Over two thirds of logistics firms want to cut emissions but not sure how to, GXO report reveals

The Future of Transport report’s findings are based on a survey of over 1,000 senior decision makers in UK supply chain and logistics organisations. The survey asked businesses how they are addressing the challenges of cost resilience, low-emission transport and operational digitalisation.

The findings reveal that the sector is moving in the right direction, with 87% of businesses identifying emissions reduction as a key priority, up from 81% in 2024. However, nearly two-thirds of respondents admit they don’t know where to start. 

The survey also found that more than eight in ten (86%) of transport operators now believe collaboration between logistics networks is key to reducing costs and cutting carbon emissions – a significant increase from 65% in 2024.

Additionally, 85% reported increased investment in fleet optimisation to lower emissions.

However, when it comes to alternative fuels, just 35% 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, the report noted.

Efficiency and cost remain the central challenge, and the pressure to act is growing, the report added. Operational efficiency and collaboration will be integral in driving change and making net zero achievable, it said, noting that 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%), longer delivery times (32%) and higher CO₂ emissions (32%), the research found.

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, the report argued.

Carl Hanson, GXO UK & Ireland MD of transport, 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.”

The Future of Transport is the first in a three-part series from GXO that explores operational efficiency, sustainability and technology-led optimisation in UK transport. The report can be found here.