Sales and Fulfillment

Reducing your company’s carbon footprint

According to a recent study, global transportation is a major producer of carbon dioxide. It generates over 7.3 billion metric tons of carbon dioxide, of which the logistics services contribute to a large extent. Medium and heavy trucks rank second after passenger cars, accounting for 22% of carbon emissions. Emissions from heavy-duty trucks in 2020 were 2 billion metric tons, even though their number is considerably lower than passenger cars. The International Transport Forum states that total freight movement is responsible for 30% of all transport-related greenhouse gas (GHG) emissions.

These alarming statistics should draw urgent attention to reducing the carbon footprint of global logistics and distribution operations.

Why measure carbon footprint?

In the global logistics ecosystem, the following parameters have become increasingly important to ensure reduced carbon footprint:

• The environmental, social, and governance policies and reporting
• An analysis of both direct and indirect carbon emissions

Companies need to disclose their risks and opportunities as climate change and climate risk have taken centre stage.

In order to achieve the global emission reduction targets of 28% by 2025 and 45% by 2030, the US and the EU have already placed regulations on all medium and heavy-duty trucks to lower carbon emissions. The EU mandates trucks to reduce carbon emission by 15% by 2025 and 30% by 2030. Fleets that do not comply will face hefty penalties.

What is the significance of calculating carbon footprint?

It is important for the logistics sector to calculate its carbon footprint at various checkpoints and establish KPIs for alternative processes. Carbon footprint analytics can help a company in:

• Obtaining a holistic view of its carbon emissions and contribution to global warming
• Identifying the emission hotspots and areas where investments can create maximum impact
• Baselining data to set targets for carbon emission reduction as well as measure and report the progress
• Displaying its carbon footprint and counteractions with the help of a third-party assessment
• Offsetting the unavoidable emissions to make the company net carbon neutral

Many logistics companies are already setting ambitious net-zero greenhouse gas emission goals by 2050.

How can the logistics sector reduce its carbon footprint?

Reducing carbon footprint starts by measuring it, identifying the critical areas with maximum emissions, defining the KPIs, and setting up processes for reduction. Once this is done, the logistics sector can adopt these solutions:

• Adopt alternative fuels such as hydrogen fuel cells or low-carbon biofuels such as electric trucks.
• Opt for sustainable aviation fuel and efficient aircrafts.
• Switch to low-sulphur fuels, use shore-to-ship power, and install scrubbers in maritime.
• Adopt optimal efficiency and automation in rail transport.
• Improve fuel efficiency with advanced design, materials, and technology.
• Make the operations better, such as reduce engine idling in vehicles, improve vehicle maintenance and driving practice, and adopt methods that minimise fuel use and increase fuel efficiency.
• Adopt better driving practices such as avoiding rapid acceleration and braking and monitoring the speed limit.

Other indirect methods to reduce the carbon footprint include:

• Ethical material procurement
• Sustainable warehouse management
• Green packaging
• Optimal logistics planning
• Digital last-mile distribution process
• Network design planning for optimal physical flow of goods
• Optimisation of routes for faster and fuel-efficient delivery
• Ideal size fleet of trucks, vans, or two-wheelers for optimal utilisation

How can Infosys BPM help?

Infosys BPM leverages its expertise in Footprint analytics for an efficient carbon footprint solution. We help organisations reduce carbon emissions at every point in the value chain, including raw materials, energy consumption, and process-related direct emissions.

We provide enterprises with baseline data and insights about their carbon emissions and recommendations on improving carbon efficiency. This includes:

• Process mapping and data source identification
• Data enrichment
• Visibility and insights
• Predictive analysis

Our end-to-end services include secondary research, data and governance, KPI design, reporting, and operational support.

View our range of carbon footprint analytics solutions for logistics and distribution operations.