The carbon footprint in the supply chain

Carbon footprint in the supply chain: measuring, reducing and documenting

At a time when sustainability and climate protection are business-critical issues, the carbon footprint is increasingly becoming the focus of corporate responsibility. Find out how CO₂ emissions can be measured, reduced and transparently documented along the supply chain.

Why the carbon footprint is so important

The carbon footprint of a company comprises all direct and indirect greenhouse gas emissions caused by business activities. In the supply chain, this relates in particular to emissions from transportation, production, storage and packaging. Scope 3 emissions, which are outside a company's direct sphere of influence but usually make up the largest share of the carbon footprint, are particularly significant.

New legal requirements such as the Supply Chain Act and the EU Sustainability Reporting Directive (CSRD) oblige companies to document their carbon footprint transparently. At the same time, there is growing pressure from customers and investors to act credibly and transparently.

In the logistics and procurement sector in particular, it is therefore essential to measure, reduce and transparently document CO₂ emissions.

Measuring the CO₂ footprint along the supply chain

Precise recording of the carbon footprint requires a structured data basis along the entire supply chain. Various methods are used for this:

• Emission factors indicate how much CO₂ is released per unit of a certain input, such as per kilometer driven or kilogram produced.

• Well-to-wheel analyses look at the entire energy consumption and emissions from the energy source to the point of consumption.

• Digital CO₂ calculators are tools that help companies to calculate and analyze their emissions.

Digital tools for CO₂ monitoring and carbon footprint management

Today, modern software solutions form the backbone of effective emissions management in the supply chain. They enable companies to not only record CO₂ data selectively, but also to continuously analyze and compare it and derive targeted measures. The biggest advantage is that the recording and evaluation are automated, standardized and carried out in real time.

A central element of many platforms is the transparent presentation of the carbon footprint along different modes of transportation, such as road, sea, air or rail. This gives companies a consolidated overview of their climate-relevant activities from source to destination (well-to-wheel). This not only creates an internal management basis, but also facilitates external communication with customers, partners and authorities.

Line Up Supply Chain Dashboard: Calculate CO₂ emissions automatically

Digital CO₂ monitoring tools such as the Line Up Supply Chain Dashboard go one step further: they integrate the emissions assessment directly into operational processes, e.g. for orders with transportation. The relevant emission factors are automatically calculated and visualized for each delivery. This allows companies to see at a glance where emissions are generated in the supply chain, how much individual suppliers or transport options contribute to the carbon footprint and where there is concrete potential for optimization.

Such platforms are not only used for pure calculation. Rather, they help to define individual reduction targets, document progress and integrate CO₂ data into reports or ESG dashboards. Some solutions even enable scenario comparisons (“what-if” analyses) or offer interfaces to CO₂ compensation providers and rating agencies.

CO₂ reduction in practice: 5 measures along the supply chain

1. optimize transport routes

Shorter, more efficient routes and lower-emission means of transportation such as rail or ship significantly reduce CO₂ emissions. Tools such as the Line Up Supply Chain Dashboard calculate the CO₂ emissions of different transport routes for each order and show specific potential savings.

2. optimize supplier selection

Suppliers with environmentally friendly production processes make a significant contribution to CO₂ reduction. Companies that specifically integrate sustainability criteria into their supplier management improve their carbon footprint and increase the resilience of their supply chain.

3. rearrange packaging

Less and better: The use of recyclable materials or reusable packaging reduces emissions, especially during international transportation. At the same time, material costs can be saved and ecological requirements fulfilled.

4. use renewable energies

Green energy sources in production, warehousing and logistics reduce CO₂ emissions in the long term. If the energy data is available transparently, cooperation with climate-conscious suppliers also brings benefits.

5. making data-based decisions

Only those who consistently measure emissions along the supply chain can take targeted countermeasures. Digital tools help to record, compare and prioritize CO₂ data - and thus create the basis for effective measures.

Is CO₂ compensation a useful component?

Not all emissions can be completely avoided. In such cases, carbon offsetting can be a valuable addition, for example by investing in certified climate protection projects.

The decisive factor here is quality: only reputable, verifiably effective projects guarantee a genuine environmental impact. Offsetting does not replace reduction, it is merely part of a holistic climate strategy.

Using digital tools for a climate-friendly supply chain

The carbon footprint has long been more than just an abstract environmental value; it is becoming a measurable parameter for competitiveness, sustainability and compliance. Companies that recognize, reduce and disclose their emissions along the supply chain not only ensure regulatory compliance, but also trust in the market.

From the automatic calculation of emissions to the strategic basis for decision-making, digital solutions such as Line Up Supply Chain provide the necessary depth of data and transparency. This transforms the carbon footprint from a measured value into a management tool for a sustainable supply chain.