Scope 3 emissions : A big challenge for logistics
Scope 3 emissions : A big challenge for logistics
An example of this is Microsoft ’ s dynamic transportation management system . ( TMS ). Pre-digitalisation , the company had seven TMS systems , none of which talked to each other . So Microsoft partnered with a third-party logistic company , CH Robinson .
“ We told them we would still negotiate freight rates with FedEx , UPS , AMCO , Maersk and so on , but that we ’ d hand over the rate cards to them and have them manage the TMS , end to end .”
A big challenge in global logistics is the need to better map and measure Scope 3 emissions , which are indirect emissions generated by a business through sources outside its control .
McKinsey research suggests as much as 90 % of businesses ’ emissions are generated throughout their supply networks .
Rob Wright , executive director of supply chain management services firm , SCALA , says that despite this , most businesses currently have no plans in place to measure the environmental impact of their value chain .
Wright says technology is the solution here , because it allows businesses to map their carbon footprint with far greater accuracy than ever before .
He advises companies to use tools such as Compare Your Footprint ( CYF ). This is a free carbon-footprint calculator created by a team of sustainability consultants .
“ This allows businesses not only to measure their carbon footprint but also to benchmark it against competitors and similar businesses ,” says Wright . He adds : “ CYF allows organisations to gain an accurate reading of where they stand from a sustainability standpoint , as well as what they should target in future .”
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