Carbon Target Undermined by Acquisition
Calder Logistics runs 120 heavy goods vehicles from 15 depots. Its 2019 baseline for Scope 1 and Scope 2 emissions is 48,000 tCO2e. In 2023 reported emissions were 51,840 tCO2e. During 2022 the company acquired two regional hauliers whose annualised emissions are 9,000 tCO2e; these are included in the 2023 figure but not in the 2019 baseline. The board target is a 30% absolute reduction by 2030 from the 2019 baseline. Electricity is purchased on a renewable tariff with REGO certificates, but diesel accounts for about 70% of the footprint. Telematics shows 18% of engine hours are idling and 28% of kilometres are run empty. Depot lighting is mostly old fluorescent, and there is no measurement of purchased goods or transport subcontracted to other carriers. The board is considering buying carbon offsets to demonstrate progress while it develops a reduction plan.
1. Evaluate the adequacy of the 2030 target and the treatment of the acquisition. Recalculate like-for-like performance and advise on baseline recalculation.
Read the worked answer
The 30% target is a useful headline but not yet a management target. It lacks interim milestones, a defined boundary and a stated treatment of acquisitions. The 2023 reported figure of 51,840 tCO2e includes 9,000 tCO2e from the acquired fleets. On a like-for-like basis, 2023 is 42,840 tCO2e, which is 10.75% below the 2019 baseline of 48,000 tCO2e. That looks like progress, but it is not comparable with the board's absolute target because the baseline has not been recalculated for the structural change. Under a typical GHG protocol approach, the company should recalculate the baseline for acquisitions if the change is significant, using verifiable 2019 data from the acquired fleets where available; if that data is not available, disclose an estimate and a policy. The absolute 2030 target of 33,600 tCO2e, 30% below 48,000, is not meaningful if the group has grown. A better target is absolute group emissions with a recalculated baseline, plus a like-for-like intensity metric such as grams of CO2e per tonne-kilometre. Offsetting should not be counted as a reduction; it can be reported separately.
2. Propose a reduction programme and performance indicators, and assess whether the 2030 target remains achievable.
Read the worked answer
Prioritise diesel because it is about 70% of the footprint. If diesel is 70% of 42,840 tCO2e, that is about 29,988 tCO2e; a 10% fuel-efficiency gain saves about 3,000 tCO2e. Measures include driver training and telematics coaching to cut idling from 18% to 10%, route optimisation and backhaul to cut empty running from 28% to 20%, speed limiters, tyre-pressure management, depot LED lighting and rooftop solar. Develop a fleet replacement plan with battery-electric vehicles for urban routes and regard HVO as transitional. Set KPIs: litres per 100 km, idle percentage, empty-running percentage, tCO2e per tonne-kilometre, absolute Scope 1 and 2 emissions, renewable electricity percentage and Scope 3 measurement coverage. Add interim targets for 2026 and 2028. Recalculate the baseline with the acquired fleets and disclose the method. Is the 2030 target achievable? On a like-for-like basis, 42,840 to 33,600 requires a 21.6% cut in seven years, about 3.1% per year. Efficiency measures and fleet replacement can plausibly deliver much of this, but not if acquisitions continue without baseline adjustment. Offsets should not be used to claim the target is met.