Freight forwarders must comply with CSRD regulations and track CO₂e emissions to stay in business. With global supply chains under increasing scrutiny, ensuring compliance with sustainability reporting standards (ESRS) is essential for long-term success.
CO₂e reporting is not just about regulatory alignment. It plays a crucial role in reducing the environmental impact of freight forwarding and improving operational efficiencies.
Understanding CO₂e and CSRD in Freight Forwarding
What is CO₂e and Why Does It Matter in Freight Forwarding?
CO₂e is a metric used to measure the total carbon emissions across various greenhouse gases. It enables businesses to assess their environmental impact across all transport modes. Freight forwarding significantly contributes to global logistics’ carbon footprint, and CO₂e tracking ensures compliance with emission reduction mandates like the Paris Agreement and CSRD reporting requirements.
What is the Corporate Sustainability Reporting Directive (CSRD)?
The CSRD replaces the Financial Reporting Directive (NFRD) to enhance sustainability disclosure across EU-regulated markets. It introduces standardized sustainability reporting standards (ESRS), requiring companies to integrate environmental, social, and governance (ESG) data into their management reports.
Freight forwarders operating in EU member states must comply with CSRD requirements, ensuring their CO₂e emissions and environmental impact are transparently disclosed in line with European sustainability reporting standards. For more information about the CSRD timeline and requirements for freight forwarders, you can check our earlier blog.
Who Needs to Comply with CSRD in Freight Forwarding?
Key Disclosure Requirements for Freight Forwarders
Freight forwarders must comply with CSRD reporting requirements if they meet at least two of the following three criteria:
- 250+ employees.
- €40 million net turnover.
- €20 million in total assets.
Additionally, non-EU companies generating €150 million in EU revenue must comply with CSRD requirements starting in 2028.
CSRD Timelines and Deadlines for Compliance
- FY 2024: Large EU companies under NFRD must begin CSRD-aligned reporting in 2025.
- FY 2025: Other large companies submit their first CSRD management report in 2026.
- FY 2026: Listed SMEs in freight forwarding begin compliance in 2027.
- FY 2028: Non-EU companies with €150 million in EU turnover must comply by 2029.
Measuring and Reporting CO₂e in Compliance with CSRD
European Sustainability Reporting Standards (ESRS) for Freight Forwarding
The ESRS framework structures CSRD reports, ensuring standardized environmental impact and climate disclosure requirements. Freight forwarders must integrate CO₂e emissions data into their reporting processes, covering Scope 1, Scope 2, and Scope 3 emissions for full transparency.
How Freight Forwarders Can Measure Their CO₂e Footprint
Measuring CO₂e emissions in freight forwarding presents challenges, particularly with data collection in Scope 3 emissions across supply chains. Companies use various methodologies, including:
- Fuel-based calculations: Emissions calculated based on fuel type (e.g., heavy fuel oil, LNG, alternative fuels).
- Distance-based measurements: Tracks emissions per voyage or transport unit, considering carbon intensity per kilometer.
- Activity-based tracking: Uses real-time transport activity data to assess emissions across different freight modes.
Automating CO₂e Reporting with Digital Tools
Inaccurate emissions data might lead to non-compliance with CSRD. AI-powered tools like Dockflow’s RealCalc automate CSRD-aligned emissions reporting, ensuring real-time monitoring and compliance with sustainability reporting directive (CSRD) requirements. Dockflow’s Realcalc provides freight forwarders with:
- Automated emissions calculations aligned with European sustainability reporting standards (ESRS).
- Real-time emissions tracking for accurate and reliable CO₂e disclosure.
- Seamless integration into CSRD reporting processes for streamlined ESG compliance.
Strategies for Freight Forwarders to Meet CSRD Compliance
1. Integrate CSRD Data Collection into Your Supply Chain
Freight forwarders must establish automated emissions tracking across all transport partners to ensure real-time CO₂e monitoring. Integrating AI-powered freight tracking tools helps companies maintain transparency and compliance with CSRD reporting requirements.
2. Adopt Low-Emission Freight Solutions
Shifting to alternative fuels and optimized freight routes helps reduce carbon intensity. Freight forwarders should collaborate with carriers to identify lower-carbon transport options and align with EU climate targets.
3. Prepare Management Reports for ESG and Climate Disclosure
Standardized CSRD reporting structures ensure that freight forwarders comply with sustainability reporting standards (ESRS). Management reports must incorporate environmental impact data, including carbon emissions and operational efficiencies.
4. Ensure Compliance with European Union and Global Regulations
Meeting CSRD sustainability reporting criteria ensures compliance with EU regulations and supports alignment with Paris Agreement emissions targets. Freight forwarders must integrate CSRD-aligned environmental impact disclosures into their annual reporting processes.
The Business Benefits of CSRD Compliance for Freight Forwarding
Strengthening ESG Credibility with Clients and Investors
Aligning with corporate sustainability reporting trends enhance freight forwarders’ market positioning. It also helps build trust with investors and clients seeking sustainable logistics solutions.
Avoiding Fines and Ensuring Market Access
Non-compliance with CSRD requirements can lead to financial penalties and loss of market access. Proactively meeting reporting requirements ensures uninterrupted business operations.
Gaining Competitive Advantage in Sustainable Freight Forwarding
Freight forwarders who prioritize green supply chain solutions gain a competitive edge. Offering low-emission transport options attracts eco-conscious clients and strengthens business resilience.
Get Started with CSRD-Aligned CO₂e Reporting Today
Dockflow’s RealCalc CO₂e emissions calculator simplifies CSRD compliance with automated emissions tracking and real-time CO₂e reporting. Ensure accurate CSRD-aligned emissions disclosure for your freight forwarding operations today!
