Carbon Offsetting and Emissions Reduction Strategies

  • June 26, 2023
  • Blog

Carbon Offsetting and Emissions Reduction StrategiesAccording to estimates, the global logistics and transport sector accounts for approximately 24%* of global CO2 emissions. Even though supply chain logistics companies play a crucial role in global trade, they also contribute to carbon emissions and climate change.

As environmental concerns continue to grow, logistics companies are increasingly adopting sustainable practices to mitigate the environmental impact and offset a certain percentage of their emissions as part of their sustainability targets.

Understanding Carbon Offsetting:

Carbon offsetting is a process that allows companies to compensate for their carbon emissions by investing in projects that reduce GreenHouse Gas (GHG) emissions or reduce CO2 from the atmosphere. In the logistics sector, where emissions from transportation are significant, carbon offsetting provides an avenue to balance out the environmental impact of operations and contribute to climate change mitigation.

Emissions Reduction Strategies in the logistics sector can be categorized into the three scopes of the GHG protocol:

Scope 1:

Direct emissions from resources that the corporation owns and controls are considered scope 1 emissions. In other words, a series of actions taken at the corporate level directly cause emissions to be discharged into the environment.

  • Transitioning to Fuel-efficient Vehicles: Investing in fuel-efficient vehicles, such as electric or hybrid trucks, environmentally friendly vehicles and optimizing fleet management practices can lead to significant emissions reductions.
  • Utilizing Alternative Fuels: Exploring alternative fuels, such as biodiesel or renewable natural gas, can help reduce emissions. The gradual transition away from fossil fuels can contribute to the industry’s decarbonization and minimize its carbon footprint.
  • Route Optimization and Consolidation: Efficient route planning and shipment consolidation can lead to reduced mileage, lower fuel consumption, and decreased emissions. By leveraging advanced technology and data analysis, supply chain companies can optimise delivery routes, consolidate shipments, and minimize empty backhauls, resulting in tangible emissions reductions.
  • Modal Shift: Promoting a modal shift from road to rail or maritime transportation can significantly reduce carbon emissions. Logistics companies can collaborate with rail and maritime operators to explore greener transport alternatives for long-haul and intercontinental shipments, thereby reducing the reliance on carbon-intensive road transport.

Scope 2:

Indirect emissions from the production of energy that has been obtained from a utility provider are considered scope 2 emissions.

  • Sustainable Warehousing and Distribution: Sustainable practices are adopted in inventory management and distribution operations to reduce emissions. This includes implementing energy-efficient lighting systems, optimising facility layouts for better energy utilization, and adopting renewable energy sources for sustainable operations.
  • Investing in Renewable Energy: Investing in renewable energy sources, such as solar panels or wind turbines, to power facilities and other operations can help reduce reliance on fossil fuel-based energy and lower their carbon emissions.

Scope 3:

All indirect emissions that occur upstream and downstream in the reporting company’s value chain but are not covered by Scope 2 are considered Scope 3 emissions.

  • Collaborating with Suppliers and Partners: Supply chain logistics companies can work with carriers, suppliers, etc. to encourage sustainable practices and promote shared emissions reduction goals. This can involve joint initiatives, such as equipment upgrades, improved logistics planning, and data sharing for better emissions monitoring.
  • Carbon Offsetting Projects: To offset the remaining carbon emissions, logistics companies can invest in high-quality carbon offset projects. These projects can include renewable energy installations, reforestation initiatives, or methane capture projects. Choosing reputable and verified offset projects ensures that the emissions are effectively neutralized.

Carbon Offsetting Made Easy: Embracing Sustainability through Paperless Transactions with MyHubPlus

As businesses worldwide strive to reduce their carbon footprint and embrace sustainable practices, the integration of paperless transactions plays a pivotal role. In our commitment to environmental responsibility, 20Cube Logistics has adopted MyHubPlus, a cutting-edge, data-driven collaborative platform that connects multiple applications and stakeholders into one cohesive system.

MyHubPlus, our cloud-based collaborative platform, is designed to streamline operations and enhance sustainability efforts. By connecting multiple applications and stakeholders, MyHubPlus provides a comprehensive ecosystem that offers real-time information and complete visibility, fostering a holistic experience.

As supply chain logistics companies acknowledge their responsibility to address climate change, they are implementing fuel-efficient vehicles, optimizing routes, promoting modal shifts, adopting sustainable practices in inventory management and distribution centers, and collaborating with like-minded suppliers and partners for greener efforts. Additionally, investing in carbon offset projects allows them to balance out unavoidable emissions and pave the way for a sustainable future and contribute to mitigating global climate change through collective action and commitment.

* CarbonCare reduce emissions