The future of logistics transport emissions tracking software

The future of logistics hinges on the effective management of environmental impacts. According to McKinsey research, a staggering 80% or more of a typical consumer-facing company's environmental footprint (across food and beverage, personal and household goods, and retail) comes from its supply chain rather than its direct operations. The impact of these indirect carbon emissions, also known as scope 3 emissions, extends beyond greenhouse gas emissions to air and water quality and resource depletion.

As businesses wake up to the potential carbon emissions savings available in their scope 3 emissions, software that enables them to track and understand their carbon footprint has flourished as an invaluable tool for unlocking impactful carbon reductions within their supply chains. In this article, we’re looking ahead and exploring how the integration of modern technologies like blockchain and AI could be leveraged to enhance emissions tracking software in the future.

What is emissions tracking software?

Emissions tracking software aims to provide businesses with accurate data on greenhouse gas emissions from logistics activities, giving them the visibility they need to make informed decisions and effectively reduce their scope 3 emissions. Ultimately, it can be thought of as the control centre for a company’s sustainability strategy. Without it, it’s virtually impossible for businesses to effectively decarbonise their supply chains.

Beyond its positive environmental impact, emissions tracking software can be a strategic tool for businesses seeking to gain a competitive edge by differentiating themselves through their carbon footprint reductions. Using an accredited emissions tracking software solution allows them to calculate and report their emissions reduction achievements without the risk of misreporting (and its related penalties) or unintentional greenwashing.

How modern technologies can enhance emissions tracking software

Despite being a relatively emergent technology, emissions tracking software needs to develop quickly if it’s to deliver a significant impact on global temperature rises by 2050 — the year governments around the world pledged to achieve net zero under the 2015 Paris Agreement. So it’s down to climate technology companies to explore all available avenues to make solutions as effective as possible, as quickly as possible.

Below, we’ve outlined three key ways modern technologies might be used to scale the impact of emissions tracking software on businesses’ supply chains, helping them achieve their sustainability targets and that all-important goal of minimising global climate change.

Enhancing carbon emissions traceability with blockchain technology

Blockchain technology could revolutionise emissions tracking in the logistics sector by providing an immutable, transparent ledger of all transactions and emissions data. The inherent security and transparency of blockchain make it ideal for tracing the lifecycle of shipments and their associated emissions from origin to destination. This system can also enable businesses to verify their sustainability claims and comply with increasingly stringent environmental regulations.

Additionally, blockchain's decentralised nature means that no single entity has control over the entire data set, reducing the risk of data manipulation or carbon fraud — and the potential negative fallout that comes with it. This aspect could be particularly beneficial in complex supply chains involving multiple stakeholders. By enhancing traceability, blockchain technology can not only aid emissions tracking but also support broader environmental, social and governance (ESG) goals.

Predictive emissions management with machine learning and AI

Machine learning (ML) and artificial intelligence (AI) are transforming the Software-as-a-Service (SaaS) landscape, and emissions management won’t be an exception. By enabling predictive capabilities that can significantly enhance decision-making processes and analysing historical data to identify patterns, ML and AI could potentially forecast future emissions based on different logistical scenarios and operational strategies. This predictive approach could be used to enable businesses to proactively manage their carbon footprints rather than reacting to emissions data after the fact.

This capability has the potential to be a real game-changer for businesses that want to optimise their operations for sustainability without sacrificing efficiency or profitability.

Integrating IoT for real-time emissions monitoring

The Internet of Things (IoT) presents another transformative opportunity for logistics emissions tracking software. IoT devices, such as sensors and advanced location trackers, can be installed on vehicles, shipping containers and other logistics assets to gather detailed, real-time data on fuel consumption, vehicle performance and route efficiency. 

This continuous stream of data can provide granular insights beyond what’s currently available, allowing businesses to identify inefficiencies and areas for improvement. For example, IoT-enabled sensors can detect excessive idling times, adverse weather conditions or maintenance issues that lead to higher fuel consumption and resultant emissions. By addressing these issues promptly, companies can discover more specific and specialised ways to reduce their carbon footprint more effectively.

Moreover, the integration of IoT with AI and machine learning algorithms can enhance predictive analytics, enabling businesses to forecast emissions under different scenarios and operational adjustments. This blend of technologies can help to ensure a more proactive approach to emissions management.

Challenges in implementing advanced technologies into emissions tracking software

While the integration of technologies like blockchain, AI and IoT into emissions tracking software holds great promise, there are barriers that will need to be overcome.

Cost and complexity

The implementation of these technologies can be costly and complex, requiring significant investment in infrastructure, training and ongoing maintenance — particularly when it comes to integrating IoT. Small to medium-sized businesses (SMEs) might find it particularly challenging to afford and integrate these advanced systems into their existing operations.

Risks to data security

There are concerns about data privacy and security. The extensive data collection and sharing required by IoT and blockchain, for example, might expose businesses to cybersecurity risks. Ensuring that the right security measures are in place is crucial to protecting sensitive information from breaches and cyberattacks.

Compatibility of new technologies

The compatibility and interoperability of various solutions might be an issue when transitioning to using more advanced technologies in emissions tracking software. Integrating different systems and ensuring they work seamlessly together requires careful planning and coordination, and can often lead to teething problems for early adopters. In a sector as challenging as global supply chains which involves multiple stakeholders with varying technological capabilities, these early teething issues may be more pronounced.

What does the future hold for emissions tracking software?

It’s still early days for emissions tracking software, but its potential to develop with the aid of modern technology is an exciting prospect for the decarbonisation of logistics transport. Integrating technologies like blockchain, AI and machine learning and IoT has the potential to empower businesses to take control of their scope 3 emissions, significantly lowering their carbon footprint and catalysing the move towards a more sustainable global economy.

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