How emissions reporting can drive revenue for your forwarding business

As we enter 2024, the freight industry is tackling escalating fuel costs, intensified security concerns and heightened industry competition. To meet these challenges, freight forwarders must embrace a strategic approach to generating new revenue streams that not only differentiate them from their competitors, but also create value for shippers. This article explains how emissions reporting — so often considered an additional cost centre — can help drive value for your clients, turning it into a core revenue centre.

The demand for emissions reporting in supply chains is driven by compliance requirements

Shippers are under pressure to take control of their supply chain emissions from two main sources — consumers demanding more transparency of the sustainability claims for the products and services they use, and governments and regulatory bodies who are introducing mandatory scope 3 emissions reporting. The EU’s CSRD is the first example of this type of mandatory reporting, but the UK, the US and Brazil are also expected to follow suit soon.

Forwarders can provide a service that meets shippers’ emissions reporting requirements, helping attract new business, drive client loyalty and boost overall revenue.

Deliver quick wins for shippers

Shippers will always be looking for the immediate value they’ll gain from picking your forwarding service over your competitors. By highlighting the quick wins, you’ll elevate your business’s proficiency during the tender process.

Add instant value with automated emissions reporting as standard

1. Meet emissions disclosure requirements: Make it easy for clients to measure and report emissions data, positioning your business as the answer to their emissions disclosure headaches. You’ll also be eliminating their risk of regulatory non-compliance.
2. Earn green credentials: Deliver GLEC-accredited and ISO-aligned emissions reports to empower clients by showcasing their sustainability efforts, offering value that gives your business a competitive advantage in securing new contracts.
3. Enhance decision-making: Utilise automated emissions data to enhance logistics decision-making by identifying low-hanging fruit that clients can use to make immediate emissions reductions.

Showcase long-term value

Presenting your business as a long-term sustainability partner during the quoting stage will create a competitive edge, driving client retention and increasing revenue. By aligning your capabilities with clients’ long-term sustainability strategies, you can position your business as a partner committed to enduring success.

Supporting long-term sustainability strategies

1. Identify emissions hotspots: Equip clients with the insights they need to consistently pinpoint high-emission areas within their supply chain, facilitating targeted interventions for emissions reduction.
2. Set emissions reduction targets: Assist clients in setting ambitious yet achievable targets, providing the accredited data they need to drive impactful change in their supply chain.
3. Track progress: Offer automated emissions reporting that helps them track progress, remain agile and report key successes on their sustainability journey.

Ignoring emissions reporting is a risky game

Overlooking the integration of emissions reporting into your forwarding services could expose your business to significant risks as other players take advantage of this market opportunity.

Missed opportunities could be costly

1. Clients won’t risk emissions regulation non-compliance: Much like with GDPR, the penalty for not complying with CSRD regulations is significant — up to €10 million or 5% of annual revenue. Shippers will have no choice but to seek logistics partners able to measure and report their supply chain emissions to meet regulatory standards. This could lead to a loss of business, revenue and brand image if your business doesn’t comply.
2. Future regulations may directly impact your business: The risk of non-compliance could directly impact your business as regulations evolve. Taking action now to future-proof against tightening emissions reporting regulations will mean you’re better positioned to react to these changes, offering you a competitive edge.
3. Your competitors may get a head start: In such a fiercely competitive industry, inaction could mean your business risks losing clients to competitors who are proactively addressing shippers’ emissions reporting requirements.

Seize the opportunity

Emissions reporting is not merely an expensive compliance requirement for freight forwarders — it’s an opportunity to open new revenue streams. And, as this is still a relatively new space in the freight and logistics industry, there are still plenty of avenues to explore.

Pledge co-founder, David de Picciotto

By proactively incorporating automated emissions reporting and aiding shippers with quick wins and long-term sustainability strategies, you can increase your revenue by expanding your customer base, driving revenue and building your brand image. Additionally, inaction could put you on the back foot, potentially setting you up for failure as your target client base transitions to more sustainable ways of working without you.

Join Pledge for a 14-day free trial, and discover how integrated emissions reporting can transform sustainability into a central revenue source for your business.

This article was sponsored by Pledge, which builds sustainability tools for forwarders.