More than half (54%) of UK businesses say they struggling to meet their net zero goals, according to a new study by Wincanton.
Carried out among supply chain, transport and logistics decision-makers, the research finds that cost impacts and concerns about the speed of viability of alternative fuel technologies are holding back progress. Only 25% believe alternative fuel vehicles will be affordable in 4-6 years.
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 deprioritise hitting these targets.
However, 37% of respondents have seen cost reductions from tackling their CO2 emissions and 83% see logistics as key to achieving their goals in this area.
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.”
The survey indicated that better collaboration could 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, stated: “Through technology, UK businesses can collaborate and optimise their fleets to minimise wasted capacity and shift the dial on sustainable logistics.”
