The International Organization for Standardization (ISO) has recently introduced a new environmental standard – ISO 14083:2023. This standard focuses on quantifying, allocating, and reporting greenhouse gas (GHG) emissions within transport chains for passengers and freight. It covers all land, water, and air transport modes, including the operational emissions from transport hubs, applicable along the entire transport chain.
Why ISO 14083 Matters
For the supply chain, transportation, and freight industry, it is essential to have standardised emissions reporting. Many companies track supply chain emissions, which will become mandatory in many countries. ISO standards also ensure a consistent approach to business operations across industries and regions, promoting transparency and ease of operation.
Implications for Businesses
While the new standard may not immediately change how businesses operate, it forms part of a larger trend that will impact all supply chains soon. Similarly to how companies handling sensitive data strive for ISO 27001 certification, supply chains will be judged by their ability to achieve an ISO 14083 certificate. The standard represents a crucial competitive advantage for businesses, providing concrete evidence of their commitment to green practices, which are increasingly favoured by high-spending consumers and investors.
Moreover, businesses that are further from achieving ISO 14083 can use the standard as a powerful tool to lend credibility to their decarbonisation plans. Companies showcase their efforts in reducing Scope 3 emissions, potentially incentivising board members to back supply chain projects aimed at reducing emissions. This could lead to cost savings and carbon reductions, reinforcing the business case for sustainability initiatives.
The Importance of Calculating and Measuring Emissions Properly
Especially when it comes to Scope 3 emissions, which are carbon emissions from third-party suppliers you have no direct control over, it is important to measure correctly. There are different ways to measure and calculate emissions. Take, for example, the difference in reported emissions between a company using statistical averages versus one using actual emission data from connected trucks.
Getting Ready for ISO 14083
A key step towards readiness for ISO 14083 is aligning business operations with the Global Logistics Emissions Council (GLEC) Framework. The GLEC Framework provides guidelines for measuring and reporting logistics emissions. As ISO 14083 has incorporated much of the GLEC Framework’s guidelines, businesses that align with this framework will be better positioned to achieve the standard in the future.
ISO 14083 is an important step towards a more sustainable future. Providing a standardised method for measuring and reporting GHG emissions helps businesses demonstrate their commitment to sustainability and better prepare for a net-zero future.