Cost pressures holding UK companies back from meeting net-zero goals

New research from Wincanton, a British supply chain solutions company, has revealed that more than half (54 percent) of UK businesses don’t think they’ll meet their net-zero goals. 

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.

The research, conducted by Censuswide, found that 66 percent of UK companies feel they are “under pressure” to reduce CO2 emissions, with 83 percent believing that logistics is the key to achieving their sustainable goals.

However, they cite cost and the viability of alternative fuel technologies as things holding them back. 

Four in five (80 percent) revealed that reducing CO2 emissions in their logistics fleet means an increase in costs. As a result of these perceived cost pressures, two-thirds (66 percent) state they have had to deprioritise hitting these targets.

However, 37 percent of respondents have seen cost reductions from tackling their CO2 emissions, while 25 percent believe alternative fuel vehicles will be affordable in 4-6 years.

Against this backdrop, 59 percent added that they want to reduce the environmental impact of their logistics fleet “but simply don’t know how,” and 42 percent of organisations admit they “do not know how to further optimise their fleet”.

As a result, 55 percent note that they are not currently reducing emissions in their logistics fleet, and 84 percent of respondents expect the government to play more of a role in supporting CO2 reduction.

The survey found that 65 percent agree that collaboration is key to the future success of the logistics industry, however, 28 percent added that it is difficult finding partners to collaborate with, while 26 percent say they don’t have the internal resources to manage collaboration projects.

Paul Durkin, chief customer and innovation officer at Wincanton, said in a statement: “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.”