ChemicalCo. wanted to understand and baseline its current emissions in order to create an internal target. Additionally to create these targets it wanted to utilize a methodology accepted in the EU so it could be applied enterprise-wide for all future calculations.
"To manage carbon emissions, we must know how much our operation emits at the moment."
Senior Executive→ Method for calculating emissions in all modes of transport utilized in outbound logistics.
→ Emissions calculated per geography and per product line
ChemicalCo.'s outbound logistics is outsourced to a third-party logistics provider, and transportation data is managed in SAP. ChemicalCo.’s data lacked visibility on the actual journey of its freight, and alignment across modes and geographical areas. The discrepancies in data sources negatively impacted the accuracy of carbon accounting. After further investigating and verifying assumptions with ChemicalCo., SCG sought to detect inaccurate records and create a consistent approach to calculate emissions.
SCG conducted a time-boxed, client-focused sprint to produce tangible results that enabled faster decision-making and progress on the topic. The project consisted of 3 phases:
Calculation methodology in the emission framework for all transportation modes (Road, Rail, Maritime and Intermodal) was outlined, including:
Based on the chosen methodology from the emission framework, emissions for each transportation mode were calculated using the data set provided by ChemicalCo.:
Final emission results were presented based on the fine-tuned calculations. Instructions to calculate were handed over to ChemicalCo.’s personnel to enable internal repetition of the calculation in the following years:
SCG's on-demand workforce was able to create a standard approach for calculating CO2 emissions in outbound logistics. The standard approach aligned with the emission framework identified, this enabled ChemicalCo. to repeat the calculations as well as implement it company-wide.
By changing the methodology, the amount of the total emissions was reduced but the accuracy of the results was improved.
SCG presented total emission results by transportation mode, region and product line. Based on the above, the management of ChemicalCo. better understands the current situation of the outbound logistics emissions and is able to make decisions to reduce carbon emissions.
Fast, intense – “Sprint Manner” way of working showed well its power.
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