We’ve seen a significant rise recently in customers wanting to understand their own carbon impact and so requesting the emissions data for their shipments. Whilst we have been using the government approved method for some time, we are now onto the more complex phase II, which is automation. This will enable us to present to customers proactively the data at any time and the process towards this has begun this week (more on this soon).
This works with the recently introduced standard ISO 14083 and new regulations expected where scope 3 emissions reporting will be required from logistics companies.
Any ISO standard is complex as we know first-hand, and trying to make it simple is by its very nature, often difficult. However, we are aiming to simplify things as best we can with a short paper due soon so stay tuned.
In the meantime, do not be alarmed, the following is readable and not too heavy,.
In March of 2023, the ISO 14083 standard officially took effect, introducing a globally harmonized approach for measuring and reporting greenhouse gas emissions within multimodal and worldwide transportation networks.
Paving the Way for a Universal Carbon Accounting Standard
The introduction of ISO 14083 signifies a pivotal moment in the global standardization of greenhouse gas emissions accounting and reporting in the logistics sector. This standard builds upon a decade of development and incorporates established accounting principles such as EN 16258, GHG Protocol, and the GLEC framework for accounting and reporting logistics emissions.
- Unveiling the Scope of ISO 14083: What’s Encompassed?
ISO 14083 serves as a comprehensive guideline that outlines the essential steps for collecting, calculating, and reporting greenhouse gas emissions within a global supply chain. It addresses crucial aspects of the transport chain, including:
Covered Transport Modes: Regardless of whether it’s air, rail, road, sea, the ISO standard provides specific guidelines for data collection and reporting. It offers detailed distinctions between mandatory, voluntary, and excluded data elements, simplifying the process for companies to determine what’s vital for their calculations.
Types of Hubs Included: ISO 14083 acknowledges that emissions originating within transportation hubs should be accounted for as part of the transport chain. It encompasses a broad spectrum of hubs, including rail and road terminals, cross-docking sites, airport terminals, seaport terminals, and distribution centres.
Accounting for Offsetting: ISO 14083 underscores the separation of carbon offsetting actions and emissions trading from GHG emissions quantification and reporting. This means that the outcomes of offset measures or GHG emissions trading, such as the EU Emissions Trading System (ETS)* or any carbon offsetting certificates, may not be considered when quantifying and reporting GHG emissions from transport operations.
- Who Benefits from the New Standard?
This new standard holds relevance for all businesses that require or desire to calculate emissions associated with the logistic services they employ, whether owned or contracted. This includes logistic service providers, logistic operators, shippers, and others. It covers both freight and passenger transportation and associated transfer processes within hubs.
- Key Highlights of ISO 14083
Subject of Analysis: The focus of ISO 14083 is on the entire transport chain and all activities within it that result in greenhouse gas emissions. It encompasses all transport and hub operations needed to move freight or passengers from origin to destination.
System Boundaries: All emissions stemming from a shipment or passenger movement are within the calculation scope, including all transport and hub operations.
Exclusions from System Boundaries: Emissions from capital goods (e.g., manufacturing of vehicles), business travel, employee commuting, and upstream leased assets (assets owned but not utilized and leased to third parties) are not included. Offset measures are also exempt from accounting and reporting requirements.
Input Data: The ISO standard offers flexibility regarding the data to be used. Companies are encouraged to employ primary data for emissions calculations (e.g., precise energy and fuel consumption volumes for logistics operations). However, secondary data (modelled or default values) can serve as a starting point. ISO 14083 and GLEC** provide a set of default values, but these should be considered only at the lowest level of the ISO standard.
Granularity of Calculations: GHG emissions should be calculated at the level of individual transport or hub operations (specific transport leg or hub service). Reporting emissions is also possible at a well-defined aggregation level, allowing for analysis of emission intensity within the company across different locations, time periods, and benchmarking with other industries.
- What’s New in ISO 14083 Compared to EN 16258 and GLEC 2.0?
New emission factors are provided, specifying precise requirements for fuel, energy, and alternative fuels (e.g., biofuels, e-fuels).
- The scope of analysis extends to include repackaging activities and IT technology-related emissions, both of which are voluntary for calculation.
- Detailed emission reporting requirements are outlined, accompanied by reporting templates.
- The new standard facilitates consistent tracking and comparison of greenhouse gas emissions and intensity across sectors.
- ISO 14083 is poised to become an internationally recognized foundation for future verification of greenhouse gas emissions in transport.
Hopefully this gives an insight into how the logistics sector can and should give accountability to their customers with an internationally recognized standard. It will take time to adopt but we hope more companies will eventually get on board to make us understand better how we can all work towards a better, healthier planet. If you would like to know more about our sustainability plans please do get in touch with me here: Jon Swallow – email@example.com
*Learn more about the EU ETS scheme here https://climate.ec.europa.eu/eu-action/transport-emissions/reducing-emissions-shipping-sector_en
**Download GLEC framework 2.0 here (3.0 estimated due September 2023) glec-framework-20