Transport operators are facing pressure from two directions at once: rising fuel costs squeezing margins, and customers demanding verified emissions data to meet their own sustainability reporting obligations.
Smart route optimisation – the kind that cuts unnecessary miles, fills vehicles more efficiently, and plans smarter runs across your fleet – reduces your costs and your emissions at the same time. And with the right TMS, it also generates the reporting data your customers are starting to look for.
This blog covers what the Corporate Sustainability Reporting Directive (CSRD) actually means for transport operators, why smart route optimisation is the most practical lever you have, and how Qargo helps you turn compliance into a competitive edge.
The regulatory clock is ticking
First, what is CSRD?
CSRD is an EU regulation that requires organisations to report on their environmental, social and governance impact and effort.
CSRD came into force at the start of 2023, with a phased rollout designed to bring more organisations into scope over time. The original thresholds were set relatively low (250 employees and €50M turnover) which would have pulled a large portion of mid-sized European businesses into the reporting regime by 2026.
That changed with the EU’s Omnibus I Directive, adopted in February 2026, which significantly narrowed the scope. Today, CSRD directly applies only to companies with 1,000+ employees and €450M+ annual turnover, with first reports due in 2028. It’s estimated this excludes around 80% of companies that were originally in scope.
But that doesn’t mean smaller operators are off the hook. The shippers you work with – the ones who do meet those thresholds – still need to report their Scope 3 emissions, which includes the transport companies they use. They’ll be asking their transport operators for verified emissions data per shipment. And if you can’t provide it, they’ll find someone who can.
It’s better to plug this data gap now, then face a last minute scramble further down the line. Or worse, lose out to a competitor who already has a system in place for capturing their emissions data.
The right TMS should be able to get you the data you need to get ahead.
What CSRD actually needs from your TMS
Your TMS should make it easier to capture and report on the data required by the CSRD.
Despite the Omnibus relaxing Scope 3 requirements, verified and granular data is still preferable. Being able to present emissions data on a per-journey level could be a real commercial differentiator – and also provides you with the data you need to make your trips more efficient.
This data also needs to be calculated using a methodology pulled from recognised frameworks or standards, such as GLEC or ISO 14083.
Not only do you need the right depth of data based on the right standards, but you also need the formatting to be concise and accurate. Reports that are audit-ready and available whenever you need them.
Doing this manually is time-consuming and prone to human error.
But the right TMS will automatically record emission data in the background, pull it into reporting views/dashboard, and let you export reports to Excel or CSV in just a few clicks.
Sustainability and cost aren’t competing priorities
Across a lot of industries there’s a false narrative that going green actually costs more. But in transport, implementing more sustainable practices can be a cost-saver.
Reducing empty miles is good for both your bottom line and the environment. Win win.
Route optimisation is one of the most reliable ways of doing this. Finding the most efficient way between points A and B (and C and D and E) with the resources you have available, helps to cut down on unnecessary miles (and emissions).
The most efficient route is sometimes not the fastest but the one that connects the right drivers with pick-up/drop-off points that are logical and connected.
It can be difficult for even a trained human eye to pick up on these routes. That’s where smart route optimisation comes in.
How smart routing delivers on sustainability and cost-efficiency
Automated, or smart, route optimisation can help lower emissions – and your fuel bills.
Within Qargo’s TMS, our AI-powered routing lets you plan multi-drops and groupage runs in just a few clicks. We can also integrate with existing route planning software, like PTV Logistics and Optimize.
Route optimisation also leads to fleet optimisation – helping you get a more accurate picture of whether you have the right number of vehicles AND the right type of vehicles. Better planning often unlocks capacity that’s already there. The same fleet, planned smarter, can handle more volume than you might expect.
Automated route planning also frees up your team to focus on exception management and more revenue generating activities – making your margins even healthier.
Turning compliance into a commercial edge
Beyond cutting costs and emissions, compliant operators also have a commercial advantage over competitors.
Some shippers are starting to require CO₂ data as part of tender requirements. And the carriers who can report clean data win contracts; those who can’t run the risk of being disqualified from the running.
Qargo’s emission module automatically calculates CO₂ using the GLEC/ISO 14083 standard (when emissions calculations are enabled) – on both a per order and per trip level. You can adjust emissions based on vehicle type so that your reports are as accurate as possible.
Accurate CO₂ emissions is no longer optional, but a necessity. Qargo’s solution gives us instant access to ISO-compliant data, allowing us to combine with our own insights to deliver clear, reliable, and CSRD-compliant reports to our clients.
— Javier Báez García, Head of Digital Development, Handico Trucking
These actionable insights are the difference between simply reducing mileage and being able to demonstrate how you’ve done so to an auditor.
Conclusion
The operators who will win the next decade of logistics contracts aren’t necessarily the ones with the newest fleet or the lowest base rate. They’re the ones who can prove their performance – on time, on cost, and on emissions.
CSRD has created a data demand that isn’t going away. The Omnibus may have narrowed the scope and pushed deadlines to 2028, but some shippers may already be asking for this data. Waiting until it becomes mandatory is waiting until it’s too late.
The good news is that the same tools that make your operation more efficient also make it more compliant. Fewer empty miles, smarter runs, and verified CO₂ data per trip aren’t separate workstreams – they’re the same investment.
Book a demo to see how Qargo’s route optimisation and emissions module work together.
