UBQ Network makes possible an accurate carbon emissions calculation
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Karl McDermott, general manager for UBQ Network, presented at Fruit Logistica an innovative solution for calculating accurate carbon emissions.
The presentation theme held at the Logistics Hub last Friday 7th focused on “Carbon emissions reporting - your starting point for a more sustainable supply chain". The expert panel was formed by Karl McDermott, UBQ Network, Rebeca Dragomir, project manager of RED (Restart Energy Demography platform), a partner of the UBQ Network, Casiana Fometescu, founder and director of the consulting firm Carbon Expert. They responded to a series of thought-provoking questions from Fruitnet journalist Michael Barker.
What is Carbon Emission Reporting?
Karl started by creating some context. Roughly 40% of a produce company's carbon emissions are generated by the transport of goods. He explained the current mandatory carbon emissions regulations such as the European Union’s Corporate Sustainability Reporting Directive (CSRD) and California SB 253. The panel highlighted that traditional manual methods of estimating carbon emissions using spreadsheets are inefficient, time-consuming, and error-prone. These outdated processes expose organizations to regulatory penalties and serious brand reputational risks due to compliance failures or audit discrepancies.
Precise calculation using real-time trackers
Casiana Fometescu walked the audience through the Green House Gas (GHG) protocol and global standard for calculating carbon emissions. She also outlined the phased implementation for CSRD which already includes 60,000 companies today. Karl explained how UBQ Network takes precise location data from the DeltaTrak's IoT devices for Land and AIS for Maritime Vessels. This then gives actual distance for each segment of the shipment and the correct asset class. As this is done digitally at scale it is quick and accurate. Rebeca mentioned that the RED team have added the emission factors created by the UK government’s DEFRA to their solution to accurately calculate the carbon emissions. These factors are accepted globally as best practice.
Why is this important for the Produce and Grocery Industry?
Increasingly, downstream partners such as grocers and food service organizations are demanding accurate Scope 3 emissions data. This additional complexity has made traditional manual methods such as spreadsheets for managing carbon emissions obsolete. There was general consensus that quick and accurate carbon emissions reporting for each shipment and consolidated carbon accounting is an important step to reduce emissions: It provides a baseline for internal reduction projects, insets and offsets deliver tangible results; you can rank emissions by trade lanes, ports, carriers, asset class and assets, products; it supports carbon reduction strategies such as routing and dwell time at Ports and DCs as well as decarbonization efforts.
Several key challenges addressed in a Q&A cession
Capturing accurate data is a key barrier today. This solution reduces significantly the amount time required to create the carbon reporting. Does the solution scale? Yes companies like Westfalia who have Inbound and Outbound overseas shipments can create fast reporting across all shipment modes. UBQ Network also helps avoiding green washing and double reporting, because shipments can be consolidated by purchase order, shipment ID or other unique identifiers, we can avoid double reporting. A smaller producer can also use the same process, in in fact we have several already using UBQ solution. It also helps forward thinking brands with demographics that put sustainability high on their purchasing criteria to use the data to communicate real progress on ESG.
100% automated logistics and calculation
It often happens logistics teams are overloaded. By using fully automated UBQ logistics, sustainability and finance the team have less work to do. What are the implications for the USA since they have opted out of the Paris accord? Large companies operating in the EU and California will still need to report ESG progress. The unique and innovative service provided by UBQ Network uses the data to track progress toward Net Zero and ESG goals as well ss compliance with EU and US regulations.
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