Do you know the carbon footprint of every step in your supply chain?

A baseline carbon footprint with the SupplyChain CarbonCheck

In 2007, Damco developed the SupplyChain CarbonCheck as an industry benchmark for the uniform calculation of supply chain carbon emissions. Based on a methodology that was verified by the Massachusetts Institute of Technology, it provides a baseline carbon footprint of existing supply chain activities, along with recommendations to simultaneously improve efficiency and environmental performance. The methodology is based on operational insights, live data, and very detailed emission standards and calculations. The required emission factors are obtained from external sources, such as the CCWG for ocean freight.

The SupplyChain CarbonDashboard for active control

Findings from the SupplyChain CarbonCheck can be used as a baseline for developing and implementing a SupplyChain CarbonDashboard: a dedicated environment that allows companies to actively measure and manage carbon emissions. A SupplyChain CarbonDashboard is made to measure by our global Supply Chain Development teams, closely working with customers, and is configured in such a way that it fits their needs and operational procedures. It extends across the entire supply chain and provides detailed visibility of carbon emissions for both Damco-managed and other logistics volumes, presenting a particular view based on the end-to-end supply chain visibility that we routinely offer our clients.

Besides reporting on the total CO2 footprint of a supply chain, the SupplyChain CarbonDashboard can give insight in the emission per activity or transport mode, per product group, per trade lane, per origin, per carrier, and in many other ways. The selection of reporting parameters strongly depends on what is meaningful to a particular organisation. We usually recommend that clients select a maximum of five variables that they can use for decision-making. By setting KPIs and reporting at selected intervals (quarterly, half-yearly or yearly) they can monitor their progress and evaluate the results of changes they made in the supply chain.

A case study

The diagram below was generated by the SupplyChain CarbonDashboard that we implemented for a British retail chain. The customer wanted to have insight in the carbon footprint of their supply chain as part of their efforts to become the world’s first carbon-neutral retailer. With twice-yearly reports the SupplyChain CarbonDashboard enables them to assess the effects of changes in the supply chain, such as reducing air freight in favour of other transport modes.

Supporting you all the way

It should be mentioned here that in our sustainability work with customers we do not limit ourselves to providing insight with those specialised tools. Once you know where the carbon hotspots are located in your supply chain, the next step is deciding which changes will be most effective to reduce or eliminate them, followed by an implementation of the required changes. Damco’s Supply Chain Development experts have broad experience with this type of assignment in a variety of situations across all industries. They have proven time and again that tweaking a supply chain for sustainability is a very effective way of improving its efficiency and reducing costs: as a rule of thumb, 1% less CO2 corresponds to a 1% reduction in logistics costs.

If you are interested to explore the potential benefits of the SupplyChain CarbonCheck and the SupplyChain CarbonDashboard, please get in touch with your local Damco office here.