Green Supply chain strategies for EU shippers

Sustainability as a strategic priority

The EU’s regulatory landscape is rapidly evolving, placing greater responsibility on shippers to track, report, and reduce their carbon footprint. Initiatives such as the European Green Deal, Fit for 55, and Corporate Sustainability Reporting Directive (CSRD) require businesses to embed sustainability into the core of their supply chain strategy (more on these and related initiatives here).

With progress, however, come inevitable setbacks, especially in today’s geopolitical context. The global carbon tax for shipping, a unique initiative of the IMO (International Maritime Organization), was recently scuppered by the Trump administration.

But beyond compliance, there’s a broader opportunity. Green supply chain practices can:

• Reduce exposure to volatile fuel prices and carbon taxes
• Improve operational efficiency through smarter resource use
• Enhance brand reputation and customer trust
• Drive long-term resilience

Sustainability is not just about doing less harm. It is about creating smarter, more adaptive logistics networks that support both business performance and environmental responsibility.

Tactics to cut emissions in transport & logistics

For many companies, transport is the largest contributor to supply chain emissions. Fortunately, there are several actionable ways to make a meaningful impact:

• Mode shifting: Moving freight from road to rail or inland waterways can reduce CO₂ significantly, especially across long distances
• Load optimization: Improving container fill rates and reducing empty miles cuts emissions while saving costs
• Route planning: Dynamic routing tools can help reduce distance traveled and avoid congestion
• Green carrier selection: Partnering with carriers that offer lower-emission fleets or sustainable fuel options helps shrink your indirect footprint
• Carbon tracking: Measuring emissions at the shipment level allows better reporting, benchmarking, and accountability

Each tactic alone makes a difference, but when combined and supported by data, they can reshape the carbon impact of an entire logistics network.

Using Real-time visibility to drive greener decisions

Real-time visibility is a foundational capability for any green supply chain.

Without accurate and timely data, it is impossible to measure environmental performance or act on it. Visibility enables:

• Better planning: Avoid last-minute airfreight by improving ETA accuracy and inventory management
• Reduction of dwell time: Monitor congestion and bottlenecks to minimize idling and wasted fuel
• Carrier performance tracking: Evaluate sustainability KPIs in real time to drive continuous improvement
• Data-backed decisions: Replace assumptions with insights when planning and executing shipments

Shippeo’s real-time visibility platform helps shippers not only track their emissions more precisely but also reduce them through smarter, data-driven coordination across the supply chain.

Collaborating across the supply chain for greater impact

No shipper can decarbonize in isolation. The path to a truly green supply chain requires coordination and transparency across partners, from carriers and logistics providers to suppliers and customers.

Key strategies include:

• Shared emissions data: Align with partners to standardize carbon tracking and disclosure
• Incentivizing greener practices: Build sustainability criteria into carrier contracts and supplier scorecards
• Cross-industry platforms: Join networks and initiatives that facilitate knowledge-sharing and harmonized standards such as the Smart Freight Centre or GLEC Framework
• Joint innovation: Work with stakeholders on pilot programs for low-emission transport modes, packaging alternatives, or circular logistics models

Collaboration multiplies impact. When every actor in the chain is aligned, systemic change becomes possible.

Leveraging AI and digital tools for sustainable operations

Advanced technologies are rapidly expanding what is possible in green supply chain management. Artificial intelligence, machine learning, and automation can unlock efficiencies and reduce emissions in ways that manual processes cannot.

Examples include:

• AI-powered ETA models that reduce reliance on carbon-intensive expedited transport
• Predictive analytics to anticipate delays and optimize asset usage
• Carbon forecasting tools to simulate the impact of logistics choices before execution
• Automated exception management to avoid disruption-induced emissions

Digitalization is not a shortcut to sustainability, but it is an essential enabler. The more granular and intelligent your supply chain data, the more effectively you can reduce its environmental impact.