Europcar: UK Supply Chains at Risk of Sustainability Reports

From January 2027, UK Sustainability Reporting Standards are becoming mandatory in an effort to reduce global emissions and encourage responsible supply chain operations.

In February 2026, finalised versions of the UK SRS S and UK SRS S2 were published, with a policy statement expected in Autumn 2026.

With this, organisations are needing to make significant changes to ensure compliance.

Europcar Mobility Group explores the risk to businesses who cannot upgrade in time.

Meeting climate expectations

The new requirements mean there will be a baseline, which will drive improved levels of consistency and transparency across operations. As a result, it will also mean stronger links between sustainability reporting and risk reporting.

From January 2027, businesses will be working to protect existing contracts and commercial relationships while ensuring they meet compliance measures. However, this means they are facing significant issues when it comes to upgrading fleets. Some companies will already be scrutinising their supply chains, with particular attention on their logistics partners. Currently, the logistics industry contributes approximately 11% of global emissions. 

The UK SRS acts as the UK's framework for corporate reporting on sustainability and climate-related risks. The risks focus on areas of business operations, but mobility comes under focus as a main cause of emissions. To avoid scrutiny and losing contracts, businesses need to integrate low- and zero-emissions vehicles into their fleets.

This, however, is an expensive change to make. Though statistics show lower costs over time, the initial expense of changing entire fleets is something many organisations cannot afford.

“Switching a fleet to fully electric in a short space of time is impractical for most businesses operating in the supply chain ecosystem,” explains Tom Middleditch, Head of B2B Marketing and Sustainability spokesperson at Europcar Mobility Group UK.

“And current economic conditions make significant multi-year financial commitments challenging, meaning long-term leasing of electric cars and vans isn’t practical or possible for many organisations. However, rental can provide a viable alternative – and help ensure that contracts are not at risk as the UK SRS comes into force.”

A short-term transition

Europcar argues that rental offers a low-risk means of EV adoption, as it is flexible and a much smaller commitment. As organisations can opt to rent a series of EV vehicles instead of outright buying them, they can meet the sustainability measures of customers while also balancing costs. 

As no purchasing or making is required to meet fleet demands, it is an immediate and scalable option. Due to its lack of permanence, it also allows businesses to trial the various types of EV in order to make long-term informed decisions. 

Supply chains therefore can experience the pros and cons of electric mobility options over a long time period, without having made a conclusive decision before understanding how each vehicle operates within its organisation. 

“Many corporates are already reporting their sustainability-related information voluntarily, acting early to reduce emissions, while others are planning for January,” Tom adds. 

“These listed businesses will already be reviewing and switching partners based on their sustainability credentials, so suppliers must act quickly to ensure they do not lose existing contracts or miss out on new opportunities."

Organisations like Europcar are supporting the transition to electric fleets, helping drivers become familiar with EVs without the high expense and commitment. 

As the energy transition takes place, logistics organisations and supply chain businesses need to examine their emissions reduction strategies. For some, this may focus on changing suppliers or implementing circularity, but for others, it will focus on more sustainable logistics options. 

Those looking to make immediate changes to their operations – but do not have the funds or confidence in a full fleet transition – can find short-term solutions which can transform their logistics and meet consumer demand for emissions reductions.