Data is the key to transforming transportation
Written by Stefan Seiber
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The logistics industry is responsible for 11 percent of all carbon dioxide2– Responsible missions. With that number and the ongoing climate crisis, it’s no surprise that sustainability and decarbonization have become transportation’s top priorities.
In contrast to other sectors, emissions from the transport sector in the European Union increased steadily between 2013 and 2019. This is evidenced by data from the European Environment Agency. To combat the growing emissions from road traffic, the European Union has proposed several measures that will come into force in the coming years.
For example, the European Union Commission is working to achieve climate neutrality by 2050 as part of the Green Deal – a series of EU initiatives. The Green Deal calls for aligning climate goals with existing climate, energy and transportation legislation through a so-called “Fit for 55” package. As part of this package, transport logistics will no longer be exempt from trading emissions certificates from 2026. At the same time, changes have been called for changes to the current EU emissions trading system (ETS), according to which all sectors involved are obliged to reduce their emissions by 43 per cent. percent compared to the 2005 level.
In addition, from 2023 the Corporate Sustainability Reporting Directive (CSRD) will specify how companies with more than 250 employees should report on sustainability issues in line with EU standards. With all of these legislative developments, carriers must be ready to take action now.
It’s time to act
Changes take time and money to make an impact. The faster companies act, the greater the positive impact on the environment. At the same time, companies benefit from competitive advantage. Staying ahead of the competition can have a significant impact on a business, affecting brand image, recruitment and retention, and access to capital (both public and external investors).
Customer awareness of sustainability has increased significantly in recent years. Global online searches for sustainable products have increased by 71 percent since 2016, and 70 percent of consumers rate sustainable brands as important. As public awareness about taking action on climate change grows, consumers are not only looking for sustainable products, they are increasingly expecting employers and business partners to act responsibly and take action.
this is trends In legislation and in customer awareness and behavior will affect freight forwarders and shippers alike. reduce carbon dioxide2-So missions should be for all companies in logisticsTransport sectors, regardless of their size, have top priority. This means that it is more important now than ever to closely monitor and report emissions and to manage future emissions based on the state of the current data.
Anyone who ignores the topic of sustainability and decarbonization can expect high follow-up costs – both financially and reputationally.
The problem is that most companies still use standard data. Standard data is the most common form of data collection, but it only takes into account industry averages. This leads to vague reports and inaccurate figures that may deviate from reality. For example, companies may have to pay more for supposedly higher emissions when in reality they emit much lower emissions.
Instead, carriers must use raw data that includes real-time data on actual distances traveled, as well as fuel consumption or power and fuel type. This data is provided by information technologies. Transport management systems are useful for using basic data.
Data Insights: Your data provides this added value
Data forms the foundation for a greener, carbon-neutral supply chain. Transportation management platforms provide access to transportation networks across industries, giving companies clear visibility into the data they need to make smarter, greener decisions at scale.
By leveraging the real-time visibility (RTV) data provided by these networks, companies can gain deeper insights into their shipments – particularly across intermodal supply chains – and ensure that numbers are calculated as accurately as possible. As a result, they can streamline and improve their operations by streamlining operations, reducing idle miles, and better matching capacity and demand. This not only leads to a decrease in carbon dioxide2balance sheet, but also cost savings and a competitive advantage.
This is exactly what Ikea has Suppliers Operations and Girteka Logistics completed the test. The companies wanted to test how data quality affects overall emissions reports. Results show that higher data quality leads to direct cost savings. This particular trial resulted in a 27 percent reduction in reported emissions from intermodal shipments. Costs associated with inaccurate emissions reporting were reduced by 13 percent.
Transportation management platforms also allow companies to compare themselves to others in the industry and upload transportation from third party sources to record all transportation in one central location. Sharing transportation data across transportation management tools allows an entire network of shippers, carriers, and logistics providers to use the same numbers and data. This network effect gives organizations deeper insights and the ability to identify specific problems in specific areas, such as method, routing, or vendor shortcomings.
The efforts of individual freight forwarders or shippers that pay off are visible to the entire network. This, in turn, can encourage others to take similar steps. Because one thing is clear: supply chain decarbonization cannot be tackled alone. Reducing the global increase in traffic emissions is the responsibility of all concerned. As an industry, we can only achieve our sustainability goals if we work together as part of a comprehensive approach. The key to this is real time data. (BM)