Sustainability

How to use a CO2 calculator to optimise your supply chain’s carbon footprint

Optimising your supply chain’s carbon footprint starts with one crucial step: accurately measuring emissions with a reliable CO2 calculator.

On September 26, 2024

When it comes to decarbonising supply chains, companies must first access reliable and comprehensive Greenhouse Gas emissions and air pollutant emissions throughout their global transport chain. This is why FM Logistic provides its clients with the EcoTransIT World emission calculator, a tool developed with a scientifically recognised methodology.

With increased pressure from environmental legislation, evolving consumer behaviour and climate emergency, the environmental footprint of supply chain activities is more critical than ever. While the complexity of global supply chains makes the path to carbon neutrality challenging, it starts with one key step: accurately measuring emissions with a reliable CO2 calculator. Having access to accurate, up-to-date data allows companies to target their sustainability efforts for maximum impact.

What is a CO2 calculator

A CO2 calculator is a tool or software that allows companies to estimate their CO2 emissions in transportation and logistics activities. It provides insights into environmental impact across various stages of the supply chain, from the transportation of raw materials to the delivery of the finished product to the end customer.

FM Logistic has partnered with EcoTransIT World to provide its clients with one of the most widely used CO2 calculator worldwide. EcoTransIT World utilises an energy-based bottom-up approach to calculate energy consumption, carbon emissions, air pollutants, and external costs. The methodology is scientifically recognised and bases its calculations on energy requirements, fuel types, load factors, and emission classes. By incorporating carrier-specific routing, it ensures precise identification of route characteristics and emissions.

The benefits of using a CO2 calculator

A CO2 calculator offers significant benefits for logistics companies committed to reducing their carbon footprint and improving overall efficiency:

Environmental awareness: It provides a clear picture of the carbon emissions from logistical activities, fostering a culture of sustainability within the organisation;

Operational efficiency: By identifying high-emission areas, companies can optimise routes, shift transportation mode, reduce fuel consumption, leading to cost savings;

Informed decision-making: Access to precise data allows companies to implement more effective sustainability strategies and investments;

Regulatory compliance: It helps companies stay ahead of evolving environmental regulations, mitigating legal and financial risks;

Brand reputation: Demonstrating proactive sustainability efforts can strengthen a company’s brand image and customer loyalty;

Supply chain optimisation: It enables companies to make improvements across their entire supply chain, from sourcing to delivery, resulting in a more sustainable and efficient operation.

Leveraging the CO2 calculator for supply chain optimisation

Guided with accurate data about the carbon footprint at every transport stage of their supply chain, companies are well-positioned to deploy broader supply chain efficiency strategies. For example, they could adopt alternative fuels such as green hydrogen, focus on green warehouses (to reduce energy consumption, waste and GHG), opt for eco-friendly packaging or optimal transportation routes. Beyond reducing carbon emissions, these initiatives can lead to cost savings and operational efficiencies.

That said, companies should be prepared to address several challenges on their sustainability journey. Collecting accurate, standardised and comprehensive data can be difficult. Additionally, implementing sustainable practices and adopting new technologies like a CO2 calculator can require significant upfront capital investments, which may be a barrier for smaller companies. Organisational resistance and cultural barriers can also hinder sustainable changes within a supply chain.

Going further in sustainability with advanced tools

As CO2 calculation tools are gaining ground in logistics, integrating advanced technologies can further enhance their accuracy, efficiency and impact. This includes Machine learning, AI algorithms; Internet of Things (IoT); or Virtual reality. By leveraging these advanced tools, companies can move beyond simple CO₂ calculations and toward a comprehensive, data-driven approach to achieving a more sustainable and resilient supply chain.