Pledge and Smart Freight Centre deliver ten-point guide to decarbonising supply chains

The collaboration has resulted in a ten-point guide to help logistics companies launch and maintain an effective decarbonisation programme.

The ten-point guide was compiled at a round table at the COP28 UN Climate Change Conference in Dubai in December last year, which included logistics experts, as well as Pledge and SFC. 

The report emphasises the importance of collaboration, measurement, and the construction of a clear business case for sustainable logistics - three key points in the guide.

David de Picciotto, Pledge chief executive and co-founder, said: ”There is much to be positive about, for example, many companies don’t realise they can start measuring and reporting with the data they already have.

“One of the points to come out of the round table was that companies should start reporting with the data they have now, and only then iterate with more granular input to improve the quality of their carbon emissions calculations.

“You can’t go from zero to hero overnight - it’s an iterative process. We brought together leaders from across the industry because one of the issues is that there’s a disconnect between these vital stakeholders.The result was ten clear and practical measures that can be acted upon by logistics providers no matter where they are in their decarbonisation journey.”

The ten-point guidelines are:

• Voluntary initiatives help but cannot be a full substitute for regulatory drivers.
• You can begin your emissions measurement journey even if the data isn’t perfect.
• We must help stakeholders understand the value to their business that decarbonisation initiatives can have if we’re to incentivise them to invest in them.
• For many businesses, 60% of their total carbon footprint comes from their scope 3 emissions, meaning calculating and mitigating these emissions can unlock significant carbon reduction opportunities. [1]
• Procurement is the lynchpin for scope 3 decarbonisation.
• Decarbonisation needs to be approached holistically, including both technological advances, such as using electric trucks, and operational strategies, such as modal shift or increasing utilisation.
• Collaboration across the logistics supply chain is crucial if the industry is to do its part to achieve the target set out at the Paris Treaty.
• NGOs have a growing importance in supporting climate action across the value chain.
• Market mechanisms help finance the transition to decarbonisation.
• You need to build a business case to make sustainable logistics viable and scalable for businesses in the long-term.

“As the pursuit of decarbonising supply chains becomes more and more of a priority, we are faced with several opportunities to reduce emissions across the sector,” added de Picciotto.

“This discussion aimed to identify the routes to positive climate action, and we achieved just that.”

The full report can be found here.

Smart Freight Centre (SFC) is an international non-profit organisation focused on reducing the emission impacts of global freight transportation. Its goal is to guide the global logistics industry in tracking and reducing its greenhouse gas emissions by one billion tonnes by 2030 and to reach zero emissions by 2050 or earlier, consistent with a 1.5° future.

Pledge provides software solutions to empower freight forwarders to support their customers in meeting their sustainability goals. 

The software company, founded by early Revolut employees, David de Picciotto and Thomas Lucas, and Freetrade’s co-founder and former CTO, André Mohamed, uses its platform to bring accessibility and transparency to freight emissions measurement, reporting, and offsetting, allowing businesses to offer these services without increasing their operational costs.