Why sustainability matters for transport and logistics
Transport and logistics account for nearly a quarter of global energy-related CO2 emissions. Road freight alone is responsible for roughly 9% of all transport emissions worldwide, while maritime shipping contributes around 3% of global greenhouse gas output. As supply chains grow longer and consumer expectations for fast delivery increase, the sector faces mounting pressure to decarbonize without sacrificing operational efficiency.
Regulatory momentum in Europe is accelerating. The EU Emissions Trading System now covers maritime transport, the Fit for 55 package targets a 90% reduction in transport emissions by 2050, and the CSRD brings mandatory ESG reporting to thousands of logistics companies. Customers and investors increasingly require transparent carbon data from their logistics partners, making sustainability performance a competitive differentiator rather than an optional initiative.
For logistics operators, the path forward requires a detailed understanding of emission sources across complex, multi-modal networks. Fleet operations, warehouse energy consumption, last-mile delivery, and upstream supply chains each present distinct challenges and reduction opportunities. Data-driven approaches are essential when operations span road, rail, maritime, and air freight across multiple geographies.
Key emission sources in transport and logistics
Reducing emissions starts with understanding where they originate. Transport and logistics companies typically deal with four main categories.
Fleet emissions across transport modes
Road freight dominates most logistics carbon footprints. Diesel-powered trucks account for the largest share of direct emissions, with fuel consumption varying significantly based on vehicle age, load factors, route profiles, and driving behaviour. Heavy goods vehicles travelling long-haul routes generate higher absolute emissions, but urban delivery vehicles often have worse per-kilometre efficiency due to stop-start traffic patterns.
Maritime shipping relies heavily on heavy fuel oil and increasingly on LNG. While maritime transport is efficient per tonne-kilometre, the sheer volume of global trade means aggregate emissions are substantial. The International Maritime Organization (IMO) targets a 50% reduction in total annual GHG emissions from shipping by 2050 compared to 2008 levels.
Rail freight is significantly less carbon-intensive than road or air, producing roughly 75% fewer emissions per tonne-kilometre than trucking. However, electrification varies by region, and diesel locomotives remain common on many European corridors.
Air freight is the most carbon-intensive mode, generating 40 to 50 times more CO2 per tonne-kilometre than maritime shipping. While it represents a small share of total freight volume, it disproportionately impacts the carbon footprint of companies that rely on it for time-sensitive shipments.
Warehouse and terminal energy consumption
Logistics facilities consume significant energy for lighting, heating, cooling (particularly for cold chain operations), material handling equipment, and automated sorting systems. Large distribution centres can consume as much electricity as small towns. Temperature-controlled warehouses for food, pharmaceuticals, or chemicals are especially energy-intensive, with refrigeration systems often running continuously.
Last-mile delivery
The final leg of delivery is often the least efficient. Urban congestion, failed delivery attempts, small package sizes, and the need for multiple daily delivery windows all drive up per-parcel emissions. E-commerce growth has amplified this challenge considerably.
Upstream supply chain and purchased services
Scope 3 emissions from subcontracted transport, packaging materials, vehicle manufacturing, and infrastructure construction can represent 30 to 60% of a logistics company’s total carbon footprint, depending on how much transport capacity is owned versus outsourced.
Standards and frameworks for logistics carbon calculation
GLEC Framework and ISO 14083
The Global Logistics Emissions Council (GLEC) Framework, now formalized as ISO 14083, provides the definitive methodology for quantifying greenhouse gas emissions across multi-modal logistics chains. It covers all transport modes and logistics sites, offering standardized emission factors, calculation approaches, and allocation methods.
ISO 14083 complements the GHG Protocol by providing logistics-specific guidance. While the GHG Protocol establishes the overarching Scope 1, 2, and 3 framework, ISO 14083 details how to calculate and allocate transport emissions across shared logistics networks, an essential capability for companies operating multi-client operations.
EU Emissions Trading System and Fit for 55
The EU ETS extension to maritime transport (from January 2024) requires shipping companies to purchase allowances for their emissions. Road transport and buildings will fall under the new ETS II from 2027. The Fit for 55 package also includes revised CO2 emission standards for heavy-duty vehicles, targeting a 45% reduction by 2030 and 90% by 2040 compared to 2019 levels.
The Energy Taxation Directive revision proposes aligning fuel taxes with energy content and environmental performance, which would significantly affect the cost structures of logistics operators still relying on fossil fuels.
CSRD obligations for logistics companies
Under the CSRD (as amended by Omnibus I), large logistics companies meeting both the 1,000-employee and 450 million euro turnover thresholds must report according to the European Sustainability Reporting Standards (ESRS). Key material topics for the sector include:
- ESRS E1 (Climate change): Scope 1, 2, and 3 greenhouse gas emissions, transition plans, fleet decarbonization strategies, and climate risk analysis for infrastructure and routes.
- ESRS E2 (Pollution): Air pollutants (NOx, particulate matter) from diesel fleets, noise pollution in urban delivery operations.
- ESRS E4 (Biodiversity): Infrastructure impacts on ecosystems, particularly for new terminal or warehouse developments.
- ESRS S1 (Own workforce): Driver working conditions, health and safety, training and development.
- ESRS S2 (Workers in the value chain): Labour conditions for subcontracted drivers and warehouse workers.
Even logistics companies below the CSRD thresholds face indirect pressure. Large shippers increasingly require carbon data from their logistics providers as part of their own Scope 3 reporting. Tender processes now routinely include sustainability criteria, and several major European retailers have committed to working only with carbon-transparent logistics partners by 2027.
For a comprehensive overview of CSRD reporting requirements, see our CSRD resource collection.
Practical decarbonization strategies
Fleet electrification and alternative fuels
Battery electric vehicles are increasingly viable for urban and regional delivery. Several manufacturers now offer electric trucks with ranges of 200 to 400 kilometres, suitable for many distribution routes. For long-haul operations, hydrogen fuel cells, biomethane, and HVO (hydrotreated vegetable oil) offer transitional solutions while charging infrastructure develops.
Fleet replacement should be guided by total cost of ownership analysis rather than upfront purchase price alone. Electric vehicles typically offer lower fuel and maintenance costs, and EU incentives further improve the business case.
Route optimization and load efficiency
Advanced route planning software can reduce fuel consumption by 10 to 15% through shorter routes, fewer empty kilometres, and better traffic avoidance. Improving load factors, consolidating shipments, and reducing empty return journeys also yield significant savings. Collaborative logistics models, where multiple shippers share transport capacity, can improve utilization rates and cut per-shipment emissions.
Intermodal shifting
Shifting freight from road to rail or inland waterway transport for the trunk leg of journeys can reduce emissions by 60 to 80% per tonne-kilometre. European rail freight corridors are expanding, and combined transport solutions that use trucks only for first-mile and last-mile connections are becoming more competitive. The EU’s Combined Transport Directive revision aims to strengthen incentives for intermodal solutions.
Warehouse and terminal efficiency
LED lighting, building management systems, solar panel installations, heat pump technology, and improved insulation can dramatically reduce facility energy consumption. For cold chain operations, natural refrigerants and energy recovery systems offer both environmental and cost benefits. Carbon footprint measurement across all facilities helps identify where capital investment will deliver the greatest reductions.
Last-mile innovation
Cargo bikes for urban deliveries, parcel lockers and pickup points to reduce failed delivery attempts, micro-consolidation centres in city centres, and delivery slot optimization all help reduce last-mile emissions. Several European cities are introducing zero-emission zones that will require fully electric last-mile fleets.
How Dcycle supports logistics companies
Transport and logistics sustainability requires managing emissions data across multiple transport modes, facilities, subcontractors, and regulatory jurisdictions. Dcycle’s platform addresses these specific challenges.
Multi-modal emissions tracking. Logistics companies operate across road, rail, maritime, and air. Dcycle enables organizations to track emissions by transport mode, route, and client, providing the granular data needed for ISO 14083 compliance and customer-specific carbon reporting. Automated data collection integrates with fleet management systems, fuel card providers, and energy management platforms to reduce manual data entry.
Supply chain emissions management. With significant emissions coming from subcontracted transport, Dcycle helps logistics companies map their supply chain carbon footprint, engage subcontractors on emissions reporting, and track progress against reduction targets.
Regulatory compliance. Whether reporting under the CSRD, responding to customer carbon disclosure requests, or preparing for ETS obligations, Dcycle’s multi-framework reporting capabilities ensure that the same operational data serves all compliance needs without duplication of effort.
Facility-level analysis. Multi-entity management allows logistics networks to consolidate ESG data across all warehouses, terminals, and offices while maintaining the granularity needed for site-level benchmarking and improvement planning.
Ready to see how Dcycle can help your logistics company manage its sustainability performance? Request a demo to explore the platform with our team.
Practical steps to get started
- Conduct a baseline carbon footprint covering all transport modes, warehouses, and offices. Use ISO 14083 methodology for transport-specific calculations.
- Map your fleet by vehicle type, fuel, age, and route profile. Identify the highest-emission segments for priority action.
- Engage subcontractors on emissions data sharing. Their operations likely represent a significant share of your Scope 3 footprint.
- Evaluate intermodal opportunities for your highest-volume routes. Even partial modal shift can deliver meaningful reductions.
- Set science-based targets aligned with SBTi transport guidance and EU policy trajectories.
- Invest in data infrastructure to automate emissions tracking across your operations. Spreadsheet-based approaches do not scale for multi-modal logistics networks.
Frequently asked questions
What are the main emission sources for logistics companies? Fleet operations (road, maritime, rail, air) typically represent the largest share, with road freight dominating for most companies. Warehouse energy consumption is the second major source. Subcontracted transport and upstream supply chain emissions can account for 30 to 60% of the total footprint under Scope 3.
How does the GLEC Framework differ from the GHG Protocol? The GHG Protocol provides the overarching framework for corporate emissions accounting (Scopes 1, 2, 3). The GLEC Framework, now ISO 14083, offers logistics-specific calculation methodologies, emission factors, and allocation approaches for multi-modal transport chains. They are complementary: ISO 14083 feeds into GHG Protocol Scope 1 and Scope 3 Category 4 (upstream transport) and Category 9 (downstream transport) reporting.
When does the CSRD apply to transport and logistics companies? Under the Omnibus I amendments, the CSRD applies to companies with 1,000 or more employees and 450 million euro or more in turnover. Large logistics groups, shipping lines, airlines, and rail freight operators that meet these thresholds must report. Smaller operators face growing indirect pressure from customers who need supply chain carbon data for their own CSRD Scope 3 disclosures.
What is ETS II and how will it affect road transport? ETS II is the new EU emissions trading system for road transport and buildings, starting in 2027. It will place a carbon price on fuels used in road transport, increasing operating costs for diesel fleets and strengthening the business case for electrification and alternative fuels.
How can logistics companies track emissions across subcontractors? Effective subcontractor emissions management requires standardized data collection processes, clear contractual requirements for emissions reporting, and technology platforms that can aggregate data from multiple sources. Dcycle’s automated data collection and multi-entity management capabilities are designed for exactly this challenge.
