Environmental performance

What is Environmental Performance?

Environmental performance refers to the measurable impact an organisation has on the environment. For transport and logistics companies, this includes indicators such as greenhouse gas (GHG) emissions, air pollutants (NOx, PM), energy and fuel use, waste, and resource efficiency. In road transport, environmental performance reflects how HGVs, vans, and fleets influence climate impact and local air quality when moving goods across the network.

Detailed Explanation

Environmental performance is built on accurate measurement, targeted reduction actions, and transparent reporting. Measurement typically begins with fuel consumption, which is converted into CO2e (carbon dioxide equivalent) using recognised emission factors. In UK and European road transport, organisations often track:

• Absolute emissions (tCO2e per month/quarter/year)

• Emissions intensity (gCO2e/km, gCO2e/tonne-km, or gCO2e per shipment)

• Air pollutants such as NOx and particulate matter

• Operational factors like idle time, load factor, and empty running

To interpret performance effectively, companies set a baseline year, define boundaries (vehicle scope, subcontracted carriers, well-to-wheel vs tank-to-wheel), and use consistent KPIs. This enables trend analysis, benchmarking between lanes or customers, and data-driven decisions around fleet investment, routing, and operational change.

Environmental Performance in Road Transportation

Across UK logistics, environmental performance increasingly shapes procurement decisions, compliance efforts, and customer expectations:

• Carriers and 3PLs are frequently required to provide shipment-level CO2e and intensity metrics during tenders.

• Shippers compare carriers on emissions intensity alongside cost, reliability, and service.

• UK cities implement Clean Air Zones (CAZ), Low Emission Zones (LEZ), and Ultra Low Emission Zones (ULEZ), encouraging cleaner fleet technologies.

• Fleet standards (e.g., Euro VI compliance) and corporate ESG commitments drive vehicle replacement cycles and optimised route planning.

Common KPIs for road transport include:

• gCO2e/tonne-km for long-haul and full truckload

• gCO2e/shipment for parcel and groupage

• Fuel efficiency (L/100 km or mpg), idle time, and empty running rates

• On-time performance aligned with optimised routing to balance emissions and service levels

Examples

• A regional haulage company reduces emissions intensity by 18% year on year through eco-driving programmes, tyre pressure management, and aerodynamic upgrades to tractors and trailers.

• An urban distribution fleet converts 25% of last-mile routes to battery-electric trucks—reducing tank-to-wheel CO2e to zero within a Clean Air Zone and improving local air quality—while planning wider adoption of electric and low-emission vehicles.

• A retailer consolidates part-loads and redesigns delivery windows, increasing average load factor from 62% to 75% and lowering gCO2e/tonne-km across its distribution network.

• A 3PL integrates telematics with its TMS to identify high-idle vehicles and avoid congestion hotspots, cutting fuel use and reducing NOx around distribution centres.

Key Components and Improvement Levers

• Measurement and Data Quality

  • Standardised emission factors, clear scope boundaries, and shipment-level allocation

  • Integration of telematics, fuel cards, and TMS platforms for reliable and auditable data, supported by digital tools for scheduling and visibility

• Fleet and Technology

  • Efficient powertrains, Euro VI compliance, hybrid systems

  • Electrification for urban and short-haul routes, depot-based charging strategies (electric and low-emission vehicles)

  • Low-carbon fuels (HVO/renewable diesel, bio-CNG/LNG) with verified emission factors

  • Aerodynamic improvements, low-rolling-resistance tyres, predictive maintenance

• Operations and Planning

  • Route optimisation and dynamic re-routing to minimise congestion

  • Load consolidation, backhauls, and collaborative logistics to reduce empty running

  • Idle-reduction measures, speed governance, eco-driving and driver coaching

• Network Design

  • Hub locations aligned to demand, micro-hubs for last-mile operations, redesigned time windows (e.g., dock appointment scheduling) to reduce on-site waiting and idling

• Reporting and Governance

  • Targets tied to baselines, customer-ready dashboards, and periodic reviews

  • Alignment with established reporting frameworks for consistency and comparability

Benefits

• Reduced fuel and maintenance costs alongside emissions reductions. Lowering waiting times through dock scheduling improvements helps cut idling and fuel waste.

• Increased competitiveness in tenders and compliance with CAZ/ULEZ rules

• Improved local air quality and reduced noise in sensitive areas

• Stronger ESG reporting and enhanced stakeholder confidence through transparent metrics

Conclusion

Environmental performance in road transportation is the disciplined practice of measuring, improving, and reporting the environmental footprint of freight operations. With accurate data, green logistics and fleet management, and cleaner technologies, carriers, shippers, and 3PLs can lower emissions, manage costs, and meet growing regulatory and customer expectations—without compromising service quality.