7-Step RE100 Roadmap: How I Helped 50+ Logistics Companies Start Their Journey

 Hello, this is GLEC, a specialized company in measuring carbon emissions for the logistics and transportation industry.

Over the past three years, I've had the privilege of helping more than 50 logistics companies develop their RE100 roadmaps. Today, I want to share the exact 7-step process that has proven successful time and time again. This isn't theory – this is a battle-tested approach that works in the real world of logistics.

Why Most RE100 Roadmaps Fail (And How to Avoid It)

Before diving into the steps, let me share a sobering statistic: Over 60% of companies that set RE100 goals fail to meet their first milestone. Why? Because they focus on the destination without mapping the journey.

The successful companies I've worked with all have one thing in common: they follow a systematic approach that breaks down this massive challenge into manageable steps. Here's exactly how they do it.

STEP 1: Know Exactly Where You Stand

You can't navigate without knowing your starting point. This seems obvious, but you'd be surprised how many companies skip this crucial step.

Measuring Your Carbon Footprint:

When I sit down with a logistics company, we always start by identifying three scopes of emissions:

Scope 1 (Direct Emissions):

• Fuel from owned vehicles
• Natural gas for warehouse heating
• Fuel for forklifts and equipment

Scope 2 (Indirect Emissions from Electricity):

• Purchased electricity for facilities
• Purchased electricity for offices
• Electric vehicle charging

Scope 3 (Other Indirect Emissions):

• Subcontracted transportation
• Employee commuting
• Waste disposal

Real Client Example: A mid-sized logistics company with 5 distribution centers discovered:

• Annual electricity use: 5,000 MWh
• Monthly electricity cost: 500 million won
• Breakdown: Refrigeration (40%), Lighting (20%), Conveyors (15%), HVAC (15%), Other (10%)

Practical Tools You Can Use Today:

1. Korea Energy Agency's GHG Calculator (Free)
2. Ministry of Environment's GHG Information Center tools
3. GHG Protocol calculation tools (for global standards)

The Hidden Costs Analysis:

Most companies are shocked when we calculate the true cost of energy:

• Energy as % of operating costs: 8-12%
• Annual energy cost increase: 5-7%
• Energy intensity (kWh/㎡): Track this monthly

STEP 2: Set Goals That Inspire Action (Not Despair)

I've seen companies set wildly unrealistic goals that demoralize their teams. Here's how to set goals that drive progress:

The Science-Based Approach:

Instead of arbitrary targets, use the Science Based Targets initiative (SBTi) framework:

• Absolute reduction: 42% by 2030 (from 2018 baseline)
• Intensity reduction: 4.2% annually minimum

My Recommended Phased Approach:

Based on working with dozens of companies, here's what actually works:

Conservative (Recommended for Most):
2025: 10% (Quick wins)
2027: 25% (Green premium + solar)
2030: 60% (PPA + 30% EVs)
2035: 80% (70% EVs + hydrogen)
2040: 90% (Nearly complete)
2050: 100% (Full transition)

Aggressive (For Market Leaders):
2025: 20%
2027: 40%
2030: 70%
2035: 90%
2040: 100%

The Priority Matrix That Changes Everything:

I use a simple 2x2 matrix that has never failed:

Priority 1 (Low Cost + High Impact):

• LED replacement
• Energy management systems
• These pay for themselves in 12-18 months

Priority 2 (High Cost + High Impact):

• Solar installations
• Electric trucks
• Strategic investments with 5-7 year payback

Priority 3 (Low Cost + Medium Impact):

• Partial green premium
• Small REC purchases
• Good for building momentum

Priority 4 (High Cost + Uncertain Impact):

• Hydrogen infrastructure (currently)
• Emerging technologies
• Wait and watch

STEP 3: Choose the Right Renewable Energy Strategy

This is where many companies get paralyzed by options. Let me simplify it for you.

The Five Options, Ranked by Practicality:

1. Green Premium (Easiest Start):

• Zero upfront investment
• 10 won/kWh premium
• Can start tomorrow
• Best for: Companies taking first steps

2. REC Purchases (Flexible Option):

• No infrastructure needed
• 70,000-80,000 won/REC
• Market-based pricing
• Best for: Medium-sized companies needing flexibility

3. Third-party PPA (Stability Play):

• Utility acts as intermediary
• Long-term price stability
• Minimum 1MW typically required
• Best for: Companies with predictable demand

4. Direct PPA (Maximum Value):

• Contract directly with generators
• Best economics
• Requires sophistication
• Best for: Large companies with energy expertise

5. On-site Generation (Long-term Winner):

• Highest upfront cost (100-150 million won/MW)
• 5-7 year payback
• Complete control
• Best for: Companies with suitable space

My Recommended Portfolio Approach:

Don't put all eggs in one basket. Here's what works:

Large Distribution Centers:

• 30-40% rooftop solar
• 40-50% direct PPA
• 10-20% RECs for flexibility

Urban Delivery Companies:

• 50% green premium
• 30% RECs
• 20% third-party PPA

National Networks:

• 40% third-party PPA
• 30% distributed solar
• 30% regional strategies

STEP 4: Create Your Fleet Transformation Plan

This is often the most daunting part for logistics companies. Here's my proven phased approach:

Phase 1 (Years 1-2): Pilot Program

• Start with 5-10% of fleet
• Focus on 1-ton urban delivery trucks
• Test 5-10 vehicles
• Investment: 400-800 million won
• Learn and iterate

Phase 2 (Years 3-4): Scaled Adoption

• Expand to 20-30% of fleet
• Include 1-5 ton vehicles
• Deploy 20-50 trucks
• Investment: 2-4 billion won
• Build charging infrastructure

Phase 3 (Years 5-7): Mass Transition

• Target 50-60% of fleet
• All vehicle types except long-haul
• Full infrastructure deployment
• Investment: 10-20 billion won

Charging Infrastructure Formula:

Based on my experience, use this rule of thumb:

Small Depot (Under 10 vehicles):

• 5 slow chargers
• 1 fast charger
• Investment: 200-300 million won

Medium Depot (10-50 vehicles):

• 20 slow chargers
• 5 fast chargers
• Investment: 1-1.5 billion won

Large Depot (50+ vehicles):

• 50+ slow chargers
• 10+ fast chargers
• Investment: 3-5 billion won

STEP 5: Build a Financial Plan That Actually Works

Let me share real numbers from a recent client project:

10-Year Investment Plan (100 trucks, 5 centers):

Infrastructure: 40 billion won

• Solar installations: 5 billion (10MW)
• Charging infrastructure: 10 billion
• Energy storage: 5 billion
• Smart systems: 2 billion

Vehicles: 45 billion won

• 80 electric trucks: 32 billion
• 20 hydrogen trucks: 13 billion

Operating Costs: 20 billion won

• PPA premiums: 2 billion/year x 10

Total: 85 billion won

But Here's How to Fund It:

Government Support (30%):

• EV subsidies: Up to 40 million/vehicle
• Infrastructure support: 50% of costs
• Solar subsidies: 30%
• Expected support: 25 billion won

Green Finance (40%):

• Green bonds: 1-2% rate reduction
• ESG loans: 0.5-1% lower rates
• Available funding: 34 billion won

Self-funding (30%):

• Energy savings reinvestment
• Carbon credit revenue
• Required: 26 billion won

The ROI That Convinces CEOs:

• Annual savings: 5.5 billion won
• Payback period: 7-8 years
• 10-year NPV: +15 billion won
• IRR: 12%

STEP 6: Build the System That Makes It Happen

Having a plan is one thing. Executing it is another. Here's the governance structure that works:

Organizational Structure:

CEO
├─ ESG Committee (Quarterly)
├─ Chief Sustainability Officer
│  ├─ Energy Management Team
│  ├─ Fleet Transition Team
│  └─ Carbon Management Team
└─ Business Units
   └─ ESG Champions

The KPIs That Drive Results:

Company-wide KPIs:

• Renewable energy percentage
• Carbon intensity (kg-CO2/ton-km)
• Green vehicle ratio

Department KPIs:

• Distribution centers: Energy intensity
• Transportation: Fuel efficiency improvement
• Procurement: Green purchasing ratio

The Dashboard That Changes Behavior:

Create a real-time monitoring system showing:

• Daily energy consumption
• Monthly target progress
• Cost savings achieved
• Carbon reduced

When people see progress daily, behavior changes.

STEP 7: Communicate for Success

This is the most underestimated step. Here's how to get everyone on board:

Internal Communication:

Education Program:

• All-hands RE100 basics training
• Department-specific deep dives
• Monthly success story sharing

Incentive Structure:

• Energy saving rewards
• Innovation competitions
• Performance bonus links

Communication Channels:

• Monthly newsletter
• Town halls with leadership
• Visual displays in facilities

External Stakeholder Management:

Customer Communication:

• Quarterly progress reports
• Joint goal setting
• Cost-sharing negotiations

Investor Relations:

• ESG report publication
• IR deck updates
• Regular briefings

Government/Industry:

• Policy recommendations
• Best practice sharing
• Collaborative networks

The 10 Success Factors I've Seen Work Every Time

After helping 50+ companies, these are the non-negotiables:

1. CEO must personally champion this - No exceptions
2. Start before you're ready - Perfect plans fail, imperfect action succeeds
3. Celebrate small wins publicly - Momentum matters
4. Budget for learning - First attempts won't be perfect
5. Hire or develop expertise - This is specialized work
6. Partner strategically - You can't do this alone
7. Measure obsessively - What gets measured gets done
8. Communicate transparently - Both successes and failures
9. Plan for technology changes - Build flexibility into infrastructure
10. Think marathon, not sprint - This is a 10-year journey

Your Next Steps: From Reading to Doing

If you've read this far, you're serious about RE100. Here's exactly what to do next:

This Week:

1. Calculate your current electricity consumption
2. Identify your biggest energy users
3. Get leadership buy-in for the journey

This Month:

1. Complete your baseline carbon assessment
2. Set your initial targets
3. Identify quick wins to build momentum

This Quarter:

1. Develop your full roadmap
2. Secure budget approval
3. Launch your first pilot project

Remember This: Every company currently succeeding with RE100 started exactly where you are now – overwhelmed but determined. The difference between them and companies that fail? They started.

The roadmap I've shared isn't theoretical. It's been proven by dozens of Korean logistics companies who are now well on their way to RE100.

Your journey starts with the first step. Take it today.

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For carbon emission consultations and inquiries, please visit the GLEC website.

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