissions by up to 40%.
In February, Flock Freight announced a $50 million Series B funding round led by SignalFire and GLP Capital Partners. The company said it would use the funding to invest in a digital integration via electronic logging devices or a transportation management system.
Zaslansky, who has founded and still owns several trucking and brokerage operations, told FreightWaves at the time that Flock Freight was working on redefining a pricing structure for LTL by expanding partnerships with truckload carriers to help them fill trailers.
“We’re taking on the risk and the mathematical work that it takes to build multi-stop carpools,” he said.
What Flock Freight attempts to do is automate a process that carriers have been attempting to streamline for years.
“We’re taking LTL and repackaging it as FTL,” Zaslansky told FreightWaves in February. “Our value creation is in repackaging the freight.”
In 2019, Flock Freight said its solution saved the equivalent of over 4,335 metric tons of CO2. In 2020, Flock Freight is committed to reducing carbon emissions from the trucking industry by 5,000 metric tons through shared truckload shipping.
Click for more FreightWaves articles by Brian Straight.
You may also like:
FreightWaves 3PL Summit: Brad Jacobs on diversity, automation and COVID recovery
Truckers, small fleets can now bid for dedicated freight through Convoy
C.H. Robinson, Microsoft partner to boost supply chain digitization