Rising fuel costs, economic uncertainty and supply chain disruption are making it harder for transport and logistics SMEs to invest in sustainability, despite most businesses remaining committed to reducing their environmental impact.
Research by Novuna Business Finance found that 92% of small businesses in the transport, distribution and logistics sector still regard sustainability as a priority over the coming year, although many say financial and operational pressures are slowing progress.
The survey of 1,000 UK SME owners found that 41% of transport and logistics businesses now consider sustainability to be embedded in their business culture and planning, while a further 19% said they understood the importance of sustainability but lacked the time or financial resources to do more.
However, respondents said ongoing operational challenges were making it increasingly difficult to turn plans into action.
Around 44% cited wider operational and market pressures as the biggest obstacle to achieving sustainability goals, while 34% pointed to rising fuel costs and the same proportion highlighted increasing energy costs. Inflation and higher interest rates were also identified as barriers to investment.
Despite those challenges, almost all respondents (96%) said at least one aspect of sustainability had become more important over the past year.
The most common initiatives being introduced included reducing packaging waste (33%), increasing support for local communities (33%), strengthening ethical supply chains (20%), using more local suppliers (19%), reducing energy consumption (18%) and investing in new equipment and infrastructure (18%).
Just 16% said they were switching to greener forms of transport.
Many businesses also said greater government support would help accelerate progress. Around 28% called for clearer and more practical guidance on sustainability, while 27% said stronger commercial incentives would encourage further investment.
Almost a quarter wanted clearer evidence that sustainability initiatives would deliver cost savings.
Jo Morris, Novuna Business Finance head of insight, said the findings reflected the difficult balancing act facing transport operators.
“There is no doubt that transport, distribution and logistics businesses are facing global and domestic pressures,” she said.
“Rising fuel and energy costs, freight disruption and wider uncertainty are all putting pressure on day-to-day operations.
“Even so, these findings show that sustainability still matters to many firms in the sector, which are working to incorporate green initiatives while balancing costs and meeting customer expectations.”
She added that businesses were looking for practical support rather than new obligations.
“They want straightforward guidance, clearer evidence of where savings can be made, and support that makes it easier to invest in more efficient equipment and vehicles.
“These are practical foundations that help firms act with confidence when margins are tight.”
