Policy & Compliance
Scope 3 reporting: How to create carbon reports for shippers
In the February edition of BIFAlink we provided a guide to scope 3 emissions and some of the bene fi ts of measuring emissions for both forwarders and shippers. In this article we focus on scope 3 reporting requirements and how freight forwarders should create carbon reports for shippers
collect and process the large volumes of data involved in reporting carbon emissions efficiently and accurately? This is where freight forwarders can provide a valuable service. With visibility and access to shippers’ end-to-end shipment data, freight forwarders can accurately calculate the carbon emissions for a given shipment and deliver this to their customers, enabling greater visibility into their emissions for decision- making purposes than they would be able to do themselves. Scope 3 reporting frameworks As scope 3 reporting becomes a more frequent request from customers, freight forwarders will need to increase their understanding of what a carbon report should include and the different reporting frameworks and standards that customers might require. Whether using carbon reporting software or manually calculating customers’ scope 3 carbon emissions, there are globally accepted frameworks or standards
W hen customers ask for carbon emissions reports on their shipments, it is important to understand why and how these reports should be delivered. Supplying high-quality and correctly formatted carbon reports begins with strong customer relationships and positioning your business as a sustainability knowledge leader, able to save your customers valuable time and money by providing a bene fi cial service. There are three main reasons why your customers may require these reports: • Commitment to net zero pledges – also known as voluntary reporting to meet Environmental, Social and Governance (ESG) targets – usually to be net zero by 2050 or
earlier under the Paris Agreement. • Climate disclosure regulations – also known as mandatory reporting, this is being driven by government-implemented legislation, such as the EU’s Corporate Sustainability Reporting Directive (CSRD). • Consumer demand – companies from every industry are facing increasing calls from customers to accelerate the transition to more sustainable practices. Transparency about claims and the carbon footprint of products are some of the main concerns for consumers. Helping shippers Shippers face a huge challenge when it comes to reporting their scope 3 emissions. How do they
Scope 3 reporting requirements
10 | July 2024
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