
Decarbonizing logistics: charting the path ahead
Companies need to reduce their logistics emissions to meet decarbonization targets, but a new McKinsey survey finds that few companies have clear plans to do so. What is the best path forward?
As global organizations chart a path to net zero, many are looking to the next frontier of emissions reduction: “Scope 3” emissions. These emissions are not directly produced by a company’s operations, but embedded in its supply chain. They account for the vast majority of companies’ emissions, and a significant portion are generated from supply chain and logistics activities—in particular, from the combination of road and ocean freight.In total, logistics emissions from freight and warehousing account for at least 7 percent of global greenhouse gas (GHG) emissions. Any successful path to net zero will thus need to address them as part of a company’s holistic environmental, social, and governance (ESG) strategy.