Categories: Sustainability

Helen

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We’re thrilled to share with you a pioneering initiative that marks a significant stride in our sustainability journey. Our commitment to environmental responsibility has led us to invest in Insets, a groundbreaking concept that actively reduces emissions within our value chain.

The Challenge of Scope 3 Emissions in Transport

In the realm of sustainability, Scope 3 emissions in transport pose a unique challenge. Unlike Scope 1 and 2 emissions that are within a company’s direct control, Scope 3 emissions encompass the entire value chain, making it harder to implement direct reductions. In the transportation sector, reducing emissions traditionally requires carriers to pass the cost to their physical clients, creating a barrier to widespread emission reduction.

Smart Freight Centre Methodology

The Smart Freight Centre has developed a methodology to account for environmental progress in the transport sector thanks to a so-called Book & Claim system.  This innovative framework has paved the way for Insets, allowing various actors within the value chain to contribute to emission reductions, regardless of their direct relationship with the carrier. Adopting the Book & Claim methodology allows cargo owners to accelerate the transport decarbonization roadmap, making impact cost-effectively and flexibly. With many logistical service providers embracing this solution to go green, Insetting is expected to be one of the hottest trends in climate finance this year.

Insets: A Holistic Lifecycle

Insets distinguish themselves by addressing scope 3 reductions, even when these reductions occur outside the physical carrier responsible for transporting our product. This distinctive approach involves a comprehensive assessment of the total lifecycle emissions of fuels. In accordance with ISO 14083, the Global Logistics Emissions Council (GLEC) provides a framework to measure emissions well-to-wheel. By adopting this innovative perspective, the transport sector gains the ability to explore a wide range of strategies for emission reduction, presenting unprecedented opportunities to significantly diminish the overall carbon footprint.

Reducing the Carbon Footprint

A crucial element in our strategy to cut down our environmental impact is minimizing the lifecycle emissions associated with the fuels used throughout our value chain. This strategic shift represents a proactive step towards reducing the carbon footprint associated with our operations. This can be done both by switching to renewable fuels as well as reducing the lifecycle emissions of fossil fuels. By embracing this holistic approach, we not only decrease our reliance on finite fossil fuels but also contribute significantly to the broader shift towards a more sustainable and environmentally friendly energy landscape.

Flare Elimination: A Cleaner Energy Production and Improved Air Quality

A crucial facet of our Insets initiative is the elimination of flaring from the extraction process of fossil fuels. Flaring, a common industry practice, released 357 million tons of CO2e in 2022 (Worldbank). By actively addressing and eliminating flaring, we are taking a giant leap towards a cleaner and more sustainable energy production process. Moreover, this commitment translates into tangible improvements in the air quality of nearby communities, aligning with our vision for responsible environmental stewardship and aiming to reduce our overall impact on climate change.

Our Investment in Insets

As a first step in this strategic move, we are proud to announce our collaboration with STX Group enabling investments in Insets as part of our commitment to sustainability. By contributing to the reduction of Scope 3 emissions, we are navigating to a more sustainable future. Insets provide a unique opportunity for various stakeholders to join forces in reducing emissions cost-effectively and flexibly, transcending the conventional limitations of the transport industry.

As we embark on this journey, we invite you to be a part of our sustainable vision. Together, we can make a tangible impact on reducing emissions and building a more environmentally conscious future.

Questions – thoughts? Please contact helen@firstcargo.se

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