A significant portion of UK businesses remain ill-prepared to calculate, record, and report their vehicle emissions, according to a new Emissions Reporting White Paper from Alphabet (GB). The findings paint a picture of a fleet sector struggling to meet both current and impending environmental compliance standards, with gaps in technology adoption, data accuracy, and basic emissions knowledge.

Alphabet’s research reveals that 38% of fleet managers are still using basic spreadsheets or even paper to log emissions, while 8% do not calculate them at all. Fewer than one in five (18%) say their business has the tools required to calculate and report accurately, and 12% admit their organisation has no plans to invest in new technology or software to support compliance.

“This study is a wake-up call for the whole fleet sector,” said Ian Turner, Chief Sales Officer at Alphabet (GB). “A significant number have acknowledged their uncertainty about what actions they need to take, and when, and what carbon management tools are available to ensure they remain compliant with new legislation.”

Knowledge gaps and compliance blind spots

The knowledge deficit is as striking as the lack of digital infrastructure. More than a quarter (26%) of fleet managers do not know the difference between Scope 1, 2 and 3 emissions — fundamental distinctions in greenhouse gas reporting. Almost a quarter (23%) are unaware of the financial penalties for failing to report. In the public sector, awareness of scope differences drops to 60%, the lowest across all sectors surveyed.

The report suggests size matters: in micro-businesses (0–9 employees), 44% don’t calculate emissions, 50% don’t know the scope distinctions, and a staggering 78% are unaware of the penalties for non-compliance.

Caroline Sandall-Mansergh, Alphabet’s Consultancy and Channel Development Manager, stressed the urgency: “Our study shows there is a significant knowledge gap when it comes to fleet emissions reporting. Fleet managers and business owners need to take the support available to better understand the complexities… to ensure compliance and avoid the risk of costly penalties.”

Legislative pressure building

Currently, mandatory reporting under the UK’s Streamlined Energy and Carbon Reporting (SECR) framework applies to large companies, but the White Paper warns that the requirements are “almost certain” to be extended to SMEs and integrated into supply chain compliance demands. The Government’s Sustainability Disclosure Requirements (SDR) framework, published in May 2024, aimed to provide clarity and timelines, but Alphabet’s findings suggest much of that information is not reaching operational decision-makers.

The sector’s readiness for electrification also remains uneven. Nearly a third (30%) of fleets have 25% or fewer EVs, and one in 10 have none at all. While some industries— such as delivery services and retail — are leading the shift, many others are lagging behind.

The road ahead

Alphabet’s data leaves the fleet sector facing uncomfortable questions. If more than a third of fleet managers are still reliant on paper and spreadsheets, what does that say about the sector’s readiness for an era of data-driven compliance? With a quarter unable to identify basic emissions categories, how robust can current reporting really be?

And perhaps most critically: without direct enforcement of emissions reporting, will fleet operators simply perceive a low regulatory risk — potentially reinforcing under-reporting or lax systems? Under the current framework, the SECR regime is embedded within financial reporting, meaning oversight falls to Companies House and auditors rather than a specialist environmental regulator. Unlike schemes such as the UK Emissions Trading Scheme (UK ETS), SECR lacks a robust enforcement mechanism; non-compliance may go unnoticed unless flagged during a financial audit.

A strengthened and expanded SECR framework may be on the horizon, but its impact will hinge on pairing broader scope with a transparent, proactive enforcement regime. Without that, the risk of superficial compliance will remain. With climate-related disclosures now central to investor confidence, public scrutiny, and the UK’s wider net-zero ambitions, a more visible and rigorous approach could transform SECR from a procedural obligation into a strategic driver of change.