IFCO Creates Breakthroughs in Sustainability with CleanMile

IFCO, a global leader in reusable packaging solutions, is deeply committed to sustainability. As pioneers and global leaders in reusable packaging for fresh products, they recognize their responsibility to lead by example and accelerate the transition to a more circular, low-carbon food supply chain.

To address climate change and align with the 1.5°C pathway outlined in the Paris Agreement, IFCO developed a rigorous process that combined internal carbon footprint analysis with industry benchmarks and the Science Based Targets initiative (SBTi) framework.

IFCO knew they needed a trusted partner to support them in their decarbonization journey. To begin making progress on their Science Based Targets (SBTs), IFCO partnered with Breakthrough for their CleanMile solution. CleanMile calculated a precise transportation emissions baseline for FY2021, using Smart Freight Centre's Global Logistics Emissions Council (GLEC) framework, and contributed to the identification of hotspots and opportunities to make the greatest impact—from decarbonizing transport and optimizing reverse logistics to increasing the share of renewable energy in their operations and reducing raw material usage through smarter design and reuse.

CleanMile’s contributions are helping IFCO progress toward a 17% reduction in scope 3 transportation emissions by FY2031 compared to their FY2021 baseline, all while achieving significant year-over-year business growth. Their commitment to decarbonize alongside expansion demonstrates their leadership within the supply chain.

Driving decarbonization through collaboration, innovation, and data

IFCO’s leadership in transportation decarbonization is a testament to the power of collaboration, innovation, and a strategic approach. Recognizing that there’s no one-size-fits-all solution, IFCO focused on a combination of initiatives to drive meaningful change. Their initiatives considered three key criteria: cost-benefit analysis, scalability, and alignment with their business model. “We evaluate how much carbon we can reduce for every dollar spent, how scalable solutions are, and what further business impacts they have. CleanMile facilitates these evaluations and keeps us updated on innovations like alternative fuels and their carbon intensity levels,” added VP ESG and Strategic Marketing, Inigo Canalejo. For instance, while increasing recycled content in packaging lowered emissions, sourcing from distant suppliers revealed trade-offs in transportation emissions. This highlighted the importance of adopting a life-cycle emissions approach to fully understand and address these complexities.

Partnerships are also critical to IFCO's success in meeting their SBTs, as 98% of their emissions occur beyond their direct operations. By leveraging CleanMile's expertise, IFCO achieved a more detailed scope 3 transportation emissions breakdown, analyzing variables like fuel type, mode, and weight for shipment combinations and delivering carbon emissions data on national, regional, and lane levels. This precise data empowered IFCO to engage carriers in meaningful discussions, collaboratively identifying initiatives to reduce carbon emissions while improving operational efficiency. During these meetings, IFCO discovered that several suppliers and carriers were already making strides toward decarbonization, while others recognized the opportunity to collaborate on innovative strategies to reduce emissions. When faced with questions they couldn’t immediately answer, they relied on the Breakthrough team's data-driven expertise to resolve concerns and move forward with confidence.

Exploring alternative energy and smarter carrier selection

IFCO knew that making meaningful change meant finding solutions that delivered fewer emissions while making economic sense. Using CleanMile, IFCO can explore a range of recommendations, including alternative energy infrastructure along their routes and smarter carrier selection. “Knowing you have experts to support you along the way helps strengthen your commitment to work towards a sustainable future. CleanMile makes you confident in the details behind the calculations and helps you ask the right questions to uncover new opportunities for impact,” said Brian Smolenyak, Director of Pool Management & Transportation.

CleanMile keeps IFCO informed on the latest fuel options and their carbon impact. For example, adopting CNG was a step in the right direction, but switching to RNG, where available, delivers even greater benefits. As an example, this year IFCO has increased miles driven by alternative energy-powered vehicles from 0.47% to 1.24%, an increase of 164%, in just three quarters. This translates to approximately 408,300 kg CO2e saved. CleanMile also offers valuable insights into emerging alternative energy options available on their routes, ensuring they maximize every opportunity.

Additionally, CleanMile educates IFCO’s carriers on how to become SmartWay certified and leverages partnerships to share carriers that are making progress on their sustainability initiatives. This helps them onboard new carriers and ensure existing carriers align with their sustainability goals. By collaborating with engaged partners who share a commitment to decarbonization, they continue to drive progress.

To keep the momentum going, IFCO shares emissions performance scorecards with strategic carriers on a monthly basis. These scorecards celebrate emissions reduction and address areas for improvement, ensuring all partners stay on track to help them reach their SBT.

How IFCO is on track to meet their SBT with CleanMile

By leveraging CleanMile and fostering strong partnerships with carriers, IFCO has created an actionable roadmap to meet their SBT by FY2031. Through consistent monitoring, collaboration, and data-driven strategies, they have demonstrated that sustainability and operational excellence can go hand in hand. As market dynamics evolve, IFCO remains committed to staying ahead by adapting to industry trends and meeting rising stakeholder expectations. Their approach highlights a forward-thinking vision that balances environmental responsibility with business performance.