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What is SAF? A game changer for carbon neutrality in the aviation industry

5 Things You Need to Know About SAF: The Game Changer for Aviation's Carbon Neutral Future

Hello, I'm from GLEC, a company specializing in measuring carbon emissions in the logistics and transportation industry.

Have you ever wondered what's coming out of those airplane engines as they soar through the sky? While we dream of traveling to distant places, the aviation industry has been quietly working on a revolutionary solution that could change everything we know about flying.

Sustainable Aviation Fuel (SAF) is making headlines as the aviation industry's biggest game changer toward carbon neutrality. With SAF usage increasing by an incredible 80% in 2025 compared to the previous year, it's time to understand what this means for the future of air travel.

Let me share the 5 most important things you need to know about SAF and why it matters for our planet's future.

1. What Exactly is SAF and Why Should You Care?

Sustainable Aviation Fuel isn't just another buzzword in the environmental space. It's a drop-in replacement for conventional jet fuel that can be used in existing aircraft without any modifications to the engine or fuel system.

Unlike traditional jet fuel made from petroleum, SAF is produced from renewable sources like:

Used cooking oil from restaurants
Animal fats from food processing
Agricultural waste like corn stalks
Municipal solid waste
Even captured carbon dioxide from the air

The most remarkable thing about SAF? It can reduce carbon emissions by up to 80% compared to conventional jet fuel over its entire lifecycle. According to the International Air Transport Association (IATA), global SAF usage is expected to reach 0.7% of total aviation fuel in 2025, doubling from 0.3% in 2024.

This might seem like a small percentage, but it represents a massive shift in how we think about aviation fuel. Every flight using SAF is a step toward cleaner skies.

2. The Key Differences That Make SAF Special

When I first learned about SAF, I was amazed by how different it is from traditional aviation fuel, not just in its source but in its entire production philosophy.

Traditional Jet Fuel Production:

Extracted from crude oil buried deep underground
Limited, non-renewable resource
Produces new carbon emissions when burned

SAF Production:

Made from renewable and waste materials
Captures CO2 during feedstock growth
Creates a circular carbon cycle

The International Energy Agency (IEA) data shows that SAF can achieve up to 80% carbon emission reduction on a full lifecycle basis. This is because the plants and materials used to make SAF absorb CO2 from the atmosphere as they grow, offsetting the emissions when the fuel is burned.

Think of it this way: traditional jet fuel takes carbon that's been stored underground for millions of years and releases it into the atmosphere. SAF, on the other hand, uses carbon that's already in our current carbon cycle.

3. Why the Aviation Industry is Racing to Adopt SAF

The push for SAF isn't just about environmental responsibility - it's becoming a business necessity. Here's why airlines are making the switch:

Regulatory Pressure: The ICAO CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) becomes mandatory in 2027. South Korea will require 1% SAF blending for all international flights starting that year.

Economic Benefits: When South Korea implements 1% SAF blending:

Annual carbon emission reduction: 160,000 tons
Equivalent to planting 25 million pine trees
Same impact as removing 53,000 cars from the road for a year

Industry Transformation: SAF adoption is creating entirely new industries and job opportunities. From biomass collection to advanced refining technologies, the SAF value chain is generating innovation across multiple sectors.

4. Global SAF Market: Numbers That Will Surprise You

The growth trajectory of the SAF market is nothing short of extraordinary:

Market Size Projections:

2025: $2.06 billion
2030: $25.62 billion (annual growth rate of 65.5%)
Production Volume: 300 million gallons in 2025 → 3.68 billion gallons by 2030

Regional Leadership:

United States - SAF Grand Challenge:

2030 Target: 11 billion liters annually
2050 Goal: 100% SAF transition

European Union - ReFuelEU Aviation:

2025: 2% mandatory blending
2030: 6% (including 0.7% e-SAF)
2050: 70%

Japan:

2030: 10% blending target
$1 billion government-private cooperation fund

These aren't just ambitious targets - they're backed by serious investment and policy support.

5. How SAF is Transforming the Aviation Experience

The impact of SAF goes far beyond environmental benefits. It's changing how we think about air travel:

For Airlines: United Airlines has invested $1 billion in SAF and committed to purchasing 1.5 billion gallons over the next 20 years. Their SAF usage increased by 300% in 2023 compared to the previous year.

For Airports: Incheon International Airport is building dedicated SAF infrastructure, including storage facilities, blending equipment, and quality management systems.

For Passengers: Environmentally conscious travelers are increasingly choosing airlines based on their SAF usage. Some airlines now offer passengers the option to directly contribute to SAF purchases, making every flight a chance to support cleaner aviation.

The Reality Check: Challenges Still Ahead

While the SAF story is inspiring, let's be honest about the challenges:

Cost Factor: Currently, SAF costs 3-10 times more than conventional jet fuel. However, as production scales up and technology improves, this price gap is expected to narrow significantly.

Supply Limitations: As of 2024, SAF represents only 0.53% of global jet fuel use. Meeting future demand will require massive expansion of production capacity.

Feedstock Constraints: First-generation SAF relies heavily on used cooking oil and animal fats, which have limited supply. This is driving innovation toward second-generation technologies using wood biomass and third-generation solutions like algae.

Why Accurate Carbon Measurement Matters More Than Ever

At GLEC, we've learned that SAF adoption must go hand-in-hand with precise carbon accounting. Simply using SAF doesn't automatically make an airline carbon-neutral. You need to accurately measure and manage emissions to achieve true carbon neutrality.

Our international standard-based logistics carbon emission measurement solutions help the aviation industry track their progress toward carbon neutrality. With SAF adoption, accurate emission measurement and management become even more critical.

We use standards like GHG Protocol and ISO 14083 to ensure that SAF's environmental benefits are properly quantified and verified.

The Bottom Line: SAF is More Than Just Fuel

SAF represents a fundamental paradigm shift in aviation. It's not just about replacing one fuel with another - it's about reimagining how the aviation industry can be part of the solution to climate change.

As we look toward the future, SAF is emerging as the key to carbon-neutral aviation. With continued technological advancement and policy support, the commercialization of SAF will accelerate dramatically.

The next time you board a plane, you might just be flying on fuel made from yesterday's cooking oil or agricultural waste. And that plane might be taking us all toward a cleaner, more sustainable future in the skies.

What's your take on SAF? Have you noticed any changes in airline environmental policies during your travels? Share your thoughts in the comments below.

In our next post, we'll dive deep into how SAF is actually made - from biofuel production to cutting-edge e-fuel technology. Stay tuned!

For consultation and inquiries about carbon emission measurement, please visit the GLEC website.

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#SAF #SustainableAviationFuel #CarbonNeutral #AviationIndustry #CleanFuel #CarbonEmissionMeasurement #ReFuelEU #CORSIA #Biofuel #ClimateChange

12 Months Until CBAM Hits: Your Ultimate 2025 Logistics Survival Guide

Hey everyone! Your regulatory compliance navigator from GLEC here.

"January 1, 2026 - we only have a few months left." This was from a conversation with a logistics company CEO last week. EU Carbon Border Adjustment Mechanism (CBAM) full implementation is just 12 months away. This is truly our last chance.

Many logistics companies who thought "we still have time" are finally feeling the reality now. With K-Taxonomy mandatory disclosure expanding domestically and global regulatory environment changing daily, let me share the systematic response strategy you need.

Major Regulatory Environment Changes 2025-2026

CBAM (Carbon Border Adjustment Mechanism) Full Implementation

Starting 2026, companies must actually pay carbon costs for steel, aluminum, cement, fertilizer, electricity, and hydrogen products exported to the EU. Currently, during the transition period, only reporting is required, but from next year, real money goes out.

Direct Impact on Logistics Industry:

Mandatory emission measurement when transporting CBAM-targeted products
Essential provision of accurate emission data to EU importers
Ensuring data reliability through third-party verification

Planned Expansion to More Products by 2030: The EU plans to expand CBAM to all Emissions Trading System (ETS) products by 2030. This means the scope will expand significantly to include plastics and organic chemicals.

K-Taxonomy (Korean Green Classification System) Mandatory Disclosure Expansion

K-Taxonomy disclosure becomes mandatory for listed companies with assets over 2 trillion won from 2025. Large logistics companies must mandatorily disclose the proportion of green economic activities.

Logistics Industry Related Green Activities:

Operating eco-friendly transportation (electric vehicles, hydrogen vehicles, biofuel vehicles)
Operating energy-efficient logistics facilities
Utilizing eco-friendly transportation like rail and shipping

EU CSRD (Corporate Sustainability Reporting Directive) Full Implementation

Sustainability reporting becomes mandatory for all large companies in the EU from 2025. This is expected to require the same level of information disclosure from suppliers dealing with EU companies.

Phased Expansion of Domestic ESG Disclosure Mandate

ESG disclosure obligation expands to all KOSPI companies by 2030. The logistics industry is no exception.

Phased Application Schedule:

2025: Companies with assets over 2 trillion won + Top 100 KOSPI companies
2027: Listed companies with assets over 500 billion won
2030: All KOSPI companies

Strategic Approach for Regulatory Compliance

1. Building Integrated Response Systems

Building integrated systems rather than responding to each regulation separately is more efficient.

Core of Integrated Response:

Common data platform: Data usable for CDP, CBAM, and K-Taxonomy
Standardized measurement methodology: Consistent measurement meeting international standards
Integrated governance system: Decision-making structure covering all regulations

2. Setting Step-by-Step Priorities

Trying to do everything at once leads to failure. Set priorities and approach step by step.

Step 1 (2025): Basic data construction

Accurate measurement of Scope 1 and 2 emissions
Identify core Scope 3 categories
Build basic carbon management systems

Step 2 (2026): Enhancement and verification

Measure total Scope 3 emissions
Build third-party verification systems
Complete CBAM response

Step 3 (2027 onwards): Optimization and innovation

Introduce AI-based automation systems
Lead global standards
Create new business models

Step-by-Step CDP Grade Improvement Plan

D-Grade → C-Grade: Building Foundation

This is the first step for companies currently at D-grade or not participating in CDP.

Core Tasks:

Accurate measurement of Scope 1 and 2 emissions
Organize basic carbon management teams
Create annual emission inventories

Duration: 6-12 months Expected Cost: 50-100 million won Required Personnel: 2-3 dedicated staff

C-Grade → B-Grade: Starting Systematic Management

This is the process for companies with basic foundations to take the next leap.

Core Tasks:

Measure major Scope 3 categories
Set reduction targets and establish implementation plans
Operate stakeholder engagement programs

Duration: 12-18 months Expected Cost: 200-300 million won Required Personnel: 5-7 dedicated team members

B-Grade → A-Grade: Securing Global Leadership

This is the final step to leap to industry-leading company status.

Core Tasks:

Set SBTi-certified science-based targets
Plan 100% renewable energy use
Build entire supply chain carbon management systems

Duration: 18-24 months Expected Cost: 500 million - 1 billion won Required Personnel: 10+ dedicated organization

Digital Transformation and Carbon Management System Construction

IoT-Based Real-Time Monitoring

Real-time carbon emission monitoring using Internet of Things technology is becoming essential.

Core Technologies:

Smart sensors: Real-time measurement of fuel consumption and electricity usage
Telematics: Carbon emission optimization through vehicle operation pattern analysis
Digital weighing systems: Accurate emission calculation based on cargo weight

Investment Effects:

Achieve 95%+ data accuracy
80% reduction in CDP report writing time
20-30% annual operating cost reduction

AI-Based Prediction and Optimization

Advanced carbon management using artificial intelligence for prediction analysis and optimization is possible.

AI Application Areas:

Demand forecasting: Optimal dispatch planning through customer requirement prediction
Route optimization: Automatic shortest route setting reflecting real-time traffic conditions
Predictive maintenance: Fuel efficiency optimization through vehicle condition monitoring

Blockchain-Based Transparency

Data integrity and transparency through blockchain technology will be a differentiating factor.

Implementation Methods:

Prevent carbon emission data tampering
Ensure entire supply chain traceability
Guarantee international standard compatibility

Cost-Effective System Construction Methods

Phased Investment Strategy

Don't try to build all systems at once. It's important to invest step by step while confirming return on investment.

Phase 1 Investment (100-200 million won):

Basic data collection systems
Simple emission calculation tools
Initial dedicated personnel training

Phase 2 Investment (300-500 million won):

IoT sensors and automation systems
Integrated data management platforms
Professional personnel acquisition

Phase 3 Investment (1+ billion won):

AI-based optimization systems
Blockchain infrastructure construction
Global expansion response

Active Utilization of Government Support Programs

Utilizing various government support programs can significantly reduce investment burden.

Major Support Programs:

Carbon-neutral technology development R&D: Up to 10 billion won per project
Smart logistics technology development: Up to 5 billion won
Digital New Deal support: 50% of IT investment costs
Eco-friendly vehicle purchase subsidies: Up to 40 million won for electric trucks

Industry-Wide Joint Response

Industry-wide joint response can reduce individual company burden.

Joint Response Methods:

Industry common platform construction: Systems for SME joint utilization
Joint education programs: Industry joint investment for professional personnel training
Standardized measurement methodology: Industry common standard development

2025 Logistics Industry Survival Strategy

Selective Focus

Don't try to do everything. It's important to focus considering your company's strengths and customer requirements.

Focus Area Selection Criteria:

Major customer requirements
Company's technological capabilities
Return on investment
Differentiation potential compared to competitors

Partnership Building

Solve impossible tasks alone through partnerships.

Strategic Partnerships:

Technology partners: Cooperation with IT solution companies
Customer partners: Long-term contracts with major shippers
Industry partners: Selective cooperation with competitors
Professional institution partners: Cooperation with research institutes and consulting companies

Maintaining Long-Term Perspective

Don't get caught up in short-term cost burden and maintain long-term perspective.

Value of Long-Term Investment:

Avoiding regulatory risks
Creating new business opportunities
Improving brand value
Securing excellent talent

Implementation Roadmap and Checklist

First Half 2025 (Jan-Jun)

[ ] Diagnose current carbon emission status
[ ] Identify major customers' ESG requirements
[ ] Organize dedicated teams and secure budgets
[ ] Introduce basic measurement systems

Second Half 2025 (Jul-Dec)

[ ] Accurate measurement of Scope 1 and 2 emissions
[ ] Identify major Scope 3 categories
[ ] First CDP participation or grade improvement
[ ] Start CBAM response system construction

2026 (CBAM Full Implementation)

[ ] Complete third-party verification systems
[ ] Build complete CBAM response systems
[ ] Commercialize eco-friendly services
[ ] Expand ESG-linked contracts

My Final Words of Encouragement

I've been working in this field for years, and I've never seen changes this dramatic. But I've also never been more hopeful about the future.

2025 will be a turning point for the logistics industry. Companies that don't view regulations as burdens but utilize them as new opportunities will be tomorrow's winners.

Throughout these 5 posts, we've explored complete CDP mastery methods for the logistics industry. If you prepare step by step, you can definitely succeed. GLEC will always be with you.

Let's lead the logistics industry in the carbon-neutral era together! Don't fear change - let's walk confidently toward a new future. GLEC will be your reliable companion on that journey.

The clock is ticking, but it's not too late. With the right strategy, dedication, and expert guidance, your company can not only survive but thrive in this new era.

Remember, every challenge is an opportunity in disguise. Let's make 2025 the year your logistics company transforms into a sustainability leader.

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For carbon emission measurement consultation and inquiries, please visit the GLEC homepage.

#CBAMCompliance #K-Taxonomy #LogisticsRegulations #CarbonManagementSystems #DigitalTransformation #ESGMandatoryDisclosure #2025Roadmap #RegulatoryStrategy #LogisticsIndustryFuture #CarbonNeutralLogistics

How I Discovered CDP A-Grade Companies Make 40% More Profit: The Secret to Green Logistics Business

Hello again, friends! Your sustainability enthusiast from GLEC here.

"Environment is good, but it doesn't make money." I heard this at a logistics industry seminar last year. But guess what shocked me recently? Global logistics companies with CDP A-grades have 40% higher average operating profit margins compared to B-grade companies.

That moment made me realize many logistics companies still view environment and economics as opposing forces. But reality is the complete opposite - carbon neutrality is becoming a new revenue stream.

Let me share some incredible success stories that completely changed my perspective.

Real Success Stories That Will Inspire You

DHL: Leading the Market with Green Services

DHL started their GoGreen program in 2008, and honestly, many inside the company worried it would "just increase costs." But 17 years later, green services account for 25% of their total revenue.

Here's what blew my mind:

CDP Climate Change A-grade for 7 consecutive years
Green services generate 25% of total revenue
Eco-friendly service premium of 20-30%

DHL's secret? They made "Green Logistics of Choice" their 4th business objective. Instead of treating it as just CSR activity, they approached it as core business strategy. That's why they could sustain investment and innovation.

UPS: Cost Reduction Through Data-Driven Optimization

UPS optimizes delivery routes through their ORION system. This system analyzes traffic conditions, weather, and customer requirements in real-time to suggest optimal delivery routes.

The results were mind-blowing:

100 million miles reduced annually
10 million gallons of fuel saved
100,000 tons of CO2 emissions reduced
$400 million in annual cost savings

UPS proved that environmental performance and economic performance can be achieved simultaneously. One executive told me, "Environment and economy aren't opponents - they're partners who must go together."

FedEx: Creating New Markets Through Electric Vehicle Transition

FedEx is investing $2 billion toward carbon neutrality by 2040. They're focusing investment on electric vehicle development, partnering with Tesla and Rivian.

Their remarkable achievements:

15% premium rates for electric vehicle delivery services
50+ battery technology patents
Entry into electric vehicle charging infrastructure business

FedEx is transforming from a logistics service company into an eco-friendly technology company. Logistics has become a technology business.

Hyundai Glovis: Korea's Green Innovation

Hyundai Glovis achieved CDP Climate Change B-grade in 2022, leading the domestic logistics industry. They established a carbon neutrality goal by 2045 with specific implementation plans.

Their core strategies:

Developing eco-friendly carriers for finished vehicle transportation
Promoting hydrogen truck transportation pilot projects
Building eco-friendly logistics centers in global networks

Business results:

30% increase in eco-friendly service revenue
1st place in ESG evaluation within Hyundai Motor Group
Used as differentiation factor in overseas expansion

Strategies for Commercializing Green Logistics Services

1. Developing Carbon-Neutral Delivery Services

Creating carbon-neutral delivery options customers will pay extra for is key.

Success Factors:

Clear carbon emission information: Show specific numbers of how much was reduced compared to regular delivery
Transparent cost structure: Explain where additional costs are used
Certificate issuance: Provide carbon-neutral certificates customers can be proud of

Commercialization Examples:

Green Express: Same-day delivery using only electric/hydrogen vehicles
Carbon-Free Logistics: Complete carbon-neutral service including carbon offsetting
Eco Last Mile: Eco-friendly delivery using bicycles and electric scooters

2. Expanding ESG Consulting Services

You can expand into consulting services supporting customers' ESG goal achievement based on logistics expertise.

Service Components:

Supply chain carbon footprint analysis: Diagnosing entire customer supply chain emissions
Logistics optimization consulting: Establishing transportation strategies minimizing carbon emissions
CDP report writing support: Leveraging logistics sector expertise for report writing

3. Data-Based Value-Added Services

You can develop various value-added services based on accurate carbon emission data.

Innovative Services:

Real-time carbon footprint tracking: Real-time emission monitoring by cargo
Carbon budget management service: Supporting customers' annual carbon budget management
Green route planning: AI-based optimal eco-friendly route suggestions

Investment Attraction and Financial Benefits

Fundraising Through ESG Bond Issuance

You can raise funds at low interest rates through green bonds or sustainability bonds.

Issuance Conditions:

CDP B-grade or equivalent ESG rating
Clear eco-friendly investment plans
Performance measurement and reporting systems

Real Examples:

CJ Logistics: Issued 100 billion won ESG bonds in 2023
Hanjin: Secured 150 billion won through sustainability-linked loans
Hyundai Glovis: Utilized ESG evaluation-linked preferential rate loans

Active Utilization of Government Support Programs

Various support programs from Ministry of Environment, Ministry of Trade, and SME Ministry are available.

Major Support Programs:

Carbon-neutral green growth R&D support: Up to 5 billion won per project
Eco-friendly vehicle purchase subsidies: Up to 40 million won for electric trucks
Logistics facility modernization support: 50% of eco-friendly logistics center construction costs

ESG Investment Attraction Strategy

In the $40 trillion ESG investment era, logistics companies also have increasing opportunities to access these funds.

Investment Attraction Points:

Clear ESG performance indicators: Objective indicators like CDP grades and carbon reduction amounts
Profitable business models: Proving profitability of eco-friendly services
Scalable business plans: Potential for global market expansion

Core Strategies for Securing Profitability

1. Premium Pricing Policy

Securing appropriate premiums for eco-friendly services is important. You need to provide value that customers will gladly pay extra for.

Premium Basis:

Actual investment costs: Additional investments in electric vehicles and eco-friendly facilities
Operational efficiency: Cost reduction effects from energy efficiency improvements
Brand value: Contributing to customers' ESG evaluation improvement

2. Achieving Economies of Scale

Even starting small initially, rapidly expanding scale to lower unit costs is necessary.

Expansion Strategies:

Standardized service model development
Rapid expansion through partnerships
Technology platform construction for replicable models

3. Securing Long-Term Contracts

Secure stable revenue through ESG performance-linked long-term contracts.

Contract Structure:

3-5 year long-term contracts
Incentives for achievement, penalties for non-achievement
Investment recovery plans linked to volume guarantees

Differentiation Through Technology Innovation

Smart Logistics Using AI and IoT

You can differentiate through smart logistics systems utilizing artificial intelligence and Internet of Things.

Innovation Technologies:

Predictive delivery: Maximizing delivery efficiency through pre-positioning based on demand forecasting
Dynamic routing: Automatic optimal route setting reflecting real-time traffic conditions
Predictive maintenance: Preventive maintenance through vehicle condition monitoring

Transparency Through Blockchain

You can secure customer trust through supply chain transparency using blockchain technology.

Application Areas:

Carbon emission tracking: Tamper-proof emission records
Eco-friendly certification: Blockchain-based eco-friendly certificate issuance
Supply chain tracking: Tracking complete product movement routes and environmental impacts

Global Strategy for Overseas Expansion

Acquiring International Certifications

Internationally recognized certifications are necessary for global market entry.

Essential Certifications:

CDP A-grade: Global standard environmental evaluation
SBTi certification: Science-based reduction target certification
ISO 14001: International standard for environmental management systems

Building Local Partnerships

Local partnerships suited to each country's environmental regulations and market characteristics are important.

Partnership Strategies:

Joint ventures with local eco-friendly companies
Direct contracts with global customers' local subsidiaries
Business promotion linked to local government eco-friendly policies

My Personal Insights

I've been in this industry for years, and I've never been more excited about the future. What started as regulatory compliance has become the foundation of new business models.

Carbon neutrality is now investment, not cost. Based on the credibility secured through excellent CDP grades, you can create new business models and secure competitiveness in global markets.

The logistics industry's future lies not in 'faster and cheaper' services but in 'more sustainable and transparent' services. If you start preparing systematically now, carbon neutrality can become a new growth engine.

I've seen companies transform from viewing environmental initiatives as burdens to seeing them as opportunities. The mindset shift is everything.

In our final post, I'll present the regulatory changes the logistics industry must know in 2025 and step-by-step response roadmaps. From CBAM to K-Taxonomy, I'll cover how to strategically approach complex regulatory environments.

Homepage

For carbon emission measurement consultation and inquiries, please visit the GLEC homepage.

#EcoFriendlyLogisticsBusiness #CDPUtilizationStrategy #GreenLogisticsMonetization #ESGInvestmentAttraction #CarbonNeutralLogistics #SustainableRevenueModel #EcoFriendlyServiceCommercialization #LogisticsIndustryInnovation #EnvironmentalManagementStrategy #GreenTransportation

7 Deadly Mistakes in CDP Reports That Kill Your Score (And How to Fix Them)

Hey everyone! Welcome back to GLEC's sustainability corner.

"We spent 6 months preparing our CDP report and got a D grade." I got this call from a logistics company last month. You could feel their disappointment through the phone. After working day and night for half a year, a D grade? That's heartbreaking.

That moment made me realize how many logistics companies are repeating the same mistakes. With CDP 2025 mandating 70% verification of Scope 3 emissions, knowing the correct approach is more crucial than ever.

Let me share the 7 most common mistakes I've seen and how to avoid them.

Quick Check: CDP 2025 Major Changes

Complete Integration of Questionnaire System

CDP 2025 integrates all areas - climate change, water, forests, plastics, and biodiversity - into one platform. Logistics companies must mandatorily report on climate change, plastics, and biodiversity, with water and forests potentially added depending on the sector.

Mandatory Alignment of Reporting Boundaries with Financial Statements

If CDP reporting boundaries don't align with financial statement consolidation standards, you'll face Management deductions. Companies with overseas subsidiaries or joint ventures need to pay special attention to this.

Mandatory Currency Unit Reporting

Currency unit specification becomes mandatory from 2025. This is part of standardization efforts for global comparison.

The 7 Deadly Mistakes (And Their Fixes)

Mistake 1: Scope Classification Confusion

The most common mistake is incorrectly classifying Scope 1, 2, and 3 emissions. Logistics companies frequently experience these confusions:

Wrong Examples:

Classifying leased vehicle fuel use as Scope 3
Classifying logistics center electricity use as Scope 1
Classifying subcontractor transportation as Scope 2

Correct Classification:

Scope 1: Direct fuel combustion from company-owned vehicles
Scope 2: Purchased electricity, steam, heating/cooling for logistics centers and offices
Scope 3: Subcontractor transportation, leased vehicles, employee business travel, waste disposal

The Fix: Master the GHG Protocol's Scope 3 Technical Guidance and check annually updated guidelines. When uncertain, consult professional institutions - it's safer than guessing.

Mistake 2: Incomplete Activity Data Collection

Many logistics companies collect data from only some locations or vehicles and estimate the rest. CDP's structure lowers scores as estimation ratios increase.

Wrong Approaches:

Measuring only 30% of total vehicles and estimating the rest
Measuring only a few major logistics centers
Simply extending quarterly data to annual

Right Approaches:

Secure at least 90% actual data
Build IoT-based real-time monitoring systems
Collect detailed monthly/quarterly data

The Fix: Build automated data collection systems using digital truck logs, fuel management systems, and smart meters. Initial investment costs exist, but they dramatically improve accuracy and efficiency long-term.

Mistake 3: Emission Factor Application Errors

Incorrectly applying emission factors by country, fuel type, and electricity type is common. International logistics companies especially face errors when mixing emission factors from multiple countries.

Wrong Applications:

Using domestic emission factors for overseas transportation
Using outdated emission factor versions
Confusing Location-based and Market-based approaches

Correct Applications:

Use latest emission factors published by each government
Utilize internationally recognized factors from IEA, IPCC
Distinguish between Location-based and Market-based for electricity

The Fix: Establish annual emission factor update schedules and regularly monitor changes in major operating countries.

Mistake 4: Third-Party Verification Target Selection Errors

From 2025, 100% verification of Scope 1 and 2 and 70%+ verification of Scope 3 becomes mandatory, but many don't know which data to select for verification.

Wrong Selections:

Verifying only low-importance Scope 3 categories
Verifying only the easiest-to-measure data
Selecting based on verification costs alone

Right Selections:

Major emission sources covering 70%+ of total emissions
Priority categories important for logistics industry characteristics
Emission sources with superior data quality first

The Fix: Create emission source importance matrices considering both emission volume and data quality for verification planning.

Mistake 5: Unrealistic Target Setting

Setting excessively high or low reduction targets loses credibility. CDP strongly recommends science-based target setting.

Unrealistic Targets:

"100% carbon emission reduction by 2030" (impossible)
"1% annual reduction" (too passive)
Declarative targets without specific implementation plans

Realistic Targets:

Reduction pathways meeting SBTi standards
Appropriate levels compared to industry averages
Targets linked to specific implementation plans

The Fix: Reference SBTi guidelines to set reduction pathways aligned with 1.5-degree scenarios.

Mistake 6: Superficial Risk Assessment

Simply listing climate change risks and opportunities without quantitative analysis is common. CDP requires quantification of financial impacts.

Superficial Analysis:

"Possibility of transportation delays due to climate change"
"Fuel price increase risks"
Descriptions without specific amounts or probabilities

In-Depth Analysis:

Specify financial impact scale (e.g., potential annual loss of 1 billion won)
Predict occurrence probability and timing
Specific costs and effects of response strategies

The Fix: Use scenario analysis methodologies to analyze impacts under 1.5, 2, and 4-degree scenarios.

Mistake 7: Formalistic Governance Structure

Building carbon management governance only formally without substantial decision-making structures is common.

Formalistic Structure:

Committees with only CEO's name listed
Quarterly formal meetings
Plans without execution power

Substantial Structure:

Actual participation of CEO or top management
Monthly monitoring systems
Performance-linked incentive systems

The Fix: Build substantial governance through board-level climate change response strategies and reflecting ESG indicators in executive performance evaluations.

Module-by-Module Writing Tips

Module 1 (Introduction): Basic Company Information

Currency unit reporting is mandatory, so clearly indicate currency units for all financial data. Reporting boundaries must align with financial statement consolidation standards.

Module 2 (Dependencies, Impacts, Risks, Opportunities): Double Materiality Assessment

Specifically describe environmental dependencies and impacts reflecting logistics industry characteristics:

Dependencies: Road infrastructure, port facilities, fuel supply chains
Impacts: Air pollution, noise, traffic congestion, ecosystem destruction

Module 7 (Climate Change): Core Performance Data

Accuracy of emission data is most important. Accurately calculate emissions by each Scope and clearly explain year-over-year increase/decrease reasons.

Building Data Collection Systems

Step 1: Define Data Collection Scope

Clearly set organizational and operational boundaries. Especially decide inclusion of overseas subsidiaries, joint ventures, and subcontractors.

Step 2: Build Automation Systems

Real-time data collection using digital technology is essential:

IoT Sensors: Real-time monitoring of fuel consumption and electricity usage
GPS Systems: Accurate mileage measurement
Integrated Management Platform: Centralized management of all data

Step 3: Build Quality Management Systems

Multi-stage review processes for data quality verification:

1st: Automated system anomaly detection
2nd: Field staff data review
3rd: Headquarters team final verification

Third-Party Verification Preparation Checklist

Pre-Verification Preparations

Complete Supporting Documents:

Fuel purchase receipts, electricity usage bills
Driving logs, vehicle registration certificates
Subcontractor contracts and emission data

Document Calculation Processes:

Emission factor application basis
Data processing and estimation methodologies
Quality management procedures

Staff Training:

Understanding verification processes
Q&A preparation
Document management methods

Verification Process Precautions

Smooth communication with verification institutions is important. Prepare to answer data questions immediately and provide additional evidence quickly when needed.

My Experience and Advice

I've been helping logistics companies with CDP reporting for years, and I've seen the same mistakes repeated over and over. But I've also seen companies that started with D grades eventually achieve A grades through systematic improvement.

CDP report writing isn't just paperwork - it's a comprehensive evaluation of your company's carbon management level. It might seem difficult and complex at first, but with systematic preparation, you can definitely achieve good results.

Most importantly, don't give up. Just because you didn't get a good grade on your first try doesn't mean you should be discouraged. Gradual annual improvements will eventually get you to your desired goal.

Remember, every A-grade company started somewhere. The key is learning from mistakes and continuously improving.

In the next post, I'll share strategies for using excellent CDP grades to create actual business opportunities. I'll show you how carbon neutrality can become a profitable business model with specific examples.

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Why Big Companies are Changing Logistics Partners: 3 Real Cases That Will Shock You

Hi there! It's your logistics sustainability expert from GLEC again.

"We just transport goods - why do we need to measure carbon emissions too?" This is what many logistics company CEOs ask me. But here's a reality check: 330 companies participating in the 2024 CDP Supply Chain program requested environmental information disclosure from 47,000 suppliers.

Let me share some real cases that might surprise you about why major corporations are suddenly being so picky about their logistics partners.

The Real Story: Why Companies Suddenly Got So Demanding

Apple's Scope 3 Dilemma

Here's something that will blow your mind: 75% of Apple's total carbon emissions come from Scope 3. This means no matter how much renewable energy Apple uses in their offices and factories, they can't achieve carbon neutrality without reducing supply chain emissions.

It's like someone trying to lose weight by eating only salads at home while ordering fried chicken when they're out. The overall goal becomes impossible to achieve.

That's why Apple set a goal for carbon neutrality across their entire supply chain by 2030, demanding the same level of carbon management from logistics partners. In fact, CDP B-grade or equivalent environmental certification has become essential for contracting with Apple.

Nike's Supply Chain Innovation Strategy

Nike introduced SCSI (Supply Chain Sustainability Index) that comprehensively considers environment, human resources, safety, and community standards when evaluating logistics service providers.

What's interesting is that logistics companies with excellent sustainability performance get allocated more volume. Since 2017, Nike has annually awarded SCSI awards to the highest-rated air and ocean freight providers and prioritizes innovation projects with them.

IKEA's Circular Economy Vision

IKEA declared their intention to become a 'circular business' by 2030. To achieve this, they need to minimize environmental impact throughout the entire process from product production to sales, delivery, and recovery.

As part of their 'People & Planet Positive' strategy, they require logistics partners to build systems that collect and recycle packaging waste generated during delivery. It's not just about transportation services - you need to become part of the circular economy ecosystem.

Regulatory Changes Creating Pressure

The Powerful Impact of EU CSRD

The EU Corporate Sustainability Reporting Directive (CSRD) implemented in 2024 completely changed the game rules. EU-listed companies must mandatorily disclose environmental and social impacts across their entire supply chain.

This means all suppliers dealing with EU companies, including logistics companies, need EU-level environmental information disclosure. In fact, Germany's BMW has started requiring logistics partners to provide environmental data that meets CSRD standards.

Ripple Effect of US SEC Climate Disclosure Rules

Although partially delayed, the US SEC's climate disclosure rules will mandate Scope 3 disclosure for US-listed companies. This means US companies will also start demanding accurate carbon emission data from their supply chain partners.

Changing Investor Perspectives

Surge in ESG Investment Funds

Global ESG investment funds surpassed $40 trillion in 2024. This represents about 30% of total investment assets. Investors are considering companies' ESG performance as a key factor in investment decisions.

Logistics companies are no exception. ESG ratings directly impact interest rates and conditions when attracting investment or loans. In fact, major domestic banks are expanding the proportion of ESG evaluation reflection in corporate lending.

Win-Win Strategy: Growing Together with Shippers

Joint Carbon Reduction Project Promotion

Partnerships where shippers and logistics companies jointly set carbon reduction goals and achieve them together is a new trend. This is an opportunity to develop into true business partners beyond simple client-vendor relationships.

For example, Hyundai Glovis and Hyundai Motor are jointly developing electric vehicle transportation-specific trailers. Through this, they're reducing carbon emissions in the transportation process while creating new business models.

Data-Based Efficiency Improvement

Accurate carbon emission data provided by logistics companies plays a key role in shippers' supply chain optimization. Based on this, Win-Win effects can be created in transportation route optimization and transportation method selection.

Looking at the collaboration case between DHL and Germany's Siemens, Siemens successfully reduced their entire supply chain carbon footprint by 30% based on detailed carbon emission data provided by DHL.

Joint Development of Eco-Friendly Technology

Combining shippers' technological capabilities with logistics companies' field experience for eco-friendly technology development is also an effective strategy.

The hydrogen truck transportation system developed through cooperation between POSCO and Hyundai Steel is a representative example. They dramatically reduced carbon emissions from steel product transportation while successfully commercializing new transportation technology.

Strategic Approach for Long-Term Contract Acquisition

Increase in ESG Performance-Linked Contracts

'ESG-linked contracts' where contract conditions change according to carbon reduction performance are increasing. It's structured to receive incentives when targets are achieved and penalties when not met.

But you don't need to see this as just a burden. For logistics companies that have built systematic carbon management systems, this can be an opportunity to secure competitive advantages.

Building Innovation Partnerships

Becoming an innovation partner for shippers beyond just being a service provider is the key to long-term success. You need to actively participate in joint R&D for achieving carbon neutrality goals and creating new business models.

Practical Action Guide for Logistics Companies

Step 1: Current Status Diagnosis

Identify major customers' ESG requirements
Analyze your company's carbon emission status
Check position compared to competitors

Step 2: Response Strategy Development

Set short/medium/long-term ESG goals
Calculate required investment scale
Organize dedicated teams

Step 3: System Construction and Implementation

Introduce carbon emission measurement systems
Write and submit CDP reports
Strengthen cooperation systems with customers

My Personal Reflection

I've been working in this industry for years, and I've never seen changes this dramatic. What started as simple environmental compliance has become the foundation of business partnerships.

The reason shippers are demanding CDP from logistics partners isn't just regulatory compliance. It's become an essential condition for building true business partnerships and creating a sustainable future together.

The logistics industry also needs to shift from the mindset of 'just transport well' to 'sustainable transportation services'. Companies that don't fear change but embrace it as new opportunities will be tomorrow's winners.

In the next post, I'll share the 7 common mistakes logistics companies make when writing CDP reports and their solutions. I'll cover practical difficulties encountered in actual field work and ways to overcome them.

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5 Things Every Logistics Company Must Know About CDP in 2025: The Ultimate Guide to Carbon Disclosure

Hello everyone! Welcome back to GLEC, your trusted partner for carbon emission measurement in the logistics and transportation industry.

"What exactly is CDP, and do we really need it for our logistics business?" This is probably the most common question I've been hearing from logistics executives lately. And honestly, I get it - there's so much talk about environmental reporting these days that it can feel overwhelming.

But here's the thing: 23,000 companies representing two-thirds of global market capitalization are already participating in CDP (Carbon Disclosure Project). And if you're in the logistics industry, this isn't just a nice-to-have anymore - it's becoming essential for your business survival.

What Exactly is CDP and Why Should You Care?

Let me start with the basics. CDP is the global standard platform for environmental information disclosure by companies worldwide. Founded in 2000, it has grown steadily for 25 years and now manages integrated environmental information across five areas: climate change, water resources, forests, plastics, and biodiversity.

The biggest change in CDP 2025 is the completion of the integrated questionnaire system. Previously separate environmental areas have been integrated into one platform, allowing companies to disclose environmental information more systematically and efficiently.

What really caught my attention is the expansion of mandatory requirements. The strict standards that previously applied only to A-grade companies now apply to all companies with C-grade or higher. This means the overall level of carbon disclosure has risen significantly.

The 3 Key Ways CDP is Transforming Logistics

1. Scope 3 Emissions Measurement Becomes Mandatory

The biggest change for logistics companies is the strengthening of Scope 3 emissions management. In CDP's 2025 evaluation, you must input values greater than 0 for major categories to score Management points.

What's even more important is the mandatory use of actual supplier data. If you don't use actual data from suppliers for major categories, you can't achieve Leadership scoring. This means logistics companies can no longer get high evaluations with just estimates.

2. Enhanced Third-Party Verification Requirements

Starting in 2025, 100% third-party verification of Scope 1 and 2 emissions becomes mandatory. Additionally, at least 70% of Scope 3 emissions must be verified to achieve top grades.

For logistics companies, this is particularly challenging because you need to accurately measure and verify all emissions from vehicles and logistics centers scattered across the country, plus complex transportation networks.

3. Introduction of Double Materiality Assessment

You now need to evaluate both the impact on the environment and the dependence received from the environment. For logistics companies, this means analyzing not only the environmental impact of the transportation process but also the impact of climate change on logistics networks.

For example, you need to quantify the financial impact of things like transport route blockages due to typhoons or floods, and vehicle performance degradation due to extreme temperatures.

Why Global Shippers are Demanding CDP from Logistics Partners

Scope 3: The Key to Supply Chain Management

Scope 3 accounts for an average of over 70% of global companies' total emissions. For manufacturing companies especially, emissions from transportation and distribution processes account for a significant portion.

Nike's Supply Chain Sustainability Index (SCSI) is a perfect example. Nike started evaluating the sustainability of logistics service providers in 2012, and since 2017, they've been evaluating sustainability at the same level as cost, service, and risk.

Essential Tool for Supply Chain Transparency

The reason global companies like Apple, IKEA, and others are requiring logistics partners to participate in CDP is clear. To achieve their carbon neutrality goals, they need to accurately understand and manage emissions across their entire supply chain.

Especially for EU companies, the Corporate Sustainability Reporting Directive (CSRD) implemented in 2024 mandates disclosure of environmental impacts across the entire supply chain. This makes detailed environmental information provision at the CDP level inevitable for logistics companies trading with EU companies.

Current Status and Trends of Logistics Industry CDP Grades in 2024

Success of Large Companies vs. Struggles of SMEs

Common characteristics of logistics companies that received A-grades in 2024 CDP results include:

Systematic carbon emission measurement system construction
Clear carbon reduction target setting
Regular progress monitoring

On the other hand, common problems of companies with C-grade or below:

Lack of accuracy in carbon emission data
Lack of specificity in reduction strategies
Insufficient communication with stakeholders

Where Korean Logistics Companies Stand

CJ Logistics achieved B-grade in CDP Climate Change in 2023, leading among domestic logistics companies. However, most small and medium-sized logistics companies still struggle with CDP participation.

According to a Korea Institute of Industrial Technology survey, 78.3% of domestic SMEs don't even know about CBAM, which is shocking considering the full implementation scheduled for 2026.

Business Impact Analysis by CDP Grade

A-Grade: Premium Service Provider Qualification

A-grade logistics companies enjoy the benefit of being selected as preferred partners by global companies. This goes beyond just having an eco-friendly image - it leads to actual business opportunity expansion.

B-Grade: Stable Business Maintenance

B-grade meets the minimum requirements that comply with global standards. You can maintain existing business relationships, but there are limitations in securing new business opportunities.

C-Grade and Below: Increasing Business Risk

Companies with C-grade or below face increasing risk of being excluded from global supply chains. Especially after the full implementation of CBAM in 2026, the impact is expected to be more serious.

Key Challenges for the Logistics Industry in 2025

Improving Data Accuracy Through Digital Transformation

Constructing an accurate data collection system using digital technologies like IoT sensor-based real-time fuel consumption measurement and GPS-based automatic mileage calculation is essential.

Strengthening Supply Chain Cooperation Systems

You need to build an integrated carbon management system among customers, logistics companies, and subcontractors to transparently manage emissions across the entire supply chain.

Securing and Training Specialized Personnel

Securing specialized personnel responsible for carbon emission measurement and CDP report writing is urgent. Training programs for existing employees should also be conducted in parallel.

Practical Implementation Roadmap for CDP Response

Step 1: Current Status Assessment (1-2 months)

Diagnose current carbon emission status
Analyze CDP requirements
Establish response strategy

Step 2: System Construction (3-6 months)

Build data collection systems
Introduce measurement systems
Organize dedicated teams

Step 3: Report Writing (2-3 months)

Complete CDP questionnaire
Pursue third-party verification
Submit and evaluate

My Final Thoughts

2025 will be the year when CDP becomes essential, not optional, for the logistics industry. Carbon disclosure is establishing itself as a key tool that creates new business opportunities beyond simple environmental reporting.

If you start preparing systematically now, you can definitely secure competitiveness. Don't fear change - embrace it as a new opportunity and prepare actively for success.

The logistics industry's future lies not in 'faster and cheaper' services, but in 'more sustainable and transparent' services. The time has come to shift the paradigm from 'just transport well' to 'sustainable transportation services'.

In the next post, I'll dive deep into specific cases of why major companies are demanding CDP from logistics partners and Win-Win strategies.

For carbon emission measurement consultation and inquiries, please visit the GLEC homepage.

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10 Easy Ways to Make Your Deliveries Eco-Friendly | Join the 78% Making a Difference

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

"What can I possibly do to help?" If you've ever asked yourself this question, I have surprising news for you. 78% of consumers are already taking small steps toward eco-friendly delivery practices. You might already be an environmental hero without even knowing it! Let me show you 10 simple ways to join this movement and amplify your impact.

1. Master the Delivery Instructions Box

That small text box for delivery instructions? It's more powerful than you think. One simple message can reduce delivery vehicle travel distance by an average of 15%.

Effective delivery instructions that make a difference:

"Please leave at door (or security office if raining)"
"Available 9AM-12PM for delivery"
"Minimal packaging appreciated"
"Can combine with other orders"

Real Impact Story: "I wrote 'minimal packaging please' and received my order with just essential protection. The seller even included a thank-you note for caring about the environment!" - Anonymous customer

2. The Magic of Consolidated Orders

Instead of ordering items as you think of them, try batching your purchases weekly:

70% reduction in delivery frequency
50% less packaging material used
Bonus: Save on shipping costs

Environmental Impact: Consolidating orders can reduce your annual carbon emissions by 32kg per person - equivalent to planting 4 trees!

3. Creative Packaging Reuse Ideas

Turn waste into resources with these practical tips:

Cardboard Box Transformations:

Storage solutions: Cover with decorative paper for stylish organization
Pet playgrounds: Cats absolutely love them!
Garden planters: Punch drainage holes and add soil

Bubble Wrap and Cushioning Materials:

Moving day saviors: Store for future relocations
Fragile item protection: Perfect for seasonal decorations
Kids' art supplies: Great for creative projects

Paper Tape Uses:

Memo strips and labels
Gift wrapping decorations
Scrapbooking materials

Success Story: "I saved bubble wrap and used it when sending a package to a friend. No need to buy new materials - win-win!" - Freelancer L (30s)

4. Choose Green Delivery Options

More platforms now offer eco-friendly delivery choices:

Popular Options:

DHL GoGreen Plus: Carbon-neutral delivery (15-20% premium)
Coupang Green Delivery: Electric vehicle option
Naver Eco Filter: Search only eco-packaged products

Satisfaction Data: 92% of customers who chose eco-delivery said they'd "definitely choose it again"

5. Participate in Packaging Return Programs

Give packaging a second life through these programs:

Active Programs:

Market Kurly "Kurly Green Box": Return insulation boxes for points
Coupang "Rocket Fresh Bag": Reusable cold bag rental system
GS25 "Return Me Box": Exchange delivery boxes for rewards

Customer Feedback: "Return the box, earn points, declutter home, save environment... This is what I call a real win-win-win situation!"

6. Utilize Local Pickup Points

Choosing pickup over home delivery creates surprising benefits:

30% improvement in delivery efficiency
Zero redelivery attempts
Pickup at your convenience

Available Services:

CU/GS25/7-Eleven package storage
Apartment building smart lockers
Subway station pickup boxes

7. Harness the Power of Reviews

Your feedback creates real change. 87% of sellers who received positive eco-packaging reviews continued or expanded their green practices.

Effective Review Writing:

Be specific with praise: "Thank you for using paper tape"
Offer constructive suggestions: "Slightly less packaging would be perfect"
Encourage others: "The eco-packaging makes me trust this seller more"

8. Spread Awareness Through Social Media

The numbers speak volumes:

Eco-packaging hashtags used over 5 million times in 2024
Accelerated corporate green policy adoption
Proven consumer awareness improvement

Recommended Hashtags: Choose from eco-delivery, sustainable-shopping, zero-waste, or create your own!

9. Speak Directly to Companies

Your voice as a customer carries incredible weight. Companies that adopted eco-policies based on customer feedback saw average sales increase by 23%.

How to make your voice heard:

"Please add eco-friendly packaging options"
"Would love to see electric vehicle delivery"
"Consider starting a packaging return program"

10. Complete the Circle with Proper Recycling

Proper disposal is just as important as reducing waste:

Recycling Guide:

Delivery boxes: Remove tape and labels, flatten before recycling
Plastic packaging: Clean thoroughly, dispose with plastics
Styrofoam: Remove contaminants, use designated bins
Paper cushioning: Recycle with paper products

Vision 2030: The Future We're Building Together

Imagine the delivery landscape in 2030:

All packages in reusable containers
100% electric or hydrogen vehicle delivery
AI-optimized zero-waste routing
Complete packaging circularity
Carbon-negative logistics systems

This isn't just a dream - it's the future we're actively creating with every conscious choice.

You're Already Making a Difference

If you started reading thinking "What can I possibly do?" I hope you now realize "I can do so much!"

Eco-friendly delivery isn't just a corporate responsibility - it's a partnership between consumers and businesses. Start with one action today. Your small choices create Earth's big changes.

Remember: Every sustainable delivery choice you make votes for the future you want to see. Let's build it together, one package at a time.

#ecodeliveryaction #greenconsumer #sustainabledelivery #consolidatedorders #packagingreuse #zerowaste #consciousshopping #carbonneutralpractices #ecolifestyle #smallactionsbigimpact

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

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