CARBON ACCOUNTING

An effective corporate climate change strategy requires a detailed understanding of a company’s emissions. Historically, companies have focused on greenhouse gas (GHG) emissions from their own operations under scope 1 & scope 2 emissions.

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Increasingly companies understand the need to account for GHG emissions along their supply chains (scope 3 emissions) to comprehensively manage GHG-related risks and opportunities.

Scope 3 emissions often represent the largest source of a company’s GHG emissions, and in some cases can account for up to 90% of the total carbon impact (Source: Carbon Trust – Making business sense of Scope 3).

RightShip offers assistance for organisations who wish to measure, report on and manage their GHG emissions associated with shipping activity.

STRATEGIC ALIGNMENT –
DECARBONISING YOUR SUPPLY CHAIN

As we look to measure emissions related to particular shipping activity, the GHG emissions calculation process heralds the next step towards a low carbon economy. This tool allows charterers to further manage their carbon output and explore emissions reporting and reduction opportunities.

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RightShip welcomes the opportunity to work with your organisation to explore carbon neutral shipping, which occurs when carbon credits are purchased from a selection of certified projects from around the globe.

BENEFITS OF ACCOUNTING
SHIPPING GHG EMISSIONS

There are a number of benefits associated with measuring GHG emissions associated with shipping. For many companies, the majority of their GHG emissions and cost reduction opportunities lie outside their own operations.

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By measuring ship emissions, organisations can use the inputs to:

  • support corporate reporting and the disclosure of their emissions
  • improve supply chain efficiency and reduce their environmental footprint
  • identify resource and energy risks in their supply chain, including emissions hotspots
  • generate value from their emissions strategies, including the possibility of carbon neutral shipping
  • demonstrate industry leadership in their efforts to reduce emissions, and
  • align with industry reporting standards such as CDP.

STANDARD APPROACH
& VERIFICATION – EN16258:2012

RightShip’s methodology has been developed in line with the European Standard EN16258:2012 Methodology for calculation and declaration of energy consumption and GHG emissions of transport services (freight and passengers).

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This standard sets out the requirements for calculating and reporting energy consumption and GHG emissions in transport services. The methodology takes into account all vessels (vehicles) used to perform transport services, including the fuel refining and consumption, and all loaded and ballast legs.

The calculations are based on the characteristics of the transport service, for example the route, vessel particulars, cargo information, fuel type and associated ballast leg.

Irrespective of the complexity of the activity – e.g. single voyage to mutli-load – the standardised and transparent approach ensures the emissions are fully allocated to a vessel’s cargo. By allowing corporations to assess how the emissions footprint changes over time, emissions can be attributed to particular products or services

To learn more about how RightShip can assist in measuring and reducing emissions from shipping, and the potential environmental and economic benefits to your organisation, please contact environment@rightship.com.

INDUSTRY UPTAKE

We have partnered with two large users of ocean transport who are keen to pioneer the accurate and robust measurement of their scope 3 emissions.

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BHP

BHP charters 1500 ships each year and is on a mission to reduce its carbon footprint whilst running the safest fleet. Head of Ocean Freight Operations, Abdes Karimi says,

“Until 2016, our scope 3 emissions were estimated but that’s no longer good enough. We need to understand our emissions so we can benchmark them against other shippers and control them effectively. RightShip allows us to do that”.

Incitec Pivot Ltd

Australian diversified chemicals manufacturer, Incitec Pivot Ltd (IPL) uses RightShip to accurately calculate emissions resulting from the 200 vessels it charters annually. Karen Durand, Corporate Sustainability Manager, believes that being able to measure the company’s scope 3 emissions is the first step towards effective control and management.

“We’ve used RightShip to ensure the vessels we use are safe and environmentally sound and so it was a logical step to ask them to help us measure our scope 3 emissions. Working with them is very straightforward and we are confident in the accuracy and reliability of the results. There are very few scope 3 data sources and, as far as we are aware, there is no other agency able to deliver this level of accuracy for ocean transport”.

FEATURE STORY

LLOYD'S LIST

How our Scope 3 emissions benchmarking is changing sustainability in shipping. Read the full story on Lloyd’s List.

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CARBON OFFSETTING

As maritime organisations compete for sustainability recognition and aim to increase emissions visibility, results from RightShip’s Carbon Accounting tool can be used to set targets, inform sustainable decision-making and allow companies to carry out their shipping activity as carbon-neutral.

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To provide value to stakeholders and shareholders, once GHG emissions along the supply chain have been measured, RightShip purchase carbon credits from CBL Markets, who operate the world’s largest carbon exchange, to offset the CO2 that is emitted along a company’s supply chain.

CASE STUDY

INCITEC PIVOT LTD

In partnership with CBL Markets, RightShip have assisted global diversified chemicals manufacturer Incitec Pivot Limited (IPL) to operate its shipping activity as carbon-neutral.

An early adopter of RightShip’s Carbon Accounting tool, IPL have successfully offset approximately 73,000 tonnes of CO2 for each of the financial years 2016-17 & 2017-18.

Martin Gleeson, National Shipping & Chartering Manager at Incitec Pivot Limited said:

“A key element of IPL’s Sustainability Agenda is around working with our suppliers to reduce the impact on the community and environment. Working with RightShip, we have been able to take proactive measures to quantify, manage and even offset carbon emissions from our shipping and chartering operations. This not only has significant environmental benefits, it is also enabling us to positively influence action on climate change in the maritime industry”.

Press Release