writing , the rule has already been temporarily halted by the Fifth Circuit Court of Appeals .
California passed a grouping of similar legislation in 2023 , requiring companies larger than $ 1billion in revenue who do business in California to publicly disclose their Scope 1 , 2 and 3 emissions starting in 2026 . Similarly , business groups have mounted a legal challenge to these requirements .
California Air Resource Board ( CARB ) programs such as Advanced Clean Fleets ( ACF ) and Advanced Clean Trucks ( ACT ) are already in effect . Ten additional states are adopting the heavy-duty standard of ACT-like legislation . The ACF requires medium- and heavy-duty trucks operating in California to phase to zero emission over a prescribed timeframe based on vehicle type . This program has also seen delays in implementation while it awaits a pre emption waiver from the EPA .
Local regulations such as the South Coast Air Quality Management District ’ s WAIRE Program and zero emission metro delivery zones are looking to curb emissions within localized geographies .
What does this mean for carriers ?
As carriers , we are standing at one side of the Messy Middle bridge , trying to figure out how to get across . Equipment cost is high , infrastructure is still developing and regulation is start and stop . Does that mean that we should wait until the landscape solidifies before we move across ?
Not necessarily … Shippers and employees care about climate
Sustainability is important to your employee base , as well as the labor force you are trying to attract .
According to a Deloitte survey from March 2023 , 69 % of employed adults say that they want their employers to invest in sustainability efforts . Twenty-seven percent said they would consider an employer ’ s position on sustainability before accepting a position and 24 % said they would strongly consider changing jobs to work for a more sustainable company .
In today ’ s tight labor market , including sustainability in your company ’ s core values can directly impact your employee satisfaction , retention , and your ability to recruit top talent .
Not only are companies facing internal grassroots pressure from employees , but they are facing it externally from their investors and their client base .
The MIT Center for Transportation and Logistics ’ 4th annual State of Supply Chain Sustainability 2023 revealed an increasing external pressure on supply chains to adopt sustainable supply chain practices .
Many shippers have established a Science-Based Target or other net-zero commitment that includes improvements to their Scope 3 emissions . That translates to their supply chain partners .
I speak to 3PL carriers regularly who say nearly every RFP now has questions related to carrier sustainability strategy . Some shippers are requiring participation in EPA SmartWay or a rating from EcoVadis in order to participate in future bids .
So what if you create a strategy that incorporates what your clients and your employees want to see ? Even if it doesn ’ t leap-frog you to the end-game it can incrementally move you across the bridge , and help you retain employees and clients as you go .
How can I start from where I am ?
Take stock of your current operations . There ’ s a high likelihood that your organization already has
18 customized logistics & delivery Magazine I spring 2024