Carbon Accounting for Logistics and Transport Companies in India

Carbon Accounting for Logistics and Transport Companies in India

India's logistics sector is a critical economic engine, but it's also one of the nation's largest sources of greenhouse gas emissions. Road freight dominates the landscape, accounting for over 90% of domestic cargo movement, while companies like DHL India, Blue Dart, Mahindra Logistics, and VRL Logistics manage vast fleets across the country. Understanding how to measure and report these emissions is now essential - especially as the BRSR (Business Responsibility and Sustainability Reporting) framework makes carbon disclosure mandatory for listed logistics companies.

This guide walks you through the emissions landscape for Indian transport operators, the regulatory requirements you face, and the practical strategies to decarbonize your fleet while maintaining accurate carbon accounts.

Understanding Indian Logistics Emissions

Road Freight Dominance and Fleet Composition

India's road freight sector generates the majority of logistics-related emissions. Heavy goods vehicles (HGVs) powered by diesel fuel represent the single largest emissions source for most transport operators. These vehicles, typically operated to BS6 emission standards, burn diesel at scale across India's highways and urban delivery networks.

Last-mile delivery - the final stage of freight movement to customers - is increasingly electrifying. Companies like Amazon India and Zomato are rolling out electric three-wheelers and small vans in cities, though diesel and CNG vehicles still dominate the majority of last-mile fleets. The transition from conventional fuels to EVs is gradual, and accurate carbon accounting must capture this evolving mix.

Emission Sources Across Scopes

Your logistics emissions fall into three distinct scopes. Scope 1 emissions come directly from fuel combustion in vehicles you own or operate - this is typically 80-90% of a logistics company's total footprint. How to Calculate Scope 1 Emissions provides the methodology for quantifying these directly, starting with fuel consumption records from your fleet.

Scope 2 emissions arise from purchased electricity used in warehouses and distribution centers. India's electricity grid has an emission factor of approximately 0.820 kg CO2e per kWh, making this a material consideration for companies with large warehouse networks. Scope 3 emissions, particularly Category 4 (upstream transportation), cover subcontracted transport - when you hire third-party logistics providers to move freight. This category often exceeds Scope 1 for asset-light operators.

Indian Railways: The Low-Carbon Alternative

Indian Railways operates the world's fourth-largest railway network and produces approximately 80% lower emissions per tonne-kilometre compared to road freight. For high-volume, non-urgent shipments, modal shift to rail represents a significant decarbonization opportunity. Understanding how to calculate and report this shift in your carbon accounts is critical for meeting future regulatory targets.

BRSR Compliance for Indian Logistics Companies

Mandatory Disclosure Requirements

The BRSR circular requires listed Indian companies to report on greenhouse gas emissions intensity. For logistics operators, this specifically means disclosing fuel intensity (measured in liters or kWh per tonne-kilometre delivered), fleet age composition, and year-on-year emissions trends.

BRSR also mandates disclosure of fleet modernization efforts, including the number of vehicles meeting the latest emission standards and progress toward EV adoption. Companies must report Scope 1 and Scope 2 emissions separately, with clear methodology notes explaining how figures were calculated.

Fleet Age and Emission Standards Disclosure

Indian logistics companies must disclose the age profile of their fleet - vehicles older than 10 years typically emit significantly more pollution than newer BS6-compliant vehicles. The disclosure should also identify which vehicles meet current emission norms and track progress toward fleet renewal. This transparency helps investors assess long-term regulatory and operational risks.

EV Transition and Carbon Accounting

Electrifying Last-Mile Delivery

Last-mile delivery represents 50% of total logistics costs and is the primary target for EV adoption in India. Swiggy and Zomato have deployed thousands of electric two and three-wheelers in major cities, dramatically reducing per-delivery emissions. When transitioning vehicles from diesel to electric, your carbon accounting must reflect two key shifts:

1. Scope 1 emissions decrease as fuel combustion stops
2. Scope 2 emissions increase slightly due to electricity procurement for charging

The net result is typically a 60-70% reduction in total emissions per delivery, even accounting for India's current grid mix.

Tracking the Transition in Your Carbon Footprint

Maintain a detailed fleet register showing vehicle type, fuel type, acquisition date, and retirement date. When you electrify a delivery vehicle, record the date the diesel vehicle left service and the electric vehicle entered service. This allows you to calculate blended emissions for transitional years and demonstrate decarbonization progress to regulators and investors. Scope 1 2 3 Emissions for Indian Businesses explains how to adjust your scope calculations as your fleet composition changes.

Modal Shift to Indian Railways

Calculating Rail Freight Emissions

Indian Railways emits approximately 40-50 grams of CO2 per tonne-kilometre, compared to 200-250 grams for road freight. When you shift cargo from road to rail, calculate the emissions reduction by:

1. Identifying tonnage shifted to rail routes
2. Multiplying by Indian Railways' emission factor (0.040-0.050 kg CO2e/tonne-km)
3. Subtracting from the road emissions that would have occurred
4. Recording the net reduction in your Scope 3 footprint

This calculation requires coordination with the National Logistics Policy, which incentivizes rail freight adoption through infrastructure development and tariff support.

Operational and Carbon Benefits

Modal shift improves both operational resilience and carbon performance. Rail freight is lower-cost for high-volume, non-urgent shipments and provides capacity during monsoon seasons when road accessibility is limited. Logistics companies integrating rail into their networks typically achieve 15-25% cost reductions on eligible corridors while cutting emissions by 60-80% on shifted tonnage.

FAQ

What BRSR disclosures do Indian logistics companies need?

Listed Indian logistics companies must disclose Scope 1 and Scope 2 emissions separately, report fuel intensity per tonne-kilometre, provide fleet age and emission standard compliance data, and explain year-on-year emissions changes. The disclosure must include scope and boundary definitions, data sources, and calculation methodologies.

How do I calculate diesel truck emissions for an Indian fleet?

Multiply your total diesel fuel consumption (in liters) by the emission factor of 2.68 kg CO2e per litre. Disaggregate by vehicle class (HGV, light commercial vehicle, three-wheeler) if possible. Maintain fuel purchase records and cross-check against odometer readings to validate consumption estimates. Vehicle telematics data improves accuracy significantly.

How do I account for EV adoption in my logistics carbon footprint?

Record the date each vehicle transitions from diesel to electric. In the transition year, calculate weighted emissions based on the months each vehicle operated under each fuel type. Increase Scope 2 electricity emissions to account for charging load, typically offset by larger Scope 1 reductions. Track the blended fleet emission intensity to demonstrate decarbonization progress.

What is the emission intensity of Indian Railways vs road freight?

Indian Railways emits 40-50 grams of CO2 per tonne-kilometre, while road freight generates 200-250 grams per tonne-kilometre - making rail approximately 80% lower-carbon. The emission factor for railways is available from the Ministry of Railways' sustainability reports and should be updated annually.

When should Indian logistics companies report BRSR emissions?

BRSR reporting is mandatory for listed companies with financial year-end disclosures. File emissions data within 60 days of fiscal year close. Interim updates may be required if regulatory standards change mid-year.

Conclusion

Carbon accounting for Indian logistics companies requires integrating fleet management, fuel tracking, and regulatory compliance into a unified system. Road freight will remain dominant for the next decade, but deliberate EV adoption, rail modal shift, and fleet modernization can deliver meaningful emissions reductions while supporting long-term business resilience.

The BRSR framework makes transparency non-negotiable, and investors increasingly scrutinize logistics companies' decarbonization commitments. Starting with accurate Scope 1 measurement, expanding to Scope 2 and Scope 3, and planning your EV and rail transition strategy positions your company ahead of future regulatory tightening and competitive pressure.