Charles Dubouix
How to measure freight emissions? (2/3): Data accuracy How to improve carbon data accuracy
- Carbon data is always an approximation.
- Shippers need to maximize accuracy in order to support their decisions and strategies.
- To define the order of magnitude and identify hot spots, shippers can use averages (Top-Down approach).
- In order to make informed decisions within their supply chain, shippers need accuracy and should calculate emissions for each transport using the Bottom-Up approach
Optimisation processes rely on data accuracy
The more a company wants to optimize its decarbonization strategy, the more it needs to reduce the uncertainty margin of the data it processes.
CO2 data is inherently approximate
There is no CO2 meter behind any chimney or exhaust.
And, there are considerable discrepancies in the accuracy of the data produced, which is partly explained by the methodology selected.
Top-Down vs Bottom-Up approach
Schematically, there are two main approaches when it comes to producing carbon data, Top-Down or Bottom-Up:
- The average emissions per kilometre according to the freight mode
- The average weight of the goods transported
- The average distance
Many consulting firms use this approach, as it provides a sufficient approximation to draw serious-enough lessons at an enterprise or group level. In particular, it helps shippers identify carbon hotspots: determine which activity should they try to decarbonize first (production, supply chain, real estate, etc.).
This approach calculates CO2 emissions for each transport, taking into account the commercial route taken, which is established either from the quotation or via real-time tracking. The process begins with the transport performed, which is divided into characteristic segments. For each segment, emissions are calculated using the most accurate data available.
For instance, the following factors are taken into account:
- The energy intensity of the vehicle: this can be as granular as the average consumption of a particular ship or aircraft.
- The carbon intensity of energy: for instance the energy mix of the country crossed by the train.
- Fuels used: LNG or bio-fuel for maritime; NGV, electric, diesel, and biodiesel for road carriage.
- Other factors (such as actual fill rate, empty hauls, etc.)
This method requires more inputs but provides much more accurate results.
It is becoming more widely used across the industry (by carriers, freight forwarders, and shippers).
Ovrsea relies on a third-party tool: EcoTransIT
How and why do we use EcoTransIT?
- We make API requests each time we want to compute CO2e emissions of a given shipment: at the quotation, at the departure and at the arrival.
- We use EcoTransIT because:
- it is the state of the art: the methodology, developed by independent scientific institutes, is used by many leading freight forwarders, carriers and shippers.
- it is compliant with international standards (GLEC Framework, EN 16258 and GHG Protocol, currently undergoing ISO 14083 accreditation).
