Tackling Scope 3 emissions: The key to sustainable logistics
Sustainability has become a strategic priority for businesses worldwide. With tightening regulations, such as the Corporate Sustainability Reporting Directive (CSRD) in Europe and new emissions laws like California’s SB 253 and SB 261, combined with growing corporate commitments to achieve net zero, organisations are under increasing pressure to measure, manage, and reduce Scope 3 emissions. These emissions, which include all indirect greenhouse gases generated across a company’s value chain, are particularly significant for businesses operating complex supply chains.
In supply-chain-heavy industries, logistics emissions alone can account for up to 35% of Scope 3 emissions. However, the road to decarbonising logistics is filled with obstacles—from fragmented supplier data to meeting regulatory demands and balancing costs with sustainability goals.
With the right tools and strategies, businesses can simplify emissions reporting, drive reductions, and optimise logistics costs. Solutions like Pledge, help automate data collection, ensure compliance, and gain actionable insights to accelerate decarbonisation.
The hidden challenge: Why logistics matters in Scope 3 emissions
Scope 3 emissions typically account for 75–90% of an organisation’s carbon footprint. For businesses reliant on global supply chains, logistics emerges as a significant contributor. Transportation spans multiple suppliers, modes of shipment, and regions—each with different data collection standards and carbon footprints.
Key pain points enterprises face:
Fragmented and inconsistent data: Businesses often collect shipment data from both internal and external sources, but inconsistent formats, missing data, and supplier pushback create significant challenges. Some suppliers refuse to share raw shipment data, instead providing only pre-calculated emissions figures. This lack of data transparency makes it difficult to verify accuracy, ensure compliance and conduct meaningful carbon reduction analysis.
Compliance & audit ready: While external regulations like STBi, CSRD and SB 253 require businesses to report Scope 3 emissions with robust, auditable data, many organisations are just as focused on internal audit readiness. Sustainability and procurement teams must ensure that emissions data is structured, accurate, and traceable to support internal reporting, investor disclosures, and supplier accountability.
Limited visibility into reduction opportunities: Reporting emissions is only the first step. Businesses must identify actionable insights to achieve reductions. Without clear visibility into carbon hotspots across suppliers, transportation modes, or routes, organisations struggle to prioritise effective impact.
Balancing sustainability and cost: While cutting emissions is crucial, so is maintaining cost-efficient supply chain operations. Striking this balance is a challenge when decisions lack accurate and holistic data.
Turning challenges into opportunities: A smarter approach to logistics decarbonisation
Despite these hurdles, logistics presents one of the most impactful areas for driving sustainability. With the right tools and strategies, businesses can reduce emissions, optimise operations, and achieve cost efficiencies simultaneously.
Steps you can take:
Streamline and automate data collection: Centralising logistics data across suppliers is a critical first step. Automated platforms, like Pledge, simplify this process by consolidating emissions data, reducing manual effort, and improving accuracy. This creates a foundation for consistent and scalable reporting.
Gain granular insights with advanced analytics: Access to detailed, accurate data enables businesses to pinpoint where emissions are highest —whether by specific suppliers, transport routes, or shipment modes. These insights empower organisations to make informed decisions, such as shifting to greener transport modes or reducing empty miles in routes.
Engage and collaborate with suppliers: Sustainability is not a solo journey. By establishing transparent communication channels with suppliers and integrating emissions accountability into supplier contracts, organisations can foster shared responsibility for decarbonisation efforts.
Embed sustainability into procurement decisions: Procurement teams play a critical role in emissions reduction. By leveraging supplier emissions data in tender evaluations, companies can prioritise low-carbon suppliers while maintaining cost efficiencies.
Why acting now is critical
Regulations and stakeholder expectations are accelerating. From mandatory disclosures under frameworks like CSRD to increasing consumer demand for transparency, enterprises can no longer afford to delay action on Scope 3 emissions. Beyond compliance, decarbonising logistics presents a unique opportunity to strengthen supply chain resilience, improve brand reputation, and build long-term value.
Real-world impact: Consider the case of GL Events, a multinational company with operations in over 20 countries. Facing new compliance requirements and ambitious sustainability goals, the organisation turned to Pledge for support. By consolidating logistics emissions data across its supplier network, GL Events saved time, improved reporting accuracy, and built a clear roadmap for reductions.
Read the full case study here
Ready to make logistics decarbonisation your advantage?
Scope 3 logistics emissions are a complex challenge, but they also present an unparalleled opportunity for businesses to lead on sustainability. By prioritising data, collaboration, and actionable strategies, your organisation can not only meet regulatory demands but also drive meaningful change across your supply chain.
Are you prepared to take the next step in tackling Scope 3 emissions? Pledge’s Shipper Beta Programme is designed for sustainability and logistics leaders looking to:
Automate emissions data collection from suppliers
Ensure compliance with CSRD, SB 253, and other global regulations
Gain insights to drive emissions reduction and cost efficiencies
Join today and take control of your logistics decarbonisation strategy!