Glossary for shippers, carriers, and logistics companies

Carbon dioxide equivalent emissions, or CO₂e emissions for short, are a standard unit used to express the total climate impact of all greenhouse gases (GHGs) in terms of the amount of CO₂ that would have the same global warming effect. This makes it easier to compare and report different types of emissions in a consistent way.

Carbon accounting is the process of collecting, calculating, analyzing, and reporting on the CO2 emissions of your commercial activities. For transport and logistics companies, these is primarily Scope 1 emissions from the transport journeys they carry out.

Carbon credits are certificates that represent the reduction or removal of one metric tonne of CO₂ (or its equivalent in other greenhouse gases) from the atmosphere. Companies can purchase carbon credits to compensate for emissions they cannot eliminate, effectively funding climate projects like reforestation, renewable energy, or methane capture.

Carbon intensity refers to the amount of carbon dioxide equivalent (CO₂e) emissions produced per unit of activity e.g. per tonne of freight transported, per kilometre travelled, or per euro of revenue generated. It is used to compare the environmental impact of different operations, routes, or transport modes.

A carbon tax is a government-imposed fee on the carbon content of fossil fuels or on CO₂ emissions generated by certain activities. This could apply to fuel producers, energy companies, industrial manufacturers, or large transport operators, depending on how the national or regional tax is structured. The more a company emits, the more it pays.

The Corporate Sustainability Due Diligence Directive (CSDDD) entered into force in mid-2024 to make companies accountable for human rights and environmental impacts throughout their supply chains. CSDDD shifts the responsibility from just “doing no harm” in your operations to making sure your entire value chain also meets minimum sustainability and ethical standards. This includes your contractors, subcontractors, and third-party suppliers.

The CSRD (Corporate Sustainability Reporting Directive) was introduced in 2021 to hold companies accountable for their sustainability efforts, or lack thereof, by requiring them to report on how their business impacts the environment, and which climate and ESG risks may affect their business.

Cross-docking is a logistics strategy where incoming goods are unloaded from one vehicle and quickly loaded onto another with limited or no storage time in between. Instead of being stored in a warehouse, products are immediately sorted and transferred directly to outbound shipping.

A double materiality assessment is a method used to evaluate and prioritize sustainability topics based on two dimensions: Financial materiality and Impact materiality.

The EU Emissions Trading System (ETS) is the world’s first carbon market. It works on a "cap and trade" principle whereby companies must buy enough emission allowances to cover the carbon emissions they emit through their activities (one allowance = right to emit 1 tonne of CO2 equivalent). Allowances are sold in auctions and may be traded.

The package is a legislative update proposed by the EU in early 2025 to simplify and streamline parts of the Corporate Sustainability Reporting Directive (CSRD) and related regulations, reducing administrative burden, especially for smaller companies

The EU Taxonomy is a classification system for whether an activity is sustainable by setting out clear, science-based criteria to determine which investments can be considered environmentally sustainable. It aims to put an end to greenwashing and to direct more investments into activities that are truly sustainable. It sits alongside the CSRD but does not require any separate disclosures or reporting.

According to the European Environment Agency’s definition, an emissions factor is “the estimated average emission rate of a given pollutant for a given source, relative to units of activity”. Emissions factors essentially quantify the amount of GHG emissions produced per unit of activity, such as fuel consumption, distance traveled, or freight weight.

An emissions calculator is a tool used to estimate the greenhouse gas (GHG) emissions associated with specific activities, such as transport, logistics, energy use, or business operations. In logistics, it’s commonly used to calculate the CO₂ emissions of shipments across different transport modes.

First mile delivery refers to the initial stage of the delivery process, where goods are transported from the origin (e.g. a factory, farm, or supplier) to a distribution center, warehouse, or fulfillment facility.

Fleet efficiency refers to how effectively a transport fleet uses its vehicles, fuel, and capacity to move goods or passengers. It considers factors such as cost, fuel use, emissions, and service levels.

Freight consolidation is a logistics strategy where smaller shipments from multiple suppliers or shippers are combined into one larger shipment. This consolidated load is then transported together to a common destination or regional hub.

A freight forwarder is a company that arranges the transportation of goods on behalf of a shipper. While they don’t typically own the transport vehicles or vessels themselves, they coordinate the entire shipping process using a global network of carriers, customs agents, and warehouses.

Full truckload (FTL) is a shipping method where an entire truck is used to transport goods for a single customer or shipment. The truck is filled with one load that is transported from one origin to one destination, without combining it with loads from other shippers.

ISO 14064 is an international standard that outlines principles and requirements for quantifying, monitoring, reporting, and verifying greenhouse gas (GHG) emissions and removals. It provides a framework for carbon footprint accounting at the organizational level and is widely used for corporate sustainability reporting.

ISO 14083 is an international standard that provides a unified method for calculating and reporting greenhouse gas (GHG) emissions from transport and logistics operations. It offers a consistent framework for emissions accounting across all modes of freight transport.

Intermodal transportation is the movement of goods using at least two different modes of transport, but without handling the shipment itself when changing modes i.e. the shipment remains in the same loading unit (usually a container or trailer) throughout the journey.

Last mile delivery refers to the final step of the delivery process, where goods are transported from a distribution hub or warehouse to the end customer. Traditionally, it is the most expensive, time-consuming, and logistically complex stage in the supply chain.

Less-than-truckload (LTL) is a shipping method where multiple shipments from different companies share space in one truck. Each shipper pays only for the portion of the trailer their freight occupies, making it a cost-effective option for smaller loads.

Load optimization is the process of maximizing the efficiency of space and weight capacity in transport vehicles, such as trucks or containers, while respecting legal, safety, and operational constraints.

A logistics service provider (LSP) is a company that provides logistics services that enable the transport, storage, or handling of goods. There are different types of LSPs, ranging from LSPs that manage a single activity (e.g. transporting goods from warehouse to retailers) to full-service LSPs that manage the entire logistics process for their clients (also called 4PL).

The Mobility Package is a set of EU road transport reforms introduced in three waves (I, II, and III) from 2020 to create a fairer, safer, and more sustainable road transport sector across the EU.

Modal shift is the transition of freight or passenger transport from one mode of transport to another, typically from a high-emission transport mode (like road or air) to a lower-emission transport mode (like rail or sea).

Multimodal transportation is the movement of goods using at least two different modes of transport under a single contract or operator. Unlike intermodal transport, the shipment may be transferred between different containers or loading units along the way, meaning it can be handled at multiple stages during the journey.

Partial truckload (PTL) is a shipping method where a truck is shared by multiple shipments, but without the frequent handling and hub transfers typical of less-than-truckload (LTL). PTL is ideal for medium-sized loads that don't fill an entire trailer but are too large or heavy for standard LTL shipping.

Reverse logistics refers to the process of moving goods backward through the supply chain e.g. from the end customer back to the seller, manufacturer, or recycler. It typically includes returns, repairs, recycling, reuse, or disposal of products and materials.

Route optimization is the process of planning the most efficient and cost-effective routes for transporting goods. It takes into account variables like distance, traffic, time windows, fuel usage, vehicle capacity, and customer locations to reduce mileage, delivery times, and emissions.

Scope 1 emissions are direct emissions from sources that the company owns or controls.

Scope 2 emissions are indirect emissions from the consumption of purchased electricity, steam, heat, and cooling i.e. energy that is generated off-site.

Scope 3 emissions are all emissions that are not produced by the company’s assets or the activities it controls, but that the company is indirectly responsible for up and down its value chain.

Scope 4 emissions are the emissions that are avoided thanks to a company’s product or service, or thanks to R&D efforts or new innovations.

Third-party logistics (3PL) refers to the outsourcing of logistics operations, including transport, warehousing, and fulfillment, to an external company rather than managing these in-house.

A transport management system (TMS) is software used to plan, manage, and report on the movement of goods. It helps companies oversee everything from route planning and carrier selection to shipment tracking and freight auditing.

The VSME is a voluntary standard that aims to simplify how non-listed small and mid-sized companies not in the scope of CSRD provide sustainability data to their larger clients, supply chain partners, investors, or even financial institutions.

Well-to-wheel (WTW) emissions are the total greenhouse gas emissions generated across the entire energy lifecycle of a vehicle, from producing the fuel or electricity that powers the vehicle to using it for transport. It combines both upstream and downstream emissions to give a complete picture of a vehicle’s environmental impact.