Logistics sector takes voluntary approach
to carbon reduction

Freight is essential to the running of the country and will therefore always produce
emissions. But the industry is coming together to reduce its carbon footprint by joining schemes like the FTA

The logistics industry provides a vital service for the whole economy. Whether it’s delivering milk to supermarkets or supplies to hospitals, freight is imperative for keeping the country running. Because of this, the industry will always produce emissions, but it is vital we are aware of this and that industry works together to reduce its carbon footprint as much as possible.

 
The UK is committed to reducing greenhouse gas emissions by 34 per cent by the end of this decade, based on 1990 levels. This was announced as part of the Climate Change Act 2008, and more recently, quoted companies will be expected to report their greenhouse gas emissions in annual company reports from this October. The transport sector is responsible for around 21 per cent of UK domestic greenhouse gas emissions and freight transport accounts for around a third of these.

DEMONSTRATING COMMITMENT
Back in late 2009, rather than waiting for government to influence the footprint of operators using fuel tax or regulation, FTA wanted to offer industry a way of declaring and reducing their emissions voluntarily. With fuel representing nearly 40 per cent of operation costs and every pound that the government takes on tax a pound that can’t be spent on new vehicles or innovative technology to reduce emissions, FTA decided to take action. So, along with a group of operators, it launched the Logistics Carbon Reduction Scheme (LCRS) an industry-wide initiative to record, report and reduce freight transport emissions.
  
The LCRS is the first of its kind for the freight industry. It is free to join and enables operators to contribute to a voluntary carbon reduction target for industry. Scheme members provide FTA with data on fuel usage, which is then converted into carbon dioxide equivalent 
(CO2 e) emissions using government approved conversion factors. The LCRS was endorsed by the Department for Transport (DfT) in 2011 and has set a collective target for members to reduce the carbon intensity of freight transport operations by eight per cent by 2015 based on 2010 levels. In late 2012, the scheme provided significant evidence to DfT’s Freight Carbon Review which assessed the contribution the freight sector is playing towards national greenhouse gas reduction targets. This directly resulted in the department pledging to continue to support a voluntary approach to carbon reduction from freight transport. 

HOW IT WORKS
LCRS members submit fuel data and other business related activity data to FTA on a confidential basis either annually or quarterly. FTA then aggregates the data to produce a carbon footprint for the scheme. As some companies will just be starting on their carbon journey while others may be more advanced, FTA visits each scheme member at least once to talk through the reporting, to ensure that all data submitted is robust, credible and correct. Operators are asked to supply simple data like the number of litres of diesel used by the company, number of vehicle kilometres, turnover and full time equivalent staff. The main requirement is that reporting is consistent.
    
The scheme currently has over 85 companies and accounts for more than 61,000 commercial vehicles. Members range from retailers and third party logistics to local authorities and small hauliers. As well as attracting operators, FTA was also proud to announce Bridgestone Tyres as its first LCRS partner in May 2012.

IMPRESSIVE RESULTS
The latest third annual report shows how scheme members collectively made progress in reducing carbon dioxide equivalent (CO2e) emissions between 2005 and 2011, when average tonnes of CO2e per LCRS member reduced by 2.8 per cent. Projecting forwards the reduction in emissions from 2010 to 2011 also reveals that the scheme is on track to meet its eight per cent carbon reduction target in 2013, two years earlier than anticipated. The results of FTA’s second annual Carbon Intervention Survey are also presented in the report. LCRS members were invited to complete the survey to advise the different decarbonisation measures they are undertaking within their transport operations.  Headline results show that operators are focused on achieving fuel efficiency through operational measures. For instance, to minimise empty running, companies are maximising their use of existing vehicle capacity with some investment in longer and higher cube trailers. Telematics is also being used to optimise vehicle utilisation. Finally, case studies on how LCRS members are reducing their carbon through measures such as utilising alternative fuels or switching to rail and reducing empty running are also featured in the report.
    
The overall objective of the scheme is to prove to government that taking regulatory action to make cuts in freight emissions is unnecessary because industry is doing it themselves. It proves the logistics sector is taking the issue of carbon seriously and actively and voluntarily seeking ways to reduce emissions. However, it is critical that the scheme grows in order to supply additional evidence to government. The more operators that sign up the more influential the LCRS will be.
    
We urge you to play your role in preventing regulation for the freight industry before it’s too late by signing up for the scheme. The benefits include the fact that it is free, it will demonstrate your company’s green credentials, it provides a methodology and target for carbon emissions recording and reporting, it carries weight with the government, sector trade associations and buyers of logistics services and finally it is confidential.

Further information
www.fta.co.uk/environment