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Navigating the Green Landscape: Organizations Face Challenges in Scope 3 Emission Reporting

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Navigating the Green Landscape: Organizations Face Challenges in Scope 3 Emission Reporting

A recent study by Ivalua sheds light on the growing concerns within U.S. organizations regarding unintentional greenwashing, with 45% expressing worries about the legitimacy of their green claims. As the pressure from both customers and regulators intensifies, the focus is on ensuring that all environmental claims are accurately substantiated.

The research reveals that only 48% of organizations feel “very confident” in accurately reporting on Scope 3 emissions, a crucial aspect of environmental impact. A significant 62% admit that reporting on Scope 3 emissions is more of a “best-guess” measurement, highlighting the need for more precise and verifiable data.

While the Securities and Exchange Commission considers incorporating Scope 3 emissions in its final Climate Disclosure Rule, it is imperative for U.S. organizations to proactively manage and improve Scope 3 reporting. The study emphasizes the importance of moving beyond best guesses and adopting a more data-driven approach to support green claims over time.

Despite 88% of organizations expressing confidence in meeting net-zero targets, the study identifies gaps in comprehensive plans for various sustainability initiatives:

– Adopting renewable energy (78%).
– Reducing carbon emissions (68%).
– Embracing circular economy principles (72%).
– Decreasing air pollution (67%).
– Mitigating water pollution (63%).

Jarrod McAdoo, Director of Sustainable Procurement at Ivalua, underscores the urgency for organizations to address sustainability. He emphasizes that obtaining Scope 3 data is a crucial step in the maturation process of sustainability programs, even if they may currently rely on estimated data.

The study also highlights the importance of collaboration with suppliers in achieving net-zero goals. Over half (51%) of organizations believe that green initiatives not involving suppliers are ineffective. Challenges in supplier collaboration include resistance to emission reduction (27%), competing priorities such as cost and risk (24%), incomplete or unreliable sustainability data (22%), and poor visibility into sub-tier suppliers (18%).

To build trust and credibility in sustainability programs, the study suggests that organizations should focus on finding effective ways to measure and gauge the impact of Scope 3 emissions. While achieving absolute accuracy might be challenging without substantial investment, organizations are encouraged to equip procurement teams with good data and insights for meaningful progress.

In conclusion, the research underscores the need for a smarter approach to procurement, with granular visibility into supply chains and effective collaboration with suppliers. This transparency is crucial for showcasing meaningful sustainability progress and avoiding accusations of greenwashing in the long run.

sheer

Sheer Logistics Introduces Customized Scope 3 Carbon Dioxide Emissions Dashboards to Help Shippers Achieve Their ESG Goals

Real-time dashboards are powered by SheerExchange, Sheer’s proprietary integration Platform as a Service (iPaaS)

Sheer Logistics, a premier provider of Managed Transportation Services, TMS technology and integration Platform as a Service (iPaaS) solutions purpose-built for mid-market companies, today announced the introduction of customized ESG dashboards that empower its clients to track and measure their Scope 3 carbon dioxide (CO2) emissions in real-time across all modes of transportation in their supply chain.

The customized Scope 3 CO2 dashboards are enabled by SheerExchange, Sheer’s proprietary integration Platform as a Service (iPaaS). SheerExchange acts as a “universal translator” that quickly and seamlessly connects and automates the supply chain, including vendors and industry leading technologies such as ERPs, Fuel Programs, Rating Engines, Real-Time Transportation Visibility Platforms (RTTVPs) and more.

SheerExchange connects disparate systems, normalizes and warehouses the aggregated data, and provides easy access to actionable business intelligence. Aggregating transportation data in a single location allows Sheer’s clients to accurately track, measure, and report on their Scope 3 CO2 emissions. Sheer Logistics leverages the framework developed by the Global Logistics Emissions Council (GLEC) to ensure its clients’ Scope 3 CO2 emissions are measured using a harmonized and globally recognized standard.

Learn more about Sheer’s Scope 3 Carbon Dioxide Emissions Dashboards here.

About Sheer Logistics

Sheer Logistics is a premier provider of logistics and supply chain management solutions purpose-built for mid-market companies. With a deep understanding of the unique challenges faced by mid-sized businesses, Sheer Logistics offers customized solutions that help companies optimize their supply chains, reduce costs, and improve efficiency while gaining visibility to actionable business intelligence empowering and improving management decisions.

The company’s comprehensive range of services includes Managed Transportation, SheerTMS (Transportation Management System), the SheerExchange Integration Platform as a Service (iPaaS), supply chain consulting, value-added strategic multimodal capacity solutions and more.

By leveraging leading technology and a team of experienced professionals, Sheer Logistics provides mid-sized businesses with the tools and expertise they need to compete in an ever-changing global marketplace. With a focus on building long-term relationships through transparency, trust and providing exceptional customer service, Sheer Logistics is dedicated to helping mid-market companies succeed and drive profitable growth.

Cargo2ZERO transportation, handling and management of goods is the single greatest impact generator for many businesses. Kevin Sneader, global managing

Cargo2ZERO Helps Airlines and Freight Forwarders Report on their CO2 Emissions

Cargo2ZERO puts carbon reporting, tracking and reduction within easy reach for freight forwarders of all sizes and airlines, ultimately contributing to a more sustainable future.

CO2 visibility emission data is available for all airline schedules, Routes and AWB tracking on CargoAi, which are calculated as per IATA RECOMMENDED PRACTICE 1678 STANDARD. Freight Forwarders can determine the carbon emission per AWB or bulk upload AWB in order to fulfil their sustainability reporting requirements, which are presently recommended only at a national level, rather than an international level. The data provided by CargoAi is the only solution based on actual booking/ AWB routing, aircraft code & shipment weight.

At present, sustainability reporting largely remains on a voluntary basis. In recent years, a number of voluntary reporting initiatives have thus been created over time to aid organizations and in parallel, many national reporting provisions have been developed. Although there is significant progress, a single international regulatory framework is yet to be finalized, and companies with a global footprint will then face mandatory audited environmental, social and governance (ESG) reporting requirements. With data provided from Cargo2ZERO, such multinational companies will already have the ability to report on their Scope 3 emissions and be fully prepared for such audits.

CargoAi cites visibility is the first step in tackling the issue of climate action. With Cargo2ZERO, freight forwarders can take the second step to Optimize emissions for each shipment with the CO2 Efficiency Score as their benchmark. The final piece of the puzzle is emission Reduction with Sustainable Aviation Fuel (SAF) purchase, also part of Cargo2ZERO..  

Cargo2ZERO won an award for its Carbon Efficiency Score at the TIACA conference in Miami in 2022 in the start-up category. At the same conference, CargoAi announced its landmark partnership to allow freight forwarders of all sizes to purchase SAF with Neste, the leading producer of SAF. Through this partnership, small to medium-sized freight forwarders are now able to purchase SAF at a transactional level, which was previously only accessible to large freight forwarders who had significant resources to make direct contracts with airlines.

CargoAi attributes its success in winning not just the Sustainability Award in 2022, but also the Air Cargo News Innovation Award, thanks to its partnership with CargoTech, allowing for continued growth and innovation.

Freight forwarders can already go ahead to utilize the functions of Cargo2ZERO in their standard booking flow on CargoMART or provide list of AWBs to CargoAi’s team, and airlines can enquire with CargoAi about white-labelling this solution to meet their own sustainable targets.

COP27

Accountability for a Just Transition: COP27 must look Beyond Emissions

In the heat of Sharm El Sheikh, discussions started on 6 November that will determine how, over the next years, we address the defining challenge of our time: climate change. The latest United Nations Climate Change Conference (COP27) brings together political and business leaders, activists, civil society groups, international organizations and others, to set commitments that can quicken the action and adaptation needed to mitigate the impacts of climate change.

The context for COP27 could not be more urgent, as the latest IPCC report sets out in stark terms. Human-induced climate change is causing dangerous and widespread disruption, to the environment and countless people around the world. Increased heatwaves, droughts and floods are already a reality.

These extremes are causing cascading affects that have exposed millions of people to health risks, and acute food and water insecurity, especially in developing and emerging economies. These crises are inter-connected and those affected most are often the least to blame. For example, World Resources Institute analysis shows that, while many parts of Africa are at the forefront of climate change impacts, the continent accounts for only 3% of global CO2 emissions.

Prioritizing adaptation that protects the most vulnerable

How we address these challenges require holistic thinking, long-term strategies and clear accountability, to prevent and alleviate negative impacts. We cannot achieve that without widespread and comprehensive reporting by organizations on their climate impacts.

As UN Secretary-General António Guterres has set out, greater leadership is needed from governments and businesses, warning that efforts to keep the rise in global temperatures to 1.5 degrees above pre-industrial levels is “on life support”. And so, with good reason, the focus of reporting has been mostly on emissions, with widespread commitments by companies to reach ‘net-zero’ targets.

Yet focus on emissions reductions alone is not enough. If we are to avoid further escalation and consolidation of crises, we urgently need transparency and accountability on how a low-carbon transition, which supports the needs of workers and communities, is being prioritized. Beyond this, organizations need to explain how their strategies and business practices alleviate the impacts of climate change on those around them.

To this end, there are growing demands on companies to help the communities directly affected by their activities to become more resilient against the impacts of climate change.

Clarity on the climate data that matters most

At GRI, we urge all organizations to disclose their impacts on the planet, because transparency – through quality, comparable information – is an essential stage in identifying where responsibilities lie and contributing to global solutions to the climate crisis. Sustainability reporting can be a driver for better environmental performance. However, companies are not always reporting the data that matters most.

That is why, as the most widely adopted standard-setter for sustainability impacts, we convene stakeholders across the board in our standards development, to determine best practice. This is the approach we will again follow as we get ready for a major update of GRI climate-related standards.

A review will launch in 2023 and cover not only commitments and actions to mitigate greenhouse gas emissions, but also how to ensure a holistic view on adaptation and resilience to climate change. This will account for the physical impacts of climate change as well as the low-carbon transition on workers and communities. A key consideration here will be to connect the climate standards review to our current revision program for labor-related reporting.

Demands for more clarity and consistency on the most relevant climate-related impacts of organizations, from the local to the global levels, has been a key learning from our Sector Program – particularly in the Sector Standards for oil and gas (GRI 11) and coal (GRI 12). Alongside steps to mitigate emissions, these standards have extensive focus on achieving a just transition. The new Agriculture, Aquaculture & Fishing Standard (GRI 13), meanwhile, gives attention to how organizations enable adaptation and protect critical sources of food.

Our revision of the Biodiversity Standard (GRI 304) has shone a light on the inter-relations between the climate and biodiversity crises. This process is at an advanced stage – and the exposure draft for the revised Biodiversity Standard is expected to be released for public comment early December (during the UN Biodiversity COP 15). This updated standard will closely intersect with our work on climate standards.

‘Double materiality’ in climate disclosure

As demonstrated by our multi-stakeholder engagement, we believe standard-setting should not happen in isolation. To that end, our review of climate standards will not only build on our wider program to develop the GRI Standards, it will also see collaboration and alignment with the climate standards under development by the International Sustainability Standards Board (ISSB) and the recommendations of the TCFD, as well as new EU standards under the Corporate Sustainability Reporting Directive.

GRI reporting is focused on impact materiality  in terms of how the organization impacts on people and planet. We will ensure our updated climate standard(s) complement the financial materiality disclosures in the proposed ISSB standards, reflecting our commitment to a global comprehensive reporting regime in which impact and financial disclosure are on an equal footing.

When it comes to climate reporting, the interrelationship between impact on the organization and impact on the outside world is clear to see. Taken together, this ‘double materiality’ perspective – with both the inside-out and outside-in viewpoints taken into account – will be crucial in driving accountability for climate impacts.

GRI AT COP27

Together with partners, GRI is co-hosting two events at COP27, under the theme Towards a Global Comprehensive Climate Reporting System. The first event (Green Zone, 9 November) explores a vision for regional businesses, while the second event (Blue Zone, 11 November) will see GRI and the IFRS Foundation discuss the challenge from the perspective of financial and business leaders.

GRI is keen to hear from a multitude of stakeholders on their climate reporting needs and expectations. Margherita and Noora will both be in attendance in the second week of COP27, to gain early input on what impact-focused climate standards should look like. If you are traveling to Egypt, reach out and arrange a meeting.

ABOUT THE AUTHORS

Margherita Barbieri is a manager in the GRI Topic Standards Team, where she is leading the project to create climate change standard(s). Before joining GRI, Margherita worked in the food and beverage industry, specializing in marketing and sustainability. She also led the World Economic Forum circular economy initiative, Scale 360°, in Turin. She completed the Executive Program in Corporate Sustainability from Saïd Business School (UK), and holds an MA International Relations from the University of Turin (Italy).

Noora Puro is a manager for the GRI Sector Program, where she has overseen the developments of the GRI Oil and Gas and Coal Standards, and is currently managing the project for a Mining Standard. Prior to GRI, Noora specialized in corporate and sustainability communications, advising and preparing reports for multinational enterprises. She holds a MA Humanities from the University of Helsinki (Finland).

 ABOUT GRI

Global Reporting Initiative (GRI) is the independent, international organization that helps businesses and other organizations take responsibility for their impacts, by providing the global common language to report those impacts. The GRI Standards are developed through a multi-stakeholder process and provided as a free public good.

Gebrüder

Gebrüder Weiss Targets Climate Neutrality by 2030

As a modern logistics service provider, Gebrüder Weiss has set the goal of gradually reducing the company’s carbon footprint to zero with its sustainability strategy GWcares, aiming to make the company’s logistics facilities climate-neutral by 2030. This is one of the ways in which the company is facing up to its responsibility and contributing to efforts to meet global climate targets.

Gebrüder Weiss will be taking a close look at CO₂ emissions at all 180 locations. The company has quantified the current CO₂ emissions and energy consumption of its locations in its current Sustainability Report. These emissions are to be reduced gradually by ten percent per year.

The sustainability report also outlines important measures to be taken in the quest for climate neutrality and ways in which our modern logistics facilities can harness any and all possibilities available for saving energy and reducing dependence on limited resources. Installing photovoltaic (PV) systems on the roofs of logistics terminals has an important role to play, with 18 such installations already existing at Gebrüder Weiss. Together, these installations generate more than 4,600 megawatt hours of electricity per year and currently meet 18 percent of the group’s electricity needs. The aim is to increase this share by 15 percent each year by further increasing the number of PV installations. Gebrüder Weiss has also installed an energy monitoring system at its locations in Europe to track the effectiveness of these efforts and plans to deploy it worldwide in the coming years.

Investments in alternative drives

Gebrüder Weiss is also increasing the share of alternative drives in heavy-duty transport and developing low-emission solutions for the last mile. In the Greater Vienna metropolitan area, an electric truck is used for short-distance transport, and deliveries are made to end customers in Austria using electric vans. On top of this, one of the world’s first hydrogen (H2) trucks has been in regular operation in Switzerland since January 2021, and there are plans to deploy five more H2 trucks in Germany in 2023. Gebrüder Weiss is also working with partners and competitors in Austria to introduce fuel cell trucks. The Company intends to invest around ten million euros in alternative drive systems by 2025.

About Gebrüder Weiss

Gebrüder Weiss Holding AG, based in Lauterach, Austria, is a globally operative full-service logistics provider with about 8,000 employees at 180 company-owned locations. In the last fiscal year (2021), it posted annual sales of 2.5 billion euros. Its portfolio encompasses transport and logistics solutions, digital services, and supply chain management. The twin strengths of digital and physical competence enable Gebrüder Weiss to respond swiftly and flexibly to customers’ needs. The family-run organization – with a history going back more than half a millennium – has implemented a wide variety of environmental, economic, and social initiatives. Today, it is also considered a pioneer in sustainable business practices.

carbon

States With the Least Carbon-Intensive Economies

World leaders convened in Glasgow this November for the 2021 United Nations Climate Change Conference. Facing the intensification of global climate change, the negotiators reached an agreement that explicitly commits to reducing the use of coal, limiting other greenhouse gas emissions, and providing support to developing countries most impacted by climate change.

The Glasgow conference reflected heightened urgency around climate change as the effects of carbon emissions have accelerated and become more severe in recent years. A 2021 report from the Intergovernmental Panel on Climate Change found that without rapid reductions in greenhouse gas emissions, warming above 1.5°C is almost inevitable. This level of warming would have disastrous effects in the form of sea level rise, more severe weather events, and harm to agricultural systems and human health.

While there is still much work to do, the good news for the U.S. is that many states and the country as a whole have begun to reverse the growth in carbon emissions. Government policy to limit emissions and advancements in lower-emission technologies across the economy have helped turn the trends in the right direction.

Much of this progress has taken place over the last fifteen years. Total CO2 emissions peaked in 2007 at over 6 billion metric tons, but that figure fell to around 4.6 billion metric tons in 2020. One of the big contributors has been decarbonization in electric power generation due to the decline of heavy-emitting coal and the rise of clean energy sources like wind and solar. Over the last decade, these factors have reduced CO2 emissions associated with electric power generation by around 36%. And this trend also contributes to emissions reductions in the main “end-use” sectors—transportation, industrial, residential, and commercial—that consume electricity. Residential and commercial have seen the sharpest declines, with emissions dropping by more than a quarter since 2010 across both sectors combined.

Encouragingly, these declines have taken place even while the U.S. population and economy have continued to grow. From 1970 to the mid-2000s, carbon emissions and GDP grew together, with the pace of GDP growth exceeding that of carbon emissions. More recently, the steady upward trajectory of GDP has continued while carbon emissions have ticked downward. Since 2007, total energy-related CO2 emissions are down by 23.9% while real GDP has increased by 17.7% in the same span. These trends help alleviate concerns that reducing carbon emissions necessarily means limiting economic productivity, and many U.S. states are proving that economic growth in a less carbon-intensive economy is possible.

The data used in this analysis is from the U.S. Energy Information Administration and the U.S. Census Bureau. To determine the states with the least carbon-intensive economies, researchers at Commodity.com calculated total CO2 emissions per GDP. States with a lower value were ranked higher. In the event of a tie, the state with lower per capita CO2 emissions was ranked higher.

Here are the states with the least carbon-intensive economies.

State Rank CO2 emissions per GDP (tons per $ million) CO2 emissions per capita Total CO2 emissions (tons) Largest source of CO2 emissions
New York 1 123.6 9.0 175,900,000 Petroleum
Washington 2 135.9 10.2 77,000,000 Petroleum
Connecticut 3 136.8 10.5 37,600,000 Petroleum
California 4 148.0 9.0 356,600,000 Petroleum
Massachusetts 5 158.1 9.4 64,600,000 Petroleum
New Hampshire 6 158.9 10.5 14,300,000 Petroleum
Vermont 7 163.9 9.4 5,900,000 Petroleum
Oregon 8 164.5 9.5 39,900,000 Petroleum
New Jersey 9 198.0 11.9 105,400,000 Petroleum
Maryland 10 200.3 10.2 61,700,000 Petroleum
Rhode Island 11 206.5 10.5 11,100,000 Petroleum, Natural Gas
Hawaii 12 249.7 14.4 20,500,000 Petroleum
Arizona 13 252.1 13.1 93,900,000 Petroleum
Illinois 14 253.0 16.7 212,200,000 Petroleum
Maine 15 254.9 11.0 14,800,000 Petroleum
United States 287.2 16.2 5,297,400,000 Petroleum

 

For more information, a detailed methodology, and complete results, you can find the original report on Commodity.com’s website: https://commodity.com/blog/states-carbon-emissions/