New research has revealed that 66% of UK organisations say they are under pressure to hit their net-zero targets, with logistics seen as key to achieving their goals in this area, according to 83%.
Wincanton surveyed UK supply chain, transport and logistics decision makers to uncover how organisations are reducing CO2 emissions in commercial transportation, in light of impending net-zero deadlines.
Businesses aren’t making the progress they want, as over half (54%) feel they will struggle to meet their net-zero goals. And they cite the reasons for this as cost impacts and concerns about the speed of viability of alternative fuel technologies.
According to the survey, 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 CO2emissions. Only 25% believe alternative fuel vehicles will be affordable in four to six years.
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 found that better collaboration can 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%).
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