Episode 25 | Freight Emissions 101: Simplifying Scope 3 and Reporting with The GLEC Framework

Why do freight emissions matter so much for sustainability and logistics professionals?

In this episode of Smart Freight Conversations, Andy Golding, Director Strategic Services, sits down with Rebecca Powell, Senior Program Manager for GLEC at SFC, to unpack:

- Why freight emissions are a major part of corporate carbon footprints

- How the GLEC Framework simplifies logistics emissions accounting

- The connection between GLEC Framework and ISO 14083

- Why credible emissions data is essential for sustainable logistics procurement

- How businesses can begin their freight decarbonization journey today

Whether you are in sustainability, procurement, or logistics, this conversation provides practical insights into building credible emissions reporting and driving zero-emissions logistics.

Explore our courses and other educational resources to learn more about this topic: https://bit.ly/Academy-glec?utm_source=youtube&utm_campaign=program-pag#FreightDecarbonization

Learn more about SFC: https://smartfreightcentre.org/en/ 

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Transcript

SPEAKER_01 0:07

Hello and welcome to another episode of Smart Freight Conversations, where we share interesting and important insights on freight decarbonization and the drive towards a zero emissions logistics industry. I'm Andy Golding, Director of Strategic Services here at Smart Freight Center, or SFC, as you'll hear us call it, and I'll be your host for today. In this episode, we're exploring logistics emissions accounting, why it matters, why it can be so complex, and how the GLEC framework acts as a practical one-stop shop for companies trying to calculate and report freight emissions consistently and credibly. Whether you work in sustainability, are new to logistics, or you work in freight art and are navigating emissions reporting for the first time, this conversation is going to help connect those two worlds. Joining me for today's discussion is our senior program manager for GLEC here at Smart Freight Center, Rebecca Powell. Bex, it is great to have you here. Thank you, Andy. Good to be here too. Right, let's drive into today's episode. So, Bex, let's start right at the beginning. If I work in sustainability, but maybe not directly in logistics, why should freight emissions even be on my radar?

SPEAKER_00 1:28

Yeah, well, freight is one of the most major sources of emissions and it's growing as well as we continue to grow our exports and grow our economy. Of course, freight is going to grow and therefore emissions will grow with it. Freight also has a long lead time. There's often big assets involved with freight and logistics, and making sure that we're making decisions now to ensure that they're decarbonized in the future is really important. The other thing is that freight is often a large portion of your emissions, even if it's not your core business. So if you're a food and beverage business or if you're a retail business, you might be surprised to find that 20 to 30% of your emissions are actually from freight and logistics. So even if you don't work directly with your freight and logistics side of your business, it's probably part that you want to really understand and understand the emissions that are coming from that part of your business.

SPEAKER_01 2:25

There's a couple of interesting things in there. First, being that, you know, it's freight assets have a long lifespan. So we need to be playing the long game here, and we need to be forward-thinking on this and future future thinking on this. But also, and you know, to the question of if I work in sustainability but not in logistics, why should I care? Well, even if it's not my main business, it's a massive part of my emissions, very likely. And therefore, there's massive opportunity that lives here for decarbonization.

SPEAKER_00 2:58

Absolutely. And in terms of those asset types, you know, we we know that the decarbonized version exists, whether that's electric trucks or that's sustainable aviation fuel, it exists, and so it's it's worth acknowledging that and and making decisions to to procure those types of technology now. Maybe 10 years ago it was a bit more murky and and those decisions were a bit more unclear. But now I think we can't say that anymore. So understanding where you want to go and then how to get there and making those decisions now.

SPEAKER_01 3:28

Absolutely. And I think that understanding how where you want to go and how you want to get there to do that, we really need that credible and reliable emissions data. And that's really where the GLIC framework and emissions, multimodal emissions calculation and reporting becomes such a critical centerpiece in this conversation. So, with that in mind, freight emissions fall into different scopes. And if you're new to this, it can be a little bit puzzling and confusing. So, why do freight emissions fall into different scopes depending on whether you are a carrier or a shipper?

SPEAKER_00 4:04

Yeah, and I get this question a lot. It can be quite confusing for people new to not only emission accounting, but new to the freight and logistics world. So a quick, quick recap is that the um global greenhouse gas protocol sets out scope one emissions as direct emissions, scope two as as indirect from energy sources, and then scope three as your value chain. And actually a majority of emissions sit within scope three. And so to come back, if you are a transport operator, your direct emissions would be in scope one. So the emissions associated with you driving a truck or a ship. If you are a shipper, your emissions will be in that value chain. And so that will be under scope three emissions, generally under scope three, category four, which is upstream emissions, or category nine downstream emissions, downstream transport emissions, I should clarify. And so it sometimes is confusing because those same emissions are in both scopes, depending on if you're operating the truck, for example, or if you're shipping those goods on the truck and you don't directly own it. So yeah, sometimes it can be hard, but you just got to follow the greenhouse gas protocol emission accounting, and then of course, black to help you do that for transport.

SPEAKER_01 5:21

And I think that's a helpful distinction. It also you need to know what is the role that you're playing in the value chain so you can understand which emissions are yours and where do you need to be paying attention and where where might there be opportunity to decarbonize and reduce uh logistics emissions that you haven't necessarily explored until now.

SPEAKER_00 5:39

Exactly, and who your value chain partners are so you can collaborate with them and make sure you've got that data transfer and also that decision making around how you're going to decarbonize together.

SPEAKER_01 5:50

And collaboration is such a key theme. It's, you know, if you are the carrier or the shipper, there's different roles that different people, different stakeholders play in the value chain, and no one party can decarbonize alone. And this is really where you know collaborating with your value chain partners is critical. Exactly.

SPEAKER_00 6:13

And that's the core of Smart Freight Center, isn't it?

SPEAKER_01 6:16

Very much so. Bringing uh convening different stakeholders around the same conversations to move decarbonization forward. And actually, the GLEC framework is one of the, if not the first major piece of work that Smart Freight Center produced now 10 years ago. Uh, this year we will uh celebrate 10 years of the GLEC framework. And I think that that was such a meaningful starting point for this work because freight emissions calculation and reporting is extremely challenging in practice. And what the GLEC framework did was give us a way to make that more easy and more universal. So maybe I can ask you to say a little bit more about you know what makes freight emissions accounting so challenging in practice.

SPEAKER_00 7:03

Yeah, and so 10 years ago, when the GLEC framework was born, um I think it was described a bit as the wild, wild west because everyone was accounting their emissions separately using different methodologies, different data types, and different assumptions. And that's part of what makes it challenging. Whilst we have the GLEC framework now and we we set the methodology and we um set some default values as well that people can use, there still is quite a range of assumptions and a range of data types, whether that's primary data or secondary data, and the way that people make these assumptions around how the methodology is applied. So that's probably the first challenge is making sure that the way that you're calculating your freight emissions is credible and aligned with the way the GLEC framework sets it out. But there's still a range there, and so that makes it challenging. I think the second reason it's challenging is this data exchange, getting the data you need in the first place from your value chain partners or from other sources to make sure that you can set out the best mission inventory possible, still adhering to the GLEC framework.

SPEAKER_01 8:10

Even more reason why we need open and committed collaboration across the value chain, because to get that data, we have to be working with our partners.

SPEAKER_00 8:20

Exactly. Yes. And that can be quite the challenge, I think.

SPEAKER_01 8:24

Understandably, because it can be quite competitive. And you know, it's understandable that people may choose to be cagey about their data, but if we're having the if the conversation is not competitive, it's collaborative around how can we move this forward together, how can we drive decarbonization forward together, I think that it puts a very different, it puts the conversation in a very different light and makes creates opportunity for meaningful change.

SPEAKER_00 8:47

Absolutely. Yes. And those those discussions can happen all throughout the procurement process and the collaboration process with your value chain partners. It doesn't need to just be sprung on them one day. It's it's an ongoing conversation.

SPEAKER_01 9:01

Yeah, I think it's, you know, we play the long game on shifting logistics assets to more sustainable ones. We also need to play the long game on the relationships that we're building in our value chains and play the long game on what are we doing for the future.

SPEAKER_00 9:15

Yes, exactly.

unknown 9:16

Yeah.

SPEAKER_01 9:18

So we know that it's a complex topic. It's not an easy one. You've told us that, you know, 10 years ago, before we released the Gleck framework or the first version of the GLEC framework, it was a little bit like the wild, wild west in emissions calculation and reporting. So, how does the GLEC framework provide a practical solution to some of these challenges?

SPEAKER_00 9:40

Yeah, and so for 10 years now the GLEC framework has been that one-stop shop to go to say, okay, I need to calculate that my logistics emissions, I need to calculate my transport operation chain and all the different steps for my goods to get from one place to the other. The GLEC framework sets out the methodology to do so. It also sets out the default values. So if you can't get the primary data from your suppliers, then the GLEC framework has some values which you can use to help calculate your emissions. It also sets out practical calculation examples. So we have a whole module of calculation examples that hopefully fit your business operations. So you can look at this framework and you can follow how we've set out some of these typical transport operation chains and calculated the emissions. So it really is the friendly like user guide. If you've never calculated transport emissions before, you can go and you can get these values, look at these calculation examples, and then replicate that for your own business. I would say that's the main thing that the GLEC framework does to help you work through your emission inventory. The other thing that's super helpful is it also sets out what reporting looks like. So it's one thing to calculate your inventory, but it's another to then communicate it to the people who need it, right? And that could be internal stakeholders. And you could have a range of teams who need this information to make decisions, whether that's your procurement teams or your senior management to make decisions around assets, or um maybe they're making science-based targets to get to net zero. This information can feed into that. And there's guidance in the GLEC framework around what that reporting looks like. But then there's also, of course, external reporting. So external reporting to um organizations like CDP, for example, or um maybe mandatory reporting through CSRD. We have guidance in the GLEC framework around what this reporting of logistics emissions look like. So that's the other main uh way that GLEC can help you.

SPEAKER_01 11:47

And I think that that's an important distinction. It's an important point to make and an important distinction to land as well. So that, you know, the GLEC is it's the accessible guide for there's examples, and you could think of it as a tool for helping to calculate the emissions, but then it goes one step further and helps you set out the best way to report them because it's all good involved. Okay, we have the information, we have the data. How do we most meaningfully present it and share it with the people who need it?

SPEAKER_00 12:14

Yes, exactly. And you said something there about um it's the accessible way um to understand the data or understand the emissions. I think it's very important to also spell out at the moment that GLEC is related to ISO 14083. So to just go back a second, the GLEC framework has been around 10 years. So in 2016, this document came about and people have been using this for 10 years now. In 2023, that was uh that information and those methodologies were fed into the ISO standard, ISO 14083, which is around calculating greenhouse gases in transport chain operations. And so we like to consider the GLEC framework as that user-friendly guide to help you adhere to ISO 14083. So if you were trying to be ISO compliant to this standard, you could use the GLEC framework to do so. And we we like to say that they complement each other. The GLEC framework is updated annually, and so the data is really up to date, it's best practice, and we will always be aligned to ISO 14083.

SPEAKER_01 13:18

And yeah, thank you for sharing that. I think that is a very important awareness because you know, an ISO standard can be quite technical and maybe hard to make practical, and then the GLEC is that handholding practical guide to the GLEC framework, I should say, is the handholding practical guide to that ISO standard. So if you're aligned with GLEC, it's aligned with ISO 14083 as well.

SPEAKER_00 13:43

Yes, that's exactly it. And also if you're aligning with GLEC, you're aligning with greenhouse gas protocol, you're aligning with SBTI in some ways, you're aligned aligning with CDP. So yeah, I think it's safe bet to say if you're aligning with GLEC, you're you're doing your logistics emission calculations right.

SPEAKER_01 13:59

So essentially what I'm hearing is there's absolutely no reason for companies to not be using the Gleck framework, not to toot our own horn or anything, but there is a fairly solid business case as to why we should be using the Gleck framework.

SPEAKER_00 14:12

Absolutely. Yeah, most certainly. And then also Gleck is the easier to understand version of ISO. Gleck is still 300 pages long. So I would say that there's other ways that we can help you upskill in Gleck. You know, we have academy courses, we have learning resources, we have so much information. And we're not necessarily saying go read 300 pages of GLEC and suddenly you're an expert. There's there's ways in which we can ease you into this world.

SPEAKER_01 14:41

Yeah, absolutely. And I think that that is an important caveat to make because somebody may say, okay, great, I need to go and use the GEC framework, and then they download it and they see 300 pages, and it can instantly be a bit of a wall and like quite affronting. And so knowing that the Smart Frade Center Academy does offer courses on the GLEC framework, that there is a suite of educational media available explaining the Gleck framework podcasts such as this one to just help kind of ease people in and remove those barriers to entry. Exactly. Yeah, yeah. So, Vex, we've spoken about you and you mentioned earlier that you know you may need to do this um calculation of emissions data. There might be different stakeholders in the organization who need that. And the question that I'd like to ask now is how can this high-quality emissions accounting create that value across the whole company?

SPEAKER_00 15:37

Yeah, that's an interesting question. So I think it can feed into so many places, right? So this logistics emissions, it might be for product level reporting, for example, or you could pass it along for voluntary reporting. You could also pass it along for mandatory reporting, risk-related reporting, uh, investment-related reporting. Like there's so many different pieces that this information can feed into. And I think it's just about understanding your own business, understanding your internal stakeholders and seeing where this freight-related emission inventory can best inform your business decisions. And yeah, I think there's no way necessarily of being able to know that without having this internal collaboration and being able to understand even from other SFC members or best case examples of where this information is best used for all sorts of internal decisions.

SPEAKER_01 16:35

And I think the the important thing and the massive value here is what this does is it enables data-driven decision making.

SPEAKER_00 16:44

Absolutely.

SPEAKER_01 16:45

Yes. So it enables different teams and different departments to make data-driven, informed decisions and take action that can actually lead to real change rather than I think what can sometimes feel like feeling in the dark.

SPEAKER_00 16:58

Yes, incredible data um decisions. When you know that methodology is being applied consistently, consistently across different suppliers as well, if you're trying to compare different suppliers to each other, then you you have this data to do so. And if you can see that they're all using the GLEC framework, you know that you're comparing apples and apples, for example.

SPEAKER_01 17:19

I think that's such an important point to make that it is credible data, credible decision making. Exactly.

unknown 17:25

Yeah.

SPEAKER_01 17:25

So speaking of credible emissions reporting, you mentioned earlier um the different types of data. So default values, primary data. So what role do these default values and primary data play in building credible emissions reporting?

SPEAKER_00 17:42

Yeah, so I think Smart Freight Center would say that the gold star is on primary data because that is the actual emissions that are being produced, right? And when we say primary data, we would generally talk about fuel consumes. And then the emissions associated with that fuel consumes. Not everyone has access to this primary data, and we understand that, but we would still encourage that you work with your value chain partners to get this data, and this is where you should be working towards as the gold standard. If this doesn't exist, that's okay. And of course you still should be using the framework, and that's when all our default values come in around our mission intensity values. And so you can use these values with um the distance-based data to then be able to calculate your emissions. And so it's all about understanding where you want to get to and also what you have at the moment, and then making sure you put a plan in place to be able to then sort of get to that best practice emission accounting, which is around primary data.

SPEAKER_01 18:42

On the topic of understanding where you want to get to, which I think is critical. If a company is just at the beginning of this journey, where do they start?

SPEAKER_00 18:56

Well, firstly, they start with understanding the collect framework and understanding what data they need and what the calculations look like. Then they would say they start with understanding their own data available to them, reaching out to their supply chain partners, understanding what is possible, and then slowly and surely taking those extra steps to be able to calculate their emission inventory. So in the first year, it might be relatively rough with the default values that we have and with some sort of assumptions around the data that is available to them. But then, of course, we hope that they work towards more primary data, more robust emission accounting in the future. And you don't need to bite it all off in one junk. You know, I think starting is the best place. Yep. And then just slowly starting to get deeper and deeper into that emission inventory and making sure the right assumptions are being applied and the right data is is gathered from their from their value chain partners, I think is really important. And to know that every step of the way we have more resources available to them. So we have resources available to the real learners or of really initial um newcomers to GLEC. And that looks like live training, that looks like self-paced training, that looks like education resources, best practice examples, calculation examples, as I said before. But then once we've done that, there's the next step around more specific assumptions that can be applied, or working with tool providers, for example, to be able to then exchange data in a better way. And yeah, we we help in every step of that journey.

SPEAKER_01 20:33

Which I think is important, uh, an important awareness for our listeners to have is that, you know, if if you are just getting started, Smart Ferry Center does help along this journey. But I also think that what you said is important, just start and don't expect to be an expert from the outset. This is complex. Um, it is a lot, there is a lot of consideration that needs to go into this, but it is entirely possible. So just start with getting a familiarization with what is the GLEC framework, what does it look like, and then going into looking, you know, so you look outward at the GLEC framework, then look inward at our organization, what what are our flows, what are our logistics flows, who are our value chain partners, you know, what what can we what data can we start collecting and take it from there? But don't and it's also okay to start simple. It is okay to start with using the default values, just start.

SPEAKER_00 21:26

Exactly. And that Smart Freight Center has an ecosystem of people that have been doing this for a long time, ready to help, whether that's tool providers through our um accredited tool scheme, or whether that's verification and validation bodies, or whether that's research partners, we have such a range of people who are ready to support you in your journey.

SPEAKER_01 21:49

And Bex, final question before we wrap up this episode today. Pop quiz, what's your favorite thing about the Gleck framework?

SPEAKER_00 21:58

Oh, that was a good question. I think my favorite thing about the Gleck framework is it covers all modes. Uh-huh. It's the one-stop shop for all modes, including logistics hubs. I think that is a rare thing to find.

SPEAKER_01 22:11

I think that's a power answer. I don't think I could have asked for a better one for this episode. So, Bex, thank you so much for taking the time to have this conversation. Really cool to know that your favorite thing about the GLEC framework is that it covers all modes, which is a massive bonus point for multimodal logistics. Absolutely. Yes. Thank you for sharing more about the GLEC framework, around the history of it, what it does, and also most importantly, how companies can get started. If you'd like to learn more about the GLEC Framework, ISO 14083, all the training and resources available, have a look at the Smart Freight Center Academy or at the Smart Freight Center website. There is plenty out there to help you on your journey. Thank you so much for joining us for this episode of Smart Freight Conversations. If you found this episode helpful, please subscribe, share it with colleagues, and join us next time as we continue driving progress towards zero emissions logistics. Until then, thanks for listening.