How to Manage Transport Emissions Data: A Compliance Guide for Shippers and Carriers

Executive Summary: Mastering Transport Emissions Compliance

Regulatory pressures like ISO 14083:2023 and CountEmissionsEU are creating new challenges for logistics leaders, shippers, and LSPs in managing emissions data and reporting accurately. This toolkit tackles common data, analytics, and systems challenges for both shippers and carriers, proposing solutions to navigate compliance while improving efficiency. By improving data integration, automating processes, and streamlining systems, logistics teams can reduce compliance costs and enhance operations.

The Pressure to Get Emissions Reporting Right

For shippers and carriers working with goods flow in and out of the EU and Nordics countries, regulations like ISO 14083:2023 and CountEmissionsEU demand accurate and comprehensive emissions data. However, fragmented data, outdated IT systems, and manual processes hinder compliance, inflate costs, and reduce competitive advantage. To meet these evolving standards, logistics leaders must adopt modern data management systems, leverage advanced technology, and improve collaboration across the supply chain.

Common Challenges for Transport Emissions Compliance

Shippers

1. Fragmented Data: Shippers often receive emissions data in varying formats from different carriers, complicating the process of consolidating this data into a comprehensive emissions report.
2. Manual Data Entry: Manual data aggregation is prone to errors, making the reporting process inefficient and vulnerable to inaccuracies.
3. Complex Transport Chains: Multi-leg and multi-modal transport chains further complicate the emissions tracking process, especially when subcontractors are involved.

Common Challenges for Carriers

1. Inconsistent Data Collection: Carriers often use outdated or manual fuel tracking methods, which can result in incomplete data and inaccurate emissions reporting.
2. System Integration: Carriers face challenges integrating emissions tools with existing Transport Management Systems (TMS), leading to inefficiencies in data consolidation.
3. Scaling IT Systems: As operations grow, carriers’ IT systems may struggle to keep up with the increasing volume and complexity of emissions data.

What Shippers Can Do: Practical Steps for Transport Emissions Compliance

Shippers, including manufacturers, wholesalers, and retailers, play a critical role in the overall emissions footprint of the supply chain. From managing data from multiple carriers to ensuring compliance with evolving regulations, shippers need robust systems and processes to maintain accuracy in emissions reporting.

Here’s an overview of key steps and activities to tackle common challenges:

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Step-by-Step Data Management Overview for Shippers

1. Work proactively with carriers on data-sharing
   • Challenge:
     • Availability of data from carriers varies
     • Non-standardised formats and granularity, incomplete or too aggregated data
     • Manual data transfer and legacy processes
   • Data & Analytics Solutions:
     • Include data sharing requirements in tendering requests and evaluation
     • Implement standard data reporting agreements with carriers to ensure data availability
     • Enforce standardised data exchange protocols towards carriers to improve consistency of frequency, data formats, granularity, and quality
   • Systems:
     • Implement systems that integrate with carriers, improving data import efficiency
2. Reduce cost of data complexity
   • Challenge:
     • Shippers often use multiple carriers
     • Extensive manual efforts to consolidate and normalise data
     • Multi-leg and multi-modal transport chains increase complexity
   • Data & Analytics Solutions:
     • Adopt automated data integration to extract/fetch or receive data from various carriers into a single data repository
     • Implement infrastructure to consolidate, cross-check, and normalise shipment data
     • Build a shipment data warehouse with standardised star structure for all historical data, ready for processing
   • Systems:
     • Utilise cloud-based shipment data management tools to centralise all data
3. Improve data quality and reduce manual entry
   • Challenge:
     • Lacking master data quality
     • Poor quality manual entry
     • Manual effort required to adjust for data weaknesses
   • Data & Analytics Solutions:
     • Automate enrichment and processing wherever possible
     • Build QA into the system with various quality controls on data input forms
     • Implement data quality metrics and BI dashboards to follow up on performance
     • Designate responsibility internally for data quality
   • Systems:
     • Consider using specialised consultants to review data quality and design improvements
4. Enrich shipment bookings with granular order references
   • Challenge:
     • Lack of integration between ERP, order management, and TMS
     • Lack of end-to-end data visibility, hindering efficient downstream emissions reporting
   • Data & Analytics Solutions:
     • Collaborate with reporting stakeholders to understand reporting requirements
     • Implement improved data exchange/integrations between core systems and TMS to enrich carrier shipment data with customer references
     • Continuously cooperate with internal IT teams to ensure seamless integration between systems
   • Systems:
     • Build multi-modal emissions tracking systems that handle complex chains and subcontractor data
5. Secure cost-efficient compliance of regulation
   • Challenge:
     • Calculation methodology is evolving, and requirements are a moving target
     • Reporting requires manual effort that will scale poorly if not automated
   • Data & Analytics Solutions:
     • Build reporting functionality to automate the creation and distribution of customer-specific reports
     • Streamline emissions reporting across different transport modes to various downstream stakeholder segments
   • Systems:
     • Consider using accredited calculation and reporting tools to secure compliance for future development

Shipper Checklist for Emissions Compliance

• Data-sharing: Set data-sharing agreements and protocols with all carriers.
• Automation: Implement automated systems for data consolidation and processing.
• Systems Integration: Ensure integration between ERP, TMS, and emissions tracking platforms.
• Compliance Automation: Automate emissions reporting workflows to reduce manual efforts.
• Consult Experts: Engage consultants to review and improve data management.

What Carriers and LSPs Can Do: Steps for Emissions Compliance

Carriers play a key role in ensuring data reliability and reporting accuracy. From tracking emissions data to minimising compliance costs, carriers can best support the ecosystem by modernising data management and collaborating closely with shippers to meet regulatory requirements for all parties.

Here’s an overview of key steps and activities to tackle common challenges:

Step-by-Step Data Management Overview for Shippers

1. Gap Analysis of Status Quo vs. Upcoming Requirements
   • Challenge:
     • High demands on data granularity
     • System support and domain expertise lacking
   • Data & Analytics Solutions:
     • Perform a gap analysis on current data
     • Establish data collection on TOC (Transport Operating Cost) performance metrics
   • Systems:
     • Use specialised consultants for system design
2. Improve Internal Data Management
   • Challenge:
     • Fragmented data
     • Inadequate tracking of key metrics
   • Data & Analytics Solutions:
     • Implement primary data capture tools
     • Strengthen centralised data platforms
   • Systems:
     • Engage transport data management specialists
3. Work Proactively with Subcontractors on Data-Sharing
   • Challenge:
     • Multiple transport legs
     • Incomplete data from subcontractors
   • Data & Analytics Solutions:
     • Set data-sharing agreements
     • Standardize reporting protocols
   • Systems:
     • Use specialised software providers for data management
4. Pursue Calculation Excellence
   • Challenge:
     • Evolving regulatory demands
     • Complex calculation requirements
   • Data & Analytics Solutions:
     • Use TOC primary data for emissions
     • Ensure sufficient granularity for customer requirements
   • Systems:
     • Work with accredited providers for compliance tools
5. Automate Reporting Workflow
   • Challenge:
     • Cost of manual reporting
     • Growing compliance demands
   • Data & Analytics Solutions:
     • Build web portals for customer access
     • Automate data processing and validation
   • Systems:
     • Use accredited tools for automated reporting

Carrier/LSP Checklist for Emissions Compliance

• Data Analysis: Conduct a gap analysis to identify missing or inconsistent emissions data.
• Primary Data Capture: Implement advanced telematics and data tracking systems for real-time monitoring.
• Data-sharing with Subcontractors: Standardise data-sharing agreements with subcontractors for consistent reporting.
• Automate Workflows: Automate reporting processes to reduce manual intervention.
• Compliance Tools: Invest in accredited tools for secure, compliant reporting.

Conclusion

Logistics leaders, whether managing shippers or carriers, must adapt to evolving emissions regulations by modernising their data management processes. With the right systems, automation support, and collaboration between stakeholders, companies can streamline emissions reporting, reduce compliance costs, and operate more efficiently in a regulated environment.

Want to learn more?  

At Kinver, we are all about data-driven insights. To support our customers and audience with navigating the ever-evolving changes in the emissions space, we are launching a new mini-series, EU Legislation, Under the Microscope, where we’ll break down complex regulations like CountEmissions EU or ISO 14083:2023 and offer guidance on how to navigate them successfully. Stay tuned for deeper insights, practical steps, and the best ways to align your business with the future of emissions reporting.