A new study from Wincanton has revealed that over half (54%) of UK businesses are struggling to meet their net-zero goals due to cost impacts and concerns about the speed with which alternative fuel technologies are becoming viable.
According to the Share the road to sustainability report, 80% of respondents believe that reducing CO2 emissions in their logistics fleet means an increase in costs, resulting in two thirds (66%) deprioritizing hitting these targets. However, 37% of respondents have seen cost reductions from tackling their CO2 emissions, but only 25% believe alternative fuel vehicles will be affordable in the next four to six years.
Lack of knowledge
Against this backdrop, 59% want to reduce the environmental impact of their logistics fleet but simply don’t know how, and 42% of organizations admit they do not know how to further optimize 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 in supporting 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.”
Working together
The survey 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 a difficulty 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 kilometers traveled 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 optimize their fleets to minimize wasted capacity and shift the dial on sustainable logistics.”
Unsustainable last mile
In the June 2024 issue of Parcel and Postal Technology International, Digital Catapult’s Logistics Living Lab shared how delivery resource collaboration can tackle the costly and unsustainable last mile – read more here.