Stopping Emissions At the Source: Three Strategies to Mitigate Carbon Emissions in the Supply Chain

Even though governing administrations worldwide change political hands—the upcoming transition in the U.S. from Democratic President Joe Biden to Republican President-elect Donald Trump is one example—one thing that may sadly remain constant is the continued urgency to address climate change. The effects of climate change, such as more severe weather events brought on by extreme droughts or flooding, can shake up supply chains and uproot established transportation routes. For instance, climate change exacerbated challenges that vessels had in navigating the Panama Canal’s low water levels in 2023, and the prospect that such a situation could happen again is not impossible. Given that the worldwide logistics and transportation sector is a chief producer in producing emissions—maritime shipping is estimated to account for approximately 2-3% of global carbon emissions, for example—the logistics and transportation sector should also take the lead in spearheading practices to slash greenhouse gas emissions. However, to do that, companies need to deliberate in their actions. Mitigating carbon emissions in the supply chain starts with actionable steps, focusing on accounting, optimization, and visibility. Here are three steps that organizations can take starting today:

1. Actionable Carbon Accounting

Carbon accounting involves breaking down and accurately measuring emissions across the supply chain. As we’ve mentioned previously, carbon accounting is simply the process of measuring, tracking, and managing GHG emissions. It involves understanding emissions sources within an organization and throughout the supply chain so that companies can reduce their carbon footprint and meet regulatory requirements. Carbon accounting makes a lot of sense; however, there are two challenges. The first is a lack of standardization in emissions reporting, and the second is accounting for the complexities inherent in producing Scope 3 emissions. Thankfully, organizations have realized that these challenges exist, and they have worked hard, both internally and through partnering with like-minded organizations, to meet these challenges head-on. Indeed, there are a number of actionable steps that companies can take to establish and maintain a robust carbon accounting program. These steps include:

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  Using real-time data and technology to capture carbon metrics.
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  Adopting carbon accounting solutions that work alongside frameworks, like the Global Logistics Emissions Council (GLEC) framework, to ensure consistency of measurement standards.
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  Providing businesses with digestible, actionable insights rather than overwhelming datasets.

Carbon accounting might conjure up images of spreadsheets, but the practice is so much more than that. Searoutes recently worked with Germany-headquartered chemicals company BASF to reduce their GHG emissions and create a measurable carbon reduction plan. Check out the case study here: BASF Leverages Searoutes Data in Their Freight Negotiations

2. Sustainable Route Optimization

Another strategy that companies can pursue is sustainable route optimization. It sounds complicated, but the idea is straightforward: using data and advanced algorithms to design logistics routes that minimize carbon output. There are many benefits to utilizing sustainable route optimization. One is that it reduces fuel consumption. Another is that it cuts emissions by avoiding congested areas and optimizing modal choices (e.g., rail over road, slow steaming for maritime). Committing to sustainable route optimization involves three actions: integrating sustainability metrics into logistics software, analyzing multimodal transport opportunities to prioritize low-emission options, and factoring in variables such as weather, geography, and fuel efficiency. These three steps will put you well on your way to seeing results in route optimization.

3. Emissions-Integrated Maritime Visibility

One last action item, but certainly not least, is employing emissions-integrated maritime visibility. This means ensuring end-to-end visibility into maritime emissions to enable proactive decision-making. This last action item is key because, as we mentioned above, the maritime sector contributes to nearly 3% of global emissions. Having visibility into emissions output, or providing that transparency if you’re a carrier, helps businesses choose carriers and partners with lower carbon footprints. Having that emissions-integrated maritime visibility requires calls for three steps: equipping supply chain stakeholders with tools that track CO2 emissions per shipment, promoting collaboration between shippers and carriers to adopt greener practices like slow steaming, and integrating emissions data with route planning and carbon offsetting platforms.

Take Action to Slash GHG Emissions

The logistics sector is pivotal in combating climate change, with supply chains accounting for a significant portion of global CO2 emissions. Tackling emission reductions involves three actions: (1) reducing emissions at the source. This requires a data-driven approach, starting with actionable carbon accounting to measure and analyze emissions effectively; (2) enabling sustainable route optimization, which further minimizes fuel consumption by leveraging advanced algorithms and multimodal transport strategies; and (3) deploying emissions-integrated maritime visibility, which ensures transparency and enables shippers to choose low-carbon carriers and drive greener practices. Searoutes’ solutions empower organizations to tackle these three actions successfully. Our technological tools enable data-driven solutions to reduce emissions and advance companies’ sustainability efforts. Our CO2 API allows organizations to conduct searches on optimal routes based on emissions levels, our Routing API will enable you to compare potential routes’ arrival times, fuel consumption rates, and estimated emissions output, and our Vessel API enables groups to gain visibility into vessels’ emissions profiles based historical and real-time AIS data. Interested in learning more? Contact Searoutes today and hear how we can help you get started on these three actions.