\n
Moving cargo around the world is a carbon-intensive business, and new guidance launched at Davos will go a long way to getting freight back on track.<\/p>\n
The World Economic Forum\u2019s Annual Meeting held in January 2023 saw the launch of new guidance to support the logistics industry on its journey to net-zero emissions. Davos attendees got a first glimpse into how companies can better understand and track their logistics emissions. Released by Smart Freight Centre and the World Business Council for Sustainable Development, the guidance sets out to help businesses\u00a0in the implementation of their decarbonization strategies.\u00a0<\/p>\n
This new publication highlights the usefulness and benefits of\u00a0ISO\u202f14083<\/a>, a much-anticipated International Standard offering the first universal method for logistics emissions accounting. A game changer for climate action, the forthcoming standard is expected to support the industry globally in its carbon reduction efforts.\u00a0<\/p>\n The logistics and transport sector contributes just over a third of global carbon dioxide (CO2) emissions, making it the\u00a0largest-emitting sector<\/a>\u00a0in numerous developed countries. And that share keeps growing. In 2021, the transport sector accounted for 7.7\u00a0gigatonnes (Gt) of CO2<\/sub>\u202f\u2013 an increase of 8\u202f% since pandemic measures were lifted. Today, the world\u2019s\u00a0total annual CO2<\/sub>\u00a0emissions\u00a0<\/a>are around 35\u202fGt.\u00a0\u00a0<\/p>\n A sector that makes such a significant contribution to global emissions can play a critical role in the transition to a decarbonized future, as well as adapting to the impacts of climate change. To meet the world\u2019s net-zero targets, transport needs to reduce its emissions by around 20\u202f%, to less than 6\u202fGt by 2030, in anticipation of the projected growth in demand for global trade.\u00a0<\/p>\n It\u2019s clear that the transport industry is intent on taking a leading role in the just, healthy and resilient transition to a zero-carbon world. The opportunity to break the deadlock is evident and there is little time to lose if we are to meet our climate ambitions. Momentum is building with the publication of\u00a0End-to-End GHG Reporting of Logistics Operations<\/a><\/em>, and there is a sense of optimism that it can be done.\u00a0<\/p>\n Freight transportation, in particular, plays an important role in our global economy. Billions of tonnes of cargo are transported around the world each year by trucks, planes, ships and trains. According to researchers from the Massachusetts Institute of Technology Supply Chains Initiative, freight transportation\u00a0contributes approximately 8\u202f%<\/a>\u00a0of global greenhouse gas emissions. Add warehousing operations and this figure inflates to 11\u202f%.\u00a0\u00a0<\/p>\n Carrying billions of tonnes of freight annually needs masses of energy, and a lot of CO2<\/sub>\u00a0emissions. A \u201cbusiness as usual\u201d approach would see CO2<\/sub>\u00a0emissions from freight grow, yet this scenario is unlikely to happen. And here\u2019s why. The sector is already tackling head on its carbon footprint, with standards playing a key part in the process. Recent data reveals several countries are\u00a0reducing their carbon emissions<\/a>. In fact, many freight forwarders and transport companies are targeting net zero by 2050, or even earlier.\u00a0\u00a0<\/p>\n Keeping track of the carbon emitted during the production and trade of goods and services, and taking stock of progress made in reducing these emissions, will be key. With this in mind, different approaches have already been developed to quantify the amount of CO2<\/sub>\u00a0emissions in products and economic activities.\u00a0<\/p>\n So how is the freight sector keeping up? And what is the role for International Standards? It all begins with efficiency and a desire to reduce environmental impacts. As with all things, understanding where emissions come from, and establishing a detailed baseline of CO2<\/sub>\u00a0emissions, is the first step in managing them.\u00a0\u00a0<\/p>\n Supply-chain-focused coalitions\u202f\u2013 covering multiple transport modes\u202f\u2013 are reducing complexity by enabling shippers to participate in decarbonization efforts. Examples of such collaborative effort already exist. Take, for instance, Smart Freight Centre (SFC). To help multinationals monitor, report and eventually reduce their CO2<\/sub>\u00a0emissions, the SFC created the Global Logistics Emissions Council (GLEC) Framework. More than a hundred multinationals use our GLEC Framework to disclose their logistics emissions, and it is one of the primary inputs for a new ISO standard.\u00a0\u00a0<\/p>\nBridging the gaps in decarbonization\u00a0<\/h3>\n
Cleaner pathways\u00a0<\/h3>\n
Mission possible\u00a0<\/h3>\n