HMM develops supply chain carbon calculator

HMM official website – Supply Chain Carbon Calculator [Courtesy of HMM]

South Korean shipping company HMM has developed a carbon calculation system aimed at measuring emissions throughout the entirety of the freight transportation process, and which will even help cargo owners manage carbon footprints within the supply chain that are generated beyond their direct influence.

On Wednesday, HMM announced the development of a supply chain carbon calculator designed to assess carbon emissions generated by transportation modes such as ships, railways, and trucks from the cargo’s origin to its destination.

Leveraging a comprehensive dataset of 1.2 million cases, HMM precisely measured transportation distances and calculated emission coefficients using data from internationally recognized bodies in greenhouse gas emissions-related fields such as the Global Logistics Emissions Council. Calculating maritime emission coefficients involved HMM’s eco-friendly vessel data along with data from global shipping companies.

Shippers can use HMM’s supply chain carbon calculator to calculate the estimated carbon emissions during the freight transport process and indicate them on the bill of lading. A separate document can also be issued to verify the emissions calculated based on actual transportation data.

HMM expects that a lot of companies will use its supply chain carbon calculator as part of their Scope 3 carbon emissions reporting within Environmental, Social, and Governance frameworks.

As defined by the GHG Protocol, an international standard for greenhouse gas emissions, Scope 3 emissions are all indirect emissions - not included in Scope 2 - that occur in the value chain of the reporting company, including both upstream and downstream emissions.

HMM has also launched its Green Sailing service aimed at promoting eco-friendly practices among cargo owners and businesses. The reduced carbon emissions facilitated by HMM’s use of low-carbon fuels in vessel operations can be traded in the market, allowing cargo owners and related companies to mitigate their Scope 3 emissions.