Monday, July 22, 2024

Convoy releases scope 3 emissions reporting to support SEC-proposed rule

Digital freight platform Convoy on Monday launched a greenhouse gas Scope 3 emissions reporting solution for shippers in anticipation of future regulation from government agencies looking to make such informing mandatory.

In March 2022, the U.S. Securities and Exchange Commission (SEC) proposed a rule that would require publicly traded companies to “include certain climate-related disclosures in their registration statements and periodic reports, including information about climate-related risks … [and] also would include disclosure of a registrant’s greenhouse gas emissions.” The rule is expected to become mandatory by 2024.

At a Council of Institutional Investors meeting on March 6, SEC Commission Chair Gary Gensler explained the agency had received over 15,000 comments on the rule, more than any proposal in its history.

Convoy’s emission insights dashboard. (Gif: Convoy)

In that same meeting, Gensler noted the comments mentioned a unique flaw of the proposed rule stating that companies were already beginning to disclose scope 1 and scope 2 emissions, but the systems for reporting scope 3 weren’t “as well developed.”

These conditions, along with over 78% of U.S. consumers saying that a sustainable lifestyle is important to them, led Convoy’s leadership to take the necessary steps to create a product that could help eliminate the “how” from emissions reporting.

“To get ahead of the curve on stringent climate disclosure requirements proposed by the SEC and [the International Sustainability Standards Board], shippers need to transition from manual data gathering and estimations of their scope 3 carbon footprint to tools that efficiently and accurately provide emissions reports in real time,” said Convoy Corporate Sustainability Analyst Kiana van Waes. “The emission insights dashboard provides this through [Global Logistics Emissions Council]-accredited reports that help shippers spend less time reporting, allowing them more time to focus on tactical ways to decarbonize their footprint.”

According to the Seattle-based company, carriers are providing insight into 97% of a load’s life cycle, giving Convoy the opportunity to obtain the compliance data it needs to properly report including distances traveled, carrier fuel efficiency, fuel used, carbon intensity and total payload.

Related: Convoy introduces instant bid responses to carriers

“In order to capture the total climate impact of fuel used, a requirement under the Greenhouse Gas Protocol, our reporting also includes emissions from the full life cycle of fuel, known as well-to-wheel [WTW] emission factors,” van Waes told FreightWaves. “WTW factors are composed of two separate subcategories: well-to-tank and tank-to-wheel.”

Shippers can use this data to not only report their emissions to various regulatory bodies but also apply the tool proactively, gaining insight into the emissions of individual carriers in their network or by shipment type. 

“Shippers now have the ability to slice and dice their business’ emissions data across trailer types, loading types, revenue programs, haul lengths and time periods, providing them with a better understanding of their scope 3 emissions,” van Waes said.

For Convoy, providing this solution has been a long time coming in helping to fulfill its mission statement that claims to create “endless capacity and zero waste.”

“Convoy is committed to reducing empty miles and eliminating carbon emissions in trucking and has prevented 9.8 million points of carbon emissions from entering the atmosphere to date,” van Waes said. “Additionally, we are committed to operating with net-zero emissions by 2040, 10 years ahead of the Paris climate agreement.”

Watch now: Chat with Dan Lewis of Convoy and George Brehovsky of CHEP

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The post Convoy releases scope 3 emissions reporting to support SEC-proposed rule appeared first on FreightWaves.

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