Sustainability in Logistics at Merzario
Introduction to Sustainability
All businesses need to achieve a Net Zero goal before 2050 if the global climate target, e.g. to stay within 1.5 degrees of global warming since pre-industrial times, is to be achieved. The freight, transport and logistics sector has a big responsibility to move quickly in this respect.
Merzario has made a start over the last two years, and we have some key targets and strategies to improve the business’s sustainability in the future.
When smaller businesses start to measure and reduce their emissions, the effects cascade through the value chain.
We hope that our net zero and other sustainability goals and strategies will motivate other businesses within our sector, our clients, our suppliers and our employees.
Emissions are broken down into 3 “Scopes” – this gives clarity as to where the emissions are coming from.
- Scope 1: Emissions we directly create by ourselves as Merzario Ltd
- For example, the gas for hot water and heating and the fuel used in company vehicles
- Scope 2: Scope 2 emissions are indirect emissions from the generation of energy purchased from a utility provider, such as heating, cooling, steam, and electricity.
Merzario’ s scope 2 emissions are the result of electricity consumed
- Scope 3: Indirect emissions created elsewhere in the supply chain that are outside of our direct control.
- For example: employee commuting or purchases of services such as legal, accounting, consultancy, financial inter mediation such as banking fees and charges, internet and software, construction, maintenance, and business travel
Important note for transparency:
We did not include freight and warehousing expenditure.
These scope 3 emissions can be more accurately measured shipment by shipment using a sector-specific calculator based on a Freight Management System.
It can be argued that these freight emissions should be included in the following:
- Scope 3 emissions of the
- organisation producing and/ or sending the product
- purchaser of that product at the end of the journey.
- Scope 1 emissions of the carrier – e.g. shipping line, airline, haulage company.
- Paperless office
- Flexible working including working from home
- Car-pooling when commuting to Headoffice Rotterdam, Netherlands & Client visits
- Measured the Merzario carbon footprint for office operations December 2021
- Set the Merzario office-based greenhouse gas emissions for 2021
- offset 24 tonnes of CO2e via CER’s projects verified by the UNFCC
- Initiated research for calculation shipments’ carbon footprint and other polluting emissions
- Changed the electricity supply to 100% renewable electricity provider
Focus for 2023
- Measure the Merzario carbon footprint for year-end 31-12-2022
- Report differences since year-end 31-12-2021 (baseline year)
- Consider the higher emitting areas and work out strategies for emissions reductions during 2023 and declare a net-zero target date.
- Continue researching sector-specific calculators that will measure the scope 3 carbon footprint of freight on a shipment-by-shipment basis.
Sustainability ambitions for the future
As a Freight Forwarder, Merzario is responsible for working with its clients to reduce the emissions linked to their supply chain. We want to introduce software that will allow our clients to use more carbon-efficient logistics solutions. Such software will enable our clients to reduce their scope 3 emissions.
Merzario is actively looking for accurate software packages that provide shipment-by-shipment breakdowns of CO2e emissions.
Awareness of the real impact of choosing air, sea, road, or rail for each leg of a journey will allow customers to be more aware of the environmental impact of transporting their goods. Such information will help them make the necessary decisions to switch transport methods such as from air to sea, or from road to rail.
Our clients’ choices will put pressure on shipping carriers to move towards cleaner and more renewable fuel options that are also less polluting in terms of particulates. Thus, Merzario will play its part in motivating the industry to rapidly develop and to adopt far-reaching climate-positive solutions.
Merzario would like to evolve into a green freight forwarder by selecting carriers that minimise their emissions and are actively working toward a fossil fuel free, sustainable future for freight.
Carbon dioxide equivalent. Each greenhouse gas is given a relative factor based on their comparative global warming potential over a 100-year timeframe. E.g. 1 tonne of Methane is reported as 25 tonnes of CO2e
A business can claim to be carbon neutral when it has measured its greenhouse gas (CO2e) emissions, offset historic emissions, and published a target & plan to reduce these emissions to net zero by at least 2050
According to the SBTi (Science Based Targets Initiative) most businesses can claim to be net zero once they have reduced their emissions by at least 90% from their baseline year. Global net zero will be achieved when the total amount of greenhouse gases (GHG) released, and the amount removed from the atmosphere reaches an equilibrium.
CERs are units (carbon credits) issued by UNFCCC, measured in tonnes of CO2 equivalent. Anyone can purchase these units on this platform to compensate (or offset) emissions and/or to support these projects.
UNFCCC-certified climate friendly projects that reduce, avoid, or remove greenhouse gas emissions from the atmosphere. These projects are implemented in developing countries around the world and are rewarded with Certified Emission Reductions (CERs) for each tonne of greenhouse gas they help reduce, avoid or remove.