Measuring and Reducing Carbon Footprint in Logistics Operations

Carbon footprint measurement has evolved from a nice-to-have sustainability exercise to a business imperative. The UAE Net Zero 2050 Strategic Initiative requires businesses to measure, report, and reduce emissions, including logistics operations. Customers, investors, and regulators increasingly demand transparent emissions reporting and credible reduction plans.

Understanding Scope 3 Emissions

For most companies, logistics-related emissions fall under Scope 3—indirect emissions from the value chain. Transportation and distribution typically represent 5-15% of total corporate emissions.

Accurate measurement requires data from carriers on fuel consumption, distance traveled, and cargo weight. Major logistics providers including DP World, Aramex, and Emirates SkyCargo now offer emissions reporting as a standard service.

GLEC Framework and ISO 14083

The Global Logistics Emissions Council (GLEC) Framework, developed by Smart Freight Centre, is the primary industry guideline for calculating logistics GHG emissions. The GLEC Framework v3.2 (released 2024) is fully aligned with the new ISO 14083 standard and has earned the "Built on GHG Protocol" mark.

Key features of GLEC Framework v3.2: - Updated fuel emission factors and biogenic GHG emissions for biofuels - Revised emission intensity tables for all transport modes - Air pollutant reporting alongside greenhouse gases - Multi-modal supply chain calculations

The framework supports both fuel-based calculations (actual fuel consumption) and activity-based approaches (emission factors per tonne-kilometer) for different data availability scenarios.

Mode-Specific Calculations

Ocean freight: Emissions calculated per TEU-kilometer based on vessel type, size, and operational characteristics. Modern container vessels produce 10-40g CO2 per tonne-km.

Air freight: Calculations consider aircraft type, load factors, and great circle distance. Air cargo produces 500-600g CO2 per tonne-km—10-40 times higher than ocean freight.

Road freight: Vehicle emissions factors based on Euro emission standards and actual distances. Etihad Rail offers 70-80% lower emissions than equivalent road transport in the UAE.

Reduction Strategies

Modal shift offers the largest reduction opportunities—moving cargo from air to sea, or from road to rail, can reduce emissions by 80-95% for suitable shipments.

The UAE's Etihad Rail network expansion is creating new rail freight options, with significant emissions reductions compared to road transport. Major logistics providers are incorporating rail legs into their supply chains.

Carbon Offset Programs

Carbon offset programs allow companies to compensate for emissions they cannot eliminate. Quality offsets from verified projects (Gold Standard, Verra VCS) provide credible claims, though reduction should always be prioritized over offsetting.

The UAE has launched carbon credit trading initiatives as part of its Net Zero strategy, creating local offset options for businesses.