4 Steps to Reduce Your Supply Chain Carbon Footprint in 2023

As the Securities and Exchange Commission establishes regulations for reporting Scope 1, 2, and 3 emissions, it is more important than ever for forwarders to provide accurate carbon data to their clients. Logistics companies can use Chain.io to connect CO2 data software with their customers from any TMS. Read why this is important and what logistics service providers can do to reduce their carbon footprint.

new regulations for reporting Scope 1, 2, and 3 emissions being established by the Securities and Exchange Commission,

According to McKinsey, supply chain and global shipping activities account for more than 80% of greenhouse gas emissions and more than 90% of the impact on air, land, water, biodiversity, and geological resources.

With new regulations for reporting Scope 1, 2, and 3 emissions being established by the Securities and Exchange Commission, logistics service providers are starting to prioritize technology investments to help them reduce the carbon footprint of their supply chains while still meeting the rising demand of today’s shipping landscape.

Improving your own supply chain carbon footprint starts with knowing what your emissions are. With accurate carbon emissions data that is easy to digest and share with your customers, you’ll understand your carbon impact better and can make more informed decisions on how to sustainably run your operations, meet customer demands, and follow government reporting requirements.

1. Invest in Carbon Reporting Technology

Technology has become the greatest ally of the sustainable shipping revolution. Investing in carbon reporting and tracking technologies can help you track and measure your carbon emissions, easier than keeping track of your car keys.

By using carbon reporting technology, like EcoTransIT World, a software for automatic calculations of energy consumption, carbon emissions, and air pollutants, a logistics service provider can determine the amount of carbon emissions generated from their operations and identify areas where they can reduce their impact on the environment.

Carbon reporting technology can also help your team to meet regulatory requirements, such as mandatory carbon reporting rules and regulations that are being implemented in many countries. The data generated through carbon reporting technology can also be used to set targets for reducing carbon emissions and to track progress towards government or shipper targets.

As consumers, businesses, and investors are becoming increasingly concerned about the environmental impact of the products they use, having a robust carbon reporting system can also be a competitive advantage for a logistics service provider to demonstrate their commitment to sustainability.

2. Automate Your CO2 Data

Having access to accurate data is important, but without that data being integrated into your Transportation Management System (TMS), it can be difficult to act on. To accurately and reliably report on your company's carbon impact and make use of your data, integrating your CO2 data into your TMS and supply chain ecosystem is essential. CO2 data integrations will make it easier to report and share your CO2 emissions data with company leaders, other departments, customers, partners, and regulatory agencies.

Chain.io connects your TMS or ERP to the world’s leading CO2 emissions calculators to get the data you need in a variety of ways, including CO2 equivalent units. With integrated CO2 data, you’ll receive comprehensive environmental impact reports on a shipment by shipment basis.

Connecting to a best-in-class emission calculator will not only help you understand and measure the sources of emissions, but it will also give you more insights into your shipping patterns and opportunities for improved efficiency. Other advantages to automating your CO2 data into your TMS include cost savings and the ability to stay ahead of regulatory changes.

3. Implement Green Supply Chain Management Practices

By implementing more earth-friendly supply chain management practices, logistics service providers can not only reduce their carbon footprint but also improve their service to customers, meet regulatory requirements, and contribute to a more sustainable future.

A few ways to practice sustainable supply chain management include:

  1. Optimize routes and transportation modes: By using advanced logistics tech, like route optimization software, logistics service providers can identify the most efficient and environmentally friendly routes for transporting goods. They can also explore alternative modes of transportation to reduce their carbon footprint.
  2. Use green logistics solutions: Logistics service providers can adopt green logistics solutions, like reusable packaging, hybrid delivery vehicles, or renewable energy sources, to reduce their environmental impact.
  3. Collaborate with suppliers: Logistics service providers can work with suppliers to implement environmentally friendly practices throughout the supply chain. For example, they can encourage suppliers to adopt eco-friendly packaging solutions, reduce waste, or switch to renewable energy sources.
  4. Incorporate sustainability into procurement processes: Logistics service providers can make sustainability a key factor in their procurement processes, by prioritizing suppliers that adopt environmentally friendly practices and by considering the environmental impact of the products they purchase.
  5. Monitor and measure progress: Logistics service providers can use carbon reporting technology to monitor and measure their environmental impact and identify areas where they can further improve their sustainability practices. Reporting technology also enables LSPs to hold their suppliers or service providers accountable to stay on track with environmental goals.

4. Let Chain.io Help

At Chain.io, we make connecting any two or more systems quick and painless, whether you or your customers are using the most cutting-edge TMS with modern APIs or older, legacy systems built on ANSI EDI standards.

Our team of logistics service and supply chain experts have the experience to get you up and running quickly. Data migrations or customer onboards that generally take months can be done in weeks using pre-mapped solutions and industry best practices.

By connecting logistics service providers and shippers to carbon emissions data providers, we can help them better understand their supply chain carbon footprint. Are you ready to learn more about integrating your CO2 data? Learn how we can help from one of our supply chain experts.

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Morgan Jones, Custom Solutions Engineering Manager
By Morgan Jones
written on February 23, 2023

Morgan is the Custom Solutions Engineering Manager and supports the sales and client success team in mapping our solutions and integrations.

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