The Global Logistics Emissions Council (GLEC) has created a regulatory framework to measure the carbon footprint of logistics companies. In this article, we will explain what it is and how it can be applied.
In recent years, concern for the environment has led many companies to look for different ways to reduce their carbon footprint. In this sense, logistics companies play a key role, since their activity generates a significant amount of greenhouse gas emissions. They are the third sector that pollutes the most after the industrial and construction sectors, representing 23% of greenhouse gases (GHG). For this reason, the Global Logistics Emissions Council (GLEC) has created a regulatory framework to measure the carbon footprint of logistics companies. In this article, we will explain what it is and how it can be applied.
The GLEC framework is a reference framework that establishes a standardized methodology to measure the carbon footprint of logistics companies. This framework is based on the GHG Protocol, which is widely recognized as the most reliable and accurate tool for measuring greenhouse gas emissions. The GLEC framework has been developed by a coalition of international organizations, and has been adopted by many leading companies in the logistics sector.
To measure the carbon footprint of a logistics company under the GLEC framework, 4 steps must be followed:
Emissions count by scope:
Scope 1 - Direct emissions from company assets that are owned or controlled by the company. Mainly from the combustion of fossil fuels in machinery and vehicles.
Scope 2 - Indirect emissions associated with the purchase and use of electricity at company facilities.
Scope 3 - Indirect emissions related to the company's supply chain. It mainly includes the production and distribution of the fuels used by the company and other purchased goods and services. It also covers the transportation emissions required to move goods from suppliers to the company and from the company to the end customer.
Accounting for Fuel Emissions:
Well-to-tank (WTT): are the emissions generated from all processes between the origin of energy (well), extraction, processing, storage and delivery to the point of use (tank).
Tank-to-Wheel (TTW): are the emissions generated by fuels from scope 1 activities (the wheel).It is considered as zero emissions for electricity, hydrogen, hydrogen fuel cell and biofuels.
Well-to-Wheel (WTW): are full life cycle emissions and should be equal to the sum of WTT and TTW emissions.
TTW emissions for fuels that come from direct operations are included in Scope 1, WTT emissions are counted in Scope 3, and WTW emissions for fuels produced by subcontractors are reported in Scope 3.
Measuring the carbon footprint of a logistics company under the GLEC framework can have great benefits:
In conclusion, the GLEC framework is a useful tool to measure the carbon footprint of logistics companies. This reference framework establishes a standardized methodology that allows companies to know their environmental impact and establish emission reduction targets. The application of the GLEC framework can have various benefits, both environmental and economic, and for the image of the company. For this reason, more and more companies are adopting this reference framework as part of their sustainability and growth strategy.