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Data data data – The key for logistics and transportation businesses to meet their sustainability goals in 2024

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By Serge Schamschula, Head of Ecosystem at Transporeon, A Trimble Company

It is fair to say that the EU has certainly been in full ‘green mode’ in recent years, with the aim to reduce net greenhouse gas emissions by at least 55% by 2030. And, in its bid to meet this ambitious, long-term environmental and climate goal, they have published a raft of sustainability regulations and guidance.

An example of one of these regulations affecting the logistics and transportation sectors is the Greening Freight Package, launched in June 2023. This package contains a number of measures – including the CountEmissions EU chapter, which creates a common methodology for measuring door-to-door greenhouse gas emissions and, in turn, requires an enhanced focus on sustainability reporting. For shippers, carriers and logistics service providers alike, compliance requires three things – data, data and yet more data. Serge Schamschula, Head of Ecosystem at Transporeon (A Trimble Company) explores this further.

What does this mean for the logistics industry?

The EU is aiming to enhance supply chain transparency and equip all stakeholders with sustainability data to factor into their decision-making processes. When it comes to sustainability, being data-driven is crucial. For instance, large investments within hydrogen, autonomous vehicles and exhaust heat recovery are just three decarbonisation measures that we see touted as ‘innovative’ and ‘industry-leading’. But these have limited tangible impact on lowering emissions – at least in the short term.

When it comes to sustainability, it’s crucial to look below the surface. Headline-grabbing decarbonisation measures aren’t always the most effective. And the only way to sort the wheat from the chaff is through accurate, in-depth data and reporting.

Scope one, two and three emissions reporting

The Greenhouse Gas Protocol (a global, standardised framework) stipulates that emissions fall into three categories – scope one, two and three.

Scope one emissions originate from a company’s owned assets, like the fossil fuels burned by their own fleet of trucks. Scope two includes indirect emissions from purchased energy generated offsite, like the electricity used to charge electric vehicles. Lastly, scope three includes all other indirect emissions from a company’s upstream and downstream value chain. It’s by far the largest source of emissions for most organisations – more than 70% of their entire footprint on average. For instance, the services of a carrier or logistics service provider would fall under their clients’ scope three emissions.

Until now, most EU companies have only reported on scope one and two – just a third measure their scope three emissions. But, due to the Corporate Sustainability Reporting Directive, this is changing in the 2024 financial year. Under the proposed value chain sustainability reporting, companies will also be required to report on scope three, as well as their reduction targets and progress for reports published in 2025.

What does this mean for shippers, carriers and logistics service providers?

As scope three reporting is due to become the norm, we’ll likely see end-user customers pressuring shippers to decarbonise. Why? Customers will want to reduce their own scope three emissions, while preserving their reputations among increasingly environmentally savvy consumers.

Similarly, the services of carriers and logistics service providers are often a considerable source of scope three emissions for shippers. Since they’ll also be under more pressure to account for and reduce their emissions, they too will prioritise sustainability by voting with their wallets. This could mean contracting carriers based on their sustainability practices, offering longer freight contracts to carriers with lower carbon emissions or even paying a premium for lower carbon transport.

All this demonstrates that implementing a robust decarbonisation plan and accurate process for reporting emissions isn’t just the ecologically sound path. It makes smart business sense.

Reducing emissions – two parallel paths

In Europe, the vast majority of freight is still transported by road. When it comes to road freight, there are several routes to decarbonisation. One route is to improve the efficiency of vehicles and another is to boost the efficiency of transport logistics operations.

Obviously, a combination of both is needed for successful long-term decarbonisation. But EV and hydrogen technologies are still relatively immature, and require substantial infrastructure investment. Meanwhile, digital solutions to drive efficiency can be implemented now at marginal cost and with hardly any upfront investment. So, it makes sense for shippers and carriers to first ensure their operations are as efficient as possible. This means reducing empty mileage, tackling unnecessary dwell times and optimising operations in the yard – that integral inflexion point between the road and the warehouse. And of course, shippers and carriers should look at how to combine multiple transport modes intelligently to minimise carbon emissions.

How can companies ensure they’re making the right decisions?

To ensure companies are making smart decisions on decarbonisation – and to level up its reporting capabilities – shippers, carriers and logistics service providers will need to rely on technology. Although, this seems to be a big leap for many businesses. Transporeon’s 2024 Transportation Pulse Report revealed that 60% of carriers and shippers named AI as their top concern shaping supply chain management in the next five years.

To ensure accuracy, companies will need to rely on sensor-based (mostly telematics) data – also known as primary data. In recent years, the industry precisely measured 20% of its emissions – scope one and two – using this kind of sensor data. But it falls short on calculating scope three – the remaining 80% – with the same level of precision. With the automation and data analytics capabilities of a smart transportation management platform, companies should be able to solve this problem.

Given the abundance of data points involved in sustainability reporting, companies can further enhance accuracy and minimise employee workload by automating workflows. Similarly, sophisticated data analytics capabilities enable companies to capture real-time insights and make informed decisions throughout the process of managing transportation logistics.

But the road to decarbonisation is a long one, and there’s only so far that companies can travel alone. Adopting a ‘network’ approach is key, as it enables connected information flow between otherwise disparate companies and ensures that emissions aren’t measured in isolation from other factors. It also enables shippers, carriers and logistics service providers to work together to reduce unnecessary driving time by streamlining processes like freight sourcing, transport execution, dock scheduling, and freight matching. As the saying goes, if you want to go far, go together.

Photo by Mads Eneqvist on Unsplash

ITF: Tackling transport CO2 emissions ‘reduces investment needs for core infrastructure’

 960 640 Stuart O'Brien
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An ambitious transition to sustainable transport could be cheaper in terms of investment into core transport infrastructure than continuing as is – if action is taken now.

This is the main message of the ITF Transport Outlook 2023 report of the International Transport Forum at the OECD, presented on 24 May at the global Summit of transport ministers in Leipzig, Germany.

All transport decarbonisation measures currently in place and already committed to will reduce global transport-related CO2 emissions by only 3% by 2050. The transport sector would miss by a wide margin the reduction needed to keep climate change in check.

If action to decarbonise transport is ratcheted up and accelerated, the transport sector can still reduce its CO2 emissions by about 80% over the next 25 years (compared to 2019).

This drop would put transport on the right path for limiting the global temperature increase to “well below” 2 degrees Celsius above pre-industrial levels, the goal of the Paris Climate Agreement.

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“Reaching this high-ambition scenario requires a combination of complementary policies that successfully avoid unnecessary transport activity, shift more trips from fuel-burning to no-carbon transport and improve the efficiency of transport generally”, said ITF Secretary-General Young Tae Kim in presenting the report.

“It will be absolutely essential to quickly scale up cost-competitive technologies and fuels to move people and goods with far, far fewer emissions. We can do all this if we take more decisive action now.”

Such an accelerated transition to low- and no-carbon transport requires significant investment. Providing the core infrastructure for the High Ambition scenario in the report, however, would require about 5% less investment than under current policies, according to the ITF’s projections.

“Freight transport will roughly double in the next 25 years if we stay on the current path, and passenger transport will grow by 79%. So we will also have to invest heavily under this scenario to accommodate this additional demand – and, from what we know,  probably more so than if we invested in a low-carbon future”, said Orla McCarthy, project lead for the ITF Transport Outlook 2023.

These projections consider investment needs for the core transport infrastructure – including rail lines, roads or ports – required to cater for future demand. Estimates for the extra investment needs for electric charging networks are also included in the report. This is the first edition of the ITF Transport Outlook to include estimates for infrastructure investment needs under both scenarios, to support policy decisions.

The report makes five recommendations for policy makers:

  1. Develop comprehensive strategies for future mobility and infrastructure
    Instead of providing infrastructure as a reaction to predicted demand, governments should take a “decide and provide” approach to investment, with a view to achieving certain public policy objectives.
  2. Accelerate the transition to clean vehicle fleets
    Accelerating the transition towards clean vehicles and fuels requires targeted policy support with ambitious objectives and support measures. Enabling infrastructure requires additional investment.
  3. Implement mode shift and demand-management policies where they are most effective
    Measures to reduce trips and travel distances, and encourage the use of more sustainable modes, work well in cities. For longer-distance travel, a transition to cleaner vehicles and fuels is the priority.
  4. Consider the additional benefits for urban areas when evaluating policies
    Many policies to decarbonise urban transport can make mobility more affordable, improve access, reduce congestion, free up space, reduce crash risks and limit air pollutants.
  5. Reform vehicle taxation to capture external costs of new vehicle fleets
    Falling fuel-tax revenues will hit revenues and make fuel taxes less effective as a policy lever as vehicles become emission-free. Road pricing and congestion charging can mitigate both.

Government hopes for ‘longer lorries’ economy boost

 960 640 Stuart O'Brien
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Longer lorries will be introduced to UK roads to support the government’s priority to grow the economy, boost productivity, slash road emissions and support supply chains.

Legislation has been laid out to safely roll out the vehicles on roads from May 31st. The longer lorries will be able to transport fast-moving consumer goods and retail products, as well as waste packaging, parcels and pallets.

These new lorries will move the same volume of goods, but will use 8% fewer journeys than current trailers. This will generate an expected £1.4 billion in economic benefits and take one standard-size trailer off the road for every 12 trips.

As part of efforts to grow the economy and cut emissions, government is changing regulations to allow longer trailers on GB roads, which it estimates will save 70,000 tonnes of carbon dioxide from being released into the atmosphere.

These longer trailers, known as longer semi-trailers (LST) measure up to 2.05 metres longer than a standard semi-trailer and can be towed by a lorry.

The move follows an 11-year trial to ensure LSTs are used safely on roads, and operators will be encouraged to put extra safety checks and training in place. The trial demonstrated that LSTs were involved in around 61% fewer personal injury collisions than conventional lorries.

Vehicles which use LSTs will be subject to the same 44 tonne weight limit as those using standard trailers. These new vehicles are also expected to cause less wear on the roads than conventional lorries due to the type of steering axle used.

Operators will be legally required to ensure appropriate route plans and risk assessments are made to take the unique specifications of LSTs into account.

In addition to these new legal requirements, operators will also be expected to put in place extra safety checks including driver training and scheduling, record keeping, training for transport managers and key staff, and loading of LSTs.

It is expected that LSTs will create almost £1.4 billion in net economic benefits by ensuring more goods are carried on fewer vehicles, supporting productivity and boosting the economy.

The net economic benefits figure has been calculated as part of the LSTconsultation impact assessment.

With over 300 companies in the UK having already taken part in the trial, and almost 3,000 on the road, some of the biggest brands will be rolling out the extended use of these longer semi-trailers including:

  • Greggs
  • Morrisons
  • Stobart
  • Royal Mail
  • Argos

Gavin Kirk, Supply Chain Director at Greggs, said: “We welcome the introduction of LSTs into general use. Since 2013, Greggs has been operating LSTs from our National Distribution Centre in Newcastle. We were early adopters of the trial as we saw significant efficiency benefits from the additional 15% capacity that they afforded us.

“We have converted 20% of our trailer fleet to LSTs, which was the maximum allowable under the trial, and these complement our fleet of double-deck trailers. Our drivers undertook additional training to use these trailers and we have monitored accidents, finding that they are as safe as our standard fleet.

“Due to the increased capacity, we have reduced our annual kilometer (km) travel by 540,000 km, and saved 410 tonnes of carbon per year from LSTs. This supports our wider ESG agenda, the Greggs Pledge.”

The trial revealed the important environmental benefits associated with the introduction of LSTs, including a considerable reduction of 70,000 tonnes of CO2 and 97 tonnes of NOx over the trial.

The average CO2 reduction across the lifetime of the trial is similar to the amount of CO2 captured by roughly 11,600 acres of forest per year.

The savings in NOx emissions averages to the entire annual NOx emissions of around 2,000 diesel cars per year.

Introducing LSTs is an important, easy and affordable measure to continue to reduce CO2 emissions from the haulage industry without significant technological and infrastructure development, as the government continues to work closely with the sector to ensure all new heavy goods vehicles (HGVs) are net-zero by 2040.

The move is part of the government’s comprehensive 33 actions to address the shortage of HGV drivers and boost recruitment and retention.

Sustainable fleets: Shift your thinking

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By Stewart Signs

With global pledges to cut emissions in place, we all need to start looking at what we as an industry can do to achieve our goals. Electric and hybrid vehicles are a great start, but there are other factors to consider when looking for ways to improve the sustainability of your fleet.

Vinyl has given us a whole host of opportunities to create innovative and effective branding solutions. With environmental consciousness at an all-time high, maybe it’s worth considering an eco-friendlier option?

Non-PVC vinyl is a more environmentally friendly alternative, which is helping our industry take positive steps towards a more sustainable future. You still get the durability and versatility of traditional material, but with a greener approach.

What is non-PVC vinyl?

Developed by our partners 3M, Envision™ Print Film is a more environmentally friendly alternative to traditional PVC films. This non-PVC film is made in part with bio-based materials and uses 58% less solvent in the manufacturing process, making it the greener choice without sacrificing performance.

What makes Envision different?

3M Envision range films offer you a sustainability edge at an affordable price. Designed for use on vehicles, signage, walls, windows, floors and more, this film has unmatched versatility over other products on the market.

How can choosing non-PVC vinyl benefit you?

Not only is non-PVC film naturally versatile, extremely durable, and highly conformable, but it also aligns with sustainability initiatives. If your business is already taking steps towards a greener living, it’s worth considering how non-PVC film can help enhance your environmental plans.

Why Stewart Signs

At Stewart Signs, our journey in sustainability began 20 years ago. It’s a core principle within the company that determines our decisions. As a business, we’re actively looking for ways to improve our impact on the planet and ways to help our clients do the same.

We provide tailored solutions to local and national business needs throughout the UK. What’s stopping you from taking the next step and choosing non-PVC film? Let us help you and your business make greener choices for a greener future.

Green fleet technology prevents almost 30,000 tonnes of CO2 emissions

 980 640 Stuart O'Brien
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Fleets using Lightfoot’s driver coaching technology have stopped 29,985 tonnes of carbon emissions from being released into the atmosphere throughout 2022.

Designed to help fleets make safer and smoother driving the norm across all vehicles, Lightfoot’s game-changing fleet management system consists of an in-cab driver feedback device, a dedicated rewards app, and a full telematics suite.

By providing driving feedback in real-time through audio and visual nudges, Lightfoot trains drivers to handle their vehicles in a more environmentally-conscious way, helping to limit fuel consumption, improve road safety, and of course, reduce the amount of emissions that are created on every journey.

Deployed in fleets across the UK – including Tesco, Asda, South West Water, Integral, and Equans – Lightfoot helps businesses cut down on CO2 by as much as 15%. Over the last 12 months, this has amounted to 29,985,000kg of carbon dioxide – equivalent to planting a forest of 1,427,857 trees or removing 1,249 passenger vehicles from the roads.

To find out more about how Lightfoot is creating cleaner, greener fleets, click here.

Lightfoot’s free tool helps fleets level up performance

 960 640 Stuart O'Brien
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Lightfoot, the pioneering green tech company and provider of the unique driver coaching and rewards platform, has recently launched a brand new tool to help fleets on their journey towards more sustainable fleet best practice.

The Fleet Sustainability Calculator is a free tool that will help you quickly see how well your fleet is performing, find areas for improvement, and identify potential solutions to help you hit various KPIs.

The calculator looks at 4 essential elements of fleet management – environmental impact, financial strength, operational efficiency, and EV readiness.

To see how your fleet measures up against others in the industry, simply answer a few short questions and you will then receive tailored recommendations to help you drive your business further.

Find out how your fleet compares and calculate your score here.

Greener Transport Solutions lobbies Chancellor on carbon tax

 960 640 Stuart O'Brien
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Greener Transport Solutions has called on the Chancellor to introduce a ‘universal carbon allowance’ to help households cope with the cost-of-living crisis and accelerate the transition to net zero.

The not-for-profit cites the war in Ukraine means that oil and gas prices have risen sharply, whilst food prices have hit record highs, while last week the cost of filling up an average family car with petrol hit £100 for the first time and inflation is expected to reach 10% later this year – and as high as 14% for poorer households.

On 26th May the Chancellor announced a £21 billion package to help households with their energy bills. However, Greener Transport Solutions says further measures are likely to be needed by the autumn and has asked how the Chancellor will ensure the right level of targeted support for those who most need it whilst avoiding inflationary pressures in the economy.

Its answer is to urge the Chancellor to develop a strategy to tackle the cost-of-living crisis that will accelerate the transition to net zero and protect our energy security. Namely, he should introduce a universal carbon allowance for every individual in the UK funded by putting a carbon price on everything we consume.

This would be a very progressive measure, the organisation claims. Individuals on higher incomes would pay more in carbon tax through all the goods and services they buy, whilst receiving the same fixed allowance as those on lower incomes. According to the Treasury’s Net Zero Review, higher income households consume three times more carbon than lower income households.

The IPCC has warned “now or never” if world is to avoid climate disaster. To avoid overshooting 1.5C global emissions must peak before 2025 and fall by 43% by 2030.  Such rapid emissions reduction is possible but only if every sector of the economy is targeted. Reducing energy demand across all sectors could deliver a 40-70 per cent reduction in greenhouse gas emissions by 2050.

Greener Transport Solutions has published a report on its ‘Pathways to Net Zero’ roundtable discussion series investigating how to decarbonise transport.

The key conclusion is that we are not seeing anywhere near the scale of change needed to achieve our net zero targets for transport.  Lack of leadership and lack of joined-up thinking undermines net zero ambitions. Spending is skewed towards road building and unsustainable transport policies.  We are still building car dependent housing developments. It says urgent focus is needed on traffic reduction.

Claire Haigh, Founder & CEO of Greener Transport Solutions, said: “The transport sector on its own cannot achieve net zero.  It’s clear that we urgently need a new approach.  We need a solution for the whole economy.

“The current crises we face all demonstrate that we must break our dependency on fossil fuels.  If we are to wean ourselves off fossil fuels, we must price properly for carbon.  This will generate the revenue needed to tackle the cost-of-living crisis.

“Record high fuel and energy prices are a game-changer.  We urge the Chancellor to seize the opportunity to tackle the cost-of-living crisis, shore up our energy security and accelerate the transition to net zero at the same time.”

The case for decarbonising existing fleet vehicles

 960 640 Stuart O'Brien
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Lightfoot have launched their latest video titled ‘Doing Nothing Is Not An Option’, the video makes the case for actively decarbonising existing ICE vehicles within fleets whilst concurrently planning for the electric future.

Whilst the transition to EVs is the accepted long-term solution for the fleet industry, the reality is that the supply of electric vehicles is not currently available for an all-out adoption of EV fleets, and many fleets simply do not have the resources or infrastructure to go fully electric today.

Instead of making future plans to tackle decarbonisation solely through the eventual replacement of ICE vehicles with EVs, industry-leading green-tech provider Lightfoot argues that fleets should instead be looking to their existing fleet vehicles to reduce emissions, reduce fuel consumption, and take action now to protect the planet.

Watch the video to learn more.

A cleaner, greener fleet – How Asda is reducing emissions through driver engagement 

 960 640 Stuart O'Brien
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Partnering with Lightfoot – the UK’s leading provider of in-cab driver coaching and engagement technology – has helped Asda on its journey towards net-zero, with the supermarket now saving an incredible 2,482 tonnes of CO2 per year through its grocery delivery fleet.

It’s all down to the unique technology offered by British green-tech company Lightfoot, which provides real-time feedback for safer, more efficient driving; and a rewards-based system to incentivise and engage drivers from the get-go. Many Asda drivers are now using their Lightfoot app on a daily basis and have already won prizes including an Amazon Echo Dot and a mini drone, as well as cash prizes totalling over £13,213.

Learn more about Asda’s sustainability journey