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Towards multimodal marketplace platform for SCOPE 3 emission-aware logistics – designing ADMIRAL marketplace
Jukka Kääriäinen1, Markku Mikkola1, Harri Pyykkö1, Ville Hinkka1, Emma Mulhern1, Simo Salminen2
1VTT Technical Research Centre of Finland Ltd.; 2Awake.AI Ltd.
Logistics operations embedded in global supply chains generate a significant amount of greenhouse gas emissions which, until recently, have only been viewed from a more holistic perspective. Scope 3 emissions include indirect emissions that occur in the upstream and downstream activities of an organisation e.g., from transportation providers, suppliers, retailers, employees, and customers. Scope 3 emissions make up a majority of the carbon footprint of most organizations, but studies show that they are hard to measure and manage in the context of companies due to several reasons (Kojo, 2023), e.g., data availability and quality. Also, the reporting and verification of Scope 3 emissions are not consistent and transparent. Therefore, we need new solutions that can make it easier to collect, combine and share emissions data in the logistics service chain.
End-to-end visibility in the logistics chain goes beyond a focal company’s boundary and extends to freight ecosystem partners, such as customers, suppliers, freight forwarders, and logistics service providers. This requires a means to organise the collaboration. The concepts of digital platforms and digital ecosystems have emerged within this context bringing different ecosystem stakeholders together, allowing them to communicate, share data and interact and, therefore, also simplify the complexities of day-to-day transactions among cargo stakeholders (Wang & Sarkis, 2021).
Our study provides insights on how a digital logistics marketplace including emissions data is developed in a project consortium consisting of four development cases connected by the marketplace. The cases focus on different logistics service operations (truck, train, port). The three-year development process is still ongoing, and at this point we can report the observations and findings from the first year.
This research follows a qualitative approach to examine the development of a digital marketplace for emissions-aware logistics services in the context of the EU co-funded project ADMIRAL. Currently we have an initial concept of an emission-aware logistics marketplace as well as the first experiences of defining such a platform. However, several issues are challenging the development of such a marketplace – such as data sharing, governance model and overcoming the chicken and egg problem. The marketplace aims to facilitate interaction between the sellers (producers) and the buyers (users). The sellers operating on the platform offer their logistics services according to rules set by the platform operator. The emission-aware buyers acquire these services via the platform. The marketplace is not only a transaction platform, but it also provides capability for application developers and integrators to build and integrate applications on top of the marketplace utilising the developer portal. The marketplace operator facilitates the operation and enables value creation between the different parties of the platform. Furthermore, the operator determines and controls who can access the platform and under what conditions (e.g., curation). Thus, the marketplace has many challenges to tackle, and it remains to be seen how we will succeed in our journey towards a multimodal marketplace platform for Scope 3 emission-aware logistics.
Decarbonizing Logistics: A Strategic Approach to Reducing Scope-3 Emissions
Sven Steinert
H&Z Unternehmensberatung, Germany
The global logistics industry faces the urgent challenge of reducing its CO2 emissions. With increasing pressure from governments, consumers, and investors to adopt more sustainable practices, proactive measures to decarbonize are essential. Transport and logistics account for approximately 14% of global CO2 emissions, highlighting the urgency to make significant progress in this sector. This presentation at the Hamburg International Conference of Logistics outlines a comprehensive roadmap to reduce Scope-3 emissions in the transport sector. Scope-3 emissions encompass all indirect emissions in a company’s value chain and are particularly difficult to manage. Reducing these emissions is crucial for achieving global climate goals and ensuring the long-term competitiveness of the logistics industry. Companies must follow several steps to successfully decarbonize:
Transparency: Calculate the CO2 footprint using primary data or emission factors
Hot Spot Identification: Identify “CO2 hotspots” to prioritize decarbonization activities
Define Decarbonization Roadmap: Identify decarbonization levers, create a timeline, and assign responsibilities
Track Measures: Develop data dashboards to visualize the current status and progress of decarbonization efforts
A specific project example illustrates the practical applications and successes of this strategy. A leading logistics provider based in Hamburg identified its most emission-intensive routes and conducted a detailed analysis of the main sources of emissions. Innovation workshops with suppliers led to sustainable transport solutions such as alternative fuels and more efficient transport methods. A global network of sustainability champions coordinated the implementation of these solutions across different regions.
Supported by a “Green Solution Map,” which provided a clear overview of available green offerings, and a tracking tool to monitor progress, the project achieved a significant reduction in Scope-3 emissions and set new benchmarks for sustainable practices in the logistics industry.
Decarbonizing the logistics industry offers the opportunity to innovate in sustainability and lead the way. With a strategic roadmap, targeted interventions, promotion of innovation, and global collaboration, significant emission reductions can be achieved. This presentation aims to inspire logistics professionals and equip them with the knowledge and tools to drive decarbonization efforts within their organizations, contributing to a more sustainable future.