How to start decarbonising freight transport today?

After the lull in global freight movement due to the pandemic, emissions from global freight movement are starting to rise again.

Forecasts from the likes of the OECD’s International Transport Forum and Smart Freight Centre expect emissions from freight transport to continue to rise, upwards to 30% and 50% of all global emissions, respectively. Greenhouse gas (GHG) volumes are expected to rise by 1% per year up to 2050, according to the European Environment Agency.

Whether you’re in a central sustainability team or a transport team, you no doubt have goals now, or coming your way soon, that reflect the need to reduce carbon emissions.

Why do we need to reduce transport emissions?

Consumers are driving the debate about meeting sustainability and decarbonisation goals:

• Research from Forrester last year showed that more than 50% of European consumers would pay more for sustainable or environmentally friendly products – with shipping and packaging being prime concerns.
• A 2021 study by the Economist Intelligence Unit, commissioned by WWF, showed a 71% rise in online searches for sustainable goods globally over the past five years.
• In one McKinsey survey, 66% of those surveyed, and 75% of millennial respondents, said they consider sustainability when making a purchase.

Many companies already have pledges that need to be adhered to. Henkel has publicly committed to having climate positive operations by 2030. While P&G have pledged net-zero emissions by 2040. What climate targets has your company set?

The fact is, if the world is to meet the 1.5 degrees Celsius limit by 2050 – and meet global commitments made in the United Nations’ Paris Agreement – we need to reduce carbon dioxide emissions rapidly.

But decarbonising the supply chain is not easy. It’s a complex problem that needs teams from logistics, procurement, sustainability and transport working together to solve.

How to get started with transport decarbonisation 

The main question for firms is often where to start and then the following question - who can help me make real changes to our transport decarbonisation?

The first place to start is calculating your emissions in the different Scopes (which refers to the GHG Protocols method of grouping different types of emissions). Read more about the scopes and what they represent.

Logistics and supply chain transport falls under Scope 3. Many companies, like Kraft Foods, find that scope 3 emissions are often the greatest part of their carbon footprint.

Next, evaluating how to reduce transportation greenhouse gas emissions means understanding where opportunities exist. A value chain life cycle analysis can help you identify this.

The ‘Middle mile’ is the biggest source of emissions, due to the fact that road freight consists of 80% of freight moved at this stage. Most vehicle manufacturer’s focus on iterative developments to existing technology as the way to reduce emissions. However, these developments can only deliver single digit improvements, currently that’s:

1. Low rolling resistance tyres: about 1-5% lowering in emissions
2. Aerodynamic improvements, about 6-9%
3. Driver training and behaviour tracking, about 7%

But there are alternative solutions that don’t require costly fleet overhauls. These can provide an easier and cheaper way for businesses to significantly reduce their C02 emissions. 

What options exist for decarbonising road freight today?

The fact is ‘zero emission vehicles’ like clean hydrogen and electric powered HGVs are a long way off from being commercially viable.

Recently highlighted in the EU’s climate goals announcement, increased intermodal routing and alternative fuels, like HVO, offer a real, and very immediate way to start decarbonising road freight

Zeus has put together a new ‘green’ low-carbon multimodal solution which, in pilots with major FMCG brands, has been shown to reduce carbon emissions by 84% (versus diesel roadfreight).

We are the fastest growing digital freight platform among hauliers and the first platform to commit to only using renewable, biofuel or electric powered HGVs – a goal which applies to new clients from January this year.

At Zeus we are keenly aware that our clients need the CO2 savings they achieve through our platform to be easily visible to consumers, investors and other stakeholders. 

As a part of our commitment to sustainability and responsible logistics, we are extremely proud to announce that Zeus became the youngest Full Member of the Global Logistics Emissions Council (GLEC) in January 2023.

What does this mean for our clients?

Our carbon emission savings calculations are based on GLEC Framework standards. Meaning our clients can report these savings to senior executives or stakeholders with full confidence.

Companies are often desperate to reduce C02 emissions but find it hard to make a business case for doing so when there are so many options and when these are often so expensive and complex. Zeus makes it simple, easy to implement, and ensures the effort will be visible.

> Join Zeus. Let’s make the future of freight a sustainable one.

Further reading:

https://www.eea.europa.eu/ims/greenhouse-gas-emissions-from-transport

https://www.smartfreightcentre.org/en/how-to-implement-items/what-is-glec-framework/58/

https://www.acea.auto/files/ACEA_Position_Paper_Reducing_CO2_Emissions_from_Heavy-Duty_Vehicles.pdf

https://www.forrester.com/blogs/european-consumers-drive-the-sustainability-demand/