Emissions From Logistics Operations
From receiving parts and components from our suppliers to delivering finished vehicles to our dealerships, our logistics operations represent a significant opportunity to reduce our environmental impacts, particularly with regard to emissions.
Managing Our Networks
To minimize the impacts of our inbound and outbound freight, we examine every opportunity to reduce the number of miles we travel and explore more fuel-efficient and lower-carbon modes of transport.
Overseen by our Material Planning and Logistics organization, our environmental initiatives are coordinated at a regional level. They include:
- Updating our fleets to ensure we comply with the latest requirements of ISO 14001 and other regulatory standards
- Improving the efficiency of our network to reduce emissions
- Measuring and reporting our freight greenhouse gas (GHG) emissions
- Optimizing the packaging to protect components and finished vehicles in transit
How We’re Reducing Freight Emissions
Freight emissions are dependent on a wide range of inter-related factors, including the type of transport used, the efficiency of the equipment and the design of the network. We seek to achieve emissions reductions by improving the efficiency of our processes, by adopting new technology and by using alternative modes of transport.
- Improved route planning
- Regional distribution centers to coordinate deliveries
- “Milk run” routes with several collection points
- Training in fuel-efficient driving techniques
- Latest engine technologies
- Equipment modifications (e.g., deflectors, speed limiters)
- New packaging designs that carry extra loads
- Greater load density for fewer trips and lower fuel consumption
Other Transport Modes
- Using rail, sea and river transport to reduce emissions and road miles
- Multimodal solutions (e.g., “SWAP bodies”: road trailers that can also be used for rail)
Measuring and Reporting Freight Emissions
Quantifying and reporting our freight emissions helps us minimize our total life cycle carbon emissions and reduce our overall environmental footprint. We measure all GHG emissions, including nitrous oxide and methane, using the “CO2 equivalent” (CO2e) approach. Our logistics partners help us by collecting data from across our networks and collating it in a global scorecard.
We also work with industry bodies and standards agencies to improve reporting methods, such as the Scope 3 GHG Emissions Standard, This framework for reporting emissions throughout the value chain was developed by the World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD). We now take account of “well-to-wheel” emissions that result from the production of the fuel and energy we use, and continue to adapt our methodology as necessary.
We are actively working with a team of students from the University of Michigan School for Environment and Sustainability (UM-SEAS) to evaluate our current CDP Scope 3 submission for accuracy, opportunities for improving its content and developing recommendations to incorporate into a future Scope 3 Reduction Strategy.
Through the Automotive Industry Action Group (AIAG) in North America, the U.K. Department for Transport and Odette International in Europe, we also encourage others in our industry to improve their measurement and reporting of GHG emissions.