Building a Sustainable Future

Sustainability in logistics is a crucial topic that has been gaining more and more attention in recent years. With the transportation sector accounting for approximately 10% of global emissions and forecasted to double at the current pace, there is a significant need but also potential for reduction. 

The call for sustainability is growing stronger, as international climate regulations are changing and the pressure on transport logistics professionals increases. As Dr. Louise De Tremerie, Transport Policy Advisor at the European Parliament, emphasised at the kick-off event of our Carbon Intelligence Mastermind:

“The stand-out figure to note here is that transport will need to slash its emissions by 90% by 2050.”

With the European Green Deal and Sustainable and Smart Mobility Strategy (SSMS), Europe is setting an example for international transport logistics regulations, which means that regulatory changes are coming fast.  

Transporeon, the leading Transportation Management Platform, recognises its responsibility in driving change in the industry.  

These are concrete steps we already take to support our customers and partners in reducing emissions: 

• We offer cutting-edge solutions to decarbonise transport logistics. In March, we’re launching a new version of our Carbon Visibility product that takes CO2e measuring and reporting to an even higher level of accuracy, using primary data, improved calculation algorithms, and providing GLEC-accredited reporting.

• We have launched our Carbon Intelligence Mastermind, a community of sustainability leaders in transportation, eager to learn about sustainability and implement measures to become more sustainable. 

• We´ve been working on additional products for procurement, empty-mile reduction in execution or facilitating modal shift. We´ve been working on additional products for procurement, empty-mile reduction in execution or facilitating modal shift. This will all be part of the new version of our Carbon Visibility solution going live in March 2023. 

At the same time, we are taking responsible steps at Transporeon to reduce our own emissions. 

• We recently signed a commitment letter to the Science Based Targets initiative (SBTi) to reduce our company emissions. 

• Transporeon has been granted Climate Neutrality in 2022 for the year 2021 and we continue our commitment for the upcoming years.

A Guide to Scope 1, 2 and 3 

Before we dive into Transporeon’s specific actions regarding sustainability, let’s review some general considerations: 

When talking about emissions, it is important to differentiate between three different types of emissions that any company produces: Scope 1, 2 and 3. 

• Scope 1 emissions refer to direct emissions from sources that are owned or controlled by a company, emissions from company-owned vehicles or boilers for example. These emissions are usually measured by sensors that deliver primary data. 

• Scope 2 emissions are indirect emissions from the generation of electricity, heat or steam that a company consumes. Simply put, these are emissions from power plants that provide energy to the company. Also, these emissions are usually taken by sensors and provided in an accurate manner. 

• Scope 3 emissions are all other indirect emissions that are not included in Scope 2, such as emissions from the production of purchased goods or services, employee commuting, the use of the products, transport and waste disposal. Scope 3 emissions occur at 3rd parties (suppliers and customers) and are difficult to track. However, they account for around 80% of all emissions.

To reduce overall emissions, it is necessary to gather emissions information from all three scopes.

The Benefits of Sustainable Transport Logistics: Efficiency and Competitive Advantage 

 In transport logistics, sustainability and efficiency often go hand in hand. By reducing empty truck runs, for example, you can save resources and reduce emissions simultaneously. 

 At the heart of sustainable transport logistics is accurate data. As Director of the Transporeon Sustainability Tribe, Jakob Muus, routinely emphasises, "You can't manage what you can't measure." That's why having the right tools to measure and manage your emissions is critical. This is where Transporeon's Carbon Visibility and soon-to-be-launched Carbon Intelligence solutions come in. These solutions allow logistics professionals to accurately measure, manage, and mitigate emissions based on live data collected from vehicles. Our Visibility solutions were recently accredited by the Smart Freight Centre for compliance with the GLEC framework. They are prepared to adhere to the new ISO 14083 still to be published and furthermore support the European Commission´s “CountEmissions EU”, part of the Green Freight Package coming out in April or May 2023.

By using these cutting-edge solutions, companies can take the first steps towards a more sustainable future and optimise processes for the best results. So, starting now – in any case – will give you immediate benefits.

GLEC is short for Global Logistics Emissions Council, a framework that provides a set of guidelines for measuring and reporting the greenhouse gas (GHG) emissions of logistics activities. The GLEC Framework is aimed at standardising the calculation and reporting of emissions from transportation and other logistics activities across the supply chain, to support sustainability initiatives and reduce the environmental impact of logistics operations.

Committing to Climate Action with the Science Based Targets Initiative 

Setting specific sustainability targets is essential to becoming a leader in sustainable transport logistics. By joining the Science Based Targets initiative (SBTi) at the end of 2022, we are now also committing to reach certain targets. With our SBTi commitment, we are now aiming to reduce our own emissions too, adding to our cutting-edge decarbonisation solutions for our customers. 

SBTi provides a framework for setting and pursuing science-based emissions reduction targets, helping companies align their goals with the latest climate science. The initiative supports businesses in developing and implementing strategies to reduce their greenhouse gas emissions. By joining the SBTi, we’re aligning ourselves with a group of companies working towards a more sustainable future in line with the Paris Agreement on climate change. Beyond our own emissions, we also contribute to the Scope 3 emissions of our customers. This phenomenon is also known as the 'domino effect' and we are ready to support any company on their journey. 

Transparency and Responsibility: A Look at Our ESG Report 

While the decarbonisation of freight and operations is of utmost urgency, sustainability is much more than that. At Transporeon, we want to show full transparency in our sustainability journey, and our recently published annual ESG (Environmental, Social, and Governance) report is a testament to this. Here are some key aspects of our report: 

• Environmental Impact: We made significant strides in reducing our environmental footprint, including the acquisition of Tracks, an AI-based carbon emissions analytics and prediction solution, which has improved our sustainability product portfolio. 

• Social Responsibility: We care for our community and initiated a variety of initiatives, such as supporting Ukraine and different charities nominated by employees, as well as planting trees for special occasions like new employee onboarding. 

• Governance: Through our extensive risk management we are continuously ensuring the safety of our company. This translates into zero incidents in 2021 regarding data, public policy and legal requirements.