Carbon Accounting for Ecommerce
Shipping, packaging, returns and warehousing drive ecommerce emissions. EcoHedge helps online retailers measure and reduce their carbon footprint from financial data.
Ecommerce and the Sustainability Expectation
Ecommerce growth has brought carbon scrutiny. Last-mile delivery, packaging waste, product returns and warehousing all contribute to a significant carbon footprint that customers and investors increasingly want to see measured.
Marketplace platforms like Amazon and Shopify are introducing sustainability features and requirements. Brands that can demonstrate their environmental credentials will have a competitive advantage.
The returns problem is particularly challenging: returned products generate emissions from reverse logistics, repackaging and in some cases, disposal. Understanding these hidden costs is essential.
Key regulations and drivers
Typical emission sources in ecommerce
Direct emissions
- Own delivery vehicles
- Warehouse heating
Purchased energy
- Warehouse electricity
- Office energy
Value chain
- Product sourcing
- Outbound shipping
- Packaging materials
- Customer returns
- Third-party logistics
How EcoHedge helps ecommerce businesses
Shipping and Logistics
Map your delivery and logistics spend to emission factors. Understand the carbon cost of different shipping options.
Packaging Impact
Calculate emissions from packaging materials and identify opportunities for reduction.
Returns Analysis
Include return logistics in your carbon calculations. Understand the full lifecycle emissions of your sales.
Example: A DTC brand with 10,000 monthly orders
A direct-to-consumer brand calculated their carbon footprint and discovered that packaging and outbound shipping represented 52% of their emissions. By switching to lighter packaging and offering a consolidated delivery option, they reduced per-order emissions by 30% and promoted this to customers.
Related reading
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