Transport companies scaling back green initiatives to favour AI projects

Transport and storage companies are reportedly scaling back their environmental initiatives to focus on artificial intelligence (AI) projects, according to a recent government survey.

The ONS Business Insights and Conditions Survey (Wave 129) reveals a decline in concern for green initiatives among transportation and logistics firms. ParcelHero’s Head of Consumer Research, David Jinks notes that while climate change was once a significant concern, only 3.9% of these firms now consider it a “very concerning” issue, compared to 21.7% in September 2022.

This decreased concern is reflected in policy changes. The survey indicates that only 2.3% of transport and storage companies currently have a climate change policy, a significant drop from 7.8% in June 2022. Similarly, the percentage of firms with net-zero or greenhouse gas emissions targets has fallen from 8% in March 2024 to 2.3% in the latest survey.

Jinks suggests that this shift may be influenced by global trends, such as the US’s renewed focus on tech spending and a perceived cooling of climate targets, even in the UK. He also raises questions about how consumers will respond to the logistics industry’s potential shift away from green goals.

Meanwhile, AI adoption is rapidly increasing in the transport and storage sector. Back in October 2023, when companies were asked about barriers to adopting AI, 43.1% of transport & storage companies said they had not attempted to use artificial intelligence technologies in the last three months. In the latest survey, only 28.6% of sector companies now say they have not attempted to use AI.