More than half of UK companies are struggling to meet their net zero targets

More than half (54%) of UK transport and logistics companies believe they will struggle to meet their net zero targets and two-thirds feel under pressure to meet carbon reduction targets.

Supply chain company Wincanton surveyed 515 UK transport and logistics decision-makers to find out how they are reducing carbon emissions in commercial transport as the 2050 net zero deadline approaches.

83% of respondents saw decarbonization of logistics as a key to achieving net zero targets.

Costs slow down fleets

Four out of five (80%) believe that reducing the CO2 emissions of their logistics fleet will increase costs.

Due to perceived cost pressures, two-thirds (66%) of respondents had to postpone achieving these goals.

However, 37% of respondents were able to achieve cost savings by reducing their CO2 emissions.

At the same time, only 25% believe that 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 companies admit that they don’t know how to further optimise their fleet.

As a result, 55% say they are not currently reducing emissions from their logistics fleet.

Given these difficulties, 84% of respondents expect the government to play a greater role in reducing CO2 emissions.

Paul Durkin, Chief Customer and Innovation Officer at Wincanton, said: “Sustainability continues to be a high priority for UK businesses.

“But it is clear that they are not making enough progress in reducing emissions in their supply chains.

“This is the result of the lack of viability and affordability of alternative fuel vehicles and ongoing cost pressures in a difficult economic time. We see a gap emerging between their priorities and the actions needed to achieve net zero.”

Lack of cooperation is another major obstacle

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

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

However, collaboration needs to be made easier for everyone involved, as companies report concerns about the difficulty of finding collaboration partners (28%) and a lack of internal resources to manage collaboration projects (26%).

Helen Flanagan, EyeQ Product Director at Wincanton, added: “The key is to use existing capacity more efficiently.

“Last year the Government reported that almost a third of all vehicle miles travelled by lorries in the UK were empty.

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

“Technology will enable UK businesses to collaborate and optimise their fleets to minimise capacity loss and focus on sustainable logistics.”

Wincanton’s new report, ‘Share the road to sustainability’, delves into the research in more detail and shows how companies can optimise their fleets and work together to reduce costs and emissions while ensuring the customer experience.

You can read Wincanton’s full ‘Share the Road to Sustainability’ report here.