More than half of UK businesses struggling to meet net-zero goals

More than half (54%) of UK transport and logistics businesses think they wll struggle to meet their net zero goals, with two thirds feeling under pressure to meet carbon reduction targets.

Supply chain business Wincanton surveyed  515 UK transport and logistics decision makers to find out how they are reducing carbon emissions in commercial transportation, in light of impending net-zero deadlines by 2050.

Decarbonising logistics was seen as one of the keys to achieving net zero goals, according to 83% of respondents.

Costs are holding fleets back

Four in five (80%) believe that reducing CO2 emissions in their logistics fleet means an increase in costs.

As a result of these perceived cost pressures, two thirds (66%) have had to de-prioritise hitting these targets. 

However, 37% of respondents have seen cost reductions from tackling their CO2emissions.

While, only 25% believe alternative fuel vehicles will be affordable in four to six years.  

Against this backdrop, 59% want to reduce the environmental impact of their logistics fleet but simply don’t know how, and 42% of organisations admit they do not know how to further optimise their fleet. 

As a result, 55% state that they are not currently reducing emissions in their logistics fleet.

Given the struggles, 84% of respondents expect Government to play more of a role to support CO2 reduction. 

Paul Durkin, chief customer and innovation officer at Wincanton, said: “Sustainability remains a high priority for UK businesses.

“But it’s clear they aren’t making enough headway when it comes to reducing emissions in their supply chain operations.

“This is the result of the lack of viability and affordability of alternative fuel vehicles and ongoing cost pressures during a challenging economic period. We can see that a gap is emerging between their priorities and the action needed to reach net-zero.”  

Lack of collaboration another major barrier

The survey also found that better collaboration can help improve sustainable performance. 

Two-thirds (65%) of survey respondents agree collaboration is key to the future success of the logistics industry.

However, collaboration needs to be made easier for all involved, as businesses report they’re nervous about the difficulty around finding partners to collaborate with (28%) and the lack of internal resources to manage collaboration projects (26%).  

Helen Flanagan, EyeQ product director at Wincanton, added: “More efficient use of existing capacity is key.

“Last year the Government reported that almost a third of the total vehicle kilometres travelled by HGVs in the UK were empty.

“Put simply, too much fresh air is being moved around the UK, contributing to high emissions and high costs for businesses.

“Through technology, UK businesses can collaborate and optimise their fleets to minimise wasted capacity and shift the dial on sustainable logistics.” 

Wincanton’s new report, Share the road to sustainability, delves into the research in more detail and the ways businesses can optimise their fleets and collaborate to cut costs and emissions while ensuring the customer experience. 

Wincanton’s full "share the road to sustainability" report can be read in full here.