Sustainability in transport is an increasing priority for UK organisations, but according to a new report from GXO Logistics– The Future of Transport – a growing number admit they don’t know how to translate ambition into action.
The findings show a sector moving in the right direction: 87 per cent of businesses identify emissions reduction as a key priority, up from 81 per cent in 2024, yet nearly two-thirds of respondents admit they don’t know where to start. The will is there. The path forward is less clear.
Carl Hanson, Managing Director, Transport, at GXO UK & Ireland, said: “The cost of inaction is no longer abstract. 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. 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. That is exactly what GXO’s EyeQ digital transport solution was built to do.”
To develop this report, GXO, the world’s largest pure-play contract logistics provider, surveyed over 1,000 senior decision makers in UK supply chain and logistics organisations to uncover how businesses are addressing the challenges of cost resilience, low-emission transport and operational digitalisation.
Cost pressures are making optimisation more urgent
89 per cent of transport operators expect costs to rise over the next 12 months, with over a third anticipating significant increases. While the planned 5p fuel duty freeze has been postponed, the broader cost environment remains challenging. Nearly 60 per cent of businesses anticipate a material impact on their operating costs from future duty changes.
Operational efficiency today is what unlocks net zero tomorrow
More than eight in ten (86 per cent) transport operators now believe collaboration between logistics networks is key to reducing costs and cutting carbon emissions – a significant increase from 65 per cent in 2024.
Additionally, 85 per cent reported increased investment in fleet optimisation. The logic is straightforward: fewer empty miles, better-planned routes and optimised loads mean lower fuel consumption and lower emissions
But when it comes to alternative fuels, just 35 per cent of organisations strongly agree they have a clear strategy and defined timeline for adoption. For the majority of businesses, the shift to alternative fuels that is already under way has no clear plan behind it.
Focused on the solution
Efficiency and cost remain the central challenge, and the pressure to act is growing. Operational efficiency and collaboration will be integral in driving change and making net zero achievable: fewer empty miles, better-planned routes and shared logistics networks allow businesses to cut costs and emissions at the same time.
The research highlights market alignment on digital technologies as the solution. The impact of not having the right transport technologies results in higher maintenance costs (37 per cent), longer delivery times (32 per cent) and higher CO₂ emissions (32 per cent). The right technology solutions provide greater visibility into operations, utilise data to make informed decisions and connect networks to reduce financial and operational burdens to organisations.
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