Reduce Scope 3 Emissions in Your Supply Chain
Scope 3 emissions often make up the largest share of a company’s carbon footprint — sometimes as much as 90%. These are the indirect emissions hidden across suppliers, transportation, and distribution.
Reducing them isn’t just about compliance; it’s about cutting costs, improving efficiency, and building resilience. With ProvisionAI’s AutoO2 and LevelLoad, shippers eliminate wasted miles, fill trucks fuller, and hit Scope 3 targets without sacrificing service.
What Are Scope 3 Emissions?
Scope 3 emissions are the indirect greenhouse gas (GHG) emissions that occur outside a company’s direct control — from supplier activities to product use and disposal.
Unlike Scope 1 (direct operations) and Scope 2 (purchased energy), Scope 3 spans the entire value chain, including purchased goods, freight transport, business travel, and waste.
For most supply chains, Scope 3 is where the biggest opportunity for reduction lies.
Why Scope 3 Matters in Logistics?
Logistics is often the single largest contributor to Scope 3 emissions. Empty miles, underfilled trucks, and volatile shipping patterns create waste that drives up both costs and carbon. Regulators are tightening reporting requirements, customers are demanding sustainable supply chains, and CFOs are watching Scope 3 as a financial risk. The good news? Reducing logistics emissions often unlocks both lower costs and greener operations.
How Load Optimization Reduces Scope 3 Emissions
The fastest way to cut Scope 3 in logistics isn’t by swapping fleets — it’s by filling the trucks you already have. Load optimization ensures every trailer runs fuller, routes are leveled, and shipment timing reduces volatility.
ProvisionAI’s AutoO2 optimizes truck loads with AI, while LevelLoad smooths demand upstream to prevent spikes. The result: fewer trucks on the road, lower CO₂ per shipment, and higher OTIF performance.
91% of trucks are underloaded
A critical load efficiency number for emissions target, and costs. AutoO2 fills loads to 98% of the truck’s capacity vs. 85-90% that is common today.
95% of emissions are Scope 3
Companies across industries are setting ambitious carbon reduction targets. Commitments like “We aim to be carbon neutral by 2050” or “Our carbon footprint will match 1990 levels” are becoming increasingly common.
challenges
The Challenges of Unsustainable Freight Operations
Compliance & Corporate ESG Goals
With stricter environmental regulations and growing expectations for corporate sustainability, businesses are under pressure to reduce their carbon footprint. Inefficient freight operations contribute to higher Scope 3 emissions, making it harder to meet ESG targets and maintain regulatory compliance.
Our Solution
How We Solve It
LevelLoad
The same efficiencies that AutoO2 uses to cut transportation costs—reducing the number of trucks needed to move the same volume of product—also lowers carbon emissions by eliminating shipments.
The same principle applies to LevelLoad, which reduces both cost and carbon by:
✔ Maximizing carrier efficiency—fewer deadhead miles and reduced waiting time
✔ Prioritizing core carriers for the majority of shipments meaning can use intermodal when you want to and “Smartway” carriers.
- Maximizing carrier efficiency—fewer deadhead miles and reduced waiting time
- Prioritizing core carriers for the majority of shipments meaning can use intermodal when you want to and “Smartway” carriers.
LevelLoad eliminates the need to switch loads from low-carbon intermodal to higher-emission truck transport, keeping sustainability and cost efficiency aligned.
According to EY, 8 out of 10 supply chain executives are exploring sustainable transportation.
Transportation managers have implemented several initiatives to help achieve these goals.
Transportation accounts for 28% of these greenhouse gas emissions.
One of our clients using AutoO2 saved the equivalent to the carbon sequestered by 265 acres of a US forest in just 21 days. That’s 4675 acres in one year.
Impact of AutoO2 in 21 days
With hundreds of brands serving billions of customers every day, this company has sustainability and operational efficiency as paramount targets.
With targets in place to halve greenhouse gas (GHG) impact by 2030, and net-zero emissions by 2039, AutoO2 is the ideal solution to start cutting down on shipments and miles driven.
“AI-driven planning has transformed how we operate. We’ve cut emissions and saved money at the same time.”
Sarah Lee,
Sustainability Lead at Manufacturing Enterprise
Ready to Reduce Your Scope 3 Emissions?
Take the next step toward a more sustainable supply chain with ProvisionAi. Contact us today to learn how our solutions can help you cut emissions, lower costs, and achieve your ESG goals.
Frequently Asked Questions
What are Scope 3 emissions?
Scope 3 emissions are indirect greenhouse gas (GHG) emissions that occur outside a company’s direct control — typically across the supply chain, such as transportation, purchased goods, and supplier activity.
How are Scope 3 emissions different from Scope 1 and Scope 2?
Scope 1 = direct emissions from owned assets; Scope 2 = purchased energy; Scope 3 covers the wider value chain, including suppliers, logistics, product use, and disposal.
Why are Scope 3 emissions important?
For most companies, Scope 3 makes up 70–90% of total carbon footprint, making it the largest opportunity for reduction and compliance with ESG regulations.
What are the 15 categories of Scope 3 emissions?
The GHG Protocol defines 15 categories, including purchased goods, capital goods, transportation, waste, business travel, and product use/end-of-life.
How do you measure Scope 3 emissions?
Scope 3 is measured using supplier data, spend-based estimates, and activity data across the 15 categories. Load optimization and logistics data are key inputs.
How can companies reduce Scope 3 emissions?
Strategies include: load optimization, supplier collaboration, energy-efficient logistics, inventory balancing, and shifting to low-carbon materials.
What role does transportation play in Scope 3 emissions?
Freight and logistics are often the largest Scope 3 category, with emissions tied to truck utilization, empty miles, and shipment timing.
How does load optimization reduce Scope 3 emissions?
Load optimization ensures fuller trucks, fewer trips, and smoother demand flows, cutting fuel usage, costs, and indirect emissions.
What are common challenges in Scope 3 reporting?
Barriers include data collection from suppliers, inconsistent reporting standards, and limited visibility across global supply chains.
What regulations require Scope 3 reporting?
Regulations like the EU CSRD, SEC climate disclosure (U.S.), and ISSB standards increasingly mandate Scope 3 reporting for listed companies.
Who is responsible for Scope 3 emissions?
While generated by suppliers, logistics providers, and customers, companies are accountable for measuring and reporting Scope 3 in ESG frameworks.
What industries are most affected by Scope 3 emissions?
Consumer goods, retail, manufacturing, and transportation-intensive industries typically face the highest Scope 3 exposure.
How do Scope 3 emissions impact financial performance?
High Scope 3 emissions can increase compliance costs, investor risk, and customer churn, while reductions often deliver cost savings and brand value.
What tools exist to calculate Scope 3 emissions?
Tools include GHG Protocol calculators, Scope 3 reduction calculators, CO₂ estimators, and supplier reporting platforms.
What’s the ROI of reducing Scope 3 emissions?
Companies see ROI through lower fuel spend, higher load utilization, reduced regulatory fines, and improved ESG ratings.