The reality of climate change is undeniable. With 2024 recorded as the warmest year on record and the first to exceed the 1.5°C warming threshold, scientists, governments and businesses all agree: action must be taken now. Helen Flanagan, Product Director of EyeQ at Wincanton discusses, in the following article, the options and challenges facing fleet and transport managers as the approach the time for fleet renewal.
The logistics and supply chain sector is the backbone of the UK’s economy — but it’s also at the centre of its emissions challenge. Due to the nature of the work that it conducts, the industry remains one of the biggest contributors to CO₂ emissions. The urgency to decarbonise has never been greater.
Image: Wincanton
But while Wincanton’s research found that 83% of UK supply chain, transport and logistics decision makers recognise that logistics is key to achieving their net-zero goals and lowering emissions, 54% admit they will struggle to meet these targets.
The climate can’t wait though and with hesitation not an option, businesses need solutions to turn ambition into action.
Alternative fuel vehicles: Where are we now?
Alternative fuel vehicles (AFVs) are undeniably a crucial part of the journey towards a low-carbon future, but their widespread viability remains a work in progress.
For light and medium-duty fleets, electrification is already proving successful, with electric vans, motorbikes, and cargo bikes becoming increasingly common on UK roads. However, for heavy goods vehicles (HGVs), progress is much slower; there are currently only 300 electric HGVs registered in the UK and just one dedicated HGV charging point. And while positive steps are being taken in this area, with the government recently unveiling the planned locations of 54 new electric HGV charging hubs, there’s still a long road ahead and large-scale adoption of electric HGVs remains a challenge.
Beyond electrification, biofuels, Liquefied Natural Gas (LNG), and Compressed Natural Gas (CNG) are being actively explored to replace standard diesel as part of wider efforts to reduce carbon emissions. However, whilst non-fossil fuel alternatives like hydrotreated vegetable oil (HVO) and biodiesel provide significantly lower carbon and greenhouse gas emissions than diesel and fossil fuels, they remain expensive to produce and challenging to scale.
Similarly, hydrogen-powered vehicles are gaining traction, with the UK government investing in hydrogen production and refuelling infrastructure. While promising, the technology is still in its early stages, with high costs and infrastructure limitations slowing adoption.
The reality is that while alternative fuels will play a pivotal role in decarbonisation, they are not yet a viable fleet-wide solution for most logistics businesses. In fact, our research found that just 25% of supply chain decision-makers believe AFVs will be affordable within the next 4-6 years. With net-zero targets looming and environmental pressures intensifying, businesses can’t afford to wait for these solutions to mature before acting.
Image: Wincanton
So, what action can they take?
Optimising operations through digital transformation
Technology is transforming the logistics industry, offering businesses powerful tools to optimise operations and reduce emissions. With HGVs in the UK travelling approximately 5.8 billion kilometers without cargo in 2023, inefficiencies in fleet management remain a challenge. Too much empty space is being moved around logistics networks, leading to unnecessary fuel consumption and higher CO₂ emissions.
The solution lies in digital transformation, which enables businesses to make smarter use of available capacity, reduce waste, and enhance overall efficiency.
Advanced fleet management systems powered by real-time data are already proving to be transformative. These technologies allow logistics businesses to optimise route planning dynamically, helping drivers avoid congestion, reduce unnecessary mileage, and lower fuel consumption.
It’s no surprise that 45% of supply chain decision-makers identify route optimisation as one of the most effective ways to cut CO₂ emissions. By analysing data, logistics operators can refine their operations, ensuring that load fill is maximised and that vehicle schedule are designed to reduce empty running
Beyond route optimisation, predictive analytics and automation play a crucial role in maximising fleet efficiency. These technologies help reduce downtime, improve fuel efficiency, and ensure that every vehicle is operating at peak performance. By proactively scheduling maintenance, automation can prevent breakdowns and reduce the emissions impact of inefficient vehicles. The result is a streamlined, cost-effective, and environmentally responsible operation that balances profitability with sustainability.
The impact of data-driven logistics is already being felt across the industry. Our flagship EyeQ platform has demonstrated cost and carbon reductions of up to 12% for our customers. Additionally, it provides improved supply chain visibility and resilience, giving businesses greater control over their operations. By embracing technology today, logistics businesses can cut emissions, increase efficiency, and future-proof their operations in an increasingly climate-conscious world.
Image: Wincanton
Collaboration: The key to low-carbon logistics
Logistics operators can’t tackle decarbonisation in isolation. The sector must embrace collaboration — not just between fleets, but across the entire supply chain. The good news is that the UK’s supply chain, logistics and transport decision makers recognise this, with 65% seeing collaboration as key to overcoming sector challenges and hitting their net-zero goals
By working together, businesses can gain access to a wider range of vehicle options, improve fleet utilisation, and leverage advanced route optimisation technology.
Collaboration also offers cost efficiencies. Many businesses hesitate to invest in emissions reduction due to the perceived costs, yet over a third (37%) of companies that have actively cut CO₂ have also reduced operational expenses. Sharing resources, optimising delivery networks, and working with technology providers can make sustainability more affordable and achievable.
Final thoughts
Alternative fuels are a critical part of the future of logistics, but they are not a short-term fix. With the viability of AFVs still years away, logistics businesses must focus on what they can do right now to reduce emissions. A balanced strategy that combines operational improvements, technology, and cross-industry collaboration will ensure that businesses don’t just meet their sustainability targets — but also enhance profitability and resilience along the way.
