Sustainability and transport efficiency are rising priorities for UK organisations, but a new report from GXO Logistics, Inc. reveals that many businesses are still unsure how to turn ambition into practical action. The findings highlight a sector under pressure, where cost, emissions reduction and digital transformation are increasingly interconnected, yet operational clarity remains a major challenge.
The report, The Future of Transport, shows that while progress is being made, a significant gap persists between intent and execution. Six in ten (64%) UK businesses say they want to reduce the environmental impact of their transport fleets but admit they do not know how to achieve it. Meanwhile, 87% of organisations now identify emissions reduction as a key priority, up from 81% in 2024, indicating growing momentum but limited confidence in implementation.
According to GXO Logistics, Inc., the issue is no longer a lack of awareness, but a lack of operational direction. The report suggests that many businesses recognise the need to modernise logistics operations but struggle to implement systems that deliver measurable improvements in both sustainability and efficiency.
Carl Hanson, Managing Director, Transport, at GXO UK & Ireland, 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 research, based on responses from more than 1,000 senior decision makers across UK supply chain and logistics organisations, explores how companies are responding to rising costs, environmental targets and increasing digitalisation within transport operations.
Cost pressures remain one of the most significant barriers to progress. Nearly 89% of transport operators expect costs to rise over the next 12 months, with over a third anticipating substantial increases. Although the planned 5p fuel duty freeze has been delayed, businesses continue to expect future duty changes to materially affect operating costs.
At the same time, operational efficiency is increasingly being seen as a route to long-term sustainability. More than 86% of transport operators now believe collaboration between logistics networks is essential for reducing both costs and carbon emissions, a sharp increase from 65% in 2024. This reflects a growing understanding that shared infrastructure, better planning and improved coordination can reduce inefficiencies across the supply chain.
Investment in optimisation is also increasing, with 85% of organisations reporting greater focus on fleet efficiency. The principle is straightforward: reducing empty miles, improving route planning and increasing load efficiency leads directly to lower fuel consumption and reduced emissions.
However, the transition to alternative fuels remains uneven. Just 35% of organisations say they have a clear strategy and defined timeline for adoption, suggesting that while awareness of low-emission transport is high, structured implementation is still lacking across much of the sector.
The report highlights that technology is central to bridging this gap. Businesses without advanced transport systems report higher maintenance costs (37%), longer delivery times (32%) and increased CO₂ emissions (32%). In contrast, organisations investing in digital transport solutions benefit from improved visibility, data-driven decision-making and better-connected logistics networks, reducing both financial and environmental pressures.
Ultimately, the findings suggest that efficiency, collaboration and digital transformation are becoming essential drivers of competitiveness in UK logistics. The report concludes that businesses that fail to adopt integrated transport technologies risk falling behind on cost, sustainability and service performance.
The Future of Transport is the first in a three-part series from GXO Logistics, Inc. exploring how operational efficiency, sustainability and technology-led optimisation are reshaping UK transport systems.
