OIA GLOBAL is automating GLEC-conformant GHG emission calculations through interface with SFC-Accredited calculation tool
OIA has implemented an interface from an SFC-Accredited tool provider to calculate and track greenhouse gas (GHG) emissions data and leverage available information in its transportation management system (TMS). This will deliver automated, accurate and timely reporting on freight transport (Scope 3) emissions, in accordance with the GLEC Framework, allowing for better informed decision making and performance optimization.
Company descriptionOIA Global is a leader in end-to-end supply chain management, offering clients a unique combination of global logistics, packaging design and optimization, and raw material sourcing solutions. Visit www.oiaglobal.com to learn more about OIA’s holistic approach to the supply chain.
OIA faces a multifaceted problem that must be addressed using concrete metrics:
- Aggregate greenhouse gas (GHG) data to derive meaningful emission reduction targets and inform environmentally conscious decisions.
- Design and implement a carbon reporting model that provides customers with visibility of their transportation-related emissions data, calculation methods and reporting boundaries.
- Meet the GLEC Framework’s required standards.
What was doneOIA began by analyzing current methodologies for accounting and invoicing, since these areas provided natural alignment with existing data processes and reporting structures. Next, the organization searched for an auditable tool to calculate GHG emissions on a disaggregated level—the data is aggregated later by OIA.
OIA adopted EcoTransIT World and the Clean Cargo methodology because they’re accredited by Smart Freight Centre (SFC) and conform to the GLEC Framework, the only globally recognized methodology for harmonized calculation and reporting of logistics GHG footprint across multi-modal supply chains. EcotransIT World was integrated directly inside of OIA’s operating systems, where it could deliver shipment-level metrics from multiple legs through an automated application programming interface (API).
Before full implementation, system parameters were established and then tested while using a variety of movements. The first GHG calculation outputs were reported in January of 2020. SFC has reviewed the system and confirmed that the input and output data flows are sound for all modes, and that final emission values are calculated in accordance with the GLEC Framework.
ResultsAdopting the GLEC Framework allows OIA to increase customer reporting to its desired level of detail. Previous GHG emission reporting was manual, infrequent and didn’t consider routings or modes outside the primary transport legs. Those calculations were educated estimates and they lacked the detail needed to drive incremental change.
Now, EcoTransIT World offers an efficient, reliable, auditable solution to record shipment’s total GHG emissions. The tool is based on an accredited calculation methodology that delivers emissions and distances for each of the individual routing legs and then uses the API response to return different metrics. Following the technical review by SFC, OIA will implement continuous improvements, aiming to include additional shipment parameters and elements to further enhance the calculations going forward.
ConclusionsThis case study highlights the challenges freight buyers such as OIA face when calculating and reporting GHG emission data, and underlines how software systems can be leveraged to overcome obstacles. There are two crucial factors: data exchange and the integration of necessary parameters within transport management systems. OIA's integration showcases how organizations can utilize API technologies to outsource complex emission calculations and enable an automated flow of information to customers.
To standardize and accelerate these practices across the industry in the future, the Data Access & Exchange GLEC project is developing data exchange guidance and standardized protocols. Additional information regarding the latest market insights and next steps of the project can be found here.