Companies worldwide want to cut their supply chain emissions — and shipping and logistics can be a critical enabler.

The incentives are clear: beyond our urgent need to mitigate climate change, the financial risks of climate-related disruptions to supply chains are estimated to be 2.9 times higher than the cost of mitigating the risks (CDP, 2024).

Some companies are already taking action, but many still face significant challenges in turning ambitions into action. Progress is slow and starting from a low baseline — but some leaders are showing that it’s possible.

While shipping and logistics decarbonization is unlikely to fully materialize without clear global regulation, freight customers can demonstrate leadership and capture a competitive advantage by developing their own decarbonization initiatives. In doing so, freight customers can ensure stronger alignment with future regulation and conditions, as well as push beyond minimum required regulation to incentivize decarbonization of supply chains.

The project shares learnings and best practices from industry to help others adopt and deploy low-emissions shipping and logistics solutions.

The project consists of two phases:

1) A first phase delivering a pre-assessment study that identifies freight customers’ key challenges and opportunities. The study is based on extensive stakeholder research with freight customers and those organizations working with them, as well as desktop research.  

2) A second phase sharing and activating knowledge about the challenges, opportunities, and potential solutions — aiming to guide and support freight customers and organizations working with them.

The deliverables of this project include: 

• A framework to guide freight customers aiming to decarbonize 

• Web articles showcasing good examples to incentivize action 

• Webinars, deep dives, and roundtable sessions to socialize project knowledge and industry examples  

• Thought leadership products to identify areas and solutions where the Center can help partners achieve shipping and supply chain decarbonization

The project puts forward a framework (see figure below), developed through extensive stakeholder research, that maps eight key levers of challenges and opportunities for freight customers to decarbonize shipping and logistics operations.

Cost is often cited as the main bottleneck for supply chain decarbonization — but it's not the only factor. The framework highlights that the barriers go beyond costs alone, revealing that challenges are multifaceted and the levers for reducing freight and logistics emissions are nuanced.

Overview of the eight keys levers of challenge and opportunity in the framework

Whether freight customers are leading the way or just beginning to explore how to track, manage, and reduce freight and logistics emissions, the levers set out in the framework offer a practical structure that any freight customer and those working with them can use to:

• Set out or refine freight customers’ decarbonization strategies and actions  

• Identify potential gaps or improvements in their approach and outline focus areas  

• Understand how the different levers are interlinked and activities needed to best address these 

• Build knowledge and good practices on how to implement freight and logistics decarbonization  

• Enhance dialogue and opportunities for collaboration

While the framework outlines a set of common challenges and opportunities, it does not point to a single root cause or universal solution. Freight customers are a diverse group, with varying stages of ‘green maturity’, different roles in the value chain, and cargo types.

For example, some freight customers may have already set Scope 3 emissions reduction targets and be exploring options for turning these targets into action. Others may already be taking action and seeking ways to refine, innovate, and further collaborate on strategies.

To drive meaningful decarbonization, initiatives must be tailored to the characteristics of the different cargo segments and unique requirements of individual freight customers. Reflecting this, the framework provides a structured yet flexible approach, with a 'menu' of options that can be adapted to a wide range of freight customers.