Measuring and Reducing Carbon Footprint in Logistics Operations

Carbon footprint measurement has evolved from a nice-to-have sustainability exercise to a business imperative. Customers, investors, and regulators increasingly demand transparent emissions reporting and credible reduction plans.

Understanding Scope 3 Emissions

For most companies, logistics-related emissions fall under Scope 3—indirect emissions from the value chain. Transportation and distribution typically represent 5-15% of total corporate emissions.

Accurate measurement requires data from carriers on fuel consumption, distance traveled, and cargo weight. Many logistics providers now offer emissions reporting as a standard service.

Calculation Methodologies

The Global Logistics Emissions Council (GLEC) Framework provides standardized methods for calculating logistics emissions. Using consistent methodologies enables meaningful comparisons and progress tracking.

For ocean freight, emissions are calculated per TEU-kilometer based on vessel type and operational characteristics. Air freight calculations consider aircraft type, load factors, and distance. Road freight uses vehicle emissions factors and actual distances.

Reduction Strategies

Modal shift offers the largest reduction opportunities—moving cargo from air to sea, or from road to rail, can reduce emissions by 80-95% for suitable shipments.

Carrier selection impacts emissions even within the same mode. Modern vessels and aircraft produce significantly less CO2 than older equipment, and carriers with higher load factors achieve better per-unit emissions.

Carbon Offset and Insetting

Carbon offset programs allow companies to compensate for emissions they cannot eliminate. Quality offsets from verified projects provide credible claims, though reduction should always be prioritized over offsetting.

Carbon insetting involves emission reductions within the company's own value chain, such as investing in cleaner transport for suppliers. This approach delivers both environmental and business benefits.