Without a data-driven foundation, independent freight forwarders cannot grasp the profound impacts of their actions. Proficient measurement of carbon footprint empowers logistics companies to establish a clear position, comprehend their emissions, and strive for reduction and offsetting goals. This approach also allows them to showcase tangible and transparent achievements. The tactic a freight forwarding company employs for carbon measurement can vary depending on its objectives. For instance, an independent freight forwarder striving to achieve net-zero emissions will have distinct requirements for reduction and offsetting compared to one seeking to provide carbon-neutral delivery services to its clients.
In today’s blog, we will talk about how the use of technology is empowering transportation and logistics service providers to make their operations more environment friendly.
The use of data for carbon reduction strategy of independent freight forwarders
It’s widely acknowledged that there’s a mounting expectation for customers to adopt more sustainable practices. One of the prerequisites of freight forwarding companies aiming to lower or eliminate emissions is to acquire a comprehensive understanding of their carbon output. This forms the basis for subsequent reduction efforts. Success in this endeavour hinges upon establishing a solid foundation grounded in actionable data.
The absence of a data-driven groundwork renders it unfeasible to discern which activities have the strongest impact on the environment. Utilizing effective carbon footprint measurement bolstered by data empowers freight forwarders to firmly establish their position, grasp the scope of their emissions, and diligently pursue their reduction and offsetting goals. Moreover, it facilitates the demonstration of quantifiable and transparent accomplishments. Viewing operations through a data lens streamlines adaptation to changes and enables continuous aggregation without compromising the performance of the supply chain.
These ongoing enhancements might encompass:
- Merging shipments for efficiency
- Optimizing routes to minimize carbon footprint
- Decreasing dwell time
How technology can help to measure the carbon footprint of freight forwarding companies
The software-based method of carbon measurement presents a more streamlined and scalable approach. Instead of the labour-intensive process of manually gathering and scrutinizing data from various sources, a software platform allows for the immediate integration of multiple data sources, swiftly offering an overview without the need for prolonged manual data review and analysis. The technological approach to carbon measurement brings forth several advantages in comparison to conventional methods. Manual processes are prone to errors, demand extensive time (and consequently higher costs), and merely yield a retrospective carbon footprint for a past date.
Conversely, the efficiency of sustainability software platforms enables independent freight forwarders to attain nearly real-time figures and come up with actionable strategies. Moreover, this not only results in cost efficiencies and heightened precision but also facilitates seamless integration with various systems and data sources spanning the entire value chain, consequently enhancing emission reporting accuracy.
It’s noteworthy that as businesses expand, introduce novel services, form partnerships, and engage with new customers, their carbon footprint naturally evolves. With its adaptability and flexibility, the software-based measurement approach eases the adjustment to internal changes, providing a more precise and dynamic perspective as the business grows.
How logistics companies can remove their carbon footprint
To initiate an effective carbon reduction strategy, it’s essential to comprehend that emissions are categorized into three distinct groups, commonly referred to as “scopes”:
These are direct emissions originating from sources controlled or owned by an organization, such as equipment, vehicles, and the fuel combustion associated with them. Scope 1 emissions can be curtailed through the assessment and enhancement of internal company processes across manufacturing, shipping, and office environments.
These are indirect emissions resulting from purchased energy. Strategies for reducing Scope 2 carbon emissions focus on acquiring or substituting energy sources with cleaner alternatives, such as solar, wind, hydropower, and geothermal solutions when feasible.
This category encompasses all other emissions indirectly linked to an organization and its supply chain, involving customers and employees. Supply chain emissions often constitute the most substantial contributor to an organization’s carbon footprint, but they can also be the most challenging to quantify and consequently mitigate. Strategies to reduce Scope 3 carbon emissions might involve areas such as cutting emissions from transportation and distribution within the supply chain.
How data can reduce carbon footprint across all three scopes
Similar to Scopes 1 and 2, achieving carbon reduction within Scope 3 relies on a foundation grounded in actionable and insightful data.
An approach driven by data in carbon reduction yields targeted, efficient, and accountable efforts as you strive to establish a more sustainable business.
Sustainability platforms empower businesses to develop a solid grasp of their carbon emissions across crucial business sectors and the broader supply chain. These platforms facilitate the aggregation of data from diverse sources, employing established methodologies to compute emissions. This serves as the basis for businesses to construct a sustainability strategy rooted in data, monitor their advancement, highlight achievements, and ultimately ensure practical reduction choices.
For the well-being of our planet’s future, it’s imperative that businesses address their environmental impact and take affirmative strides to shrink their carbon footprints. Carbon reduction remains the most potent and significant action for businesses to advance their sustainability objectives; however, it’s essential that these initiatives are guided and substantiated by data analysis.