Voluntary associations of businesses that have the aim of increasing logistic efficiency and reducing emissions that can also involve civil society. Such programmes tend to be initiated by government agencies, but the main players are private companies. Emission reductions are achieved through the sharing of best practices, uniform tracking and accounting of fuel consumption and emissions, and increases in efficiency. They foster the adoption of specific measures such as eco-driving or vehicle improvements (e.g. aerodynamic retrofits, lower rolling resistance tires). The two main drivers for private businesses to join are increased efficiency and associated cost reductions, plus peer and public recognition of their efforts to decarbonise by granting awards and certificates. Companies that are leaders in these efforts can gain a competitive advantage over their peers. Examples include SmartWay in the USA, Lean & Green initiated in the Netherlands, Logistics Emissions Reduction Scheme (LERS) in the UK, Objectif CO2 in France or the Smart Transport Program in Argentina.
Some programmes attribute awards when a company is able to reduce emissions by 20%. Specific measures like eco-driving can in some cases reduce emissions by 15 to 30%. But there is a great variability on its effects depending on the specific company, environment where it operates and specific measures adopted.
Setting up the programmes has a low cost, mostly the administrative costs of running it. Awards are generally non-monetary, focusing on recognition of efforts and distinguishing the companies in the eyes of the general public and their peers. Monitoring and accounting of emissions allows businesses to better understand their operations, identifying practices that can reduce emissions and costs without investments (e.g. adopting better routing or reducing empty returns). Although specific measures, such as providing training for drivers or acquiring aerodynamic retrofits do come with a cost for companies.
Raising awareness of the need and benefits associated with reducing carbon emissions among private businesses. Freight and logistics is mainly a commercial business. Industry agents are the ones that ultimately define their operational procedures, supply chains and investments. Recognising companies that lead efforts to decarbonise is a low cost straightforward way to motivate businesses. While companies play an important role in the decarbonisation of the freight sector, it is important to design policies in a manner that makes financial sense for businesses to decarbonise.
These programmes create credible uniform tools to assess the benefits of different emission reduction measures and technologies, critical to establishing a market for these measures and technologies (namely retrofits and add-ons to existing vehicles).
Other major advantages for businesses include lower fuel consumption, increased asset utilization, improved safety (for goods carried and on the road), better monitoring of operations and more reliability.
Potentially seen as “greenwashing”. If implemented at an industry-wide level, improved operations and lower costs can induce demand that will offset emission reductions obtained from increased efficiency.
