Redwood Logistics Addresses Scope 3 Emissions Challenges in New ESG Report

Redwood Logistics, a leading fourth party logistics provider, has spotlighted the escalating significance of Environmental, Social, and Governance (ESG) compliance, with a focus on Scope 3 emissions. The company's latest report underscores the challenges posed by new regulations such as California's Senate Bill 253 and the European Union's Corporate Sustainability Reporting Directive, which mandate detailed emissions reporting. Nate Greensphan, Director of Product Management at Redwood, emphasizes the necessity for businesses to adapt to these regulations, noting the particular difficulties associated with Scope 3 emissions due to data and knowledge gaps across supply chains.

The report details how California's SB253 and the EU's CSRD are setting new standards for ESG compliance, with SB253 initially affecting about 5,400 U.S. companies. Greensphan points out that while international companies may have a head start in compliance, U.S.-only enterprises face significant readiness challenges, especially with Scope 3 reporting set to begin in 2027 under SB253. The report also highlights Gartner's ranking of ESG regulations as the #2 business driver, reflecting the growing market demand for sustainability.

Redwood Logistics introduces its Redwood Hyperion platform as a solution to these challenges, offering granular visibility into transportation emissions across supply chains. This platform enables companies to achieve operational-level data accuracy for Scope 3 emissions, addressing the critical data gaps that complicate compliance. By providing precise measurement of transportation-related emissions, Redwood aims to empower businesses to meet regulatory requirements and make meaningful progress in sustainability.