ESG Framework
The ESG (Environmental, Social, and Governance) Framework feature represents the initial release of this feature and provides you with an introduction and overview to the ESG Framework's fundamental concepts and capabilities. The initial release of the ESG Framework serves as a foundation for future updates, which will broaden the available capabilities to include emissions calculation, emissions accounting, reporting, analytics, and ESG informed transportation planning and decision support. The ESG Framework's goal is to integrate emission reporting and emissions calculations into your daily transportation planning, reporting and decision-making processes.
The ESG Framework is designed to support the various emission reporting/data gathering scenarios that are evolving in the market currently. The emissions related data gathering and reporting approaches cover a broad spectrum - from Service Providers and Shippers who follow well documented practices - like Global Logistics Emissions Council (GLEC) and are able to consistently provide emissions based data, to Service Providers and Shippers who have no formal processes or reporting capabilities currently. With that market reality in mind, the ESG Framework has been designed to support data gathering and reporting for different Emissions Activity Reporting Scenarios.
- Externally provided ESG Activity and emissions calculations:
- Your service provider calculates the emissions for a shipment and provides the actual emission values along with the supporting activity detail.
- Your service provider calculates the emissions for a shipment and provides the actual emission results to you, with no or limited supporting activity detail.
- Internally provided ESG Activity and calculations:
- Your service provider provides the necessary activity details and information to support calculating the emissions using standard fuel efficiency and intensity factors (future).
- Information provided from external sources is limited, in this case the calculations for emissions are based on emission accounting standards and factors and the information available on the shipment including shipment weight, distance etc.(future)
Key features and capabilities provided with the initial release ESG Framework include:
- ESG Activity Type - for classifying ESG Activities.
- ESG Activity and Activity Details - supports the recording of ESG Activities for both your Buy and Sell shipment objects.
- ESG Rate Basis Items - supports the rating for reported ESG Activities.
- Shipment CO2 Emissions - provides visibility, on the shipment of the Planned CO2 Emission, Planned CO2e Emission, Actual CO2 Emission, and Actual CO2e Emission reported on the Shipment's related Activity entries.
- ESG Activity Screen Set - allows you to configure an Enhanced Workbench to include visibility to your Shipment-related ESG Activities.
ESG Activity Type
The ESG Activity Type is used for classifying your ESG Activities. You can classify your defined Activity Types following the standard Scope 1, 2, and 3 Scope values used by both the Global Logistics Emissions Council (GLEC) and Greenhouse Gas Protocol’s for emissions accounting.
Within the GLEC and Greenhouse Gas Protocol’s, Scope 1 covers direct emissions, Scope 2 covers indirect emissions from purchased electricity and Scope 3 covers other indirect emissions in the value chain.
ESG Activity Type
In the example below, an Activity Type for Indirect Emissions Scope 3 activities has been added.
Example Activity Type - Scope 3
ESG Activity and Activity Details
The ESG Activity and Activity Details, are design to record the ESG Activities for both your Buy and Sell shipment objects.
Note that both the Activity Type and Scope are required. The ESG Activity UI will default to the Scope value of the Activity Type assigned to the ESG Activity record, it can be overridden if necessary.
ESG Activity
The ESG Activity screen above, can be used to capture the required information for your shipments at a summary level, the ESG Activity Detail screen, below, supports the collection of ESG activities at a lower/more detailed level. For example, with a multi-stop shipment capturing the distance and carried weight and volume of a shipment from stop to stop.
ESG Activity Detail
Below is the Activity Detail entry screen.
Activity Detail Entry Screen
In the example below, the Activity Screen captures the reported emissions for Shipment 25348. In this example the reported emissions for CO2 and CO2e represent the actual calculated emissions provided by Service Provider..
Activity Screen Example, Provided CO2 information Actual Information
In the example below, the detailed activities for a multi-stop shipment are provided to more fully describe how the emissions for the shipment were realized. In this case, the shipment starts at DC1 and makes two delivery stops, the weight and volume in the trailer is reduced after each stop - for the last segment of the trip, the trailer is deadheaded back to DC1.
Activity Detail Reporting Example - Multi-Stop Shipment
ESG Rate Basis Items
A set of ESG Rate Basis (RBI) Items are available to provide a weighted or actual cost for the ESG Activities or ESG Activity Details reported against a Shipment.
ESG Related RBIs
In the example below, the transportation Actual and Planned cost are calculated without including the ESG RBIs and cost, in this example, the ESG RBIs and cost are captured as weighted cost of 34236.36 USD.
ESG Related RBIs Shipment Rated Example
The rate record related to this calculation is below.
Rate Record Example with ESG RBIs
The related Activity and Activity Detail records for this shipment in the example above are provided below..
Activity Record Related to Rating Example
Activity Detail Record Related to Rating Example
Continuing with the example, below are some examples of the shipment costing related to the ESG Activity and Activity Detail information and the ESG related RBIs for the shipment above.
In this Cost Detail, the 40000.00 LB Activity Weight is rated at 1 USD per 1 KG resulting in the charge amount below.
Cost Detail Examples - ESG Activity Weight
In this example, a per Activity Detail entry of 3.00 USD is calculated. The total of 6.00 USD is added to the shipment for the two Activity Detail entries.
Cost Detail Examples - Per ESG Activity Detail Record Charge
Shipment CO2 Emissions
The Shipment's CO2 Emissions, recorded by the Shipment's ESG Activity records for both Planned CO2 Emission, Planned CO2e Emission, and Actual CO2 Emission, and Actual CO2e Emission are visible on the Shipment in the CO2 Emissions section, shown below.
Shipment Recorded CO2 Emissions
Enhanced Workbench - ESG Activity Screen Set
The ESG Activity Screen Set, and Public saved query, will allows you to create or modify an Enhanced Workbench to provide visibility to your Shipment's related ESG Activity records,
Sample Enhanced Workbench With ESG Activity Screen Set Added
ESG Activity Decision Support
As you would expect, the ESG Activities recorded for a shipment and the cost calculations related to that ESG Activities are included in your decision support actions. In the example below - Change Service Provider - Carrier29's Weighed cost and include the calculated Weighted Cost and are based on the ESG RBIs included in Carrier29's rate record (above) and the ESG Activities reported for this shipment.
Change Service Provider Decision Support and Weighted Cost for ESG Activities Reported
This feature provides the necessary framework to begin the process of measuring, monitoring and considering the cost of ESG related activities in your transportation planning decision making processes.
Steps to Enable
You will need to setup some basic elements - like ESG Activity Type, and optionally, ESG related RBIs to take full advantage of this functionality.
Tips And Considerations
There is, for this initial release, no API to load the Activity records.