A new report from Wincanton highlights the significant challenges facing UK businesses in meeting their net zero targets. Logistics operations, a key area for emissions reduction, are particularly affected by cost constraints and uncertainties around alternative fuels.
“Sustainability remains a high priority for UK businesses,” admitted Paul Durkin, Chief Customer and Innovation Officer at Wincanton. “However, it’s clear they aren’t making enough headway when it comes to reducing emissions in their supply chain operations.”
The survey found that 66% of UK organizations are under pressure to hit their net-zero goals, while 83% recognize the importance of logistics in achieving this ambitious target. Despite this urgency, 54% of respondents expressed concerns about their ability to meet these goals, citing cost impacts and the viability of alternative fuels as major hurdles.
“As a result of these perceived cost pressures, two-thirds have had to deprioritize hitting these targets,” revealed the report.
While 37% of respondents have experienced cost reductions from tackling their CO2 emissions, the majority remain sceptical about the affordability of alternative fuel vehicles in the near future. Only 25% believe that these vehicles will be accessible within the next four to six years.
To address these challenges, Wincanton emphasized the importance of collaboration among businesses in the logistics industry. The survey found that 65% of respondents agree that collaboration is crucial for future success, but many expressed concerns about finding suitable partners and managing collaborative projects.
“More efficient use of existing capacity is key,” stated Helen Flanagan, EyeQ Product Director at Wincanton. “Last year the Government reported that almost a third of the total vehicle kilometres travelled 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,” Flanagan added. “Through technology, UK businesses can collaborate and optimize their fleets to minimize wasted capacity and shift the dial on sustainable logistics.”