Navigating the Green Wave: How the Freight Forwarding Industry Is Embracing the Rising Tide of Sustainability in Europe

Sustainable supply chains are rapidly becoming the cornerstone of the freight forwarding industry in Europe. According to the European Logistics & Supply Chain Sustainability Report 2023, a remarkable 72% of European shippers are now integrating sustainability targets into their tender processes. This shift is not just a fleeting trend, but a profound transformation that is reshaping the industry's core priorities. As industry participants, it's crucial to understand these developments, as they could significantly influence your strategic decisions.

The Regulatory Push: Understanding the Impact of ISSB and IFRS S2

The International Sustainability Standards Board (ISSB)'s introduction of IFRS S2 marked a significant alteration in regulations, requiring companies to disclose greenhouse gas emissions across all scopes. For European freight forwarders, this translates to a heightened role in providing accredited emissions data. This regulatory push is in line with the growing demand for transparency in supply chain sustainability, signaling a major shift in operational focus.

The Rise of Emissions Reporting Frameworks

The adoption of emissions reporting frameworks such as the GLEC Framework and ISO 14083 is transforming the industry. The GLEC Framework provides guidelines for businesses to calculate and report transportation and logistics emissions. In contrast, ISO 14083 offers standardized methods for measuring and reporting greenhouse gas emissions in transport chains. These frameworks are revolutionizing European freight forwarding by fostering standardization and consistency in emissions reporting and enhancing data clarity and comparability across the supply chain.

Insetting Frameworks: Revolutionizing Supply Chain Decarbonization

Insetting, which involves investing in carbon reduction projects within one's supply chain, is becoming a transformative approach in Europe. It represents a significant shift from traditional offsetting methods and is increasingly recognized for its direct impact on decarbonization efforts. This proactive strategy is becoming a key pathway for the freight forwarding industry to contribute to global climate goals.

Supporting Clients in the Era of Climate Disclosure

Freight forwarders play a vital role in helping their clients meet climate disclosure obligations. With 56% of shippers willing to end partnerships over unmet sustainability targets, accurate and accredited supply chain emissions reporting is not just a matter of compliance but a strategic necessity in the European freight forwarding industry.

Conclusion: The Collective Journey Towards Sustainable Freight Forwarding

These sustainability trends, observed among European freight forwarders, indicate a significant shift driven by regulatory changes, consumer demands, and an industry-wide push for emissions reporting and reduction strategy standardization. With over half of the shippers ready to base their decisions on sustainability performance, the message for the freight forwarding industry is clear: embracing sustainability is not just beneficial—it's imperative.

Continue exploring these insights to see how they might influence your strategies and priorities in the ever-evolving world of freight forwarding.

Source : https: //theloadstar.com/2024-sustainability-trends-for-freight-forwarders/