BIFAlink February 2024

Sustainable Logistics

difficult emissions for businesses to measure and manage. Under the GHG Protocol, scope 3 is divided into 15 different categories separated into up- and downstream emissions covering a wide range of activities. There are two scope 3 emissions categories that specifically involve supply chain activities relevant to freight forwarders – categories 4 and 9. Scope 3 categories that affect freight forwarders transportation and distribution of goods that a company purchases or acquires from suppliers, such as a delivery from a factory to a warehouse. Category 9 deals with emissions from the transportation and distribution of products from the reporting business’s warehouse to the end-customer or user such as last-mile delivery. Why freight forwarders need to measure shippers’ supply chain emissions Category 4 encompasses emissions arising from the

The complex nature of global shipments means the most viable and accurate way to measure scope 3 category 4 and 9 emissions is to use shipment data to model the emissions output attributed to a shipper’s cargo. As coordinators of freight in the supply chain, freight forwarders have visibility of shipment data and shipment leg breakdowns that are critical to informing reduction strategies. Their access to this granularity of data means they are uniquely positioned to convert shipment data into emissions data for their clients, enabling them to meet emissions reporting obligations or inform emissions reduction strategies. As a result, more and more shippers are turning to their freight forwarders to fulfil their scope 3 disclosure requirements for categories 4 and 9. The bene fi ts of measuring scope 3 emissions for shippers and forwarders If done correctly, measuring shippers’ scope 3 supply chain

emissions can present freight forwarders with an opportunity to improve and add value to their service for clients by: • Meeting sustainability regulations; • Making more informed supply chain decisions; • Reducing environmental impact; • Helping build an eco-conscious brand. By promoting these added values for clients, forwarders can successfully leverage emissions measurement to gain a competitive advantage, helping them win new business and drive client loyalty. The BIFA website has a link to an emissions measurement platform that enables the accurate conversion of client data into scope 3, categories 4 and 9 emissions calculations: https://bifa.org/information- guidance/technical-information/c arbon-calculator/ BIFA acknowledges the assistance of Pledge in the preparation of this article.

“ As coordinators of freight in the supply chain, freight forwarders have visibility of shipment data and shipment leg breakdowns that are

critical to informing reduction strategies

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