More and more companies are reporting on their greenhouse gas emissions (GHG) as part of corporate responsibility initiatives. Companies pledging to report emissions then have the responsibility to also account for emissions created by their suppliers.
These are referred to as Scope 3 emissions. They include emissions from companies providing warehousing and distribution services like third-party logistics providers, and carriers offering trucking, rail, air freight and ocean shipping. With emissions now being measured or calculated, there are benefits for those suppliers that can accurately report and offer the lowest carbon footprint for the companies they serve.
These benefits include increased competitiveness, reduced costs and improved corporate reputation.
Enhanced competitiveness
Like the concept of being a ‘shipper of choice’ by being carrier-friendly at your facilities, by reporting accurately on your carbon emissions, you can then become a supplier of choice to those organizations with ESG reporting mandates.
But the benefit isn’t just for companies in the transport and distribution business. Because companies that are aiming to track and reduce emissions have to report on both their upstream and downstream emissions, if you are supplying products, you’ll also look better to buyers if you measure and reduce emissions. Since they have to account for them in their own reporting, the more you do, the more competitive you’ll be.
Supply chain emissions are 11.4 times higher than operational emissions, and account for 92 % of total emissions for organizations, according to the CDP 2020 Global Supply Chain Report. (CDP is a not-for-profit charity that runs the global environmental disclosure system.) This means that taking measures to reduce emissions in your warehouse is low-hanging fruit. There is likely lots of room for improvement.
In fact, suppliers who took part in CDP’s program saved US$33.7 billion in 2020 by actively cutting emissions. This was a 67% increase in cost savings compared to 2019. Suppliers undertook activities that cut emissions by 619 million metric tons of C02e in a year.
Streamline operations
So, what can you do in your operation to reduce emissions?
Improving efficiency is one of the best ways to reduce your carbon footprint. And when we’re talking about warehouse operations, streamlining the comings and goings of vehicles at the docks is a great place to start.
This can be easily accomplished by implementing an automated dock scheduling software such as C3 Reservations. C3 Reservations allows truckers to schedule their own appointments at the dock door. When you implement this system it means fewer missed appointments, and much better, automated control over the movements of trucks at your docks. There’s less waiting and less idling in your yard.
If you can cut the amount of time a vehicle has to dwell on your premises, you’ll reduce emissions from idling. Idling emissions are a major part of the pollution created by the transport industry, with trucks consuming .8 of a gallon of diesel per hour at idle, according to the U.S. Environmental Protection Agency (EPA). This adds up to real costs for fuel increased maintenance on truck engines, and real emissions. An idling truck produces up to 18 pounds of CO2 per hour, along with other harmful compounds like carbon monoxide, volatile organic compounds, nitrogen oxides, and particulate matter.
C3 Reservations is also a paperless system, which contributes again to reducing your carbon footprint. You’ll use less paper, and reduce printing costs and energy use in your warehouse.
It’s a good look
These measures are not greenwashing. Taking these steps to measure your carbon output and adopting automation like C3 Reservations to reduce that carbon footprint are genuine actions that contribute to the fight against global warming.
Being able to use these strategies to enhance your organization’s competitiveness in a business world that’s increasingly sensitive to carbon output means you will benefit not only directly from the immediate reduction in operational carbon, but also from the perception that you are making an effort to do so.
As CDP points out in its report, “leaders who manage and reduce environmental risk through supply chain collaboration will not only be more competitive today, but will be more resilient for the economic shifts of tomorrow.”
All the more reason to do your research and find out how you can benefit from the adoption of automation like C3 Reservations. Take the first step to a greener warehouse today, and give us a call. We’ll be happy to give you a demo and discuss your needs.
