Use the Freight transportation optimisation scenario under Reduce emissions to forecast the carbon and financial impact of switching part or all of your freight transportation from one freight mode to another (e.g. from air freight to sea freight). Freight emissions can represent a significant share of your Scope 3 footprint. By shifting to more efficient transport types, you can:
Reduce your organisation’s Scope 3 emissions.
Assess cost implications of switching freight modes.
Balance environmental benefits with financial outcomes
How does the 'Freight Transportation Optimisation' scenario work?
This scenario models the impact of replacing one freight type with another across upstream and downstream transportation.
It uses your reported data on distances and emissions (using data uploaded under Upstream or Downstream transportation using the calculation methods Origin and destination, Distance, and Distance and mass) to calculate emission factors (EFs) for each transport type (air, sea, rail, road).
How it works
Calculate emissions: For each freight type, the model multiplies the forecasted distance travelled by its corresponding EF.
Compare scenarios:
Before action: baseline emissions and transport costs using current freight types and distances.
After action: emissions and costs after reallocating a chosen share of distance from one freight type to another.
For modelling purposes, the full change is assumed to occur in the base year. This means that both emissions reductions and financial effects are applied as if the shift was fully implemented by the end of that year.
Freight Transportation Optimisation' filters
The following inputs let you adapt the scenario to your company’s data and model potential outcomes:
Input | Description |
Base year | Reference year for calculations. |
Distance growth rate (%) | Annual growth or reduction rate in transport distance. |
Transport type to replace | The freight type you plan to reduce (air, sea, rail, road). |
New transport type | The freight type replacing it. |
Mode distance multiplier | Ratio applied when replacing the original freight type with the new one, to adjust for differing routing. |
Ratio to replace (%) | Share of the original transport distance you are switching. |
Air transportation cost per km | Cost assumption for air freight. |
Rail transportation cost per km | Cost assumption for rail freight. |
Sea transportation cost per km | Cost assumption for sea freight. |
Road transportation cost per km | Cost assumption for road freight. |
Revenue difference (EUR/year) | Annual change in revenue after switching transport types. |
OPEX difference (EUR/year) | Operational cost change (besides transport costs). |
CAPEX (EUR) | One-off investment required for the change. |
WACC (%) | Weighted average cost of capital, used to discount cashflows. |
Project duration (years) | Period of the scenario. |
Include Terminal Value (yes/no) | Whether to include terminal value beyond the modelled period. |
Perpetual growth rate (%) | Growth rate assumption for terminal value. |
What insights can I get from the 'Freight Transportation Optimisation' scenario?
Once applied, the scenario generates carbon and financial forecasts that help you evaluate the trade-offs of freight mode changes.
Metric | What it shows | Why it matters |
Distance forecast before action | Projected distance for each freight mode in the base case. | See how transportation patterns would look in your BAU scenario |
Distance forecast after action | Projected distance for each freight mode after the change. | See the new transport distribution across modes. |
Distance deltas | Distance switched from one transport type to another. | Understand the magnitude of your shift. |
Emissions forecast before change (kgCO₂e) | Baseline freight-related emissions. | Benchmark your current impact. |
Emissions forecast after change (kgCO₂e) | Forecasted emissions after switching freight modes. | Measure climate benefits of the initiative. |
Total change in emissions (kgCO2e) | Change in emissions before vs. after the switch. | Quantify carbon reductions achieved. |
Transportation costs before change | Baseline freight transport costs. | Understand current financial outlay. |
Transportation costs after change | Projected freight transport costs post-switch. | Evaluate financial impact of the change. |
Total change in costs | Net cost change (transport cost + OPEX). | Assess whether the initiative increases or reduces costs. |
Transportation cost deltas | Costs switched from one transport type to another. | Understand the financial implications of your shift. |
Discounted cash flow | Cashflows adjusted for time and risk. | Compare investment value on a present-value basis. |
Terminal value | Value beyond the modelled period. | Capture long-term financial effects. |
NPV | Net present value of the initiative. | Determine whether the project creates financial value. |
Payback (years) | Years until cumulative discounted cashflows turn positive. | Assess how quickly the investment pays off. |
Please note: Not every freight optimisation initiative will generate cost savings. The purpose of this scenario is to provide transparency into both carbon and financial impacts, enabling you to make informed, strategic decisions that balance sustainability goals with business performance.