Climate targets are no longer a nice-to-have, but a mandatory exercise for companies that want to ensure their survival in international competition. In this context, science-based targets (SBTs) offer a clear, scientifically proven framework for reducing negative environmental impacts. But how can companies integrate the ambitious targets into their complex and often globally distributed supply chains? The challenge involves not only operational aspects, but also the strategic integration of environmental protection and cost efficiency. We discuss how your company can implement SBTs in its processes and what challenges need to be overcome.
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Here`s why science-based targets are relevant for the logistics industry
Logistics form the backbone of global trade – billions of tons of goods are transported around the world every year. The impact on global greenhouse gas emissions is correspondingly high. As global trade continues to grow, the carbon footprint of the transportation and logistics industry will increasingly become the focus of sustainability strategies. The Science-Based Targets Initiative (SBTi), a partnership between the Carbon Disclosure Project (CDP), the UN Global Compact (Externer Link: https://www.globalcompact.de/ueber-uns/united-nations-global-compact), the World Resources Institute (WRI) and the WWF, provides companies with science-based approaches to develop concrete and measurable reduction targets.
Logistics is the backbone of global trade – billions of tons of goods are transported around the world every year.
Science-based targets are built on scientific findings on global warming and define reduction paths for CO₂ emissions that are in line with the goals of the Paris Climate Agreement. They provide companies with a clear methodological basis for setting measurable climate targets that contribute to limiting global warming to 1.5 degrees Celsius. Precise targets provide companies with guidance to steer climate protection measures in a targeted manner and document their progress.
These methodologies are based on climate models that calculate the emission reductions required in various sectors in order to achieve the international climate targets. The latter result in specific approaches to decarbonization for the logistics industry.
First step: Sound analysis of CO2 drivers
The implementation of science-based targets requires a detailed analysis of the entire supply chain. Adequate measures to reduce emissions can only be derived through a granular recording of emission sources. In logistics, three key drivers can be identified that need to be prioritized in order to achieve SBTs:
Transport infrastructure and fleet management
Freight transportation – whether by road, rail, sea or air – is a major source of emissions. However, there are enormous levers for reduction in this area. The use of alternative driv systems, such as electromobility in short-haul transport or LNG (liquefied natural gas) and hydrogen in heavy goods and long-distance transport, offers significant savings potential. The switch to low-carbon drives is particularly challenging in sea freight. Here, technological solutions such as the use of ammonia as a propellant or sail assistance are still under development, but represent promising approaches
Warehousing and energy for buildings
An often underestimated area in the logistics sector is the operation of warehouses and distribution centers, as they do consume large amounts of energy for lighting, cooling and the operation of conveyor systems. Switching completely to green electricity or state-of-the-art heat recovery systems can make a significant contribution to reducing the carbon footprint. The use of intelligent building automation systems that provide real-time data for energy optimization is also becoming increasingly relevant.
Optimization of supply chain planning
By using big data and AI, the smart control and planning of transport and supply chain processes offers great opportunities to reduce emissions. Precise data analysis and predictive planning can be used to consolidate transports, minimize empty runs and maximize capacity utilization. Intermodal transport solutions, which combine the advantages of different modes of transport such as truck, rail or ship, also offer a quick way to reduce CO2 emissions.
How the science-based targets can be integrated
The implementation of SBTs requires a methodical approach that enables the precise collection of CO2 data along the entire supply chain. Without a solid data basis, it is not possible to exploit optimization potential or make well-founded decisions on reducing emissions. Important steps for the systematic integration of SBTs into logistics processes include
- Documentation of CO2 balance (Scope 1, 2 and 3): First of all, companies must systematically document their emissions. While Scope 1 emissions include direct emissions from the company’s own transport and logistics processes, Scope 2 emissions include indirect CO2 emissions, for example from electricity consumption in warehouses and distribution centers. Scope 3 is by far the most complex area: Here, the emission values along the entire supply chain are recorded, including emissions from suppliers and service providers. Accessing this data is usually the biggest challenge, as companies do not always have control over the emission sources of their supply chain partners.
- Investing in sustainable infrastructure in the long term: In order to achieve ambitious climate targets, companies must be prepared to make long-term investments in green technologies and infrastructure. This includes not only the purchase of low-emission vehicles, but also the development of an appropriate charging and refuelling infrastructure and the implementation of intelligent IT systems that enable continuous monitoring and optimization of the carbon footprint.
Challenge and resistance – the complex path to decarbonization
The implementation of SBTs often comes with a number of challenges. Regional deficits in the infrastructure for low-emission technologies such as hydrogen or LNG make widespread introduction difficult, especially in emerging markets. At the same time, uncertainty about future technological developments remains a key factor that makes companies reluctant to invest in specific green technologies. High initial investments in sustainable solutions and the long amortization periods require long-term financial strategies that are not always easy to implement.
However, companies are not on their own when achieving their goals for improving their environmental footprint – experienced logistics service providers offer crucial support when it comes to the implementation of science-based targets. With their expertise in Supply Chain Management and the promotion of end-to-end Supply Chain Visibility, they pave the way for more precise control and optimization of the entire supply chain. This includes not only the reduction of emissions through more efficient transportation, but also the implementation of solutions for better traceability and data analysis, which are essential for achieving climate targets. In addition, logistics service providers in the Freight Forwarding sector play a key role in this context, as they make a significant contribution to reducing CO2 emissions through intelligent transport solutions such as intermodal networks or improved route planning.
Conclusion: Science-based targets as a strategic tool for realigning your supply chain
The implementation of science-based targets in logistics is a challenging undertaking that requires a paradigm shift in strategic orientation and operational implementation. Companies that rise to this challenge can secure long-term competitive advantages and are well prepared to meet regulatory requirements. The key to success lies in a coherent strategy that combines technological innovation with a holistic view of the value chain. And yet, it is the only way to successfully master the balancing act between ecological responsibility and economic profitability. A strategic partnership with experienced logistics service providers such as SupplyX not only offers companies the opportunity to achieve their climate targets, but also to maximize their sales and improve the resilience of their supply chain in an increasingly sustainability-driven logistics landscape.