Carbon Footprint

CO2 Determination in SAP TM

Go Green with the logventus solution that is built for SAP TM

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logventus is committed to UN sustainable development goals of 2016

UN Sustainable Development Goals

“We cannot solve our problems with the same thinking we used when we created them.”
Albert Einstein

  • The UN has laid out 17 sustainable development goals to improve the way we work with our environment and with our people.

  • We at logventus are committed to these goals especially on goal no. 9, which focuses on industries, innovation and infrastructure

  • We want to make our world more sustainable by promoting sustainable industrialization and fostering innovation

Carbon Emissions in Logistics

CO2 Footprint Determination in SAP TM

Transport is the second largest source of greenhouse gas emissions in the EU with the sector being responsible for about 25% of all emissions. Laws and Regulations have been put in place starting in 2013 for all modes of transportation:

  • Logistics service providers in the EU are obliged to determine and disclose CO2 information for transportation services
  • The European norm EN 16258 became official in 2013: Standardized emissions calculation rules for all transportation modes
  • CO2-information must be provided on customer quotations and/or customer invoices in most EU countries.

Currently, this is done using third party systems and web services without integration, which requires separate interfaces and creates additional costs.

logventus' CO2 solution offers a CO2-information calculation within SAP TM using the existing master data and transportation planning data without any additional interfaces and volume fees. The CO2-informtion will be calculated and stored inside the SAP TM system and can be used to show the CO2-information on the quotation and/or invoice.

Carbon EMissions

Challenges facing LSPs in the EU:

  • Reporting on shipment level and supplying client specific reports
  • Complying with the EN 16258 and the French decree 2011-1336
  • Documenting carbon balance sheets and declarations
  • Offering carbon neutral logistics services
  • Creating a strategy to monitor and reduce carbon emissions

Since 2016 European legislation requires LSPs to report more accurately, leveraging carrier specific data.

Emission Calculation

Method to determine the emission rate

This is done by breaking down the transport service into stages and calculating the CO2-emission for each stage according to the following formula:

Formula No. 5: Emission rate = (Energy consumption rate per km/Capacity) * emission factor

Formula No.6: CO2 Information formula = Emission rate * Distance * Gross weight

  • "“Well-to-Wheel (WTW)” CO2 information has to be disclosed in aggregated form (sum of all stages)
  • Emission rate can be extracted from level 1 values (default Values)
  • The level of accuracy is supposed to be as accurate as possible

(Example based on the french legislation)

Calculation Method

Level 1 - 4 define calculation of energy consumption rate (of the vehicle) and capacity (vehicle fill rate) differently:
DefinitionExample
Level 1French legislation provides default values for emission rates A 7,5 Truck – Road Diesel fuel – has an emission rate of 750 g CO2 per 1 km
Level 2Total quantity fuel consumed for the fleet/total distance travelled by all vehicles in this fleetA carrier owning 15 vehicles, annual consumption of 264.000 l and a combined mileage of 800.000 km for all 15 vehicles: => Energy consumption rate is 0,330 l / 1 km
Level 3Same as level 2, but breakdown of activity (per logistics organization, type of route, means of transport)A carrier creates subgroups for his vehicles ( < 7,5 t, 7,5-12 t, 12-24 t, Train, Vessel, etc.) and determines the emission rate per subgroup
Level 4Calculation is based on measurement data for the transport service Carrier reports fuel type and consumption for a certain vehicle transport, e.g. 0,325 l Road Diesel / 1 km

 

Level 1 values are permitted in the following 4 cases:

Small Companies (<50 employees)
Unitil July 1st 2016 companies with >= 50 employees
Values not provided by subcontractor
New Means of Transport

(This calculation example is based on french legislation)

 

 

Comparison of Decree 2011-1336 and EN 16358

Decree 2011-1336

EN 16258

Obligation to
disclose
Mandatory for transportation services from and to France since October 1st 2013Voluntary
Declaration
  • WTW CO2-Information
  • TTW and WTW energy consumption and CO2-equivalents
  • Sources for default values and allocation parameter
Time of declarationNegotiable or 2 months after end of executionNot specified
InspectionMandatoryVoluntary
Source of emission factor

Level 1: Default values

Level 2: Average fleet values

Level 3: Average lane, vehicle, customer, org values

Level 4: Precise measure of the transportation service values

Level 1: Default values

Level 2: Average fleet values

Level 3: Average lane, vehicle, customer, org values

Level 4: Precise measure of the transportation service values

Use Case: Multi Modal Transportation Service

Summary

Existing Scope and Customer advantages

Existing Scope:

  • Calculation of CO2 emissions based on Decree 2011-1336 of the French transport code
  • CO2 emissions are calculated for each Freight Unit, Freight Order and Freight Booking on stage level
  • CO2 emissions are aggregated and shown on Forwarding Order header level

Ehancements for our customers:

  • Printing CO2-information on PDF documents ( e.g. ERP SD invoice documents)
  • Reporting / Analytics (BCV or BW)
  • Consideration of level 2 to level 4 values (carrier input needed)
  • Consideration of other transport related emissions/gases


metropolitan area RHEIN-NECKAR

Close to SAP

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METROPOLITAN AREA hamburg

Close to the logistic

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