GXO: UK Organisations Prioritising Sustainable Logistics

Global logistics is moving towards a more sustainable future, with more organisations electrifying their fleets or using lower-emission fuels.

Demand for sustainability across supply chains – particularly logistics – has meant that organisations are taking a closer look at their operations, but many do not know where to begin.

GXO Logistics, one of the world’s largest pure-play contract logistics providers, has published The Future of Transport report, exploring how UK drivers are approaching this change.

An industry shift

According to the World Economic Forum, the logistics sector is responsible for up to 11% of global greenhouse gas emissions, driven by freight transportation, warehouse and port operations. However, organisations around the world are at a critical point, understanding the need to change strategy and implement some emissions-cutting processes.

With the ongoing climate urgency, the logistics industry is beginning to turn to new methods in order to meet demand while reducing its impact on the environment. Though demand for freight appears to be increasing, caused by rapid urbanisation, growing trade and the increase in ecommerce options, leading organisations are investing in sustainability initiatives to ensure their emissions do not grow alongside their fleet.

In June 2026, the European Commission introduced the first EU-wide standardised methodology which can calculate GHG emissions from freight and passenger transport. It offers a single, science-based methodology to provide accurate, comparable and reliable emissions data. 

Following this, GXO has created a report, exploring how UK organisations are beginning to prioritise sustainability in transport. The logistics sector is undergoing transformation, facing volatility within costs, operational complexity, rapid technological advances and pressure to improve sustainability and resilience. 

Despite the need for transformation, GXO finds that there is complexity in managing operational performance, cost and sustainability. Though leaders are wanting to implement sustainable strategies, they struggle to turn insight into action. 

Barriers to change

Although industry leaders are wanting to implement sustainable solutions, with 87% of businesses prioritising emissions reduction – an increase from 81% in 2024 – almost 66% of respondents do not know where to begin. More than 1,000 senior decision makers in UK supply chain and logistics organisations took part in a survey which formed GXO's report. 

GXO has found that there is an increase in optimisation urgency, driven by cost pressures. In the survey, 89% of operators anticipate a rise in cost over the next 12 months, with more than a third expecting the increases to be significant. These price increases, however, could transform operations for fleet operators. Higher fuel costs will result in an increased focus on route optimisation (38%), increased delivery charges for customers (37%), pressure to reduce non-essential mileage (37%), acceleration of plans to move towards alternative fuels (36%) and reduced profit margins (31%). 

“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," explains Carl Hanson, Managing Director, Transport at GXO UK & Ireland.

“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.”

To reduce costs and emissions, 86% of transport operators believe collaboration between logistics networks may be the key. Through data sharing and flexibility, businesses can be more prepared for shifts or gain greater access to alternative solutions. This means that when demand fluctuations hit or volatility occurs, businesses are more prepared, or have more resources available to them to manage these shifts. 

Already, 85% of respondents state they have invested in fleet optimisation, which has resulted in less empty miles, lower fuel consumption and better planned routes. This also means less delays, faster delivery and lower emissions. 

However, there is a lack of clarity for those wanting to switch to alternative fuels, with only 35% stating they have a clear strategy. 

Businesses that have developed structured plans to identify and address inefficiencies will be more able to improve performances, reduce costs and build greater resilience across operations.