As environmental regulations tighten across Europe and the U.S., supply chain decarbonization is no longer just a corporate goal, it’s a regulatory requirement. For global industries like automotive, fashion, pharmaceuticals, and electronics, cargo-related emissions represent one of the most significant yet least visible challenges. Fortunately, emerging technologies like AI and IoT are changing that and helping to reduce carbon footprint.
Why Carbon Tracking Now? The Regulatory Shift
Governments worldwide are now mandating transparency in corporate carbon emissions, especially those that occur outside direct operations, known as Scope 3 emissions.
- Scope 3 emissions include all indirect emissions that occur in the value chain, such as those from third-party logistics providers, shipping, warehousing, and product distribution. In many companies, Scope 3 accounts for over 70% of their total carbon footprint.
- Europe’s CSRD (Corporate Sustainability Reporting Directive) now requires companies to disclose Scope 1, 2, and 3 emissions starting in 2024. For any business operating in or selling into the EU, this includes emissions generated throughout the logistics and supply chain.
- The U.S. SEC Climate Disclosure Rule is expected to take effect in phases from 2025, also includes Scope 3 reporting if the emissions are material or part of climate-related targets.
- The EU’s Carbon Border Adjustment Mechanism (CBAM) will enforce carbon pricing on imported goods, increasing pressure on importers to track and reduce supply chain emissions.
In short, if you move goods, you need to measure emissions, and soon.
How Contguard Supports Carbon Reduction with AI-Powered Platform & IoT Devices
Contguard provides a smart visibility solution that combines reusable IoT tracking devices with an AI-powered platform, giving companies detailed, real-time oversight into cargo movement and conditions across global routes.
Here’s how we help companies meet both operational and environmental goals:
- Carbon Emissions Analysis
Contguard collects data on cargo movement, transport modes, dwell time, and anomalies, transforming it into accurate CO₂ emission profiles. This helps logistics and ESG teams calculate Scope 3 emissions per shipment, lane, or customer. - Real-Time IoT Monitoring
Our proprietary devices track cargo across sea, air, road, and rail. They monitor not just location, but also temperature, humidity, shocks, and door status, enabling customers to maintain cargo integrity and avoid costly damage-related reshipments. - AI-Powered Decision Support
Our AI platform helps optimize routing decisions, avoid high-emission transport legs, and reduce idle times at ports, depots, and customs. These operational improvements directly reduce CO₂ output. - Reusable Devices & Global Logistics Loop
Our hardware is designed for long-term use and retrieved through a global reverse logistics network, lowering device waste and aligning with circular economy principles. - Anomaly Detection & Demurrage Control
We detect in-transit deviations that lead to delays, demurrage, and ultimately higher emissions. Early alerts allow faster intervention and reduce unnecessary re-shipments.
Tailored Solutions for Complex Global Supply Chains
Automotive
The automotive industry is a significant contributor to global carbon emissions, accounting for approximately 10% of the total. This includes emissions from vehicle manufacturing, supply chain logistics, and the operation of vehicles. Vehicle manufacturing is a just-in-time operation, and logistics delays can disrupt entire production lines. Contguard enables automotive manufacturers and suppliers to monitor part shipments across multimodal routes. It also empowers manufacturers to optimize container usage, and reduce emissions associated with delays and inefficiencies.
Fashion & Retail
The fashion industry is responsible for up to 10% of global carbon emissions, surpassing the combined emissions from international flights and maritime shipping. The race to deliver seasonal collections often leads to costly, high-emission express freight. With real-time monitoring and predictive insights, retailers can shift from air to ocean or rail freight where viable. All this possible while preventing inventory bottlenecks and reducing their Scope 3 footprint.
Pharmaceuticals
The pharmaceutical sector contributes approximately 4.4% of global greenhouse gas emissions, with a significant portion stemming from supply chain activities. In pharma, maintaining cold chain integrity is vital for patient safety and for minimizing spoilage that leads to reshipments and excess emissions. Our environmental sensors alert stakeholders to any deviation in temperature, humidity, or shock, ensuring product quality and reducing waste-related emissions.
Electronics
The electronics industry accounts for over 4% of global greenhouse gas emissions, driven by energy-intensive manufacturing processes and complex supply chains. Sensitive electronics demand safe, secure transit. Contguard tracks environmental and handling conditions across every leg of the journey. This enables manufacturers to fine-tune packaging, reduce damage claims, and avoid reprocessing. All of this contribute to a leaner, greener logistics chain.
Chemicals
The chemical sector is the largest industrial energy consumer and the third-largest industry subsector in terms of direct CO₂ emissions. Transporting hazardous or sensitive chemicals requires precision. By providing full cargo visibility, regulatory traceability, and real-time alerts, compliance risks and environmental incidents are minimized. Our carbon analysis also helps companies optimize shipping routes to lower emissions without compromising safety.
From Compliance to Competitive Advantage
Regulatory mandates are making carbon footprint tracking mandatory. But the right tools turn compliance into competitive edge. Contguard empowers businesses to understand and reduce their carbon footprint. This is backed by real-time data, AI intelligence, and advanced IoT device coverage.
Ready to make your cargo supply chain smarter and greener? Contact us for a live demo.
