Danish shipping company Norden has entered into a pilot project with Microsoft to help the technology giant reduce emissions from its maritime supply chain through biofuel usage and a “book and claim” certification system.
Norden will utilise waste-based biofuels across multiple voyages whilst transferring the associated emissions reductions to Microsoft through its book and claim solution, which allows companies to benefit from low-carbon fuel usage regardless of geographical constraints.
Microsoft expects to reduce its maritime Scope 3 emissions by nearly 10,000 tonnes of carbon dioxide over three years through the initiative. Scope 3 emissions, which are indirect emissions from business activities including supply chain transportation, represent a significant challenge for technology companies with global operations.
The entire Microsoft value chain emitted approximately 16 million metric tonnes of carbon in 2020, with about 12 million metric tonnes classified as Scope 3 emissions. In company reporting, Microsoft has noted that value chains account for roughly 40% of global greenhouse gas emissions.
Anne Jensen, Chief Operating Officer at Norden, said, “With the addition of Microsoft to our portfolio of customers, we are demonstrating that Norden can help any company that is dependent on maritime transportation in reducing its supply chain emissions.”
The book and claim system enables companies relying on maritime transportation to access emissions reductions from low-carbon fuels without direct partnerships with specific shipping companies or the availability of sustainable fuels in particular regions.
Under the pilot, Norden has used certified waste-based biofuel offering an 80 to 90% lifecycle emissions reduction compared to conventional fossil fuels. The shipping company then transfers these emissions reductions to Microsoft through its certification platform, providing transparency on the allocated reductions.
Julia Fidler, environmental sustainability lead for fuel and material decarbonisation at Microsoft, said the project alongside the company’s pilot with RSB would help develop registry infrastructure required to lower maritime supply chain emissions “in a transparent and credible way, while fostering the growth of sustainable maritime fuels.”
Multinational corporations are increasingly addressing supply chain emissions, particularly in sectors such as shipping, where direct emissions reductions remain challenging due to limited infrastructure for alternative fuels.
