European companies are collecting more emissions data than ever before but failing to fully leverage the findings, Alphabet has revealed.

Ian Turner, chief sales officer for Alphabet GB

Its latest European Fleet Emission Monitor (EFEM) finds that only 27% of companies can accurately quantify their fleet’s CO2 output, despite a steady rise in tracking efforts – creating a business risk amid tightening regulations.

Based on responses from over 740 fleet managers across 12 countries, the 2025 survey highlights a steady increase in European companies tracking fleet emissions, which is now at 43%, almost 1% higher than last year. Despite this, fewer than one in four (21.4%) UK companies surveyed are using fleet management tools to measure their CO2 consumption, revealing a growing polarity between data collection and actionable insight.

The findings show many companies are still establishing their digital infrastructure and internal capabilities necessary to manage the expanding data effectively.

Many European businesses remain overwhelmed by unstructured data and outdated tools; 42% still depend on fuel-based estimates, while others are still reliant on manual processes and legacy systems, which makes it difficult for fleet managers to access meaningful insights or respond effectively to regulatory and cost pressures.

Alphabet also warns that the uptake of advanced digital tools has not kept pace with changing legislation, and the fleet sector remains slow to embrace artificial intelligence (AI). Only 4.5% of UK companies have adopted AI to monitor driver behaviour and the same number use advanced automation tools for billing and cost management. This compares to a European average of 0.7% and 1.8% respectively of European countries, with only 3% (3.3%) of all those surveyed using AI for fleet reporting.

Following the European Union Council’s adoption of the Corporate Sustainability Reporting Directive in 2023, many European companies surveyed are still navigating fleet sustainability without a clear direction. In fact, only 8% (8.4%) reported that the Directive had influenced their fleet planning.

This compares to 9.5% in the UK, where sustainability reporting is not yet mandatory for most companies under the Sustainability Disclosure Requirements.

Yet over 75% (76.2%) of UK companies said that sustainability is one of the most important aspects in their decision-making, with two-thirds of all companies confirming that they have set concrete CO2 goals for the future. For those that have a dedicated sustainability department or function, a quarter said their time will be spent tracking the company’s CO2 emissions, including fleet emissions, with almost one-fifth (17.6%) of tasks relating to carbon deduction.

Despite the increased focus on electric vehicle adoption, 33% of fleet managers in the UK still feel in the dark or misguided about e-mobility developments and opportunities, which highlights the growing problem of misinformation and disinformation surrounding vehicle electrification.

Furthermore, a third (33.3%) of all UK companies surveyed are unaware of financial support schemes available, and fewer than one in four (23.8%) fully grasp the benefits they could access. The result is a noticeable disconnect between well-intentioned policy and practical implementation, highlighting the need for stronger guidance, better communication, and more integrated support across the industry.

Ian Turner, chief sales officer for Alphabet GB, said: “This year’s European survey shows that, while the industry is making progress, there’s still plenty of work to be done to help companies make better informed decisions, and to support them with their sustainability goals and emissions reporting.

“Data analysis is the cornerstone to realising this potential. Advanced vehicle connectivity, AI and carbon reporting tools will play a crucial role in fleet reporting over the next 12 to 24 months by enabling real-time data collection, review and action. This will lead to improved efficiency, reduced costs and better driver safety, which will ultimately bring operational and strategic resilience,” he added.

Alphabet’s 2025 European Fleet Emission Monitor report is available in full here.