UK businesses are prioritising greener transport fleets, but many remain unclear on how to make the shift, new research from GXO Logistics has found.
The logistics company’s new report, The future of transport, found that 64 per cent of UK businesses want to reduce the environmental impact of their fleets but admit they do not know how to do so.
The study surveyed more than 1,000 senior decision-makers across UK supply chain and logistics organisations for the report, which explores cost resilience, low-emission transport and operational digitalisation.
It found that 87 per cent of businesses now see emissions reduction as a priority, up from 81 per cent in 2024. However, almost two-thirds said they did not know where to begin.
GXO UK and Ireland managing director of transport Carl Hanson said businesses that fail to address inefficiency risk facing higher costs, missed deliveries and lost customers.
“The cost of inaction is no longer abstract,” he said.
“Businesses that don’t address the challenges ahead, optimisation, fleet efficiency, real-time visibility, are paying for it in higher costs, missed deliveries and lost customers.
“The good news is that reducing inefficiency and cutting emissions are not competing goals. They are the same goal.”
The report comes as transport operators are bracing for further cost increases. The study found that 89 per cent expect costs to rise over the next 12 months, with more than a third anticipating significant increases.
Nearly 60 per cent of businesses also expect future fuel duty changes to have a material impact on operating costs.
The report argues that improving day-to-day transport efficiency will be central to making lower-emission logistics commercially viable.
More than eight in 10 transport operators now believe collaboration between logistics networks is important for cutting costs and carbon emissions, up sharply from 65 per cent last year.
GXO also found that 85 per cent of businesses have increased investment in fleet optimisation as they look to reduce empty miles, improve route planning and make better use of loads.
However, the move towards alternative fuels remains less developed. Just 35 per cent of organisations strongly agreed that they had a clear strategy and timeline for adoption.
The report also points to digital technology as a major part of the answer, with poor transport systems linked to higher maintenance costs, slower deliveries and increased carbon emissions.
Businesses without the right transport technology reported higher maintenance costs in 37 per cent of cases, longer delivery times in 32 per cent and higher CO₂ emissions in 32 per cent.
Hanson said the right tools would allow businesses to make faster, better-informed decisions across their supply chains.
“What makes that possible is giving businesses the tools to see clearly and move quickly, end-to-end visibility across the supply chain, access to a collaborative community of transport networks, and the real-time data to make smarter decisions,” he said.
Click here to sign up to Retail Gazette‘s free daily email newsletter
