Standardized Emission Calculations along Supply Chains as a Basis for Smart Global Transport Solutions in a “Reality of Less” – Is an Approach within Reach?

Abstract

In the internationalized world of commerce, global supply chains are a fundamental element and in a “Reality of Less” the maximization of efficiency and effectiveness of these supply chains is of fundamental importance. This maximization of efficiency and effectiveness of supply chains though requires transparency of energy consumption and of emissions, because resources such as fuel and clean air are getting less available. A global standardization for the calculation of emissions would contribute to such a transparency as it allows comparison of the efficiency and effectiveness with regard to supply chains’ energy consumption. Currently, however, such a standard does not exist and a wide range of different methodologies and tools are applied by the various players: different databases are used, various calculation tools apply different indicators and they are generally not compatible with each other. As a consequence results obtained are incomparable at all levels: at the level of shippers as well as at the level of transport modes, of shipments, carriers or products. Comparisons between different supply chains, or elements within them, are not feasible and also trends over time or implications of changes to chains cannot be established. A globally applicable standard – similar to the International Financial Reporting Standards – still needs to be developed and implemented internationally. This research describes, based on the COFRET project which is part-funded by the EU, how currently on-going work and efforts worldwide can lead to a further convergence of existing emission calculation tools, as a basis for better supply chains.