International assignments are an essential part of talent development and organizational growth.  Companies with developed talent mobility programs spend extensive human and financial capital implementing the selection and support services that produce high assignment success rates.  From careful selection of the right employee at the right time to the right location to compliance and transition support, there is an intentional focus on positioning each assignment for success.

The transition back home, known as repatriation, is equally important and impactful to the employee and organization yet often fails to receive a fraction of the attention. Returning from an assignment requires a combination of support, some similar to the services provided at the departure, but there are unique offerings that help create a successful repatriation.

What are the realities of repatriation failure? Numerous studies state that 25 – 50% of returning expatriates will leave their jobs within two years of repatriating. Companies that fail to support employees' return home don’t just lose a high-value employee; they incur additional costs of employee replacement on top of the loss of funds spent on the assignment. 

McKinsey recently published an article outlining its reboarding program: “Our reboarding program: Building a better model for leave support.” The paper examines the structure and support McKinsey has implemented to help employees returning from personal leave, including parental and medical leave. While the study didn’t specifically consider repatriating employees, the parallels are evident.

Tailored Reintegration Plans

Just as reboarding programs emphasize tailored reintegration plans, repatriation services should offer personalized support to returning employees. This includes creating a detailed action plan that addresses professional and personal needs.

Ideally, the repatriation plan should be defined during the assignment planning process.  At a minimum, planning should happen several months before the repatriation.  Organizations can help employees navigate the complexities of returning to their home country and workplace by providing a clear roadmap, ensuring they feel valued and supported.

Individual Coaching and Support

Reboarding programs often include individual coaching from executive coaches to facilitate a smooth transition. Similarly, repatriation services should offer one-on-one coaching to help employees leverage their international experience and align it with organizational goals. This personalized support can boost confidence, enhance performance, and foster a sense of belonging.

Performance Evaluations and Career Development

Calibrated performance evaluations are crucial to reboarding programs, ensuring that returning employees are assessed fairly and given growth opportunities. Repatriation services should also include performance evaluations recognizing the unique skills and experiences gained abroad. By aligning these evaluations with career development plans, organizations can retain top talent and maximize the benefits of international assignments.

Broader Support Systems

Reboarding programs provide broader support systems, such as supportive colleague communities. Returning from an assignment is unique in that the experience of the assignment changes the returning employee. It may be the exact same house being returned to, but a different person will walk through the door. 

Repatriation services should similarly offer comprehensive support, including mental health resources and community-building initiatives. These measures can help returning employees fully reintegrate their current lives, which have been changed by their experiences, into work and home. 

The cost of investing in repatriation services is small compared to the price of failure.  Support is not just nice to have; it is necessary for organizations that value their global talent.  The McKinsey article shares some proven tools that can also be useful for employees returning from assignments. It is best to start with a solid assignment plan that includes a roadmap for repatriation. The return should be part of the planning from the start, and employee support shouldn’t end upon arrival. 

As the world grapples with climate change, corporations are increasingly focusing on ESG. One significant area where companies can make a positive impact is by adopting electric vehicles (EVs) in their corporate relocation strategies. With China leading the way in global EV adoption, this shift aligns with global sustainability goals. However, this presents opportunities and challenges for Human Resources (HR) departments, Destination Service Providers (DSPs), household goods companies and Relocation Management Companies (RMCs).

The Potential of EV Growth in Southeast Asia

The adoption of EVs in Southeast Asia is gaining momentum, with the market showing significant growth potential. According to EY-Parthenon analysis, the ASEAN-6 EV market (Indonesia, Malaysia, Thailand, Vietnam, Philippines, and Singapore) is expected to record a compound annual growth rate of 16%–39% between 2021 and 2035. Potential annual sales opportunities are estimated to reach US$80b–US$100b by 2035, a substantial increase from about US$2b in 2021. According to a McKinsey report, Singapore, Thailand and Indonesia are the countries most poised for growth in this sector.

EY analysis forecasts total EV sales volume in Southeast Asia to reach about 8.5 million units by 2035. Indonesia is expected to be the region's largest market by volume, with estimated sales of 4.5 million units across all EV segments. Thailand is predicted to come in second with an estimated sales volume of 2.5 million units.

The global mobility industry's challenge is how its supply chain adapts to using EVs today. Transport providers interviewed by Relo Network Asia in Cambodia, Malaysia, and Singapore highlight 2 main issues: EVs are 20-30% more expensive than petrol vehicles, depending on the market, and there is a lack of EV chargers across each country. For example, Penang, a booming hub for the semiconductor industry, has only one EV charger in some locations outside George Town, according to Plugshare.

Benefits of EVs in Corporate Relocation

Integrating EVs into corporate relocation strategies offers multiple advantages:

1.Environmental impact: EVs significantly reduce carbon emissions compared to traditional internal combustion engine (ICE) vehicles.

2.Cost savings: EVs often have higher upfront costs but offer long-term savings on fuel and maintenance. This can be particularly beneficial for companies managing large fleets or offering car allowances to relocating employees.

3.Enhanced corporate responsibility: Adopting EVs demonstrates a company's commitment to sustainability, improving its reputation among industry peers and clients.

Mobility Case Study: Beijing

In a recent discussion with Sean Collins from ATMA’s ESG Committee, who managed a program in Beijing from 2006-2010, he highlighted the early challenges and efforts towards more sustainable vehicle policies. Sean recounted his experience, "Back then, the electric vehicle revolution hadn't really started yet, so it was pretty much all petrol-driven cars, and the pollution in Beijing was horrific."

Managing a large expat population with car leases, Sean noticed the preference for large fuel-inefficient cars and the severe impact of car pollution on both the environment and public health. To improve the situation, Sean collaborated with his company's environmental officer to introduce restrictions on car leases, favouring more fuel-efficient models.

This policy change both reduced pollution and sparked awareness among assignees about the importance of vehicle efficiency. This early initiative highlights the gradual, yet impactful steps corporations can take to embrace sustainability and reduce their carbon footprint, paving the way for more sustainable mobility solutions in the future.

The Important Role of HR, DSPs and RMCs

HR departments, DSPs, and RMCs play vital roles in promoting EV use during relocations:

1.HR initiatives:

• Educate employees on the benefits of EVs
•  Integrate EV options into mobility policies and compensation packages
• Consider offering incentives for employees choosing EVs

2.  DSP contributions:

•  Assist expats in accessing EV resources and infrastructure
• Provide orientation and training on local EV regulations and charging options
•  Partnering with providers who have EVs in their fleet for their area orientations and home search programs

3. RMC strategies:

• Partner with EV-friendly vendors and service providers where available
• Develop policies that prioritize EV use in relocation packages

4. Household goods:

• Pioneering household goods companies are now integrating electric vehicles and trucks into their fleet. Crown Relocations, for example, has recently introduced electric trucks in both Hong Kong and Singapore.

Overcoming Challenges

Despite the benefits, several challenges need addressing:

• Charging infrastructure: Many Southeast Asian cities lack extensive charging networks. The EY-Parthenon analysis highlights that charging stations' availability and ease of use are vital for driving EV demand. Companies can collaborate with local authorities and property managers to install charging stations at offices and residential areas.
• Cost: While EVs offer long-term savings, their initial cost can be higher. The EY-Parthenon analysis emphasizes that EV affordability is a significant challenge to adoption in Southeast Asia. Companies might consider leasing options or providing financial incentives to offset this difference.
• Market readiness: EV readiness varies across the ASEAN-6 countries. Businesses should consider demand, supply and infrastructure factors that impact EV readiness in each market.
• Ethical sourcing and supply chain: Access to raw materials is critical for battery production. Several Southeast Asian countries have substantial reserves of key materials like nickel and copper, which could influence the regional EV ecosystem. However, this often comes at a significant cost to the environment, workers and indigenous communities. “Battery passports” could be one way to help overcome these serious issues.

The Role of Hybrids

EV sales accounted for just 2.1% of total vehicle sales in Southeast Asia in 2022, compared to 2.3% in India and 29% in China. While full EVs are the ultimate goal, hybrid vehicles, offering improved fuel efficiency and reduced emissions compared to traditional ICE vehicles, can be an excellent transitional option in areas with limited charging infrastructure.

Mobility Case Study: Integrating EVs into Crown Worldwide Group’s Household Goods Business

Crown Singapore has long been committed to integrating sustainability into its global mobility operations. As Luis Contreras, Regional Director of Crown in Singapore highlighted, “One milestone in this journey was the shift to electric trucks, motivated by the company’s goal to reduce its carbon footprint and align with Singapore’s national sustainability goals.” Crown Singapore recognised the increasing availability of EVs and government incentives as fundamental to this transition. Integrating electric trucks into their fleet is central to their broader sustainability strategy, aimed at decarbonising operations and enhancing energy efficiency.

Adopting electric trucks came with challenges like adequate charging infrastructure and managing vehicle range limitations. Crown Singapore tackled these issues by investing in new infrastructure and optimising fleet management. Comprehensive driver training ensured a smooth transition to the new technology, significantly reducing greenhouse gas emissions.

Building on its success in Singapore, Crown Worldwide Group has expanded the use of electric trucks to other markets, including the UK, UAE, Malaysia, and Hong Kong. This expansion aligns with Crown’s broader ESG strategy to support the global shift towards a low-carbon economy. Electric trucks help Crown achieve its targets for reducing its environmental footprint and enhancing the sustainability of its transportation services.

Looking Ahead

The future of corporate mobility in Southeast Asia is increasingly electric. The EY-Parthenon analysis estimates the region's EV ecosystem to be worth about US$100b–US$120b by 2035. Companies that proactively integrate EVs into their relocation strategies will be well-positioned to meet future regulatory requirements and attract environmentally conscious talent.

However, the success of EV adoption across mobility programs in the region will require a deep understanding of local markets, available vehicles and synergies within the value chain. Amidst fast-paced technological improvements and EV battery charging efficiencies, recent battery safety concerns also point towards potential broader regulatory changes.

Conclusion

Integrating EVs into corporate relocation strategies in Southeast Asia is a forward-thinking business decision. For HR departments, DSPs, and RMCs, the transition to EVs presents an opportunity to innovate and add value to their services. Mobility professionals can play a pivotal role by staying informed about EV developments, collaborating with local partners, and continuously educating both their staff and clients. The road to full EV adoption may be long, but every step taken today will have positive future impacts.

An ATMA corporate HR workshop in collaboration with Schneider Electric

On the 26^th of July, the Asia Talent Mobility Alliance held a half day workshop for its corporate HR members to help them kick start their global mobility sustainability journey. The workshop was hosted and led by Sanjala Hari, from Schneider Electric’s Sustainability Business consulting practice, alongside Stephen Park and his global mobility team.

Following up on the inaugural ATMA ESG event in April, which attracted nearly 40 participants for educational sessions from industry experts on ESG within global mobility, this workshop focused on a hands-on approach for HR members eager to begin their sustainability journey, build a business case and develop a strategy.

The Schneider team kicked off by reviewing the participant companies’ climate ratings and commitments to net zero covering scope 1,2 and 3. With some commitments starting in 2025, this added great context and highlighted the urgency for global mobility functions to start planning how they can begin tracking and meeting their organisation’s commitments around reducing their greenhouse gases (GHGs). The group then identified the global mobility activities that contribute towards scope 3 emissions, especially around:

• ·        Purchased goods and services
• ·        Upstream transportation and distribution
• ·        Waste generated in operations
• ·        Business travel
• ·        Employee commuting

Participants then set to work on building a compelling business case for executing a sustainability program for global mobility.  Following the workshop Stephen Park and his team gave an update on their global mobility sustainability journey at Schneider, having already successfully built their business case and embarked on their sustainability roadmap. Stephen outlined how they are working with the consulting team at Schneider to identify the operational elements and type of data collection needed for emissions accounting.

Sanjala rounded up the workshop by sharing what the next steps would look like during the emissions measurement phase and how the consulting team can partner with organisations to achieve target setting & decarbonization roadmap development.

If you are keen to learn more about ESG and global mobility, would like to attend a future workshop or are interested to join the ATMA ESG committee please reach out to Sean Collins, Director of ESG at ATMA on esg@asiatma.com.

Sanjala Hari

Sustainability Business

Schneider Electric

https://www.linkedin.com/in/sanjala-hari-981b8a91/

Stephen Park

International Talent Mobility

Schneider Electric

https://sg.linkedin.com/in/stephenparksingapore?trk=public_post-text

The recording for the recent webinar from our ESG committee is now available in the Members Resources Section.

A Few Takeaways:

1. Mandatory ESG Reporting: Organizations globally are increasingly required to report on their ESG activities, aligned with the 17 UN Sustainable Development Goals and various global reporting standards like GRI and ISSB. The EU mandates such reporting, with APAC following soon.
2. Greenhouse Gas Emission Targets: Many multinational companies are setting ambitious greenhouse gas emission targets according to the Science-Based Targets Initiative, with net-zero goals by 2050 and some aiming for 2030.
3. Impact on Global Mobility: ESG criteria significantly impact global mobility, focusing on gender equality, climate action, and energy and water consumption. Environmental criteria emphasize greenhouse gas emissions social criteria cover aspects like gender pay ratio and diversity, and governance criteria include incentivized pay and anti-corruption measures.
4. Scopes of Emissions: Companies must understand and report on three scopes of greenhouse gas emissions:
   • Scope 1: Direct emissions from company-controlled sources.
   • Scope 2: Indirect emissions from purchased energy.
   • Scope 3: Other indirect emissions, including supply chain and business travel.
5. Growing Focus on Scope 3 Emissions: There is an increasing requirement to report Scope 3 emissions, necessitating preparedness in internal processes and vendor collaboration.
6. Carbon Offsets: These play a significant role in achieving net-zero targets, with costs expected to rise significantly. Companies should integrate carbon offset costs into relocation budgets.
7. Sustainable Mobility Practices: Virtual assignments, discard and donate programs, and using low-emission vehicles can reduce the carbon footprint of relocations. Companies are encouraged to set carbon limits and choose sustainable vendors.
8. Local Talent Sourcing: It is more sustainable to source talent locally or regionally rather than relocating individuals, reducing the carbon impact of frequent travel.
9. Equity and Compliance: Ensuring roles are accessible to diverse talent populations, providing necessary cultural training, and complying with local labor laws and right-to-work regulations are essential.
10. Social Development: Global mobility can support social development by hiring displaced talent or building local teams in developing regions.
11. Stakeholder Engagement: Engaging stakeholders, measuring data, and setting realistic targets are crucial for achieving sustainability goals.
12. Leadership and Accountability: A sustainability champion should lead ESG initiatives, develop a roadmap, and communicate the strategy effectively.
13. Policy Review and Quick Wins: Reviewing and revising existing policies, such as developing a green move policy and implementing quick policy wins, can make a significant impact.
14. Educational and Incentive Programs: Providing CO2 data education, green services, public transport allowances, and incentivizing sustainable decisions among employees are important.
15. Comprehensive Data Collection: Collecting and analyzing data from vendors and stakeholders helps set baselines and measure progress toward sustainability targets.

The Rise of Flexible Policies

We are immensely grateful to Des McKell of NetExpat for sharing the report on Core/Flex, which was a major topic during the recent ATMA India webinar. Thank you so much for your generosity and for contributing valuable insights to our discussions.  A copy of the report, From core flex to care flex: A practical approach to mindful flexibility is now available in our Members Resources, or you may request a copy here.

In recent years, there has been a significant shift towards flexibility in corporate policies. According to Mercer’s Worldwide International Assignments Policies and Practices survey, 57% of companies had flexible policies in 2022, up from 37% in 2019. In 2023, 62% of companies reported reviewing or planning to review their policies to enhance flexibility.

The Drive for Better Experiences

The primary goal of introducing flexibility is to improve the experience for assignees, with 57% of companies recognizing this as a crucial benefit. However, implementing flexible packages presents challenges, including inadequate technology infrastructure, potential cost increases, tracking difficulties, and insufficient guidance from management and HR.

Measuring Impact and Expectations

Despite the push for flexibility, only 12% of companies regularly measure its impact against set objectives, while 18% do so randomly. Businesses aim to balance practicality with workforce satisfaction, benefiting both employees and their families.

Forms of Flexibility

Flexible talent mobility can take several forms:

• Swapping Benefits: Exchanging one benefit for another of similar value.
• Cashing-Out: Receiving benefits in cash instead of kind.
• Lump-Sum Payments: Providing a cash amount to cover multiple components of the assignment package.
• Cafeteria Model: Allowing employees to select benefits from a predefined list.
• Core Flex Benefits: Distinguishing between essential (non-negotiable) and optional benefits.

Pros and Cons

While cash-based and lump-sum approaches are easy to administer and meet employee expectations, they can be tax inefficient and may not enhance the assignee experience. In hardship locations, flexibility may need to be limited for safety reasons.

Changing Mobility Patterns

Companies are increasingly adopting permanent one-way moves, appealing to relocation budget holders but posing complexities for employees and their families. Maintaining dual family income is crucial, with over 70% of families considering it a critical factor in mobility decisions.

Structured Flexibility: The Core Flex Approach

Companies are exploring more structured flexibility, such as core flex approaches that separate essential benefits from optional ones. Challenges include balancing flexibility with duty of care, ensuring consistent employee experiences, and providing informed choices.

Introducing Care Flex

The care flex approach refocuses on employee and family well-being, starting from the desired employee experience. It emphasizes financial affordability, relevance, and measurable outcomes for satisfaction and retention.

Implementing Care Flex

Key steps include:

• Setting Minimum Support Levels: Ensuring compliance and well-being.
• Defining the Experience: Prioritizing family experience and well-being.
• Ensuring Relevance: Understanding and addressing diverse employee needs.
• Fostering Collaboration: Involving all stakeholders in decision-making.

Measuring Success

Success metrics for care flex include awareness surveys, adoption rates, satisfaction rates, and monitoring talent retention and assignment outcomes. Positive indicators suggest that family support enhances assignment acceptance and job performance.

By adopting these flexible approaches, companies can better support their mobile workforce, improve satisfaction, and enhance overall organizational effectiveness.

It was difficult to extract the key takeaways from the recent India webinar. We could have listed many more and welcomed ATMA members and guests to view the full recordings to capture the entire value presented.  

Key Takeaways:

1. Impact of COVID-19 on Mobility Policies:

- The pandemic has brought significant changes in global mobility policy demands within organizations.

2. Changes in Assignments:

- There is a shift in the traditional mobility approach, emphasizing the re-evaluation of assignment duration, purpose, and necessity.

- Hybrid assignments, typically lasting from 6 to 18 months, are gaining prominence for specific temporary needs.

- Short-term assignments for knowledge transfer and transition are still relevant but their approach is being reconsidered.

3. Business Travel:

- Organizations are re-evaluating the necessity of frequent business trips, leading to potential cost savings and support for ESG goals such as decarbonization.

- Business travel is now more targeted, mainly for top management or essential meetings, with many interactions occurring remotely.

4. Assignment Benefits:

- There is a shift towards core and flexible benefits, allowing tailored approaches based on individual needs, project requirements, and home-host country combinations.

- Mobility policies are moving away from a universal approach, recognizing the need for flexibility based on various factors like project budgets and employee requirements.

5. Temporary Roles:

- Emphasis on ensuring that temporary roles remain temporary, avoiding the practice of permanently rotating individuals in a constant role.

6. Cost Efficiency and ESG Goals:

- Organizations are leveraging mobility policy changes to achieve cost efficiency and support broader ESG objectives.

7. Emphasis on Employee Well-being and Engagement:

- There is greater focus on flexible policies managed through exceptions and recognition that adjustments based on project, industry, and demographics are necessary.

- Flexibility and core benefits aid in managing program costs, involving HR in decision-making to control costs and tailor approaches.

8. Global Policy Framework with Local Adaptation:

- Ensures high-level consistency with flexibility for local adaptation based on specific employee needs.

9. Ownership of Remote Work Policy:

- There is a debate on whether HR or Global Mobility should own the remote work policy, with mobility teams seen as better equipped for handling legality and compliance issues between home and host countries.

10. Challenges of Hybrid Work Models:

- Potential creation of permanent establishments in third countries and taxation issues with employees working from one country and generating revenue for another.

11. Continued Relevance of Global Mobility:

- Handling remote work policies helps maintain the relevance of the Global Mobility function, connecting various departments like payroll, finance, and legal for effective remote work policy management.

Watch the full webinar on our Youtube or bilibili channels.  

The ESG committee is starting an education series to raise sustainability awareness in the Global Mobility Community, help service providers report data to clients, and support corporate HR in building business cases tied to their ESG strategy. This first webinar focuses on ESG Fundamentals and will provide general education about ESG. Future webinars will delve deeper into global mobility functions and explore the social and governance aspects of ESG.

1. Focus on the 'S' in ESG: The organization's work is heavily centered on social sustainability, aiming to support long-term sustainable practices across the industry.
2. Wide-ranging Impact of ESG: ESG considerations are extensive, affecting not just the company but the entire industry and a diverse array of stakeholders, including investors, employees, suppliers, governments, and local communities.
3. Regulatory Frameworks: ESG practices are influenced by various regulatory frameworks that vary by jurisdiction, such as SDGs, SBTi, and EU directives, which can impact companies globally.
4. ESG Risk Management: Managing ESG risks, including fair labor practices and environmental risks like rising global temperatures, is a crucial emerging area for the organization.
5. Holistic Approach Required: Implementing ESG practices requires a comprehensive approach involving planning, data gathering, risk management, and strategic operations across the organization.
6. Zero Waste and Circular Economy: Emphasis on reducing consumption, reusing, and recycling to achieve zero waste. Transitioning from a linear to a circular economy promotes intelligent use of resources and better recycling practices.
7. Greenwashing: Companies should avoid greenwashing—falsely portraying themselves as environmentally friendly. Transparency and substantiated claims are essential to maintain credibility.
8. Carbon Emissions and Net Zero: Understanding and managing carbon emissions across Scope 1, 2, and 3 are crucial. The organization aims for Net Zero by balancing emissions with renewable energy, tree planting, and other initiatives.
9. Materiality: Focusing on significant environmental, economic, and social impacts, materiality helps prioritize reporting efforts and provides stakeholders with relevant information, enhancing accountability.
10. Global Reporting and Trends: The shift towards more standardized reporting frameworks like IFRS and ISSB standards emphasizes climate-related disclosures. Emerging EU regulations and adopting nature-based solutions are also key trends in the ESG space.

Watch the full webinar recording on YouTube or bilibili.

For those involved in expatriate management and HR, the cost of living basket is a practical tool. It's a collection of essential goods and services that compare living costs across regions.

As an Asian talent mobility membership association, we have an appreciation for ECA's commitment to updating and maintaining a representative cost of living (COL) basket. This tool has evolved to better reflect diverse global consumer habits, particularly those from Asian and non-US cultures, compared to its previous iteration that included items like canned corned beef and DVD rentals. ECA's basket now includes over 170 items, ranging from tennis balls to various fruits and vegetables, providing a comprehensive overview of living expenses, excluding accommodation and education. This makes it a valuable resource for talent mobility work.

The blog post "From Blockbuster to Netflix: the evolution of ECA's COL basket" offers an enjoyable article filled with nostalgia and insights into the changing world. The COL basket also mirrors modern consumption trends by incorporating contemporary food items such as frozen pizza, soy milk, and premium ice cream, aligning with healthier and more diverse food choices. Technological advancements are reflected as well, with broadband internet costs and video-streaming subscriptions replacing outdated items like inland postage and DVD rentals. This progression captures the actual cost of living in today's digital age.

To cater to the diverse dietary and lifestyle preferences of expatriates and in consideration of Asia's growing talent mobility, the basket now includes items such as instant noodles, tofu, and sushi rice, reflecting staples from Asian countries. This ensures more accurate cost calculations and fair salary adjustments for expatriates from these regions.

Beyond that, it’s a great read because of its insights into the complexity of maintaining COL data that reflects the existing assignee population and their long-term spending patterns.  

A post from our ESG Committee

As the relocation industry embraces sustainability, one of the most carbon-intensive processes in relocation apart from flights is the shipment of household goods. Holly Naylor from the ATMA ESG Committee recently spoke with Michael Johnsen, Vice-President of Asia Region at Arpin International Group, to gain insights on current trends, the carbon footprint of shipments and how the industry is evolving to address it.

The Carbon Cost of Shipping

Maritime transport is the most carbon-effective method for moving goods, releasing a small proportion of CO2 emissions per tonne-kilometre compared to other modes of transport such as trucks, trains, or planes. Global total shipments of all types are responsible for 2.1% of the world's CO2 emissions, according to the World Shipping Council.

Household goods shipments are the second most carbon-intensive component of relocations after flights with air shipments being more carbon-intensive than sea shipments. A report suggests that an average international move can produce up to 2 metric tons of CO2. Reducing shipment volume by just 15% could eliminate 150-300kg of carbon per move.

Steamships in particular are "extremely inefficient still," Johnsen says, given their reliance on fossil fuels. However, he expects airlines to make quicker sustainable progress given the pressure from consumers and higher associated costs. Johnsen notes it is also challenging to measure precise emissions as a half-full container still makes the same journey as a full one. However, reduced volume means less weight and packing materials, which likely lowers the overall footprint to some degree.

Less Container Load (LCL) – A More Sustainable Option?

LCL is a cost-effective and more sustainable shipping method that allows multiple shipments from different individuals or companies to be consolidated into a single container. This approach ensures that the container space is fully utilized, even if a single Assignee’s household goods shipments do not fill an entire container.

The process of LCL involves the following steps:

• Collection of goods from various assignees
• Consolidation of shipments at a warehouse or container freight station (CFS)
• Loading the consolidated shipments into a single container
• Transportation of the container to the destination port
• Deconsolidation of the shipments at the destination CFS
• Final delivery of individual shipments to their respective owners

By consolidating shipments, LCL offers several benefits:

• Cost savings: Assignees only pay for the space their shipments occupy within the container, rather than bearing the cost of an entire container.
• Reduced carbon footprint: Consolidating shipments helps minimize the number of partially filled containers transported, thereby reducing the overall carbon footprint of the shipping process.
• Flexibility: LCL allows assignees with smaller shipments to transport their goods without having to wait for a full container load.

One potential drawback is that LCL shipments may take longer to reach their destination compared to full container load (FCL) shipments. This is because the consolidation and deconsolidation processes require additional time and handling and are a key consideration when considering an Assignee’s timeline in conjunction with the move into a new apartment upon arrival in their new country.

Driving Sustainability Through the Supply Chain

Multinational corporations are increasingly demanding that their suppliers, including relocation and shipping providers, invest in sustainability programs and carbon accounting. RMCs in turn require movers to step up their environmental initiatives to remain part of the supply chain. Arpin for example has invested in World Favor, a carbon emissions accounting program. As a company, Arpin also has a long history of environmental stewardship thanks to its President Peter Arpin’s personal passion for sustainability, which translates with the corporate focus on such programs today.

Reduce, Reuse, Relocate?

One proposed solution is reducing the volume relocated. Another is relying more on rental furniture. However, buying new furniture upon arrival in a new location may not be truly sustainable, as cheap furniture wears out and ends up in landfills after a few moves.

Shipping high-quality personal furniture may potentially generate less waste in the long run. One report on the carbon footprint of new furniture suggests that a regular item of furniture generates approximately 47 kilograms of CO2 equivalents (CO2e) or more during the manufacturing process.

Driving factors like cost are organically reducing shipment volumes already. Younger assignees tend to move less, have fewer belongings and lump sums are gaining popularity. However, families will never fully give up shipping household goods as their needs grow as they grow. Tighter corporate relocation policies will likely remain the main lever to shrink shipments.

The Quest for Greener Packing Materials

Using greener packing materials is another key initiative. Across the industry, moving companies are shifting from plastics to more recyclable paper-based materials. However, these are costly and less effective at preventing damage - a key concern for assignees and corporates. Striking the right balance remains a challenge notes Johnsen.

Harnessing Clean Energy and Human Power

Some progress is being made in the US with renewable energy, such as using solar to power truck cabs and reduce idle fuel consumption. There are also several shipping industry initiatives for greener shipping fuels on the horizon. However, many core aspects of moving still require significant human labour that can't easily be replaced by technology or clean energy. Packing and loading will likely always need human hands.

The Path Forward

The relocation industry has a long sustainability journey ahead, but progress is being made. Accreditation bodies like FIDI require environmental progress from movers. Resources from industry groups like FIDI and regional organizations like ATMA are raising awareness. FIDI has also recently created a carbon footprint calculator for the industry in collaboration withWorld Favor and sustainability is one of the key themes for the 2024 FIDI conference.

"As an industry globally, we are working towards making progress in emissions and environmental sustainability," Johnsen affirms. By shining a light on the often overlooked social and governance aspects, FIDI is helping drive the industry towards a more comprehensively sustainable future.

FIDI and other industry groups are also broadening the focus to encompass the social and governance aspects of ESG, not just environmental sustainability. "I always talk about the S and the G as well. I think that's really neglected often," Johnsen points out. By holding its members to high standards on social and governance matters, FIDI is ensuring the industry moves forward in a thoughtful, responsible and ethical manner.

While household goods shipping may never be emissions-free, a multi-pronged approach of reducing volume, using greener materials, tapping clean energy and working closely with all stakeholders can shrink its carbon footprint. This balanced approach acknowledges that true sustainability requires addressing all three pillars of ESG.

On 6th May in Bangalore, ATMA conducted its first in-person networking event in India.

Despite the inclement weather, we at ATMA were humbled to receive 41 guests for the evening. The guests included a healthy mix of in-house corporate mobility professionals and service partners.

Attending ATMA Board of Director members, comprising Avrom Goldberg, Joanne Yee, and Dharmesh Kothari, introduced the mission and vision of ATMA to the attendees. The level of curiosity shown by the attendees towards the objectives and vision of ATMA has been very encouraging. The participants also shared their interests in how they could contribute to the vision of ATMA.

Joanne Yee shared the details about the Mentorship Asia Program (“MAP”) and how it is a differentiator for ATMA. MAP has attracted a lot of interest, and we look forward to expanding the program to India-based Global Mobility Professionals. The participants have expressed their excitement about ATMA and how they can best contribute to expanding the reach of ATMA.

ATMA looks forward to increased participation from global mobility professionals to achieve its goals in the Asia Pacific region. 

Our deepest thanks to the sponsorship and coordination provided by IKAN Talent Mobility and to the sponsorship by USI Law.