ESG reporting in transport logistics - with EmissionTrack for M.SmartLogistics

With the introduction of stricter regulations, such as the Corporate Sustainability Reporting Directive (CSRD), companies are faced with the task of providing detailed data on their environmental and social performance. This is becoming increasingly relevant in relation to so-called Scope 3 emissions. These are indirect emissions that do not result from a company's own business activities, but are generated along the value chain - for example through outsourced logistics services.

For many companies, 3PL logistics is an important part of their supply chain. Whilst this brings efficiency benefits, fully capturing CO₂ emissions in these scenarios is becoming increasingly complex. Scope 3 emissions often make up the largest share of a company's total environmental impact. Reporting these emissions is therefore becoming increasingly important not only for compliance with legal requirements, but also to ensure competitiveness.

With our new EmissionTrack solution for M.SmartLogistics, Mercoline provides companies with a fully SAP-integrated solution for calculating and reporting CO₂ emissions caused by 3PL logistics. EmissionTrack's calculation function is based on international standards and emissions reporting protocols to enable standardised and traceable calculations. This is particularly important for companies that have to report their emissions as part of sustainability initiatives or legal requirements. Two key standards on which EmissionTrack is based are:

• GLEC Framework: A framework of the Global Logistics Emissions Council (GLEC) that provides guidelines for the calculation and reporting of emissions in the transport sector.
• EN 16258: A European standard that defines methods for calculating energy consumption and greenhouse gas emissions from transport services.

These standards make it possible to make CO₂ calculations transparent and comparable. The most important functions of EmissionTrack at a glance:

• Calculation of Scope 3 emissions: CO₂ emissions are calculated accurately based on fuel consumption, transport routes and vehicle types used.
• Consideration of road transport and air freight: Based on transport service provider routes, distance data and the use of artificial intelligence (AI), the probable route data for a shipment is determined for the most accurate possible estimation of the individual transport sections and distances.
• Pre-shipment estimate: Calculation of emissions even before a delivery is dispatched.
• Integration in SAP: The emission values can be saved directly in the documents of M.TransportCommunicator, SAP SD (e.g. deliveries, shipments) or SAP Transportation Management (freight units) and used for reports.
• Consideration of routes and service provider services: Our solution enables the inclusion of the impact of transport methods used by 3PL service providers to save emissions (e.g. DHL GoGreen Plus).
• Consolidated reporting: All relevant data is recorded and consolidated centrally so that companies can present their emissions data transparently and share it easily. This means that the solution is also compatible with external ESG solutions or those integrated into SAP solutions and provides an important piece of the missing information puzzle.

The relevance of Scope 3 emissions in ESG reporting will continue to increase as governments around the world pursue ambitious climate targets. EU climate targets such as the net zero target and pressure from the CSRD are just the beginning. Companies that fail to accurately record and report their indirect emissions risk not only penalties, but also the loss of their credibility and market position.
Business partners are increasingly demanding transparent reports across the entire supply chain. This is particularly true for companies that outsource their logistics to third parties. The management and reduction of Scope 3 emissions is therefore crucial in order to position oneself as a sustainable partner in a competitive environment.

Our EmissionTrack solution for M.SmartLogistics offers companies clear advantages:

• Transparency and trust: EmissionTrack allows you to mathematically estimate and document the CO₂ emissions caused by your 3PL service providers based on trustworthy procedures. This strengthens the trust of your business partners and also supports their sustainability strategy.

• Compliance with legal requirements: By recording and reporting Scope 3 emissions, you can ensure that you continue to fulfil regulatory requirements in this area.

• Competitive advantages: Sustainability is increasingly becoming a selling point. With transparent ESG reporting, companies can tap into new business areas and position themselves as a preferred partner.

• SAP integration: EmissionTrack works on the basis of the existing logistics data in your SAP system in SAP SD, SAP Transportation Management (TM) and Mercoline M.TransportCommunicator. All data is processed on the basis of proven SAP technology and can also be used in SAP S/4HANA Private Cloud Edition and Public Cloud Edition.

With EmissionTrack for M.SmartLogistics, we deliver a powerful solution to fulfil the growing requirements for ESG reporting in 3PL logistics. The recording and reporting of Scope 3 emissions helps companies to operate more sustainably, fulfil legal requirements and at the same time gain a competitive advantage.

See you in Leipzig? Meet us at the DSAG Annual Congress and find out more about EmissionTrack and our other innovative solutions for 3PL logistics with SAP. Visit us at stand C11!