#LogisticsAdvice

Scope 3 Emissions: How to Measure and Reduce Your Supply Chain Carbon Footprint

Key Takeaways

  • Scope 3 Transparency: Supply chain transport is a major share of your indirect emissions. Accurate measurement is essential.
  • Insetting over Offsetting: Carbon insetting cuts emissions inside your own supply chain, while offsetting pays for reductions somewhere else entirely.
  • Regulatory Readiness: Upcoming reporting rules in Australia mean you'll need validated data to keep bidding on contracts.
  • The DHL Express Solution: GoGreen Plus lets you directly reduce your transport emissions by investing in Sustainable Aviation Fuel across our global network.

Your carbon data is only as good as the systems behind it. If the underlying tracking is wrong, your sustainability efforts won't hold up under an audit. Here's how to get your Scope 3 transport data in order before the next reporting window closes.

 

Why is Scope 3 tracking suddenly urgent for logistics managers?

The pressure is on. Corporate buyers are cutting suppliers who can't prove their emissions data, and regulators are moving to mandatory disclosure. For example, the Australian Government is introducing mandatory climate-related financial disclosure requirements for large businesses, with the first phase starting for financial years commencing on or after 1 January 2025. This means many companies will soon need to report on supply chain emissions, making your data more important than ever.

What this puts at risk

  • Contract Risks: Large corporate customers are actively removing suppliers who can't provide clear carbon metrics.
  • Audit Pressures: Your transport data must stand up to external audits to avoid financial penalties.
  • Tender Protection: Precise emissions data protects your eligibility to tender for major contracts.

What a single lapse can cost you

A variance of around AUD 72 per shipment adds up fast across an annual freight program. That's before you factor in the cost of losing the contract entirely.

 

What is the difference between carbon offsetting and carbon insetting?

These two approaches sound similar but work very differently. Confusing them can undermine your entire environmental strategy.

How the two approaches compare

  • Carbon Offsetting: Balances emissions by funding external projects like planting trees, completely outside of your logistics network.
  • Carbon Insetting: Reduces emissions directly within the transport network where your freight actually moves.

Aspect

Carbon Offsetting

Carbon Insetting

Focus area

Funding external projects

Cutting emissions in your own value chain

Aviation impact

No direct change to the fuel used

Replaces fossil fuel with Sustainable Aviation Fuel (SAF)

Methodology

Compensates for emissions elsewhere

Avoids emissions at the source of transport

Data proof

Compensating carbon credits

Verified carbon reduction certificates

Why insetting wins for logistics

  • Direct Reduction: You lower the actual carbon intensity of your logistics operations instead of paying for unrelated projects.
  • Audit Credibility: Insetting data maps directly to your specific freight routes and shipment weights.
  • Future Proofing: This method aligns with international transport decarbonisation frameworks.

 

What exactly is Sustainable Aviation Fuel?

Sustainable Aviation Fuel (SAF) is a renewable alternative to standard jet fuel. It's made from sources like waste oils and agricultural by-products and can be used in existing aircraft engines with no modifications. This makes it a practical tool for insetting.

How much SAF cuts from your footprint

SAF can reduce lifecycle carbon emissions by up to 80% compared to conventional jet fuel, according to DHL's own published sustainability data. It's one of the most direct ways to cut your transport footprint without changing how your cargo moves.

Why this matters for insetting

This is the core of DHL Express's insetting approach: replacing fuel inside the network your cargo already moves through, not buying a credit for a project elsewhere. GoGreen Plus is how you book and verify it for your shipments. It's especially valuable if you're shipping high volumes out of a hub like Port Botany.

 

How do you lower shipping emissions with GoGreen Plus?

Cutting transport emissions doesn't mean slowing down your supply chain. You can keep your delivery speed and shrink your carbon footprint.

Four features that make this easy

  • Direct Integration: The GoGreen Plus service is built directly into the MyDHL+ platform when booking a shipment.
  • Flexible Targets: You choose the percentage of Sustainable Aviation Fuel allocation that matches your corporate goals.
  • Verified Reporting: You get an annual certificate detailing your exact carbon reductions for your compliance files.
  • Platform Simplicity: Selecting GoGreen Plus adds no extra steps to your existing MyDHL+ booking process.

How DHL Express verifies every reduction

An external auditor checks the entire blending and allocation process. This gives you auditable proof of every carbon reduction for your compliance files. GoGreen Plus applies to your international air express shipments with DHL Express.

 

What steps should you take to audit your carbon footprint?

A systematic approach to data collection prevents errors and makes your annual sustainability audit much less painful.

Four things to get right before you audit

  • Centralised Reporting: DHL Express shares an annual carbon emissions report with our GoGreen Plus customers.
  • Peak Planning: Capacity gets extremely tight during the Christmas and New Year shutdown. Plan ahead.
  • Customs Readiness: Our customs services help you maintain documentation readiness, in line with requirements from the Australian Border Force (ABF).
  • Continuous Visibility: Automated audits help you maintain data accuracy even during high-volume periods.

Four steps to build your audit process

  • Identify Routes: Map all international air express freight routes you control to understand your transport footprint.
  • Consolidate Shipping Data: Bring your shipping data into MyDHL+ to see your automated carbon footprint metrics.
  • Select Insetting Targets: Choose an insetting percentage in the platform that fits your corporate sustainability goals.
  • Export Verified Reports: Export the verified carbon reports to share with your corporate compliance auditors.

 

How can regional green grants help fund your sustainability shift?

Switching to low-carbon shipping can have upfront costs, but federal and state governments offer financial assistance to help.

What this support looks like

  • Offsetting Costs: Grants and tax incentives help balance your budget during the early phases.
  • Emissions Verification: We can provide verified emissions data reports to support your grant applications.
  • Local Opportunities: You should investigate financial assistance options available in your state.
  • Budget Balance: Combining public financial support with carbon insetting helps you manage your freight spend.

Where to start looking

You can explore funding opportunities from federal bodies like the Australian Renewable Energy Agency (ARENA) or various state-based environmental programs. We do not qualify customers for government programs, so your eligibility is your own responsibility.

 

Audit your logistics carbon footprint today

Managing Scope 3 emissions requires a smart balance of speed and precise data. DHL Express supports that with GoGreen Plus, letting you cut real transport emissions through Sustainable Aviation Fuel while keeping full, audit-ready records.

Speak to a DHL Express specialist today to check your shipping lanes and find a cleaner way to move your cargo.

 

Frequently Asked Questions

Indirect emissions from transport and distribution are the largest share of a company's Scope 3 footprint. This makes your logistics partner's fuel choices and routing a direct factor in your reported numbers.

Carbon insetting directly reduces emissions within your supply chain by using cleaner fuels. Offsetting funds external projects, like planting trees, that don't lower the carbon footprint of your actual shipments.

Sustainable Aviation Fuel can reduce lifecycle carbon emissions by up to 80% compared to traditional jet fuel. It's central to how DHL Express delivers carbon insetting.

An independent third-party auditor verifies the entire blending and allocation process every year. This ensures every contribution provides reliable data for your compliance reports.

Many federal and state government bodies offer green grants and tax incentives to support companies transitioning to sustainable shipping. We can provide the verified emissions reports you need to support your application.