The inclusion of environmental performance in transport contracts

Abstract

PurposeThe purpose of this paper is to investigate the inclusion of environmental performance in transport contracts, and to study whether differences in inclusion can be explained by managerial involvement.Design/methodology/approachThe study is based on a survey of shippers and logistics service providers in Sweden. Regression and cluster analysis were used to link managerial involvement to inclusion of environmental performance.FindingsCompanies that include environmental performance in transport contracts do not necessarily consider how to measure the environmental performance and how to handle non‐compliance. The most common performance metrics to include are CO2 emissions and energy use. A higher degree of managerial involvement is related to larger inclusion of environmental performance. Findings also indicate that transportation managers play a very central role for inclusion of environmental performance in contracts.Research limitations/implicationsThe paper offers a theoretical contribution to transport contract and performance management theory by expanding it to encompass environmental performance. The authors provide some descriptive and explanatory results in a Swedish context.Practical implicationsThe managerial contribution is to show practices and provide an understanding of the use of contracts for environmental performance, which in analogy with previous research can lead to environmental performance improvements.Originality/valueFew identified studies focus on regulating environmental performance in transport contracts.