How to measure and reduce Scope 3 emissions with a SCV platform

Sustainability objectives are already part of companies’ strategic plans, being strategic points to improve their competitiveness and reputation. In this post we will see how a Supply Chain Visibility (SCV) platform helps to reduce Scope 3 emissions, the most complex to measure.

Nowadays, meeting sustainability objectives is a differentiating and competitive element for companies, especially in the transport and logistics sector.

It is important to bear in mind that the mobility of people and goods is one of the main sources of greenhouse gas emissions in Europe and worldwide, and it is for this reason that sustainability policies directly affect this sector.

In fact, the regulatory framework of the European Green Pact and the Paris Agreement requires companies in the logistics sector to undertake a profound transformation of their operations, prioritizing efficiency and emissions reduction.

The carbon footprint of transport and logistics companies

To understand the scope of the carbon footprint of transportation and logistics companies, it is necessary to understand the Greenhouse Gas Protocol (GHG Protocol).

It classifies emissions into three scopes:

• Scope 1. These are direct emissions emanating from the company’s own sources, such as emissions from its fleet vehicles.
• Scope 2. These are indirect emissions from energy consumed by the company, such as electricity supply.
• Scope 3. These are the indirect emissions emanating from the company’s value chain, i.e., emissions 1 and 2 from its suppliers and collaborators.

Scope 3 emissions

Scope 3 emissions are the most significant and the most difficult to measure due to the lack of direct control over emission sources and the dispersion of data along the supply chain.

While Scope 1 and 2 are required to be measured and reported under the GHG Protocol, Scope 3 is not yet required to be measured and reported.

However, the third are the most relevant, especially for companies such as transportation and logistics companies, where outsourcing of services is constant.

In this regard, it is particularly important for shippers and logistics operators to find ways to control the emissions of their suppliers and customers.

Since Scope 3 emissions often represent the largest part of an organization’s carbon footprint, it is crucial to have tools that allow for their monitoring and optimization.

This is where a Supply Chain Visibility (SCV) platform plays a key role, providing real-time data, advanced analytics and traceability for more sustainable supply chain management.

The role of an SCV platform in emissions reduction

A supply chain visibility platform can centralize this necessary information, facilitating the measurement and tracking of emissions from collaborators and partners.

In particular, it is the integration capability of the SCV platform that allows the integration of data from different sources, providing a complete view of emissions along the value chain.

In this way, a constant flow of communication is established between the shipper and its collaborators and a scenario of collaboration around the achievement of sustainability and carbon footprint reduction objectives.

This information is essential for identifying areas for improvement and setting emission reduction targets, as well as promoting transparency and accountability.

Accurate measurement of scope 3 emissions

One of the biggest challenges in reducing Scope 3 emissions is their accurate measurement, as they involve multiple stakeholders and dispersed data sources.

A Supply Chain Visibility platform collects real-time information from different systems and centralizes it in a single environment, allowing:

• Monitoring fuel consumption and transportation efficiency, identifying more sustainable routes, modes of transport and operators.
• Registration of supplier data, evaluating their carbon footprint, which provides accurate information that facilitates the subsequent selection of business partners with better environmental practices.

Thanks to this visibility, companies can generate detailed reports on their emissions and comply with regulations such as the Paris Agreement or the EU CSRD Directive.

Transportation optimization and emissions reduction

Transportation is one of the main sources of Scope 3 emissions. A Supply Chain Visibility platform allows you to analyze routes, transportation modes and fuel consumption patterns to optimize logistics. Some strategies include:

• Selection of more efficient routes, reducing distance traveled and fuel consumption.
• Shift to more sustainable modes of transportation, prioritizing rail or maritime transport instead of trucks or airplanes.
• Cargo consolidation, maximizing vehicle capacity and reducing the number of trips required.
• Use of carriers with sustainable fleets, encouraging the adoption of electric or alternative fuel trucks.

Sustainable supplier and purchasing management

Companies depend on multiple suppliers, and their environmental impact is part of the scope 3 emissions. A Supply Chain Visibility platform provides visibility into emissions and thus helps to manage the supply chain more sustainably through:

• Evaluation of suppliers’ environmental performance, based on data on emissions, energy efficiency and sustainable certifications.
• Selection of suppliers with a lower carbon footprint, promoting the circular economy, the use of recycled materials and sustainable transportation.
• Traceability of the origin of products, ensuring that they come from responsible sources.

Reporting and compliance

For many companies, the challenge is not only to reduce emissions, but also to comply with environmental regulations and demonstrate their sustainability efforts to customers and investors. A Supply Chain Visibility platform facilitates reporting with reliable, real-time data, enabling:

• Comply with international environmental regulations, such as the CSRD Directive.
• Access sustainability certifications, such as ISO 14001.
• Generate environmental impact reports for investors and clients, increasing the company’s transparency and reputation.

By automating data collection and analysis, these platforms enable companies to make decisions based on real metrics and continuously improve their sustainability strategy.

With this visibility, companies can prioritize strategic partners that meet their sustainability goals and reduce their carbon footprint throughout the supply chain.

FIELDEAS Track and Trace SCV platform

Scope 3 emissions represent the biggest challenge in sustainable supply chain management, but with the right tools it is possible to measure, optimize and reduce them effectively.

A Supply Chain Visibility platform such as FIELDEAS Track and Trace provides the transparency needed to identify critical emission points, improve transportation and logistics efficiency, optimize resource use and select more sustainable suppliers.

In an environment where regulation and pressure from customers and investors demand more responsible logistics, adopting such solutions not only helps reduce environmental impact, but also improves companies’ competitiveness and resilience, as well as their reputation and customer satisfaction.

Digitization and supply chain visibility are key to achieving a more sustainable and efficient future.