Redwood Logistics Identifies Key Climate Regulations Shippers Must Consider in 2024 in Initial ‘Sustainability in Logistics’ Report

Redwood’s Chief Innovation Officer, Eric Rempel, set to discuss the importance of supply chain integrations

Chicago, March 21, 2024 – In the evolving landscape of sustainability, shippers must be attentive to the critical corporate accountability regulations set to impact the industry in 2024 and years ahead. Redwood Logistics (Redwood), one of the fastest growing fourth party logistics (4PL) providers in North America, today launched the company’s initial ‘Sustainability in Logistics’ report, identifying regulations and obstacles that shippers need to consider as part of their operations to track their greenhouse gas (GHG) emission footprints and sustainability. According to the report, California, the world's fifth-largest economy, is leading the charge in sustainable business practices in the United States with recent legislation that will significantly affect a wide range of businesses, particularly shippers. 

The “California Effect,” as it has been dubbed, has been influencing policy and corporate behavior for decades through the California Air Resource Board (CARB) and state legislation. Under Governor Gavin Newsom's administration, this has only continued to expand in manners that will impact shippers, manufacturers, fleet owners, and brokers alike. In recent years, through the Advanced Clean Trucks (ACT) and Advanced Clean Fleets (ACF) regulations, there is an acceleration to transition Class 2b to Class 8 vehicles from internal combustion engines to electric vehicles. While the details matter and varying organizations will have different responsibilities, by 2035, zero emission truck or chassis sales within California will need to range from 40% to 75% depending on the Class and equipment sold. 

Supplementing these regulations as part of the state’s ambitious efforts to reach 40% reduction in GHG by 2030, this past year the Climate Corporate Data Accountability Act (SB 253) and the Climate-Related Financial Risk Act (SB 261) will have additional impact to shippers operating in California. The Climate Corporate Data Accountability Act will oblige companies earning annual revenues of $1 billion or more and operating in California to disclose their direct owned and controlled emissions by 2026 (Scope 1 and 2) and those produced by their upstream and downstream transportation (Scope 3) by 2027. This marks the first mandate to require GHG reporting compliance from enterprises in the United States, outside of US-based companies that may be enforced by existing international regulations such as EU’s Corporate Sustainability Reporting Directive (CSRD).  

"This mandatory reporting is going to be here before shippers know it,” said Nate Greensphan, Sr. Product Manager, Redwood. “Businesses need to understand: will they be captured by the scope of these regulations and what are the reporting requirements? Then, they need to implement mechanisms to ensure compliance when reporting becomes mandatory. The time to act is now." 

These stringent regulations will impact a wide array of businesses, from technology giants like Apple and Microsoft to industries like retail, agriculture, and oil and gas. Shippers face a high likelihood to be affected by the increased disclosure requirements and liabilities with these newly inked regulations because of their typically nation-wide supply chain distribution and reach to doing business in California. 

"While it's true that companies often invest in what's necessary, this legislation could align with their profitability goals,” added Greensphan. “Whether driven by investor expectations, consumer demand, or a competitive market shifting towards sustainable value chains, meeting these mandates could support businesses in their broader missions and bottom line objectives." 

Redwood’s first ‘Sustainability in Logistics’ report also indicates a need for companies to continue shifting focus towards sustainable operations. 44% of companies surveyed by Nippon Telegraph and Telephone (NTT) indicated that increased profitability could be directly attributed to implementing sustainable business practices. Furthermore, 24% of respondents indicated that revenue directly grew 24% after enacting sustainability initiatives into their day-to-day operations.  

As a leading 4PL provider, Redwood is uniquely positioned to assist shippers as they strive to meet these upcoming challenges. Redwood’s proprietary freight emissions tracking tool, Redwood Hyperion, automates detailed load-by-load emissions calculations, provides supply chain emissions metrics & analytics, and supports carbon neutral initiatives by facilitating carbon credit purchases toward verified projects. The tool can provide complete freight-based emissions visibility by connecting to primary source shipping data with RedwoodConnect™, Redwood’s modern 4PL platform that facilitates the integration of digital and physical supply chains. Additionally, Redwood’s expertise in freight optimization can guide shippers toward supply chain efficiencies that obtain measurable emission reductions while also reducing freight costs. 

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About Redwood Logistics 

Redwood Logistics, a leading logistics platform company and modern 4PL headquartered in Chicago, has provided solutions for moving and managing freight for more than 21 years. The company’s diverse portfolio includes digital freight brokerage and flexible freight management all wrapped into a revolutionary logistics and technology delivery model, known as a modern 4PL. Redwood utilizes an open platform for digital logistics that empowers shippers to seamlessly mix-and-match partners, technologies and solutions into their own unique digital supply chain fingerprint. Redwood connects a wide range of customers to the power of supply chain management, technology and the industry’s brightest minds. For more information, visit 

Media Contact: 
Tyler Thornton