India’s logistics and industrial sectors are rapidly adopting data-driven emissions tracking to align with the CCTS 2025 framework. With transport and warehousing accounting for a significant portion of Scope 3 emissions, more companies are using digital MRV and AI-enabled carbon accounting tools to meet low-carbon targets while ensuring compliance with national and international standards.
Why Logistics Emissions Are Becoming a Priority
The logistics sector in India contributes 14–18% of the country’s CO₂ emissions, mostly under Scope 3. Rising freight demand, projected to triple by 2050, is driving the urgency for measurable decarbonization strategies. Key drivers include:
Regulatory pressure: CCTS 2025 sets sector-specific intensity targets for transport and supply chain emissions (Ministry of Heavy Industries).
Global supply chain expectations: Exporters must comply with carbon reporting frameworks such as CDP, GHG Protocol, and SBTi-aligned targets.
Operational efficiency: Emissions tracking also identifies cost-saving opportunities in routes, vehicle utilization, and energy use.
How Emissions Are Calculated in Freight
Traditional GHG accounting often underestimates Scope 3 emissions, as they involve multiple suppliers and transport modes. The GLEC Framework provides a standardized approach, allowing companies to calculate emissions across:
Road freight (trucks, vans, last-mile delivery)
Rail transport
Maritime and inland waterways
Air freight
Warehousing operations
By following GHG Protocol categories, companies capture both direct and indirect emissions. Each transport mode is analyzed for fuel consumption, distance traveled, load factor, and energy intensity.
In India, road transport alone accounts for nearly 70% of freight emissions, highlighting the importance of modal shifts and route optimization.
Digital MRV and AI-Enabled Carbon Accounting
Modern digital MRV platforms collect real-time data across supply chains, automating carbon footprint calculations and enabling continuous monitoring. Benefits include:
Real-time emissions monitoring across multiple transport modes
Verified data for regulatory compliance and ESG disclosures
Supplier due diligence for Scope 3 emission hotspots
Subtle mention: platforms like Fitsol’s Kyoto and Greencount help automate data ingestion and analysis without requiring heavy IT investment, enabling companies to focus on actionable decarbonization.
Decarbonization Levers for Logistics
Companies can reduce emissions by implementing multiple levers:
Modal shift: Prioritize rail, coastal shipping, or inland waterways over road transport.
Route and load optimization: Reduce empty runs, consolidate shipments, and plan energy-efficient routes.
Cleaner fuels & electrification: Adopt CNG, biodiesel, or EV fleets for last-mile delivery.
Warehouse energy efficiency: Optimize lighting, HVAC systems, and renewable energy integration.
Case studies in India show that even a 10–15% efficiency improvement can significantly cut carbon intensity while lowering operational costs.
Why 2025 Will Be a Turning Point
With CCTS 2025 benchmarks, mandatory ESG disclosures, and growing investor and buyer scrutiny, Indian companies cannot rely on estimated emissions. Accurate measurement and verified reporting will become a business requirement, not just a sustainability goal.
FAQs
What are Scope 3 emissions in logistics?
Scope 3 emissions include indirect emissions from supply chain activities, including transport, warehousing, and third-party logistics.
How does the GLEC Framework help?
The Global Logistics Emissions Council (GLEC) Framework standardizes carbon accounting across all freight modes, ensuring consistent reporting.
Can digital MRV replace manual reporting?
Yes. Real-time monitoring and AI analytics improve accuracy, reduce errors, and simplify compliance reporting.
Why should Indian logistics companies measure emissions now?
Due to CCTS targets, mandatory ESG disclosures, and global supply chain pressure, accurate emissions measurement is critical for regulatory compliance, operational efficiency, and market competitiveness.
How can companies act on the data?
Insights from digital MRV and AI-based carbon accounting inform modal shifts, route optimization, electrification, and supplier engagement, enabling measurable emission reductions.