The latest news and developments on the implications of climate change for waterborne transport infrastructure. News is added by partners of the the Navigating a Changing Climate Partnership. You can also let us know about the latest developments by emailing us, or by using #navclimate on twitter.
Smart Freight Centre analyzed the state of logistics emissions disclosure to CDP, using the 2019 CDP disclosures of 2,604 companies. The key conclusion is that there is a lack of transparency due to under-disclosing of transport and logistics emissions by companies to CDP, with stark differences between modes and between industrial sectors that rely on freight transport.
Only 110 transport operators report their direct, or scope 1 emissions, amounting to less than 20% of global freight emissions. The majority of that comes from aviation, while the high-emitting road freight sector is barely represented. Looking at supply chain, or scope 3, emissions, just over 500 companies report these emissions, accounting for only 10% of global transport emissions. Furthermore, no carriers specifically address well-to-tank emissions, which highlights a gap in understanding of the emissions required to produce and distribute transportation fuels – an important element of the low-carbon transition, especially as alternative fuels like biodiesel, natural gas, or hydrogen increase their market shares.
There are many opportunities to increase transparency in emissions using the CDP questionnaire, which can also inform corporate climate goals, investment ratings, procurement programs, and circular economy strategies. This report provides guidance on best practices for disclosing freight transport emissions to CDP for scope 1, 2, and key categories of scope 3 for transportation in line with the GLEC Framework. The Global Logistics Emissions Council (GLEC) Framework, developed by Smart Freight Centre together with the GLEC partnership, is the global method to help companies to calculate and report freight transport emissions, including to CDP and the Science-Based Targets initiative.
Finally, five recommendations are provided to close the logistics emissions disclosure gap:
1. Invest in disclosing by road freight companies
2. Ask companies to disclose carbon intensities
3. Improve capturing of well-to-tank emissions from transportation fuels
4. Give guidance on how to provide meaningful comments in CDP reports
5. Encourage companies to look beyond disclosing
This additional guidance is entirely in line with the GLEC Framework.
"To achieve our global climate goals for freight transportation, we must face climate impacts head on and make carbon a KPI throughout our business operations. Disclosing carbon emissions in your operations and supply chain is a meaningful step all companies can take, which will in turn enable companies to set and reach their climate targets. We have the tools we need to manage carbon emissions, the GLEC Framework provides measurement method and CDP provides the disclosure platform." - Suzanne Greene, Expert Advisor, Smart Freight Centre.
"Measuring and transparently reporting climate impact is crucial for companies to ensure risk awareness, prepare for the future and respond to the growing market demands for disclosure. Over the last 20 years environmental disclosure has become a new business norm, with 8,400 companies covering over 50% of global market cap disclosing through CDP’s system in 2019. But of course, this varies by sector. The freight sector, which is such a crucial enabler of other business activity, needs to step up on climate disclosure”. - Dexter Galvin, Global Director of Corporations & Supply Chains, CDP.
Smart Freight Centre and CDP will continue to support companies on their journey to zero emissions freight through increased transparency and climate action.
Download the report here
Smart Freight Centre is proud to be a partner of the IW-NET project. In collaboration with 25 other European companies, research institutions and public organizations we will work together towards emission reduction from inland waterway transportation (IWT).
Exploiting inland waterway transportation (IWT) is an essential ingredient to reach the European Commission's ambitious target for reducing greenhouse gas emissions from transportation in the upcoming decades. Over the next 36 months, the research project IW-NET will support the EC’s strategic efforts by enabling and providing innovation for the IWT landscape.
Creating the “Innovation-driven Collaborative European Inland Waterways Transport Network”
The consortium of 26 companies, research institutions and public organizations from Austria, Belgium, France, Germany, Greece, Italy, the Netherlands, Romania and Spain has teamed up to develop and prove technological solutions and improvements for inland waterway transport. The vision for the upcoming years is to create an “Innovation-driven Collaborative European Inland Waterways Transport Network” (IW-NET).
Digitalization, infrastructure improvements and innovative vessel technologies
“In order to sustainably shift more transport to inland waterways, we need to change more than just one parameter”, coordinator Nils Meyer-Larsen from the Institute of Shipping Economics and Logistics (ISL) in Bremen and Bremerhaven explains. “Therefore, we will follow a holistic approach which not only covers digitalization and multimodal integration in inland waterway transportation but provides solutions for improved infrastructure management as well as for the next generation of vessels. The heart of the project is the IW-NET Living Lab that will serve as a testbed for the technological approaches and solutions. Different application scenarios will comprise a diverse set of experiments along representative corridors in Germany, Belgium, France and Austria and will thereby create valuable insights on how to develop the future of European inland waterway transport.
Collaboration is key: Smart Freight Centre's role
The role of Smart Freight Centre (SFC) within the project will include transferring best practice in GHG emission calculation and associated data collection from the GLEC Framework, and developing it to specific context of the inland waterway sector. SFC will also support partners to assess the potential impacts of project measures in the short, medium and long terms. A key part of this will be taking the lead on compiling a roadmap of IWT infrastructure developments to 2030.
Photo credit: Unsplash
This month Smart Freight Centre released the Smart Freight Procurement (SFP) Questionnaire. Buyers of freight and logistics services can use this tool during the tender process to assess suppliers for their commitment to decarbonization — and their ability to deliver on that commitment.The world’s freight emissions will double between now and 2050, from 2.9 billion to 6.2 billion tonnes CO2 according to the International Transport Forum. We need a strong market signal demanding low carbon freight. The SFP Questionnaire can assist buyers in sending this signal and making decarbonization matter.
“The SFP Questionnaire provides both insightful and practical elements that Heineken will leverage in upcoming Freight Source-to-Contract processes” confirms Mike Borst, Global Category Buyer Logistics at HEINEKEN. The SFP Questionnaire accompanies the Smart Freight Procurement Guidelines and helps the industry address a common challenge. Buyers are often motivated to include decarbonization efforts in their procurement decisions. But despite their expertise and in-house tools, they are unsure how to assess the performance of their logistics service providers (LSPs) and carriers in this area. As a result, LSPs and carriers are confronted with an increasing number of non-transparent, non-standardized questionnaires. These create an administrative burden that often has no positive impact on the procurement process.
To overcome this problem, Smart Freight Centre has provided a set of robust questions, designed to be meaningful for the buyer, while being clear and practical for the supplier.
“We receive many questions on our sustainability efforts which is a great signal. The bandwidth and complexity of questions can be a challenge. The SFP Questionnaire is a practical and actionable collection of questions on transport decarbonization and we encourage our customers to use it. This standardized approach will help to simplify RFI/Qs and underlines in the same time the commitment of all market players involved to focus on decarbonization measures.” states Kathrin Brost, Vice President and Global Head of GoGreen, DHL Global Forwarding.
To make this tool as useful as possible, Smart Freight Centre and the Global Logistics Emissions Council (GLEC) cooperated with more than a dozen shippers, LSPs and carriers. The result is a questionnaire that covers all freight modes and which companies of all sizes, worldwide, can use to procure sustainable logistics services.
“We are always happy to answer relevant and straightforward questions. The questions included in the SFP Questionnaire will enable our customers to ask exactly these kinds of questions,” says Simone Ziegler, Sustainability Manager at Hapag-Lloyd. “What’s more, Hapag-Lloyd is also planning to use some of these questions in our own procurement processes.
The SFP Questionnaire includes a manual that not only provides crucial insights and information to the buyer, it also includes clear and helpful guidance to assist the supplier in the response process.
“The topic of decarbonization is so complex that often it is hard for stakeholders to understand the larger context. The manual is a great addition to the SFP Questionnaire as it explains the key points of the topic in a practical manner and gives meaningful insights for the buyer as well as the supplier” concludes Lindsay Zingg, Senior Director Group Sustainability at DSV-Panalpina.
This project complements the Clean Cargo Sustainable Freight Procurement Framework and the development of the Clean Cargo Supplier Index.
The SFP Questionnaire is available for download here.
For information on other ongoing GLEC projects, go to: GLEC projects.
Decarbonization and the shipping sector
The focus on decarbonization in the shipping sector has increased significantly over the past couple of years. This has been driven by the IMO’s strategy to reduce the total annual GHG emissions by at least 50% by 2050 compared to 2008, while, at the same time, pursuing efforts towards phasing them out entirely. This has led to a number of recent initiatives, including the Getting to Zero Coalition led by the Global Maritime Forum. This was announced at September’s UN Climate Summit, and studies that set out the economic, legislative and technical requirements and implications of various options; among the most relevant studies are: World Bank, “Understanding the Economic Impacts of Greenhouse Gas Mitigation Policies on Shipping”; International Transport Forum, “Decarbonising Maritime Transport”; Energy Transitions Commission, “Reaching Zero Carbon Emissions from Shipping – Consultation Paper”; UMAS, “LNG as a Marine Fuel in the EU”.
LNG – a low carbon fuel?
“LNG as a Marine Fuel in the EU” is of particular relevance because, in the light of the increasing pressure to act, significant interest and subsequent investment have been generated in LNG (liquified natural gas) as a low carbon fuel. However, the implications of the studies are that LNG, which is itself a fossil fuel in the most commonly available form, is likely to be at best a transition fuel to other lower or potentially zero-carbon fuels, with significant variability in the life-cycle GHG emission reductions that can be achieved through the use of LNG depending on feedstock and technology deployed.
The need for industry evidence
In conclusion there is a need for an unequivocal evidence base to be generated and agreed across the industry, within a relatively short timescale, so that coordinated investment in fuel supply, infrastructure and supportive policy can be implemented in time to meet the agreed 2050 goals.
Join our journey towards efficient and zero emissions freight and logistics here.
SFC is the Smart Freight Centre, SFC was established in 2013 as a global non-profit organisation leading the way to a more efficient and environmentally sustainable global freight and logistics sector.
SFC is dedicated to remove market barriers and leverage existing initiatives to catalyse the uptake of practical solutions throughout industry that improve fuel efficiency, reduce emissions and lower operating costs. SFC can play this role because it is a fit-for-purpose organisation with secured funding, independent from industry or government, and has a global network across stakeholder groups. SFC focuses on three approaches:
Awareness of climate change issues is variable across SFC’s network. Many initial contacts at the forefront taking action in respect of greenhouse gas emissions reduction in the logistics sector but there is less awareness elsewhere. Participation in the Navigating a Changing Climate initiative enables SFC to work with like-minded organisations in the sector to set the agenda and lead the development of consistent, workable approaches to calculation and reporting of greenhouse gases from maritime and inland waterway freight transportation and from associated terminal operations. This is an essential step towards effective decision making and emission reduction strategy development and subsequent action.
Including the carbon footprint as a factor in business decisions (alongside costs, time and reliability, etc.) is becoming of greater importance for the implementation of environmental policies e.g. as a result of actions following on from the Paris agreements. Interested parties can download their tool for assessing the emission impacts of future infrastructure investment decisions here
This guidance provides advice on how to carbon audit logistics buildings with view to logistics chain calculation (e.g. with reference to GLEC Framework and EcoTransIT World). A step-by-step description how to calculate greenhouse gas emissions of logistics sites (e.g. warehouse, distribution centers, terminals) is missing so far. The obtained carbon intensity values provide transparency to identify reasonable GHG reduction measures.
Photo by Marcin Jozwiak on Unsplash
An updated method to calculate the carbon footprint of the global logistics supply chain was released this summer by Smart Freight Centre and the Global Logistics Emissions Council (GLEC), a group of companies, industry associations and programs, and backed by leading experts and other stakeholders.
“The days that multinationals did not publicly report emissions from freight transportation are over, as we see the GLEC Framework become more and more mainstream,” said Sophie Punte, Executive Director of Smart Freight Centre (SFC), the global non-profit organization that leads the GLEC.
According to the International Transport Forum, freight and logistics generate around 8-10 percent of CO2 emissions – an impact that will continue to grow without a concerted global effort. The GLEC Framework allows companies to calculate and report emissions from planes, trains, ships, trucks and logistics sites consistently across supply chains. Results are used by companies to identify hot spots for improvement, but also by customers, investors and governments who benefit from reduced climate impacts from logistics.
Suzanne Greene, lead author, explains “The updated GLEC Framework is designed to be easy for companies to implement, with clear calculation steps, guidance on reporting and target-setting, and new data on the average emissions from logistics activities.” Alan Lewis, co-author and leader of the GLEC since 2014 said, “We especially benefitted from lessons learned by testing with companies as part of the EU-funded LEARN project. Another major step forward is the GLEC Declaration that allows companies to report emissions in a single, standardized format, so increasing transparency for all stakeholders.”
More than 30 leading multinationals, such as HP Inc., HEINEKEN and Maersk have formally adopted the GLEC Framework since its first release in 2016. This number is expected to rise quickly as the GLEC Framework is recommended by Greenhouse Gas Protocol, CDP, Science-Based Targets initiative, several green freight programs, calculation tools and industry associations, as well as the UN-led Global Green Freight Action Plan.
“The GLEC Framework is the building block the industry needs to measure and manage transportation emissions in a standard way with an overall goal to reduce the end-to-end supply chain impact on the environment,” said Jacqueline Faseler, Global Director for Supply Chain Sustainability & Compliance at Dow. “Dow is proud to be the first global chemical company to adopt the GLEC Framework and work together with associations to help it become the standard across the chemicals sector."
“More and more customers are asking for emissions data that is calculated the GLEC way,” commented Birgit Hensel, Vice President Shared Value, Deutsche Post DHL Group. “This is good news because we can only reach our zero-emissions 2050 goal by collaborating with our customers, suppliers and peers.”
“We encourage all sectors to include freight and logistics in their efforts to combat climate change, to which the GLEC Framework contributes,” said Niclas Svenningsen, Manager of Global Climate Action at UN Climate Change. “The fashion sector is showing leadership as it commits to low-emissions logistics through the Fashion Industry Charter for Climate Action.”
“The GLEC Framework has helped to align GHG emissions methodologies across modes” said Angie Farrag-Thibault, Director T&L and Collaboration at BSR and Program Director of the Clean Cargo Working Group. “Combining ocean freight data from Clean Cargo with data from other modes to calculate the total logistics footprint has never been easier! We are delighted to have achieved this goal collectively, with other initiatives accredited to the GLEC Framework.”
The GLEC Framework for Logistics Emissions Accounting and Reporting, version 2.0 is available to download at smartfreightcentre.org
In 2016 the first GLEC Framework for Logistics Emissions Methodologies has been released. Actions now are focused on adoption of the GLEC framework by companies and addressing gaps to refining modal default carbon footprint factors to further increase the accuracy of logistics emissions in global supply chains.
Concerning inland waterway freight transport, the existing framework provides a global default consumption factor with no further (regional) distinction between e.g. vessel types, sizes, (operational) power and load factors.
Therefore, SFC has the objective to integrate a more detailed methodology for inland waterways into the next update of the GLEC framework. This report provides the methodology used and process followed to establish updated GHG emission factors for Inland Water Transport, as planned, discussed and concluded within the GLEC IWW Action Group.
Calculating and reporting leads to a decrease in greenhouse gas (GHG) emitted per container despite an increase in total containers handled.
VRTO makes an excellent case for business to calculate and report their logistics emissions. After investing in new electrically-powered terminal equipment, the greenhouse gas (GHG) emitted per container has decreased despite the increase in total containers handled. VRTO was able to backtrack these business decisions by measuring their greenhouse gas (GHG) emissions. Measuring and reporting their emissions, allows VRTO to set a baseline for greenhouse gas (GHG) emissions for the coming years and base future decisions on actual greenhouse gas (GHG) emissions data.
Find out the latest case study about VRTO in the download attachments.