The demand for green logistics and emission reporting for transports is constantly growing among the transportation chain. In the first part of our emission blog series, we outline the need and benefits as well as the important factors of carbon reduction.
Need and benefits of carbon reduction
The progression of climate change is particularly relevant for the logistics industry: The changing conditions like new environmental standards mean that market risks can change (e.g. introducing low-emission zones, new innovation in the transportation industry).
Many companies face the need of reducing carbon because of legal requirements, cost reductions, image reasons, stakeholder expectations or the like. In order to reduce emissions, it is necessary to calculate consumption. This allows for example to draw comparisons and to evaluate effects of reduction activities. In several countries the determination of a company’s carbon footprint is prescribed by government, e.g. it is an obligation for all listed companies in the UK to report their emissions. Even if it is not obliged to report it, it is often expected by customers and other stakeholders. The emission information flow becomes more and more important along the transportation chain.
As a company involved in transportation, the reporting of emissions provides significant benefits. Apart from the fulfillment of government obligations and customer expectations, it leads to more transparency. Aiming at reducing carbon consumption, the current consumption has to be determined. Through this, internal processes are viewed and analyzed. Improvement potentials and optimizations can be recognized, accessed and evaluated. Also costs get more transparent and can be reduced by reducing carbon consumption. Understanding the company’s activities and their according fuel consumption allows active management of activities and increase of efficiency.
Reduction of carbon
Carbon redcution needs to be measured. This is only possible, if current consumption values are available and the development can be viewed over time. A continuous process of checking and monitoring of progress is needed.
The FTA defines the following main key factors for reducing carbon:
- Use the right vehicle for right operations
- Manage fuel use
- Reduce vehicle miles and resources
All of the relevant emissions of CO2, air pollutants, and other greenhouse gases
are calculated depending on the vehicle configuration, empty weight and load weight,
together with the road and traffic situation (uphill and downhill terrain, road type, etc.). Therefore, it should be tracked by the company’s transport management software solution. See how Hermes transport logistics manages emissions with the PTV xServer:
Conclusion
The demand for green logistics and emissions reporting for transports is constantly growing among the transportation chain.It is a proof of better quality in business services as companies can prove that they are dealing with their own environmental aspects. The emission calculation should be included in the company’s transport management software solution, where its vehicles and routes are managed, as these are the key factors for reducing carbon.
The resulting whitepaper of the cooperation of Dr. Jacques Leonardi and the PTV Group can be downloaded here: How do you cut costs by cutting carbon?
Got an idea of the benefits of emission reducing and reporting and want to know more about how emissions can be calculated for your fleet? Don’t miss the second post of our emission blog series next Wednesday about Carbon Calculation.
