Driving the logistics industry towards a sustainable future

Singapore freight forwarders – Star Concord

As the industry faces increasing pressure from society, customers and regulatory bodies to become more transparent around the environmental impact of their operations, companies are looking for ways to meet their obligations and decarbonise the supply chain.

“With freight and logistics accounting for up to 11 percet of total global carbon emissions, the need for actionable data has never been more critical. Pledge empowers forwarders with a self-service platform that simplifies emissions data reporting,” David De Picciotto, Pledge’s CEO and co-founder, stated. 

“Our platform also offers a marketplace for insetting and offsetting, providing access to verified projects to mitigate unavoidable emissions,” adds de Picciotto.

The introduction of the EU’s Corporate Sustainability Reporting Directive (CSRD) marks a significant regulatory shift, mandating companies operating in the region to disclose their scope 3 supply chain emissions. This has catalysed a surge in the demand for transparency. 

“We’re now seeing emissions reporting integrating into the core of industry operations, moving towards an industry standard,” de Picciotto noted.

Cutting confusion from carbon emissions reporting

While solutions are designed to ease the transition towards emissions reporting, de Picciotto acknowledges there are challenges, particularly with complex regulations. 

“There’s confusion around responsibilities and calculations for the EU’s Carbon Border Adjustment Mechanism. We’re exploring how we can aid importers with these obligations,” he remarked.

Data collection and integrity also pose significant hurdles in carbon footprint reduction. Pledge addresses these through features enhancing transparency and simplifying data integration. 

“Our platform is specifically designed to maintain data integrity, making it easier for forwarders to meet the growing demand for emissions reporting,” de Picciotto states.

READ: Airfreight industry’s sustainable stance

Different approaches

De Picciotto differentiates between carbon insetting and offsetting, highlighting their roles in mitigating environmental impact

“While both strategies are vital, insetting offers traceability and fosters demand for low-carbon transport solutions,” he asserted.

The motivation for a greener airfreight industry stems from a blend of innovation-driven companies and regulatory pressures. 

“Although regulations are a major driver, the recognition of sustainability as a competitive advantage is becoming widespread,” de Picciotto observed.

Pledge champions emission reduction at the source, providing insights for strategies like modal shifts and improved vehicle utilisation. 

“Our focus is on empowering companies to make strategic decisions that significantly reduce their carbon footprint,” de Picciotto said. 

READ: TIACA Latin America Event wraps up with pledge for future initiatives

Transitioning together

Partnerships play a crucial role in Pledge’s strategy, with de Picciotto highlighting their importance in educating and driving the industry towards net zero. 

“Our collaborations with industry associations are instrumental in our mission to promote sustainability,” he notes.

de Picciotto’s message to the industry is clear: “Start now. Even small steps towards measuring emissions can pave the way for significant impacts. The future of sustainability in logistics is not just a regulatory requirement but a competitive edge.”

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Author: Anastasiya Simsek