As global efforts to combat climate change intensify, the decarbonisation of fleet operations has become a strategic imperative for UK businesses. In fact, a release published last year by the Department of Transport revealed that Heavy Goods Vehicles (HGVs) and light vans contributed to just under 10% of the UK’s total domestic emissions. These statistics highlight the importance of fleet decarbonisation for a sustainable future from a commercial perspective.
However, whilst restrictions to combat climate change tighten, there is hope for businesses looking to take advantage of decarbonising. For the businesses that have already started to focus on decarbonising their operations, they aren’t just reducing emissions. They are positioning themselves as market leaders. By embracing sustainable practices, these businesses have enhanced their brand reputation, attracted eco-conscious customers, and have likely unlocked new commercial opportunities.
With this in mind, Andrew Tavener, Head of Fleet Marketing EMEA, Descartes, explores the key strategies and practical solutions that can help organisations to achieve decarbonisation goals in fleet operations.
Key Strategies for Decarbonising Fleet Operations
Fleet decarbonisation isn’t just a goal; it’s a business advantage today. With rising fuel costs, stricter regulations and an ever-increasing demand for sustainable supply chains and deliveries, now is the time for businesses to take action. Here are a few considerations, and ways, that businesses can ensure they are staying ahead of the curve, and meeting the demands on their operations.
Electrification
With the rise of Ultra Low Emission Zones (ULEZs) in towns and cities across the UK, electrification has become a surefire way to ensure businesses avoid unexpected fines. On top of this, making the transition to electric vehicles (EVs) offers a significant reduction of biofuels with lower maintenance costs – saving businesses money in the long run. There are also a number of government incentives available to companies that decide to onboard EVs.
Electrification also offers the potential for an improved brand image. However, whilst businesses will undoubtedly save money in the long run, initially going electric may come at a hefty price. With these high upfront costs partnered with limited infrastructure, making the transition to EVs can be less appealing to some smaller logistics teams and one-man operators. 
Alternative fuels
The transition to alternative fuels is reshaping logistics, with biofuel technologies such as biodiesel, biogas and bio-methanol, as well as e-fuels such as methanol and ammonia, offer sustainable solutions towards decarbonisation. Of course, the type of fuel used in logistics operations often depends on the type of operation, whether it’s air, land or sea. However, exploring options like biofuels, hydrogen fuel cells, and renewable natural gas is a great way for fleet operators to reduce carbon emissions, improve fuel security, and ultimately save a lot of money in the long term.
Like electrification and EVs, alternative fuels do have limited infrastructure and higher initial costs, which means businesses run the risk of supply chain disruptions if fuels are unavailable. However, with continued research and development, coupled with government incentives, it is likely the adoption of these alternative fuels could help many fleets decarbonise their operations in the future.
Route optimisation
Implementing advanced delivery scheduling and route optimisation software is crucial for fleet operations in the quest to decarbonise. Progressive route optimisation tools help businesses immediately reduce mileage and fuel consumption with increased delivery capacity and improvements to driver productivity. For example, after Topps Tiles, a leading U.K. tile retailer, incorporated route optimisation technology into its business it decreased the miles per delivery route by two percent. While the benefits are clear, integrating route optimisation tools with existing systems can pose challenges. Ensuring data accuracy, managing software compatibility, and maintaining the system over time require ongoing attention. However, a proven technology vendor, and artificial intelligence (AI) and machine learning making strides every day, route optimisation tools are essential in maintaining sustainable and cost-effective fleet operations.
Take advantage of government regulations and incentives
To accelerate decarbonisation across fleet operations, the UK government has introduced incentives. For example, starting in 2030, only zero-emission cars will be sold, subject to current consultations becoming law. Vans and HGVs are expected to follow with a phase-out date by 2035.
The financial incentives in place also include subsidies and tax breaks for purchasing electric and alternative fuel vehicles. The UK Government’s Plug-in Van Grant offers savings of £2,500 to £5,000 depending on van size, with up to £16,000 available for heavier models. The Local Electric Vehicle Infrastructure (LEVI) fund helps local authorities in England collaborate with the charge point industry, while separate grants support companies installing EV charge points for staff and fleets.
Additional incentives include the First Year Allowance, which allows businesses to deduct the full cost of purchasing an electric vehicle from their taxable profits in the year of purchase. And the EV Infrastructure Grant helps small to medium-sized businesses support infrastructure and install EV charge points for staff and fleet vehicles.
To conclude…
In light of the various government regulations and the need to reduce costs, implementing an array of these solutions today is a strategic imperative for fleet operators to consider. What is more, according to the 2025 Home Delivery Consumer Sentiment Study 40% of consumers aged under 35-years-old indicated interest in receiving an environmentally-friendly delivery option, with a further 23% of people over 65-years-old also considering this. Therefore, also highlighting the importance of environmentally conscious business practices to consumers. With the use of route optimisation technology, businesses can ensure they remain efficient and competitive by reducing miles across their fleet of vehicles, saving on fuel and enhancing brand recognition.
Of course, the rest of the solutions mentioned will work, and be effective as part of a wider strategy, to replace vehicles in the future. But organisations need to reduce costs and decarbonise now – which is something that more effective route planning can immediately provide, ahead of the longer-term investments, and benefits that will be derived from using other methods of transport across fleets.