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

Key Takeaways

  • Scope 3 Transparency: Supply chain transport constitutes a significant portion of your company's indirect emissions, making accurate measurement fundamentally important for your reporting.
  • Insetting over Offsetting: Carbon insetting is designed to reduce emissions directly within your own supply chain, whereas offsetting involves financial contributions to external environmental projects.
  • Regulatory Readiness: Forthcoming mandatory reporting regulations in Japan mean that validated emissions data will be essential for maintaining your eligibility for key contracts.
  • The DHL Express Solution: GoGreen Plus offers a direct method for reducing your transport emissions by investing in Sustainable Aviation Fuel throughout our global network.

The integrity of your company's carbon data is entirely dependent on the quality of the systems used for tracking. Should there be inaccuracies in the underlying data collection, even a sincere commitment to sustainability may not withstand the scrutiny of an external audit. Here is a guide to organising your Scope 3 transport data before the conclusion of the next reporting period.

 

Why is Scope 3 tracking suddenly urgent for logistics managers?

Pressure to provide accurate emissions data is now coming from multiple directions. Corporate buyers are increasingly scrutinising the environmental credentials of their suppliers, and regulatory bodies in Japan are shifting from voluntary targets towards mandatory disclosure.

For example, Japan's Financial Services Agency (FSA) is introducing mandatory sustainability disclosures for large listed companies for fiscal years ending on or after March 31, 2027, as outlined in their recent regulatory updates. This creates a tangible financial and reputational exposure for dbusinesses that fail to provide accurate data.

What this puts at risk

  • Contract Risks: Large corporate customers are actively reassessing their supply chains and may exclude suppliers who cannot provide clear and verifiable carbon metrics.
  • Audit Pressures: Your transport and logistics data must be robust enough to withstand external audits to avoid the risk of significant financial penalties.
  • Tender Protection: Having precise and reliable emissions data is becoming crucial for protecting your eligibility to participate in tenders for major contracts.

What a single lapse can cost you

A variance of roughly 8,000 JPY per shipment can accumulate into a substantial sum across an annual freight program. This figure does not even account for the potential business cost of losing the contract entirely due to non-compliance.

 

What is the difference between carbon offsetting and carbon insetting?

Although these two approaches may sound similar, they operate in fundamentally different ways. Confusing them could potentially undermine your company’s entire environmental strategy.

Read more: What is carbon insetting in sustainable logistics? | DHL JP
 

How the two approaches compare

  • Carbon Offsetting: This method seeks to balance your company's emissions by funding external environmental projects, such as reforestation, that exist completely outside of your logistics network.
  • Carbon Insetting: This approach focuses on reducing emissions directly within the transport network where your actual freight movement takes place.

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: This approach allows you to lower the actual carbon intensity of your logistics operations, rather than paying for external projects with indirect benefits.
  • Audit Credibility: Insetting data corresponds directly to your specific freight routes and shipment weights, providing clear traceability for auditors.
  • Future Proofing: This method is in direct alignment with international frameworks for the decarbonisation of the transport sector.

 

What exactly is Sustainable Aviation Fuel?

Sustainable Aviation Fuel, often referred to as SAF, is a renewable alternative to conventional jet fuel. It is produced from sustainable sources such as waste oils and agricultural by-products. A key advantage is that it can be used in existing aircraft engines without any modifications, which makes it a highly practical and effective tool for carbon insetting.

How much SAF cuts from your footprint

According to DHL's published sustainability data, SAF can reduce lifecycle carbon emissions by up to 80% when compared to conventional jet fuel. This represents one of the most direct and impactful ways to reduce your transport footprint without altering your cargo's routing or transit times.

Why this matters for insetting

This is precisely the type of insetting that DHL Express prioritises: replacing conventional fuel with a sustainable alternative within the same network that your cargo already utilises, rather than purchasing a carbon credit from an unrelated project. The GoGreen Plus service is the mechanism by which you can book and verify these reductions for your own shipments. This can be particularly valuable for businesses shipping high volumes out of a major export hub like Narita International Airport.

 

How do you lower shipping emissions with GoGreen Plus?

Reducing transport emissions does not have to mean accepting slower delivery times or undertaking a complete overhaul of your shipping processes. It is possible to maintain your delivery speed while simultaneously shrinking your environmental footprint.

Four features that make this easy

  • Direct Integration: The GoGreen Plus service is integrated directly into the MyDHL+ platform, available at the point of booking a shipment.
  • Flexible Targets: You have the flexibility to choose a percentage of Sustainable Aviation Fuel allocation that aligns with your specific corporate sustainability objectives.
  • Verified Reporting: You will receive an annual certification that details your exact carbon reductions, providing the necessary documentation for your compliance files.
  • Platform Simplicity: Selecting GoGreen Plus adds no additional steps to your existing booking workflow within MyDHL+.

How DHL Express verifies every reduction

An external auditor conducts a rigorous annual check of the entire fuel blending and allocation process. This provides you with auditable proof of every carbon reduction, suitable for your corporate compliance and reporting requirements. GoGreen Plus applies specifically to your international air express shipments with DHL Express.

 

What steps should you take to audit your carbon footprint?

Adopting a systematic approach to data collection can help to prevent errors and make your annual sustainability audit a much smoother process.

Four things to get right before you audit

  • Centralised Reporting: DHL Express provides an annual carbon emissions report to our GoGreen Plus customers to support their reporting needs.
  • Peak Planning: It is important to note that logistics capacity can tighten considerably during peak periods, such as the Golden Week holidays in Japan.
  • Customs Readiness: DHL Express's customs services can assist in maintaining documentation readiness during international transport, in line with the requirements of authorities like Japan Customs.
  • Continuous Visibility: Utilising automated reporting tools helps you maintain data accuracy, even during periods of high shipping volume.

Four steps to build your audit process

  • Identify Routes: First, identify all international air express freight routes within your operational control in order to accurately map your transport footprint.
  • Consolidate Shipping Data: Next, consolidate your shipping data within MyDHL+ to view your automated carbon footprint metrics in one place.
  • Select Insetting Targets: From there, choose an insetting percentage within the platform that is aligned with your corporate sustainability goals.
  • Export Verified Reports: Finally, export the verified carbon reports from the system to share with your corporate compliance auditors and other stakeholders.

 

How can regional green grants help fund your sustainability shift?

Transitioning to low-carbon shipping may involve higher upfront costs, but local government initiatives can often help to offset this investment with financial assistance.

What this support looks like

  • Offsetting Costs: Grants and tax incentives can help to balance your operational budget during the initial phases of adoption.
  • Emissions Verification: We can support your application readiness by providing verified emissions data reports to prove your carbon reduction activities.
  • Local Opportunities: It is advisable to investigate the local financial assistance options available within the Japanese market.
  • Budget Balance: Combining public financial support with carbon insetting can help you to manage your overall freight expenditure more effectively.

Where to start looking

For instance, businesses in Japan can explore the various Green Transformation (GX) initiatives supported by the Ministry of Economy, Trade and Industry (METI), which aim to assist companies in their transition towards decarbonisation. Please be aware that we do not qualify customers for government programmes or guarantee regulatory outcomes; your company's compliance status and grant eligibility remain your own responsibility.

 

Audit your logistics carbon footprint today

Successfully managing Scope 3 emissions requires a careful balance of operational speed and precise data management. DHL Express supports this balance with GoGreen Plus, enabling you to reduce real transport emissions through Sustainable Aviation Fuel while maintaining complete, audit-ready records of your progress.

Please speak to a DHL Express specialist today to review your shipping lanes and find a cleaner way to move your cargo.

 

Frequently Asked Questions

For most companies, indirect emissions from transport and distribution typically represent the largest portion of their Scope 3 footprint. This means your logistics partner's fuel choices and routing decisions become a direct factor in your own reported emissions figures.

Carbon insetting achieves a direct reduction of emissions within your own supply chain, for instance by using cleaner fuels for transport. In contrast, carbon offsetting involves funding external environmental projects, such as tree planting, which do not lower the actual carbon footprint of your specific shipments.

Sustainable Aviation Fuel has the potential to reduce lifecycle carbon emissions by up to 80% compared to traditional jet fuel. This is why it is a central element of how DHL Express approaches carbon insetting for our customers.