Cargo2ZERO helps airlines, freight forwarders report their CO2 emissions
At present, sustainability reporting largely remains on a voluntary basis
Cargo2ZERO puts carbon reporting, tracking, and reduction within easy reach for freight forwarders of all sizes and airlines, ultimately contributing to a more sustainable future.
CO2 visibility emission data is available for all airline schedules, Routes, and AWB tracking on CargoAi, which are calculated as per 'IATA Recommended Practice 1678 Standard'.
Freight forwarders can determine the carbon emission per AWB(Air waybill) or bulk upload AWB in order to fulfill their sustainability reporting requirements, which are presently recommended only at a national level, rather than an international level. The data provided by CargoAi is the only solution based on actual booking/ AWB routing, aircraft code, and shipment weight.
At present, sustainability reporting largely remains on a voluntary basis. In recent years, a number of voluntary reporting initiatives have thus been created over time to aid organizations and in parallel, many national reporting provisions have been developed.
Although there is significant progress, a single international regulatory framework is yet to be finalized, and companies with a global footprint will then face mandatory audited environmental, social, and governance (ESG) reporting requirements.
With data provided by Cargo2ZERO, such multinational companies will already have the ability to report on their Scope 3 emissions and be fully prepared for such audits.
CargoAi cites that visibility is the first step in tackling the issue of climate action. With Cargo2ZERO, freight forwarders can take the second step to optimize emissions for each shipment with the CO2 Efficiency Score as their benchmark. The final piece of the puzzle is 'emission reduction' with Sustainable Aviation Fuel (SAF) purchase, also part of Cargo2ZERO.
“With 8000+ freight forwarders on the platform, a number which is growing rapidly, and each one is given the visibility over their current booking choices, they then have the agency to optimize every single shipment by choosing a more carbon-efficient route. Then, if each also goes the extra mile of reducing carbon emissions by purchasing SAF alongside each booking, then this has an exponential impact to scale rapidly to contribute to climate action at an individual level,” said Magali Beauregard, CCO of CargoAi.
Cargo2ZERO won an award for its Carbon Efficiency Score at the TIACA conference in Miami in 2022 in the start-up category. At the same conference, CargoAi announced its landmark partnership to allow freight forwarders of all sizes to purchase SAF with Neste, the leading producer of SAF.
Through this partnership, small to medium-sized freight forwarders are now able to purchase SAF at a transactional level, which was previously only accessible to large freight forwarders who had significant resources to make direct contracts with airlines.
CargoAi attributes its success in winning not just the Sustainability Award in 2022, but also the Air Cargo News Innovation Award, thanks to its partnership with CargoTech, allowing for continued growth and innovation.
“We are thrilled with the positive feedback from the air cargo industry for our sustainability solution, Cargo2ZERO. CargoTech is a strategic investor in CargoAi, and their expertise in the logistics and transportation industry has been invaluable to us, allowing us to develop various solutions rapidly such as Cargo2ZERO, and increase our customer base. For example, our eBooking numbers increased +457% in 2022 compared to 2021” says Matt Petot, CEO of CargoAi. “As an independent start-up, we are tactically aligned with CargoTech's long-term perspective to sustainable growth and stability which is radically different from VC-funded startups.”
Freight forwarders can already go ahead to utilize the functions of Cargo2ZERO in their standard booking flow on CargoMART or provide a list of AWBs to CargoAi’s team, and airlines can enquire with CargoAi about white-labeling this solution to meet their own sustainable targets.