Incoterms 2020 + CO2 Scope 3 Calculator
Determine the risk transfer point under Incoterms 2020 (ICC) and calculate CO2e emissions for shipments classified as GHG Protocol Scope 3, Category 4/9.
Shipment data
Result under Incoterms + CO2
Insert data on shipment and press "Calculate" to get the risk transfer point of Incoterms 2020 and CO2 emissions Scope 3.
Frequently Asked Questions
What are Incoterms 2020 and what have changed compared to 2010?
International Commercial Terms 2020 (ICC) are 11 standardized terms that define the responsibilities of delivery, risk, and cost between seller and buyer. The main novelty compared to ICC 2010 is the substitution of DAT with DPU, which applies to any destination location, not just terminals. International Commercial Terms 2020 came into effect on January 1, 2020.
What is the difference between CIF and CIP in terms of risk transfer?
This is a critical distinction often overlooked. CIF (Cost, Insurance and Freight): the risk goes to the buyer upon board of the ship at port of loading - like FOB and CFR. CIP (Carriage and Insurance Paid To): the risk goes to the buyer at the FIRST POINT OF DELIVERY - like CPT. In practice, with CIF the buyer bears the risk throughout the entire maritime journey; with CIP the risk is transferred at the beginning of transport. CIF applies only to marine transportation; CIP for any mode.
How does the selected Incoterms connect to the ESG and GHG Protocol Scope 3 report?
The GHG Protocol Corporate Value Chain Standard defines two categories for transportation: Category 4 (transport upstream - inbound) and Category 9 (transport downstream - outbound). With Incoterms "seller bears all" (DAP, DPU, DDP, CFR, CIF, CPT, CIP), the seller records the main transport as Scope 3 Cat. 9. With Incoterms "buyer bears all" (EXW, FCA, FAS, FOB), the buyer records it as Scope 3 Cat. 4. This determines who must include emissions in their own CSRD/VSME report.
Are the CO2 factors of this tool certified?
Factors used for emissions are derived from the GLEC Framework 3.0 (Global Logistics Emissions Council, glecforum.org) and DEFRA 2024 UK Greenhouse Gas Conversion Factors. Classified as [ASSUMED] until formal verification against primary sources. The factors are based on fleet averages and vary by specific vehicle efficiency. For formal ESG reports, verify the factors against GLEC Framework 3.0 or certified vehicle factors.
Do Incoterms also determine the ownership of goods?
No. Incoterms only regulate the transfer of risk and cost sharing between parties for transportation and insurance costs. They do not determine the moment of property transfer (title), which is governed by the sales contract and applicable law (e.g., Vienna Convention - CISG). For CO2 report planning and CSRD, it's relevant to consider the transfer of risk, not ownership.
How is it used?
- Select Incoterms
Choose the Incoterms 2020 term from the dropdown menu (EXW, FCA, FOB, CIF, DDP, etc.). The tool shows all 11 terms with their applicable categories of use (any mode of transport or only maritime).
- Insert shipment data
Select the mode of transport (e.g. maritime container, air, road), weight of goods in kg and distance in km. Optionally enter countries of origin and destination for context.
- Calculate risk and CO2
Calculate - The tool determines: the risk transfer point according to ICC Incoterms 2020; CO2 emissions in kg; GHG Protocol Scope 3 category for buyer and seller (Cat. 4 upstream or Cat. 9 downstream).
- Interpret GHG Scope 3 Category
Verify which party (buyer or seller) is responsible for transportation emissions in your ESG report. GHG Scope 3 Category 4 refers to upstream transportation (inbound), Category 9 to downstream transportation (outbound). Use the AI Boost for regulatory interpretation.
Incoterms 2020 and CO2 accounting in supply chains
The Incoterms 2020 (International Commercial Terms) of the ICC are 11 standardized terms that regulate the allocation of risk, costs, and delivery responsibilities in international commercial contracts. The choice of Incoterm is not just about logistics: in a context of growing attention to ESG reporting and CSRD directives, the Incoterm also determines who must account for transportation emissions in their GHG report.
According to the GHG Protocol Corporate Value Chain (Scope 3) Standard, transportation emissions fall into two categories: Scope 3 Category 4 (transportation upstream - inbound) and Scope 3 Category 9 (transportation downstream - outbound). With terms "buyer bears all" (EXW, FCA, FAS, FOB), the buyer records the main transportation as Cat. 4; with terms "seller bears all" (CFR, CIF, CPT, CIP, DAP, DPU, DDP), the seller records it as Cat. 9.
This tool combines the ICC Incoterms 2020 normative map with CO2e emission factors for transportation modes (GLEC Framework 3.0 / DEFRA 2024), providing a deterministic and client-side calculation of estimated CO2 emissions per shipment and its relative Scope 3 category. The used CO2 factors are classified [ASSUMED]: verify them against GLEC Framework 3.0 (glecforum.org) or DEFRA 2024 before using them in formal reports.
Practical example: FOB Shanghai → Hamburg, 2000 kg, maritime container
- Incoterms
- Free on Board - Shanghai (China)
- Risk Transfer
- When goods are on board the ship in the port of Shanghai - the buyer (EU importer) bears the risk throughout the entire maritime journey.
- Estimated CO2 emissions
- Distance traveled: 21,200 km551,2 kg CO₂eConcise - Keep Similar Length (GLC Framework 3.0 Container Factor)
- Scope 3 customer
- Scope 3 Category 4 (upstream transportation) - Import buyer records 551 kg CO2e in their own ESG report.
- Sales scope 3
- No main transport CO2 - seller is only responsible for pre-transport up to Shanghai port.
Vocabulary Dictionary
- Incoterms 2020 Terms and Conditions
- 11 standardized ICC terms for risk and cost allocation in international trade transactions, effective January 1, 2020. DPU replaces DAT with respect to Incoterms 2010.
- Greenhouse Gas Emissions Scope 3 Category 4/9
- Categories of GHG Protocol Scope 3 for transportation. Cat. 4 (upstream): Inbound transport and distribution - typically by the buyer. Cat. 9 (downstream): Outbound transport and distribution - typically by the seller. Both fall within the CSRD/VSME scope for ESG reporting.
- GLEC Framework 3.0
- Global Logistics Emissions Council Framework - international standard for calculating CO2 emissions in logistics. Available free of charge on glecforum.org. Emission factors for this tool are derived from GLEC 3.0 / DEFRA 2024 and classified [ASSUMED] until formal verification.
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