New guidance with 25+ global companies to support the logistics net-zero promises

Logistics and Supply Chain News

Smart Freight Centre and WBCSD announce a new initiative co-developed with 25+ global  companies to advance the quantification of logistics emissions and support the logistics industry  on their journey to net-zero emissions.  

Smart Freight Centre and the World Business Council for Sustainable Development (WBCSD) are  united in a mission to increase transparency on carbon emissions and work towards a net-zero  logistics sector. Supported by the World Economic Forum, with McKinsey & Company providing  analytical insights and advisory guidance and in partnership with over 25 leading global  organizations, this consortium is taking the next steps in achieving net-zero logistics by co-developing an actionable and implementable guidance to quantify the impact of GHG logistics  emissions from supplier to final customer; from end-to-end.  

This guidance builds upon and complements two existing frameworks. The first being the Smart  Freight Centre’s Global Logistics Emissions Council (GLEC) Framework 2.0 – the globally  recognized methodology for accounting and reporting of logistics emissions. The second being  the WBCSD’s Pathfinder Framework – the guidance for accounting and exchange of product life  cycle emissions.  

The objective is to enable companies to better understand and track their carbon emissions on  a granular operational level, enhance industry collaboration and support businesses in the  implementation of their decarbonization strategies and achievement of net-zero targets. 

To fit and meet the industry’s need when decarbonizing their entire logistics carbon footprint, this guidance spans across the entire supply – from supplier to customer.  

Through co-development all partners can bring forward different use cases and associated  business challenges in quantifying logistics emissions, the guidance will be practical and  applicable to support each organization’s decarbonization strategy.  

The guidance will be published by the end of 2022, with an intended formal launch during the  World Economic Forum Annual Meeting in Davos, January 2023. 

The organizations that participate in this initiative are:  

A.P. Moller – Maersk, ADEME, Aldi Süd, Amazon, APL Logistics, ArcelorMittal, CMA CGM,  Colgate-Palmolive, Convoy, DOW Chemical, DPDgroup, Deutsche Post DHL Group, EcoTransIT  World, European Shippers Council, Kuehne+Nagel, Nestlé, PSA International, Posti, project44,  Scania, Selfridges, Siemens, TK Blue Agency, Uber, Unilever, UPS, Volkswagen. “As a global provider of end-to-end logistics services across all transport modes, it is a strategic imperative for Maersk to achieve net zero greenhouse gas emissions by 2040. To ensure  significant emissions reductions already in this decade, we have set clear and ambitious 2030  targets across our logistics operations. Having the right common standards for the whole  logistics value chain in place is crucial to be able to reach our goals in time while seamlessly  supporting our customers’ decarbonization needs. Once fully developed, this guidance will be  an accurate method to first, allocate emissions to our customers and secondly, guide us on

we should ask our vendors to report on,” says Morten Bo Christiansen, Head of Decarbonization  at A.P. Moller – Maersk. 

Dr. Klaus Hufschlag, Senior Vice President CREST Finance Business Intelligence & Analytics,  Deutsche Post DHL Group: “Transparency is a key enabler for efficient decision making and  meaningful action to combat the climate crisis. Global supply chains include a wide range of  players. They all need to work together to reduce emissions in transportation. We are proud to  work with our customers, peers and experienced organizations on a guide to facilitate the  exchange and communication throughout the value chain.”  

“This initiative is an important step in raising the bar and standardizing how existing frameworks  track carbon emissions in the transportation sector,” said Susan Beverly, Director of Partnerships  & Engagement at Amazon. “As a co-founder and the first signatory of The Climate Pledge,  Amazon set a goal to reach net-zero carbon by 2040 and we’re proud to see other signatories  and key industry players coming on board to also support this initiative.” 

“At Unilever, we are committed to achieving net zero emissions across our value chain by 2039.  Reducing emissions from our logistics operations is crucial, and while we have achieved a 43%  reduction in carbon intensity since 2010, we need to take this further. That’s why it’s imperative  we work with key partners like the Smart Freight Centre and WBSCD. By adopting and  developing this end-to-end industry standard, we can bring even more transparency and  understanding to the logistics emissions across our value chain, with the ultimate aim of  delivering on our climate commitments to consumers”. Laurent-David Charbit, Head of  Sustainability to Supply Chain. 

Claire Martin, CMA CGM Vice-President Sustainability commented: “The CMA CGM Group, a  global leader in shipping and logistics, is deeply committed to the energy transition and the  decarbonization of its activities. CMA CGM will be using the GLEC Framework for its future  Searoutes eco calculator. This new guidance will enable CMA CGM to beneficiate a more  efficient tool to better understand and track its carbon emission. This will be an important step  forward for the Group and for its customers as part of its commitment to become Net Zero  Carbon by 2050.”  

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