How to Accurately Calculate Your Freight Transportation Emissions

The pressure to set and achieve sustainability goals is more intense than ever. Consumers, peers, company leadership, and the government are all looking to shippers to track, measure, and reduce their transportation emissions. From each angle, shippers' actions are being scrutinized to make progress on their sustainability targets.

Regulatory forces such as the European Union's Corporate Sustainability Reporting Directive (CSRD) and specific mandates like California's Scope 3 emissions reporting are pushing organizations to improve their environmental accountability. In addition to regulatory demands, there is an inherent pressure from industry peers, especially as nearly 6,500 companies have committed to the Science Based Targets initiative (SBTi). However, ultimately, it's the consumers —who increasingly prefer sustainable brands—driving this shift toward cleaner logistics practices.

Nonetheless, shippers still need to maintain their bottom line. Given that transportation accounts for approximately 30% of U.S. CO2 emissions, shippers are meticulously revisiting their strategies to balance cost with sustainability. Among Breakthrough's industry-leading shippers with SBTi commitments, a robust 96% have set Scope 3 targets and 64% of these have explicit transport-specific goals.

As we dive deeper into the complexities of carbon accounting, it's essential to address a prevalent issue: the widespread misunderstanding of accurately tracking Scope 3 transportation emissions. The process, though complex, is achievable. With load-level data, shippers can implement small changes that yield big results.

Pitfalls of imprecise emissions tracking

Imprecise transportation emissions tracking can lead to significant challenges that undermine operational success and sustainability efforts. A critical issue facing many shippers is the oversimplified method of estimating transportation emissions based solely on total fuel spend. This strategy falls short in identifying measurable opportunities for reducing emissions. According to Gartner, by 2026, a staggering 80% of companies with net zero goals will need to restate their interim milestones due to insufficient progress and investment. Inaccurate data results in poor decision-making and can lead to potential regulatory non-compliance, placing companies at risk of fines and legal issues.

It is clear that businesses cannot rely on imprecise tracking if they want achieve their SBTs.

Benefits of taking a "portfolio approach" to emissions management

Precise emissions tracking is essential for achieving SBTs and maintaining a competitive edge in the transportation industry. By investing in accurate data collection and analysis, companies can ensure compliance, enhance decision-making, and uphold their reputation as responsible and forward-thinking leaders.

More and more shippers are factoring sustainability into their Request for Proposals (RFPs) and Requests for Information (RFIs). To achieve significant reductions in emissions, it's crucial to consider all options—from alternative energy sources to carrier selection, mode conversion, and network optimization. Although these strategies may seem simple on the surface, effectively implementing them can be complex. However, by focusing on small wins, shippers can jumpstart their sustainability journey while remaining cost-conscious.

• Improving the carrier SmartWay score on a load can reduce emissions by up to 22%.
• Intermodal conversion can reduce emissions on a load up to 70%.
• Using renewable diesel can reduce emissions by over 76% against diesel.

Small wins are crucial as many corporations aim to reduce their emissions by 30% or more by the end of the decade. By combining load-level tracking with a deep, practical understanding of the transportation ecosystem, actionable roadmaps can be developed to help shippers achieve their emissions reduction goals.

The case for a load-level approach to reduce scope 1 and 3 transportation emissions

Taking a load-level approach to emissions measurement emphasizes the use of available primary data to understand or model consumption accurately, providing a marked advantage over relying on averages and defaults. Primary data offers a precise, granular view of actual emissions, which is crucial for setting accurate baselines, tracking progress, and implementing targeted reduction strategies. With this approach, shippers can make informed, data-driven decisions that reflect their operations and sustainability goals.

Furthermore, by joining a cohort of leading shippers employing this robust methodology, there is a collective push towards more sustainable practices that can accelerate supply chain transformation. Being part of this pioneering group not only helps you be ahead of the curve, but also positions you as a progressive leader in the industry.

Breakthrough's CleanMile solution provides an end-to-end transportation emissions management solution that empowers shippers to make meaningful progress toward reducing scope 1 and 3 transportation emissions. By partnering with a Global Logistics Emissions Council (GLEC) accredited partner and utilizing primary data over approximations, CleanMile positions your company to achieve your transportation emissions targets. Download the 2024 Decarbonization Report to discover more strategies for reducing transportation emissions.