The phenomenon of “greenwishing”, where companies make claims or even commitments to becoming more sustainable without any concrete idea of how to achieve those goals, may be more widespread among UK businesses than was previously thought.
New research from supply chain services company Wincanton, has found that more than half of UK businesses don’t think they’ll meet their net-zero targets.
Mounting pressure to decarbonise
Despite this lack of optimism regarding the feasibility of net-zero commitments, the pressure to hit these sustainability targets is mounting for supply chain operators.
Two thirds (66%) of UK organisations said that they were under pressure to hit their net-zero targets. In particular, logistics was seen as a key area of focus for achieving goals in this area, according to 83% of decision-makers surveyed.
If at first you don’t succeed, give up?
Nevertheless, businesses aren’t making the progress they want. Of the 54% of businesses who said they are struggling to meet their net-zero goals, many cited cost impacts and concerns about the speed of viability of alternative fuel technologies as the primary barriers to successful decarbonisation.
Four in five (80%) said they believe reducing CO2 emissions in their logistics fleet means an increase in costs. As a result of these perceived cost pressures, two thirds (66%) have had to deprioritise hitting these targets.
“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,” said Paul Durkin, Chief Customer and Innovation Officer at Wincanton. “We can see that a gap is emerging between their priorities and the action needed to reach net-zero.”
Against this backdrop, 59% want to reduce the environmental impact of their logistics fleet but simply don’t know how, and 42% of organisations admit they do not know how to further optimise their fleet. Only 25% believe alternative fuel vehicles will be affordable in 4-6 years.
As a result, 55% state that they are not currently reducing emissions in their logistics fleet. Given the struggles, 84% of respondents expect the government to play more of a role to support CO2 reduction.
Emissions reductions doesn’t necessitate cost increases
According to the report, 37% of respondents have seen cost reductions from tackling their CO2 emissions, casting doubt over the perceived problems supply chain managers face. Government subsidies and regulatory intervention could play a significant role in keeping supply chain decarbonisation profitable, or simply forcing companies to eat the cost of polluting.
Wincanton’s survey also found that better collaboration can help improve sustainable performance. Two-thirds (65%) of survey respondents agree collaboration is key to the future success of the logistics industry. However, executives, borads, and the government need to find ways to make collaboration easier for all involved. Businesses reported they’re nervous, both about the difficulty finding partners to collaborate with (28%) and the lack of internal resources to manage collaboration projects (26%).
Helen Flanagan, EyeQ Product Director at Wincanton, added: “More efficient use of existing capacity is key. Last year the Government reported that almost a third of the total vehicle kilometres travelled by HGVs in the UK were empty. Put simply, too much fresh air is being moved around the UK, contributing to high emissions and high costs for businesses. Through technology, UK businesses can collaborate and optimise their fleets to minimise wasted capacity and shift the dial on sustainable logistics.”
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