Regulatory uncertainty slows fleet sustainability progress

A new study from Alphabet has found that regulatory uncertainty is beginning to stall – and in some cases reverse – progress towards more sustainable fleets across Europe.

The latest edition of Alphabet’s European Fleet Emission Monitor (EFEM), based on responses from more than 630 fleet managers across 12 countries, revealed that key sustainability indicators have declined for the first time since the study launched four years ago.

According to the report, 60% of fleet managers said regulatory uncertainty is now affecting their operations and decision-making around fleet strategy.

While 27% of respondents said they are continuing to push ahead with electrification and CO₂ reduction plans, 19% said they are delaying decisions while waiting for clearer regulation. A further 15% said they are turning to interim solutions such as hybrid vehicles.

One of the report’s most significant findings was the decline in CO₂ monitoring. Only 34% of European companies now track their fleet emissions, down 9.3 percentage points year-on-year and the lowest level recorded since the study began.

The UK stood out as an exception to the wider European trend, with 68.4% of UK companies continuing to monitor fleet CO₂ emissions, up slightly from 2025 levels.

The study also highlighted a lack of awareness around digital tools designed to support fleet sustainability. Across Europe, only 25% of fleet managers said they were aware of digital solutions capable of simplifying emissions tracking, while 32% were unable to identify any digitalisation challenges facing their business.

However, adoption of artificial intelligence within fleet operations is beginning to increase, with 11% of respondents reporting some level of AI integration, compared with 7% in 2025.

The broader sustainability outlook also weakened during the year. Only half of European companies said sustainability now plays a role in fleet planning decisions, down from 60% in 2023 and the lowest level since the study launched.

In the UK, 68.4% of businesses still consider sustainability in fleet planning, although this was down from 76.2% in 2025.

The report also found growing polarisation in attitudes towards sustainability, with 14% of European fleet managers saying sustainability is “not important at all”, an increase on last year’s findings.

Awareness of government subsidies and financial support for fleet electrification also declined sharply, with fewer than half of European respondents aware of available incentives. More than half of UK respondents said they felt insufficiently informed about e-mobility options.

Despite these challenges, long-term electrification ambitions remain strong. Across Europe, 61% of fleet professionals said they expect their fleets to become fully electric or have already completed the transition.

The UK again outperformed the European average, with 84.2% of UK fleet managers expecting their fleets to become fully electric in the future, up significantly from 71.4% in 2025.

“Regulatory uncertainty is now the biggest factor influencing fleet decisions across Europe, driving responses that range from bold acceleration to cautious hesitation.

“The organisations that will succeed are those that stop waiting for clarity and start building the right foundations today, with accurate data, effective tools, and solid structures. True clarity doesn’t come from outside; it’s something you build yourself.”

The full European Fleet Emission Monitor report is available to download via Finance Connect.