How better quality data helps IKEA Supply Chain Operations & Girteka manage transport emissions

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Up-and-coming regulations imposed by the EU signify a need for certified, accurate emissions calculations. To get ahead of the curve and build on existing work to measure emissions, Girteka and IKEA Supply Chain Operations participated in a trial using Transporeon’s Carbon Visibility tool to test how data quality would impact overall emissions reporting.

Results showed that the higher the quality of your data, the more accurate your emissions reporting will be – and when you report less, you pay less.

According to the European Environment Agency (EEA), unlike other sectors, emissions from the European Union’s (EU) transport sector increased steadily between 2013 and 2019. 

It is also predicted that transport emissions will significantly rise in subsequent years following the pandemic. To tackle rising emissions from road transport, the EU has put forward various measures that will come into effect over the next few years. As part of the Green Deal, and under the European Climate Law, the EU Commission is working to align current climate, energy and transport-related legislation laws with the 2030 and 2050 ambitions through what is known as the ‘Fit for 55 package’. Within the Fit for 55 package, transport logistics will no longer be exempt from carbon certificate trading as of 2026 and will need to apply the EU Emissions Trading System (EU ETS). The package has also called for changes to the existing EU ETS, requiring sectors included in the trading system to reduce their emissions by 43% compared to 2005 levels. 

IKEA Supply Chain Operations and Girteka conducted a trial using Transporeon’s Carbon Visibility tool. The trial entailed tracking around 1,720 full-truck load transports using the three methodologies outlined in the GLEC framework: default data, modelled and primary data. Results were calculated bottom up, transport by transport to ensure total transparency. The trial found that under equal conditions, average well-to-wheel emissions reported using primary data were 5% lower than emissions reported using the default data. More than that, when looking at different sub-categories such as distance, weight and mode, differences in emissions were more obvious.

For example, the trial found that using primary data to track emissions in vehicles weighing between 10-20 tons showed a reduction of 6% in reported emissions compared to default data. With heavier transports (>20 tons) the effect was even clearer, with a reduction of 11%. Results also significantly varied depending on distance travelled. Mid-range-distances (between 300-900 km) measured using primary data resulted in 4% less emissions reported. Longer distances (>900 km) tracked using primary data reported 6% less emissions.

Likewise, when tracking intermodal transports, such as road-rail-road, using the primary data method resulted in 27% less emissions being reported. Also, there were use cases where the default calculation method suggested less emissions compared to actuals. Overall, the trial concluded that better data quality and the particular use of primary data brings added value. Depending on the variables, such as the use case, the differences to default value driven calculations can peak at 13% on average – meaning up to a 13% reduction in costs associated with reporting inaccurate emissions.

Read the full case study here.

With Transporeon Carbon Visibility, you can be part of the sustainability revolution with the most accurate and compliant CO2 emissions tracking and reporting tool available in the market. Powered by real-time data and industry benchmarking capabilities, Transporeon Carbon Visibility puts you at the forefront of supply chain sustainability with advanced carbon tracking for all your transports. Reporting is fully compliant with the GLEC framework, ensuring that you are ready when the European Green Deal goes into effect in 2023.

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