Webinar Discusses Strategies for Sustainable Supply Chains

In a recent webinar focused on sustainable supply chains, industry leaders gathered to discuss strategies for calculating and offsetting emissions. The event featured panelists who are considered leaders in sustainability, and it served as a platform to explore best practices for implementing collaborative robots (co-bots) in greenfield operations, among other topics.

Understanding Emissions and Regulatory Changes

The webinar highlighted the importance of understanding the various scopes of emissions as defined by the current regulatory landscape. The Scope 1 emissions pertain to direct emissions from operations, while Scope 2 covers indirect emissions from the consumption of purchased energy. Notably, Scope 3 emissions, which include all other indirect emissions, are not currently mandated under the finalized rules by the Securities and Exchange Commission (SEC) for climate disclosures. However, California is set to require reporting of Scope 3 emissions, marking a significant shift in regulatory requirements.

Currently, emissions reporting lacks standardization across companies. A survey involving 1,850 executives from 23 countries revealed that 50% of firms disclose some Scope 3 emissions, yet only 10% provide comprehensive reports that cover all emissions scopes. The webinar noted that regulatory mandates in both the U.S. and the EU are accelerating carbon reporting activities, with a growing interest in measuring greenhouse gas (GHG) emissions influencing business decision-making processes.

Innovations in Emissions Reporting and Technology

Estes, a transportation company, plans to release its first sustainability report in 2023 and is CARB-certified for emissions compliance. The company has already installed solar-generating arrays at seven of its terminals, with three more planned for 2024. Schneider National, another key player, operates 92 battery-electric trucks and has become the first major carrier to surpass one million zero-emission miles.

Despite these advancements, trucking operations continue to face challenges in carbon reporting due to the absence of a central repository for emissions data. To address this, the University of Tennessee has developed the Fleet Sustainability Index, which uses data from multiple government sources to analyze the emissions profiles of over 400,000 carriers. This database includes over four million emissions observations and factors emissions in grams of CO2 per mile. The index assigns an emissions measurement or score to each fleet, providing a basis for reporting Scope 1 and Scope 3 emissions. The software used for this index accounts for various truck classes and fuel types, aiding shippers in tracking freight miles by carrier and preferring those with lower emissions scores.

Technological Advances and Their Impact on Supply Chains

Technological innovations like RAIN RFID technology are central to sustainable supply chain management. This technology enables continuous monitoring and real-time tracking of tagged items, significantly improving inventory and shipment data accuracy. By reducing waste and optimizing operations, RAIN RFID helps to cut emissions and address logistics inefficiencies that contribute to supply chain emissions. As a result, businesses are increasingly prioritizing eco-conscious operations.

The webinar emphasized the role of technologies in reducing emissions and waste while supporting the broader goals of sustainability in supply chains. Participants discussed how these technologies support real-time tracking and data accuracy, ultimately leading to more efficient and sustainable logistics operations.

The Future of Sustainable Supply Chains

As businesses strive to prioritize sustainability in their operations, the insights shared during the webinar underscore the importance of adopting comprehensive strategies for emissions reporting and implementing innovative technologies. The growing regulatory mandates and the development of tools like the Fleet Sustainability Index are crucial steps toward achieving more sustainable supply chains.

The discussions from the webinar reinforce the need for a collaborative approach among industry leaders to tackle the complexities of emissions reporting and to innovate for a more sustainable future. With regulatory changes on the horizon and technological advancements paving the way, sustainable supply chains are becoming an increasingly attainable goal.