Tackling the trucking industry’s carbon emissions

The transportation sector in the United States is responsible for emitting the largest amount of human-generated greenhouse gas, accounting for 27% of our nation’s total carbon footprint. To mitigate the effects of climate change, it’s crucial for companies within the transportation industry to track, report on, and reduce their carbon emissions. 

As the business landscape and consumer expectations continue to evolve, and as climate-related regulations increase, these companies face greater pressure to be accountable for their carbon emissions. For example, the Securities and Exchange Commission (SEC) is expected to introduce more rigorous disclosure requirements related to climate change in 2024. As a result, shippers need to find solutions that enable accurate and reliable emissions reporting from their freight providers.

One of the biggest challenges in measuring and reporting emissions data in logistics is the need for a universal methodology to track the climate impacts across modes of transport. The Global Logistics Emissions Council (GLEC) Framework, developed by the Smart Freight Center, addresses this problem with a consistent calculation method for companies to determine the carbon footprint of their freight transportation in global supply chains. As one of four GLEC-accredited logistics companies worldwide, Convoy now offers a solution that shippers can trust with accurate and transparent carbon emissions data.

With the Emission Insights Dashboard, shippers can quickly measure and report on their Scope 3 carbon footprint for shipments run through Convoy’s network, leveraging the data to make informed decisions to reduce emissions.

Granular visibility into carbon emissions on Convoy loads

The dashboard, which can be accessed through Convoy’s online shipper platform, provides granular, on-demand visibility into emissions reports, including total carbon emissions and intensity, available by the load. With the ability to filter by program type, date, and loading type, shippers can quickly understand where to focus their efforts on reducing emissions.

The dashboard also offers downloadable data sets so companies can easily share their Scope 3 carbon emissions data with stakeholders. This data is collected through Convoy’s app that carriers use 97% of the time at every step of the job.

From estimates and disclosure to action

To prepare for the more stringent climate disclosure requirements proposed by the SEC, shippers need to transition from manual data gathering and estimations of their Scope 3 carbon footprint to tools that efficiently and accurately provide this data.

The Emission Insights Dashboard provides this through GLEC-accredited reports that help shippers understand the impact of their operations and take action to reduce their carbon footprint. Starting today, all Convoy customers can access the dashboard by signing into their online shipper platform account.

If you’re interested in learning how the Emission Insights Dashboard can help your company reduce emissions and help mitigate the effects of climate change, drop us a line or contact your account manager.

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There’s a misperception that truck drivers don’t care about carbon emissions. Recent data suggests otherwise. In the latest Sustainability in Trucking Snapshot survey of 588 truck drivers, dispatchers, and owner-operators, 27% reported that they were already measuring their carbon footprint today. Further, 34% of carriers surveyed reported feeling pressure to reduce carbon emissions in their business, with the top motivator being “greater awareness of the environmental impact of carbon emissions.” 

Sustainability, or the pursuit of maintaining conditions under which humans and nature can exist in productive harmony to support present and future generations, affects everything we do. The sustainable choices we make today in how we operate can significantly impact the future of our businesses and their resiliency in a competitive market. Companies do not work in isolation. They are embedded in society and impact individuals, communities, and the environment. Operating a successful business entails strategically managing a complex variety of elements. 

How sustainability can benefit your business

1. Differentiate your carrier business

Operating with a sustainability mindset sets you apart. A McKinsey study published in September 2022 on where the “world’s largest companies stand on nature” stated that 83% of Fortune Global 500 companies have climate-related targets. Companies are digging deeper into their supply chains to figure out how to reduce carbon emissions. If you are using bio-based fuels, electric trucks, or safe and efficient driving practices, those may soon become factors enabling you to win a bid. 

It offers distinct competitive advantages:

• Differentiate your carrier from competitors, as shippers prefer companies with a distinct focus on people and the planet.
• Engages a sense of purpose, resulting in a better product, more streamlined operations, long-term cost savings, happier employees, and a new customer base who prefers to do business with a sustainably minded company.  
• An increasing number of banks and lending institutions prioritize financing companies with a sustainability mindset, as they see it as a commitment to the long-term future and viability of the organization, the industry, and the global community.

2. Expand your business

Making a sustainable impact translates to added value for anyone doing business with you and puts you in a better position to win. This added value will enable you to steal market share from those who don’t operate sustainably and puts you at an advantage when considering booking loads, financing, and more. 

We’re increasingly hearing that shippers are starting to prioritize brokers and carriers who can deliver higher fuel efficiency with proven data to back it up. When incorporating environmentally conscious practices into your business, you need the ability to speak to it clearly and have the data to show that your vehicles are operating efficiently. Consistently tracking the right data makes it easier to have this information readily available for your financing department and planning. 

3. Access new business opportunities

With sustainability moving front and center in the corporate world, an organization operating with a People, Planet, and Profit mentality can take advantage of a wide range of new business opportunities never before available.

A supplier diversity program is a proactive business program that encourages the use of minority-owned, women-owned, veteran-owned, LGBT-owned, and service-disabled veteran-owned. Becoming certified as a women-owned business sets you apart and gives you a distinct advantage to win more business. Shippers are increasingly asking us to provide them the “Certified Diverse Supplier” data for Quarterly and Annual Business reviews and are willing to pay a premium to work with “Certified Diverse carriers”. We asked 200 shippers in June of this year, “How much are you willing to pay for diverse carriers?” 26% said they’d pay up to 10% more per load, and 13% said they’d be willing to pay more than 10% per load. We are starting to also see a strong interest in a similar incentive structure for “greener” freight options.  

As a new carrier, I know supplier diversity programs were going to give my business a competitive advantage and stand out with companies like Convoy. Today I’m hauling dedicated loads on my favorite lanes and working hassle-free.”

Trielle Hart, KDZ Brands Transport & Logistics Inc.

4. Reduce operating costs

It’s not a secret that the trucking industry suffers from waste. When you look at your operations through a sustainability lens, there are many opportunities to drive efficiency. Research shows that 35% of the time, trucks are driving on the road empty. These empty miles, or deadhead miles, are not good for the environment, nor for your wallet. Newer innovations in the freight industry, however, present an opportunity for carriers to reduce empty miles, eliminate harmful carbon emissions and save money. Convoy’s batching capabilities allows drivers to bundle their shipments, reducing empty miles from the industry standard of 35% to 19% (a 45% reduction). By finding backhauls, carriers avoid the environmental and financial costs of hauling empty. If the industry as a whole is able to achieve the same efficiency improvements that Convoy has seen in our bundled shipments, it would reduce CO2 emissions by 40 million metric tons. This is the equivalent of taking more than 8.6 million passenger vehicles off the roads for a year. 

We are continuously searching for ways to improve sustainability and reduce emissions across our entire value chain. By working with Convoy, we are able to lead this charge by collectively addressing the challenge of empty miles within the industry, streamlining our business, and contributing to a more sustainable future.”

Charmaria Gurley, Gurley All Freight

To conclude, sustainability adds value to your carrier business by providing a unique point of differentiation from your competition and enabling you to earn more customers who want to do business with a sustainability-minded company. It can also give you access to new business opportunities while achieving cost savings in the short and long term. Ultimately, this can lead to growing your revenue through additional business and making it easier to access financing to expand operations.

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The clock is ticking to make the changes needed to stave off the devastating effects of climate change, and there is an urgent need to translate the aspirations and expectations into concrete outcomes. The “what” – net-zero emissions by 2050 – must now come with a “how” – decarbonizing supply chains through innovation. 

Convoy recently hosted a session during the 2022 ICC “Make Climate Action Everyone’s Business Forum” Conference, a virtual event of disruptive ideas and ground-breaking insights from stakeholders delivering solutions to the world’s toughest climate and sustainability challenges. I virtually sat down with two transportation leaders working on the “how” in the industry. Andy Brown, Product Marketing Manager of Electromobility at Volvo, and Samuel Morales, Senior Manager of Carrier Programs of Convoy, are a wealth of industry knowledge. 

Here’s what they have to say about “Making Zero Emission Trucking a Reality.” 

The challenges facing the adoption of electric trucks

Andy Brown of Volvo: We first need to reach a place where the price gap between the initial investment to purchase an electric vehicle has achieved parity with the price of a diesel vehicle. Electrification is also a profoundly interconnected ecosystem. It’s more complex than buying a truck in a plug-and-play model, as there are different value streams that customers, big or small, have to factor in, such as your infrastructure. Critical factors include where you will charge a truck, how that will fit into your operational standards, and in addition, the shifts in the daily life of a truck driver. Another critical challenge is the charging infrastructure and whether that is public or private charging. For example, if you send an EV truck to California, there may be limitations on the time of day you can charge your vehicle to an already stressed energy grid. On top of that, we need to ensure that our microgrids can handle this. 

Samuel Morales of Convoy: When you think about the public infrastructure needed to support electrification, you’re regionally bound to California, Texas, and a few other areas. These regional limitations present a challenge when shippers consider adopting or scaling electric trucks in areas with limited infrastructure to support electromobility. Another challenge to adoption is the range of electric vehicles when we look at haul length from a utilization perspective. We have long, regional, short, and city haul when you look at most over-the-road movements. At Convoy, we think of local freight moving from a hub-and-spoke distribution model, which lends itself to leveraging electric trucking technology. However, that’s not the majority of the freight. When considering who uses electric trucks today, it’s confined to local freight movements. But the good news is that we see the technology for electric trucks improving. 

Another industry-wide challenge is the intensive capital resourcing required to implement, which is traditionally reserved for only larger asset-based fleets. Investments include developing a policy team to deal with local regulations and permitting to install the charging infrastructure. So, there is a disparity in enabling electric trucking technology as you go down the chain from a large fleet size with the capital available to adopt this technology to the small owner-operator. Other factors that can influence adoption are insurance requirements, driver comfortability, or awareness. And last, we still see that some people are hesitant about change and new technology. 

Awareness, education, and professional development of electric truck drivers

Andy Brown of Volvo: The definition of success for my job is to advocate on behalf of and educate regulators, customers, and fleet owners on the importance of electrification.

Volvo recently had an electromobility summit where we invited customers throughout North America to our global customer center in Dublin, Virginia. The goal was to educate Volvo’s customers on electromobility. Hesitation or resistance is just a natural curve of change adoption and change management. To keep drivers comfortable in their environment, Volvo designed the Volvo North American Regional (VNR) Electric to be the same cab as we built on the VNR Diesel, which has been around since 2017. There are only a few minor differences, which include the regenerative stock and what you see on the dashboard. These different aspects are designed with intent, so you don’t overwhelm the driver. 

The general population can only handle a certain amount of change with a product update from the first to the next generation, which is why we can’t just bring the same electric truck cab style already utilized in Europe and expect widespread adoption. Here in North America, you have the conventional style. Volvo wanted to stay true to the North American personas by providing an electrified version of a truck that drivers are accustomed to, accelerating the shift to electromobility. 

Importance of industry collaboration to accelerate electric truck adoption

Samuel Morales of Convoy: Consumers are driving the push toward sustainability. At Convoy, our shippers are looking for support to meet the demand to drive greener logistics in their supply chains. 

First, we tackle how to reduce carbon emissions in our trucking space. We identify what the future is and acknowledge the dependencies to get there. Convoy and Volvo have been in a wonderful relationship looking at ‘how do we approach this problem space?’  We work with our shippers to understand their climate roadmap and their drive to achieve carbon reductions. We also talk to our carrier base to learn how they are shifting to electric today. Next, we analyze our supply chain to understand which lanes electrification makes sense and the infrastructure dependencies. Then we build a plan together to architect the implementation. Throughout this process, we consider the stakeholders involved and how Convoy can support carriers and help manage shipments going forward.  

Electric truck adoption requires extensive collaboration across the industry. We need to set up infrastructure in teams to manage the complexities of this supply chain, manage regulatory requirements, and analyze facility abilities to work with electric vehicles. There are considerations at the implementation stage of where to place the electric trucks in your network, what type of freight you give them, and how you strategically leverage them. So having those discussions and identifying those dependencies are a great way to address this problem space and how we started doing it here at Convoy.

The future of electromobility in trucking 

Andy Brown of Volvo: Today, Volvo is focused on the continual adoption of short and regional haul. That’s where the Volvo North America Regional Haul (VNR) really shines with the short hood, excellent visibility, and maneuverability, making it perfect for city traffic.  As we start to look into the future, Volvo has three parallel roads. First, improve the battery technology of the battery electric vehicle (BEV) and adopt that to our Volvo North America Long hood (VNL). Second, for the long haul, we have a joint venture with Cellcentric to accelerate the use of hydrogen technology to increase the range of electric vehicles. Third, there is the continual production of internal combustion engines (ICE) with I-torque and turbo compounds and other levers we can control. I believe we can achieve a fossil-free transportation future through these three pathways. 

Samuel Morales of Convoy: The future of commercial electric vehicles will depend on innovation by manufacturers and pioneering by shippers and transportation partners such as Convoy. We know the constraints today with mileage and the need for increased utilization to justify high investments to adopt this new technology. In the next ten years, I see a reduction in this technology’s total cost, enabling widespread adoption. I also envision shippers making a heavier investment and preference to leverage this technology in their overall supply chain as a result of end-customer feedback. I look forward to zero-emission freight becoming the new normal within 10-20 years!

Learn more about how you can join us in our mission to transport the world with endless capacity and zero waste. 

[1] United States Environmental Protection Agency. 2020. “Fast Facts on Transportation Greenhouse Gas Emissions.” https://www.epa.gov/greenvehicles/fast-facts-transportation-greenhouse-gas-emissions.
[2] American Trucking Association. N.d. “Economics and Industry Data.” https://www.trucking.org/economics-and-industry-data.

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Standardization of data in the logistics industry

One of the biggest challenges transportation companies experience with emissions calculations is that greenhouse gas emissions have been calculated in many different ways depending on the company, provider, or partner. By receiving the GLEC Accreditation, Convoy can assure its shippers that they are receiving some of the most accurate and transparent carbon emissions data in the freight industry. Aligning our methodology to the GLEC Framework enables Convoy to provide insights to shippers to inform business decisions and steer efforts to reduce emissions.

“We’re proud to welcome Convoy as one of our partners accredited by SFC to calculate and report emissions following the GLEC Framework. Improving the standardization of logistics emissions is urgent, and this solution will help North American actors along the supply chain better assess their logistics emissions.’ said Rik Arends, Program Director at Smart Freight Centre.

Convoy’s approach to the GLEC Framework

Convoy utilizes fuel consumption data from the Environmental Protection Agency’s Smartway Carrier Tool and fuel efficiency data directly from the carriers. Carriers who register and join SmartWay Carrier Partners measure, benchmark, and track their efforts to increase efficiency and fuel economy, in addition to having the documentation to prove it. This data enables our shippers to calculate greenhouse gas (GHG) emissions for Scope 3 under the GLEC Framework.

“Our Smart Freight Centre (SFC) accreditation shows that Convoy is committed to aligning our work with globally recognized frameworks,” said Jennifer Wong, Director of Sustainability. “We look forward to continued partnership with SFC to bring transparency and drive climate action in partnership with our shippers and carriers.”

Trucking’s climate impact is significant and growing

The transportation sector is the largest source of human-caused greenhouse gas emissions in the U.S. In 2020, medium- and heavy-duty trucks accounted for 26% of all transportation emissions¹. Additionally, 35% of the time, trucks drive empty, generating more than 87 million metric tons of carbon emissions which pollute our environment every year.

Today, by aligning our carbon emissions methodology to the gold standard in logistics emissions reporting, the GLEC Framework, we can now provide our shippers and carriers with transparent reporting on carbon emissions.

Partnerships to drive change

The SFC Accreditation of GLEC-compliant tools and programs is part of the SFC’s advocacy work around industry standards to report and reduce emissions.

Convoy will continue to work with SFC and GLEC to support SFC’s goals of driving the adoption of a universal and transparent method of calculating freight emissions across the global supply chain.

Convoy’s accreditation by SFC is very encouraging for companies that have committed to acting responsibly and accurately measuring their CO2 emissions. “Accreditation is the first step as we work towards improving the quality and quantity of truck-level data. Convoy is focused on providing accurate, real-time transparency for our shippers into the emissions that flow within our network,” stated Jennifer Wong.

What it means for shippers

Shippers that work with Convoy can reach out to their account managers to partner with our sustainability team to better understand the carbon emissions in their operations today. In fact, Convoy can provide shippers with emissions reporting as far back as their first shipment in Convoy’s digital freight network.

ABOUT GLEC

Led by SFC, the Global Logistics Emissions Council (GLEC) was established in 2014 as a voluntary partnership and has grown to more than 50 companies, industry associations, and green freight programs backed by experts, governments, and other stakeholders. Together, they develop and implement global guidelines to calculate, report, and reduce logistics emissions that work for the industry.

ABOUT THE SMART FREIGHT CENTER

Smart Freight Center is a global non-profit organization dedicated to an efficient, zero-emissions freight sector. SFC brings together and works with the global logistics community to drive transparency, collaboration, and industry action – contributing to the Paris Climate Agreement targets and Sustainable Development Goals. Our goal is that 100+ multinationals reduce at least 30% of logistics emissions by 2030 compared to 2015 across their global logistics supply chains and decarbonize by 2050.

1. EPA, 2020, Fast Facts Transportation Greenhouse Gas Emissions. 

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Survey highlights include key trends in trucking and new data insights:

Minorities continue to bear the worst impacts of climate change

• The trend persists from the March 2022 trucking survey, which recognized that minority carriers are experiencing disproportionate impacts of climate change on their communities.
• When asked to what degree climate change was affecting their communities, 84% of Asian Americans, 62% of Black Americans, and 76% of Latinos said it was slightly, moderately, or strongly impacting their community. Only 48% of white respondents reported feeling an impact of climate change to the same extent.

Personal motivations drive pressures to reduce carbon emissions

• Carriers reported awareness of the environmental impact of carbon emissions as the top reason for reducing carbon emissions. This diverges from the March 2022 survey results, where government regulations were cited as the top reason, likely due to the SEC Climate Disclosure Rule being proposed at the time.
• As inflation continues to rise and gas prices remain at near record highs, reduced operating costs as a top reason for reducing carbon emissions has increased 7% compared to the March survey. 
• Carriers who feel pressure to reduce carbon emissions in their business are 50% more likely to be tracking or reporting them in their business today.

Carriers are willing to provide data to understand emissions

• 45% of carriers are willing to provide fuel efficiency data of trucks to Convoy to track carbon emissions. 
• 22% of carriers are currently tracking and reporting carbon emissions today.

Soaring inflation doesn’t stop carriers from wanting to buy new trucks – including alternative fuel options

• Nearly 70% of survey respondents are planning to make a new truck purchase within the next 3 years.
• Of that 70%, over one-third are considering purchasing an alternative fuel truck.
• The top barrier to purchasing an alternative fuel vehicle is the high cost of these trucks.

Predictable schedules are important for truck drivers

• For the first time, we added childcare responsibilities and caretaking for adults as options for demographic self-identification. Truck driving is a demanding job and requires long hours away from home. Over half of respondents have children and one-third are a caretaker for an adult.

Download the Sustainability in Trucking Snapshot Report to see the full data for sustainability trends in trucking.

Sustainability at Convoy

We are focused on reducing the billions of waste in trucking and improving the lives of truck drivers. Learn more about Convoy’s commitment to supply chain sustainability.

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“We are excited to renew our work with the United Nations, our customers, and our partners in building a more sustainable future,” said Convoy’s CEO Dan Lewis. “We believe businesses play a key role in advancing Sustainable Development Goals that improve the quality of life around the globe so we may all live in health, dignity, prosperity, and equality.”

The UN Global Compact is a corporate initiative that encourages organizations to establish and define strategies, policies, and procedures aligned with the Ten Principles on human rights, labor, environment, and anti-corruption.

The seventeen Sustainable Development Goals are designed as a blueprint to achieve a more sustainable future for all. Adopted by the United Nations in 2015, the goals serve as a universal call to action to end poverty and protect the planet.

Convoy’s continued participation in the United Nations Global Compact reinforces its mission to transport the world’s goods with endless capacity and zero waste. As a leader in sustainability, Convoy is focused on empowering customers and small trucking companies to Ship Responsibly and optimize freight efficiencies that will help them meet their environmental goals. 

Launched in 2000, the UN Global Compact is a globally recognized voluntary initiative that currently has over 13,000 signatories such as Convoy customers Unilever, Starbucks, Owens Corning, and Ford Motor Company based in 160 countries representing a variety of industries. For more info, visit unglobalcompact.org.

Read Convoy’s Communication on Progress.

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