Five Best Practices for LTL’s Path to Net Zero

A recent report by McKinsey & Company revealed a concerning statistic. If emissions stay on their current trajectory, net zero would not arrive even by the end of the century, the firm reported. Considering that the trucking industry hauls 72 percent of the nation’s freight and travels 300 billion miles annually, it’s essential to put a spotlight on its contribution to the carbon footprint.

The third session of SMC³’s continuing LTL 202 hybrid series covered the impact of sustainability on less-than-truckload (LTL) transportation and provided a pulse on the industry’s progress on the path to net zero. Panelists Justine Russo, director of sustainability and business intelligence at PITT OHIO, and Mike Kelley, vice president of sustainability and membership at SMC³, shared their inside perspectives on the LTL industry’s path to net zero by 2040.

1. Think About People and the Planet

PITT OHIO has been ahead of the curve in LTL when it comes to sustainability, having initiated green programs to cut emissions more than a decade ago. Today, the company has six electric trucks, three facilities with renewable energy generated on-site, two facilities that are net zero, and six LEED certified terminals.

“I think a lot of people think about the planet when they hear the word sustainability,” said Russo. “But for us, it’s really about the people and the type of environment our employees get to work in and having a healthy and safe environment.”

She noted that PITT OHIO’s primary purpose is serving its customers and being a good community member. Advancing sustainability serves both aims.

2. Don’t Underestimate LTL Truck Emissions

While Kelley pointed out that the bulk of greenhouse gas (GHG) emissions come from cars, 29 percent of GHGs are generated by the transportation sector. “That’s not a small sum,” he said.

Progress has been made in truck engine technology over the last 30 years and it takes 60 of today’s trucks to generate emissions equivalent to a truck made in 1988, Kelley said. “The road ahead might get a little rocky because of the costs involved and the operational limitations that come with some of these new vehicles, but we have a great place to start from,” he said.

3. Shippers Have Become More Sustainability Minded

Over the past four years, PITT OHIO’s customers have become more engaged with the company’s sustainability efforts, Russo said. It is receiving more RFPs with questions about sustainability initiatives and strategy. Likewise, it is getting more requests for carbon emission reports. In just the last year, PITT OHIO has held several customer summits on sustainability.

“It’s been really exciting. There are customers out there on the leading edge who are developing their own carbon models and they’re trying to figure out how to reduce their emissions when shipping with PITT OHIO,” said Russo. “Others know it’s the right thing to do, but they’re not sure where to start.”

The complexity of LTL logistics factors into the uncertainty. Most shippers have multiple carriers, transportation modes and entry points, she said.

4. Focus on Technology and Trucks

While new, more efficient trucks are often the focus of debate around sustainability in LTL, Kelley noted that technology is also key to optimizing freight flows. Efficient movement of goods is critical to making environmental progress.

“There are some new superheroes in the sustainability supply chain right now that operate behind a keyboard, not a steering wheel,” said Kelley.

He stressed the need for mature technology to map sustainability and efficiency gains and having reporting targets tailored to LTL, not a one-size-fits-all approach.  Kelley said that companies such as PITT OHIO are working ahead of environmental regulations in many areas and investing in voluntary measures to reduce emissions. 

5. The Future: Tracking and Benchmarking

There’s no doubt that tracking Scope 3 emissions—those generated outside an organization’s control—will add complexity to reporting on environmental progress for the industry going forward. But Russo believes it’s an opportunity to understand carbon emissions before the shipment occurs.

“When carriers have equivalent service and price, I think carbon will become a third factor,” said Russo. “I think this will drive carbon emissions in total down.”

She pointed to the U.S. Environmental Protection Agency (EPA) SmartWay program aimed at improving supply chain efficiency and reducing emissions. This will give shippers a benchmark to compare carriers as well as serve as a common platform to share information and data.

“It’s kind of the Wild West out there will all the different reports,” said Kelley. The industry needs a common metric to track sustainability progress, like how safety is tracked today.

“This will create an atmosphere like we’ve seen with the sharing of best practices in safety—where rising tides lift all trucks, not boats,” said Kelley.

To see these Live Hybrid Sessions in action, register at https://smc3.info/LTLedu