#LogisticsAdvice

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

Key Takeaways

  • Scope 3 Transparency: Supply chain transport likely makes up a major share of your company's indirect emissions, so accurate measurement is becoming increasingly important.
  • Insetting over Offsetting: Carbon insetting focuses on cutting emissions directly inside your own supply chain, while offsetting pays for reductions in unrelated external projects.
  • Regulatory Readiness: Upcoming reporting rules across key export markets mean you will likely need validated data to continue bidding on international contracts.
  • The DHL Express Solution: GoGreen Plus lets you reduce the emissions associated with your shipments by investing in Sustainable Aviation Fuel through a book-and-claim model, with the fuel used across the wider air network.

Your carbon data is only as good as the systems that support it. If the underlying tracking is not accurate, even a genuine sustainability effort may not hold up under an external audit. Here's how you can 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 to report on emissions is now coming from multiple directions. Corporate buyers are evaluating suppliers on their ability to provide emissions data, and regulators are moving from voluntary targets to mandatory disclosure. For example, Vietnam's Decree No. 06/2022/ND-CP now requires businesses in certain sectors to conduct greenhouse gas (GHG) inventories.

What this puts at risk

  • Contract Risks: Some large corporate customers now ask suppliers for clear, verifiable carbon metrics as part of their procurement requirements.
  • Audit Pressures: Your transport and logistics data must be robust enough to stand up to external audits to avoid potential financial penalties.
  • Tender Protection: Having precise emissions data can help protect your eligibility when tendering for new and existing contracts.

What a single lapse can cost you

Small variances per shipment can accumulate quickly across an annual freight program, and that is before factoring in the potential cost of losing a contract entirely.

 

What is the difference between carbon offsetting and carbon insetting?

These two approaches to managing emissions might sound similar, but they function in very different ways. Understanding the distinction is key to building a credible environmental strategy for your business.

How the two approaches compare

  • Carbon Offsetting: This method aims to balance emissions by funding external projects, like reforestation, that are located entirely outside of your logistics network.
  • Carbon Insetting: This approach focuses on reducing emissions directly within the transport network where the actual freight movement is occurring.

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

Funds Sustainable Aviation Fuel used within the air network under a book-and-claim model

Methodology

Compensates for emissions elsewhere

Avoids emissions at the source of transport

Data proof

Compensating carbon credits

Verified carbon reduction certificates

Why insetting matters for logistics

  • Direct Reduction: You can lower the actual carbon intensity of your logistics operations rather than paying for external projects that are disconnected from your business.
  • Audit Credibility: Emissions reductions are calculated from your shipment data, such as route and weight, and allocated to you through verified certificates, providing a clear and auditable trail.
  • Future Proofing: This method aligns directly with international transport decarbonisation frameworks, positioning your business for future regulations.

 

What exactly is Sustainable Aviation Fuel?

Sustainable Aviation Fuel, or SAF, is a renewable alternative to standard jet fuel. It is produced from sources like used cooking oils and agricultural by-products. It can be used in existing aircraft engines with no modifications required, which makes it a practical and effective 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. This represents one of the most direct ways to lower your transport footprint without changing your cargo's routing or speed.

Why this matters for insetting

This is precisely the kind of insetting we focus on at DHL Express: investing in Sustainable Aviation Fuel used within the air network your cargo moves through, under a book-and-claim model. The fuel is not necessarily used on your specific shipment or route, and the resulting reduction is allocated to you through verified reporting. Our GoGreen Plus service is how you book that reduction for your own shipments. This is especially valuable if you are shipping high volumes out of a major hub like Noi Bai International Airport (HAN) in Hanoi.

 

How do you lower shipping emissions with GoGreen Plus?

Cutting your transport emissions does not have to mean slowing down your delivery times or overhauling your shipping processes. You can maintain your required delivery speed while still reducing your environmental footprint.

Four features that make this easy

  • Direct Integration: The GoGreen Plus service integrates directly into the MyDHL+ platform when you are booking a shipment.
  • Flexible Targets: You can choose the level of CO2e reduction that best matches your specific corporate goals.
  • Verified Reporting: Verified emissions reduction certificates and reporting are available, depending on your service and contract type, ready for your compliance and audit files.
  • Platform Simplicity: GoGreen Plus can be selected as part of your shipment booking process, where available.

How DHL Express verifies every reduction

The emissions reductions associated with GoGreen Plus are independently verified, which provides you with auditable proof of the reduction allocated to you for your compliance needs. GoGreen Plus applies specifically 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 can help prevent errors and may make your annual sustainability audit a much smoother process.

Four things to get right before you audit

  • Centralised Reporting: We share an annual carbon emissions report with our GoGreen Plus customers to support your reporting needs.
  • Peak Planning: Capacity can come under greater pressure during busy seasons, particularly around the Tet Nguyen Dan (Lunar New Year) peak, so planning ahead is crucial.
  • Customs Readiness: Our customs services help you maintain documentation readiness for international transport, in line with requirements from the Vietnam Customs Department, under the Ministry of Finance.
  • Continuous Visibility: Running automated audits helps you maintain data accuracy even during periods of high shipping volume.

Four steps to build your audit process

  • Identify Routes: Start by identifying all international air express freight routes within your operational control to map your transport footprint.
  • Consolidate Shipping Data: Consolidate your shipment data so you can review the emissions associated with your freight.
  • Select Insetting Targets: Choose the CO2e reduction level that aligns with your corporate sustainability goals.
  • Export Verified Reports: Obtain the verified emissions reduction reporting available for your account to share with your corporate compliance auditors.

 

How can regional green grants help fund your sustainability shift?

While switching to low-carbon shipping can sometimes involve upfront costs, local governments and financial institutions often provide support to help offset this investment.

What this support looks like

  • Offsetting Costs: Grants and tax incentives may help balance your operational budget during the early phases of your transition.
  • Emissions Verification: Verified emissions reduction reporting, where available for your account, can document your carbon reduction activities.
  • Local Opportunities: It is worthwhile to investigate local financial assistance options that may be available in the Vietnamese market.
  • Budget Balance: Combining public or private financial support with carbon insetting can help you manage your overall freight spend more effectively.

Where to start looking

For example, businesses can investigate the growing availability of "green credit" and preferential loans from commercial banks in Vietnam. Inquiring with your company's bank about these programs is a practical first step. We do not qualify customers for government programmes or guarantee regulatory outcomes, so your compliance status and grant eligibility remain your own responsibility.

 

Audit your logistics carbon footprint today

Successfully managing Scope 3 emissions requires a thoughtful balance of operational speed and precise data. DHL Express supports that with GoGreen Plus, which lets you reduce the emissions associated with your shipments by investing in Sustainable Aviation Fuel under a book-and-claim model, with verified reporting for your 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 usually form the largest share of a company's Scope 3 footprint. This makes your logistics partner's fuel choices and routing decisions a direct factor in your own company's reported numbers.

Carbon insetting directly reduces emissions within your own supply chain, for instance by using cleaner fuels for transport. In contrast, offsetting involves funding external projects, such as planting trees, that do not lower the actual carbon footprint of your shipments.

Sustainable Aviation Fuel can reduce lifecycle carbon emissions by up to 80% compared to traditional jet fuel. That is why it is a central part of how DHL Express approaches carbon insetting for our customers.

The emissions reductions associated with GoGreen Plus are independently verified. This helps ensure that every contribution provides reliable, credible data for your compliance reports.

Many local governments and financial institutions offer green grants, special financing, and tax incentives to support companies that are transitioning to more sustainable shipping methods. Verified emissions reduction reporting, where available for your account, can document your carbon reduction activities.