Answers to the Top Five Questions about How SmartWay Helps Supply Chains Accelerate Efficiency and Put the Brakes on Carbon Impact.
If you’re in charge of fleet or supply chain management, improving fuel efficiency and reducing greenhouse gas emissions are likely growing priorities. And for good reason. At upwards of $4 a gallon, fuel rivals labor as the biggest cost of moving freight. In fact, filling the tank of an 18-wheeler today can cost around $1,000, so the incentive to drive fuel economy is an obvious one.
The incentive to reduce emissions is just as pressing from both an environmental and business standpoint. Today, the freight industry generates significant amounts of emissions known to cause smog and other harmful air pollutants that contribute to health concerns. Meanwhile, many consumers and businesses seek out suppliers that can demonstrate a commitment to sustainability and responsible supply chain logistics.
Experience also shows that environmental initiatives often result in cost-saving efficiencies. Using less fuel and fewer shipping miles means lower costs – and a definitive effect on the bottom line.
Whether your aim is to reduce costs, get more mileage per gallon or do your part as a responsible corporate citizen, the question remains. How do you drive fuel efficiency and mitigate your fleet’s carbon impact? One of the smartest ways is just that –SmartWay®, an EPA program that reduces transportation- emissions by incenting participating companies to improve supply chain fuel efficiency. Consider these answers to five frequently asked questions about fuel emissions, efficiency and SmartWay.
1. What Impact Does the Freight Industry Have on Emissions?
According to the Environmental Protection Agency (EPA), in 2012, the transportation industry accounted for 22 percent of greenhouse gas emissions, making it the second largest contributor of U.S. greenhouse gas emissions after the electricity sector. Most of these emissions are CO2 emissions resulting from the combustion of petroleum-based products like gasoline in engines.
Recognizing the extent of the problem, the American Trucking Association has launched a bold sustainability initiative to reduce fuel consumption by 86 billion gallons and reduce the carbon footprint of all vehicles by a billion tons over the next 10 years. Already, new engines, particulate filters, ultra-low sulfur diesel and management techniques are reducing the industry’s carbon footprint dramatically.
2. Why Do Fuel Emissions Matter?
From a strictly business perspective, more and more businesses are using environmental policies and protocols to screen suppliers, whether it’s to make sure their business partners’ practices align with their own environmental sustainability values, to reduce costs – environmentally responsible partners typically pass on savings to customers, or to accommodate market demand or customer requests.
3. What is SmartWay and Why Should I Care?
In a nutshell, the SmartWay Transport Partnership is an innovative collaboration between EPA and the freight industry established in 2004 to improve the fuel efficiency of the nation’s commercial freight industry through a combination of education, information sharing and incentives.
This voluntary public/private partnership uses strong market-based incentives to challenge companies to improve the environmental performance of their freight operations. Through collaboration with EPA, SmartWay Transport partners improve energy efficiency, save money, reduce greenhouse gas emissions, and improve air quality. The SmartWay program comprises five key components:
- A partnership in which freight carriers and shippers commit to benchmark operations, track fuel consumption and improve performance
- A testing, verification and designation program that helps freight companies identify equipment, technologies and strategies to save fuel and lower emissions.
- A competitive grant program that makes it easier for carriers to invest in fuel-saving equipment
- A program that recognizes superior environmental performers with the SmartWay logo
- Guidance/resources for countries seeking to develop freight sustainability programs
As for why Smartway matters, the U.S. economy relies on shipping goods. However, these freight shipments have an environmental cost. Freight trucks and trains consume 35 billion gallons of diesel fuel each year. Burning this fuel produces more than 350 million metric tons of carbon dioxide.
4. How do I become a SmartWay partner?
Currently, five categories of businesses are eligible to become SmartWay partners. These include freight shippers, logistics companies, truck carriers, rail carriers and truck stops. If you want to join the SmartWay Transport Partnership, you can follow the required steps, starting with the EPA-provided partnership resources.
To get started, call SmartWay at 734-214-4767 or email SmartWay at [email protected]. The three steps truck carriers must complete to join SmartWay include reading the truck carrier tool guidance documents, downloading and completing a truck carrier tool (entering data on fleet-level activity and operations data into the tool), and submitting the completed tool to SmartWay for approval.
5. What if my business isn’t eligible or I don’t meet the requirements? Are there other options?
If your company doesn’t fall into any of the five supported SmartWay categories or you don’t want to go through the process required to become a SmartWay partner, there are other ways to participate. For example, you can turn freight activities over to a SmartWay dedicated fleet or third-party logistics provider. By working with a SmartWay partner, you’re assured that your goods are transported in an environmentally responsible, fuel-efficient manner.
Could participation in the SmartWay program help you reduce fuel emissions and improve fuel economy? Is your third-party logistics provider a SmartWay partner?
To learn more about how SmartWay can play a role in corporate sustainability, download our Corporate Sustainability Report now.
