How DHL Express addresses Scope 3 emissions

In today's world, businesses rely heavily on complex supply chains to deliver goods and services. These intricate networks often involve numerous forms of transportation, procurement processes, and product lifecycles, all of which can contribute to significant environmental impacts. This is where Scope 3 emissions come into play, encompassing all indirect emissions that occur in a company's value chain.

This blog post will explore the concept of Scope 3 emissions in more detail, discuss relevant laws and regulations, and showcase how DHL Express is helping businesses reduce their environmental impact through initiatives like GoGreen Plus and its broader commitment to sustainability.

What is Scope 3 emissions in the logistics industry

Scope 3 emissions are the indirect greenhouse gas emissions that occur in a company's value chain, including activities like transportation, procurement, and product use. For logistics businesses, Scope 3 emissions are particularly significant because they account for a large portion of their overall environmental impact. In 2023, it was reported that the corporate supply chain’s Scope 3 emissions were, on average, a staggering 26 times greater than a company's direct operational emissions¹.

However, measuring and reporting these emissions can be challenging due to the complexity of supply chains and the involvement of multiple stakeholders. To better understand the scope of these emissions, let's explore some key categories of Scope 3 emissions, as defined by the Greenhouse Gas Protocol, that are most relevant to the logistics sector:

• Purchased goods and services: This category accounts for emissions produced during the creation and delivery of any goods and services a company acquires. For logistics providers, this could include emissions generated in manufacturing vehicles, producing packaging materials, or developing IT equipment.
• Upstream transportation and distribution: Emissions from the movement of goods and materials to a company's facilities fall under this category. In the logistics sector, this could involve emissions from transporting goods from suppliers to warehouses.
• Downstream transportation and distribution: This category encompasses emissions generated when moving goods from a company's facilities to its customers. This represents a major source of Scope 3 emissions for logistics companies, as it includes emissions from delivery trucks, airplanes, and other modes of transport.
• Fuel and energy-related activities (not included in Scope 1 or 2): This accounts for emissions arising from the production and use of fuels and energy not directly related to a company's core operations or electricity consumption. For logistics companies, this could include emissions associated with fuel extraction, refining, and transportation.
• Waste generated in operations: This category covers emissions stemming from the disposal and treatment of waste produced by a company's operations. For logistics companies, this might include emissions from the disposal of packaging materials or damaged goods.
• Business travel: Business travel encompasses emissions associated with business-related travel, including flights, train journeys, and car rentals.
• Employee commuting: Employee commuting accounts for emissions generated by employees commuting to and from work. Although not directly linked to logistics operations, it remains an important area for companies to consider and potentially address through initiatives such as promoting public transportation or incentivizing carpooling.

Laws and regulations driving Scope 3 emission reduction

As awareness of climate change and its impacts grows, governments and organizations worldwide are implementing laws and regulations to encourage businesses to reduce their Scope 3 emissions, including:

Science Based Targets initiative (SBTi)

The SBTi is a partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). It promotes ambitious emissions reduction targets in line with the latest climate science, helping companies set targets that are aligned with the Paris Agreement's goal of limiting global warming to well below 2 degrees Celsius above pre-industrial levels.

The SBTi specifically requires companies to set Scope 3 targets if Scope 3 emissions account for 40% or more of their total emissions². It provides guidance and criteria for setting these targets, ensuring they are ambitious, credible, and contribute to meaningful emissions reductions.

Global Reporting Initiative (GRI) Standards

The GRI Standards are a widely recognized framework for sustainability reporting, providing guidance on how companies can disclose their Environmental, Social, and Governance (ESG) performance. While the GRI Standards do not explicitly require reporting on Scope 3 emissions, they encourage companies to be transparent about their environmental impacts, which may include Scope 3 emissions depending on the industry and the materiality of those emissions to the organization.

The GRI Standards promote a comprehensive approach to sustainability reporting, enabling companies to provide a holistic view of their ESG performance to their stakeholders. By disclosing relevant environmental information, including Scope 3 emissions when appropriate, companies can demonstrate their commitment to sustainability and contribute to a more transparent and accountable business environment.

CDP Supply Chain Program

CDP is a global non-profit that runs the world's environmental disclosure system for companies, cities, states, and regions. Its Supply Chain Program encourages companies to engage with their suppliers on climate change, helping them to understand and manage their Scope 3 emissions.

Through the CDP Supply Chain Program, companies can request information from their suppliers about their emissions and climate change strategies. This helps companies gain visibility into their Scope 3 emissions and identify opportunities to collaborate with suppliers on sustainable emissions reduction initiatives.

DHL Express's broader commitment to sustainability

DHL Express is fully committed to its mission to achieve net-zero emissions by 2050. This ambitious goal is not just a statement, but a reflection of the company's deep-rooted dedication to environmental sustainability, and its proactive approach to minimizing its carbon footprint. DHL Express understands that as a global leader in logistics, it has a responsibility to lead the way toward a greener future for the industry.

One of the key areas of focus is the transition to electric vehicles. DHL Express is actively electrifying its delivery fleet, aiming to have 60% of its last-mile delivery vehicles be electric by 2030. This shift to electric vehicles not only reduces carbon emissions, but also contributes to cleaner air quality in the communities it serves.

In addition to electric vehicles, DHL is also increasing its reliance on renewable energy sources. The company is progressively powering its facilities and operations with eco-friendly powerage such as solar and wind power. This reduces dependence on fossil fuels, further minimizing the company's environmental impact.

Sustainable Aviation Fuel (SAF): A key to decarbonizing aviation

Another key solution that DHL utilises to reduce Scope 3 emissions is the use of Sustainable Aviation Fuel (SAF). SAF is a cleaner alternative to conventional jet fuel, produced from a variety of renewable sources. These sources include used cooking oil and animal fats, agricultural residues and non-food crops, forestry waste, municipal solid waste, and dedicated energy crops. By utilizing these diverse feedstocks, SAF production reduces reliance on fossil fuels and contributes to a circular economy, with benefits such as:

• Reduced carbon emissions: SAF can reduce lifecycle greenhouse gas emissions by up to 80% compared to traditional fossil fuels.
• Improved air quality: SAF has lower particulate matter emissions, contributing to cleaner air and better health outcomes.
• Reduced reliance on fossil fuels: SAF’s reduced dependence on fossil fuels promotes energy security and diversification.

However, despite its benefits, SAF faces challenges when it comes to adoptions due to:

• Cost: SAF is currently more expensive to produce than conventional jet fuel.
• Scalability: Production and supply of SAF are still limited, requiring significant investment and infrastructure development to meet growing demand.
• Feedstock availability: Sourcing sustainable feedstocks for SAF production can be challenging, requiring careful consideration of land use, food security, and environmental impacts.

In spite of these challenges, DHL’s logistics experts recognize the vital role of SAF, and are committed to overcoming these barriers and accelerating its adoption. In 2022, DHL Express collaborated with bp and Neste to purchase over 800 million liters of SAF, marking one of the largest SAF deals to date. Additionally, DHL Express signed a seven-year agreement with World Energy in 2024 to purchase 667 million liters of SAF.

These strategic partnerships demonstrate DHL’s commitment to supporting the development and scaling of SAF production. Through these investments and collaborations, DHL Express aims to increase SAF usage in its operations significantly, contributing to a more sustainable future for aviation, and playing a crucial role in achieving the industry's goal of net-zero emissions by 2050. One way that this is already being done is by utilising SAF as part of their GoGreen Plus initiative.

DHL GoGreen Plus: Helping customers reduce their carbon footprint

DHL GoGreen Plus is a service offered by DHL Express that helps businesses take responsibility for reducing their Scope 3 emissions. Unlike traditional carbon offsetting, where businesses invest in external projects to compensate for their emissions, GoGreen Plus utilizes carbon insetting. This means that DHL directly reduces emissions within its own operations and value chain, offering a more impactful and transparent way for businesses to contribute to a greener future.

With GoGreen Plus, businesses can opt to use SAF for their deliveries. This allows businesses to directly reduce the emissions associated with their shipments, contributing to a cleaner, more sustainable supply chain. GoGreen Plus offers a range of benefits for businesses, including reduced environmental impact, improved brand reputation, and compliance with environmental regulations. 

Critically, it also provides a simple and accessible way for businesses of all sizes to integrate sustainable practices into their shipping processes. By choosing GoGreen Plus, businesses can demonstrate their commitment to sustainability, and contribute to a greener future for all.

Partner with DHL Express for sustainable shipping

DHL Express is taking a proactive approach to reducing Scope 3 emissions in the logistics industry, recognizing the importance of collaboration between logistics providers and their customers to achieve significant carbon reduction. Through initiatives like GoGreen Plus — which allows businesses to utilize SAF and directly reduce their carbon footprint — and investments in other sustainable technologies, DHL’s shipping services empower businesses to take responsibility for their environmental impact.

Through its sustainable shipping solutions, DHL Express also helps companies create environmentally responsible business practices, boosting their bottom line in the long run. If you’re ready to take the next step, open a DHL Express business account today to start your sustainable international shipping journey!