The 2024 State of Sustainability in Freight Forwarding Survey Report, published by the British International Freight Association (BIFA) in collaboration with emissions reporting platform Pledge, has provided an in-depth look at the current state of sustainability practices within the UK freight forwarding industry.
New survey of BIFA members offers insight into the attitudes and approaches of UK freight forwarders towards achieving better sustainability.
The 2024 State of Sustainability in Freight Forwarding Survey Report, published by the British International Freight Association (BIFA) in collaboration with emissions reporting platform Pledge, has provided an in-depth look at the current state of sustainability practices within the UK freight forwarding industry.
According to BIFA, after collecting demographic data such as company size, annual revenue, operating region and mode of transport supported, freight forwarders who took part in the survey were asked about their sustainability practices, the importance of carbon reporting, and how likely they are to implement carbon reporting software in the future.
A key finding in the research, as stressed by BIFA, was that despite a growing acceptance of the importance of sustainability initiatives among British freight forwarders, more than half insist that other business-critical issues are taking precedence right now – something that was particularly true for smaller forwarders.
Current sustainability practices
The survey reveals that more than half of the respondents have implemented some form of sustainability policy, and nearly two-thirds report that their customers are requesting carbon emissions reporting.
On the other hand, a significant portion of freight forwarders are not yet measuring customer emissions, with many relying on manual calculations or utilising third-party software solutions.
Interestingly, the prioritisation of sustainability varies significantly by company size. Large enterprises (1,000+ employees) and mid-sized forwarders (250-1,000 employees) generally acknowledge the importance of sustainability, though they often cite other pressing business concerns.
Commenting on this finding, David de Picciotto, Chief Executive Officer and Co-Founder of Pledge, said:
“While this prioritisation gap isn’t surprising given the difference in availability of resources between large and small businesses, an even and inclusive transition to sustainability within transport and logistics is crucial if this high-polluting sector is to decarbonise effectively. It’s therefore crucial that innovations in technology that lower barriers to implementation for small and medium businesses and initiatives that raise awareness and provide access to long-term benefits of sustainability for forwarders are prioritised.”
Meanwhile, the survey data shows that smaller forwarders (11-50 employees) and very small forwarders (1-10 employees) show a notable gap in prioritisation, with a significant percentage viewing sustainability as a low priority or not a priority at all.
Sustainability budget allocations
The allocation of budgets for sustainability initiatives also correlates with company size. While nearly all large and enterprise forwarders have dedicated sustainability budgets, many small and medium-sized forwarders lack a specific timeline for budget implementation. Moreover, a significant number of very small forwarders believe they will never set a sustainability budget.
When it comes to adopting third-party carbon reporting software, the main barrier referred to by survey respondents was financial constraints.
However, despite these barriers, a considerable portion of forwarders are planning to offer some form of sustainability service in the next 12 months, with carbon emissions reporting being the most likely.
Sustainability focused services for customers
The survey data indicates that carbon emissions reporting is the most likely service to be offered, with a significant percentage of respondents indicating a high likelihood of implementation. Lower carbon deliveries, such as consolidated consignments, also scored well.
In addition to this, lower carbon transport options, including the use of HVO and electric vehicles, and lower carbon routes through modal switching, are considered likely by a notable portion of respondents. However, there is less enthusiasm for carbon insetting and offsetting services.
Importance of carbon reporting
Survey respondents were also asked about the pluses associated with carbon emissions reporting.
Here, nearly three-quarters of respondents consider meeting customer tender requirements, enabling customers to meet regulations, and attracting new customers as significant motivators for providing carbon reporting services.
How forwarders are measuring emissions
Finally, the report reveals a diverse range of practices among freight forwarders when it comes to measuring their customers’ carbon emissions.
Nearly half of the respondents utilise third-party software solutions for this purpose. However, a significant portion—one-fifth—still resort to manual calculations in-house.
Notably, about a third of the respondents are not measuring customer emissions at all. The findings suggest that while there is a clear demand from customers for carbon emissions reporting, the industry is still in the early stages of widespread implementation, with barriers such as financial costs and integration complexity hindering progress.
This, it is said, underscores the need for more accessible and affordable solutions, as well as industry support to facilitate the transition to more robust carbon measurement practices.
According to BIFA, after collecting demographic data such as company size, annual revenue, operating region and mode of transport supported, freight forwarders who took part in the survey were asked about their sustainability practices, the importance of carbon reporting, and how likely they are to implement carbon reporting software in the future.
A key finding in the research, as stressed by BIFA, was that despite a growing acceptance of the importance of sustainability initiatives among British freight forwarders, more than half insist that other business-critical issues are taking precedence right now – something that was particularly true for smaller forwarders.
Current sustainability practices
The survey reveals that more than half of the respondents have implemented some form of sustainability policy, and nearly two-thirds report that their customers are requesting carbon emissions reporting.
On the other hand, a significant portion of freight forwarders are not yet measuring customer emissions, with many relying on manual calculations or utilising third-party software solutions.
Interestingly, the prioritisation of sustainability varies significantly by company size. Large enterprises (1,000+ employees) and mid-sized forwarders (250-1,000 employees) generally acknowledge the importance of sustainability, though they often cite other pressing business concerns.
Commenting on this finding, David de Picciotto, Chief Executive Officer and Co-Founder of Pledge, said:
“While this prioritisation gap isn’t surprising given the difference in availability of resources between large and small businesses, an even and inclusive transition to sustainability within transport and logistics is crucial if this high-polluting sector is to decarbonise effectively. It’s therefore crucial that innovations in technology that lower barriers to implementation for small and medium businesses and initiatives that raise awareness and provide access to long-term benefits of sustainability for forwarders are prioritised.”
Meanwhile, the survey data shows that smaller forwarders (11-50 employees) and very small forwarders (1-10 employees) show a notable gap in prioritisation, with a significant percentage viewing sustainability as a low priority or not a priority at all.
Sustainability budget allocations
The allocation of budgets for sustainability initiatives also correlates with company size. While nearly all large and enterprise forwarders have dedicated sustainability budgets, many small and medium-sized forwarders lack a specific timeline for budget implementation. Moreover, a significant number of very small forwarders believe they will never set a sustainability budget.
When it comes to adopting third-party carbon reporting software, the main barrier referred to by survey respondents was financial constraints.
However, despite these barriers, a considerable portion of forwarders are planning to offer some form of sustainability service in the next 12 months, with carbon emissions reporting being the most likely.
Sustainability focused services for customers
The survey data indicates that carbon emissions reporting is the most likely service to be offered, with a significant percentage of respondents indicating a high likelihood of implementation. Lower carbon deliveries, such as consolidated consignments, also scored well.
In addition to this, lower carbon transport options, including the use of HVO and electric vehicles, and lower carbon routes through modal switching, are considered likely by a notable portion of respondents. However, there is less enthusiasm for carbon insetting and offsetting services.
Importance of carbon reporting
Survey respondents were also asked about the pluses associated with carbon emissions reporting.
Here, nearly three-quarters of respondents consider meeting customer tender requirements, enabling customers to meet regulations, and attracting new customers as significant motivators for providing carbon reporting services.
How forwarders are measuring emissions
Finally, the report reveals a diverse range of practices among freight forwarders when it comes to measuring their customers’ carbon emissions.
Nearly half of the respondents utilise third-party software solutions for this purpose. However, a significant portion—one-fifth—still resort to manual calculations in-house.
Notably, about a third of the respondents are not measuring customer emissions at all. The findings suggest that while there is a clear demand from customers for carbon emissions reporting, the industry is still in the early stages of widespread implementation, with barriers such as financial costs and integration complexity hindering progress.
This, it is said, underscores the need for more accessible and affordable solutions, as well as industry support to facilitate the transition to more robust carbon measurement practices.
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