Carbon offsets are fine as a start, but they're only a "Band-Aid" when it comes to eliminating carbon emissions from the supply chain. Josh Bouk, president of Trax Technologies, tells how it's really done.

Today, data is key in allowing companies to measure and manage carbon emissions from transportation, Bouk says. And the need for that capability is pressing. Since 1850, carbon emissions have grown 4.5 times faster than the rate of inflation, creating “a completely unsustainable climate.”

In response, consumers and the government alike have awakened to the need to control and reduce carbon emissions. Even the U.S. Securities and Exchange Commission is getting involved, mandating the measurement of emissions by public companies. The challenge is especially daunting when it comes to monitoring so-called Scope 3 emissions — those generated by a company’s army of supply chain vendors, over which it asserts no direct control.

The question of who within the organization bears chief responsibility for emissions reductions has no single answer. Bouk says that individual should, however, be in the C-suite “to set the right tone,” and that the task combines the activities of the chief supply chain and sustainability officers 

The problem with monitoring Scope 3 emissions, he says, is that no two companies calculate their emissions exactly the same way. Harmonizing that data and creating the necessary transparency is a huge challenge. “That’s what most enterprises are struggling with right now.”

Carbon offsets and credits are one way to reduce a company’s overall emissions levels, but it’s a short-term solution, Bouk says. “You have to collect data and start taking on projects to drive down emissions, instead of taking advantage of somebody else’s good act.”

Only a truly ambitious goal will do. Most companies are looking to achieve net-zero emissions by 2050 or earlier, Bouk says.