European fleets face challenges in leveraging emissions data effectively, despite increased tracking efforts, according to the latest report by Alphabet, a part of the BMW Group.

The European Fleet Emission Monitor (EFEM) reveals that only 27% of companies can “accurately” quantify their fleet’s CO₂ output, highlighting a digital gap in emissions management. 

Underscoring a growing disconnect, the report is based on responses from more than 740 fleet managers across 12 countries.

Alphabet said that while digitalisation advances and sustainability remains a priority, many fleets are hindered by outdated systems and overwhelmed by information. The company adds that this inaction poses a business risk in an increasingly regulated environment.

The 2025 survey indicates a marginal rise in companies tracking fleet emissions, now at 43%, marking an increase of nearly 1% from last year.  

However, the disparity between data collection and actionable insight persists, with 27% able to precisely measure their CO₂ output. 

Many businesses are still establishing the necessary digital infrastructure and internal capabilities to manage expanding data effectively.  

Overwhelmed by unstructured data and outdated tools, 42% of companies rely on fuel-based estimates, and 26% use Excel spreadsheets for tracking. 

The uptake of advanced digital tools has stalled, with only 7% of companies integrating AI into fleet management, and just more than 3% using it specifically for emissions reporting.  

Alphabet said this reliance on manual systems hampers meaningful insights and responsiveness to regulatory pressures. 

Fleet sustainability efforts lack clear direction, with 43% of companies having no CO₂ targets and about a third not monitoring emissions at all, the report revealed. 

The CSRD has had a limited impact, with just more than 8% of companies reporting an effect on fleet planning. 

Despite this, structural progress is evident, as over one-third of companies now have dedicated sustainability departments, and another 12% plan to establish one.  

These steps may lead to more consistent action in the future. However, the gap between awareness and execution remains critical.  

Lacking clear goals and effective oversight, businesses face increased expenses, lost opportunities for incentives, and reduced competitiveness in a progressively regulated environment. 

Despite a focus on electric vehicle adoption, 43% of fleet managers feel under-informed about e-mobility developments. This knowledge gap hinders electrification and diminishes the impact of incentives.

More than 25% of companies lack awareness of financial support schemes, and less than one-third fully understand the benefits available to them.

This gap between policy and execution underscores the need for improved guidance and more cohesive industry support.

Alphabet International CEO Jesper Lyndberg said: “This year’s survey uncovers both the progress and the pitfalls of sustainability. While the ambition to drive change across is evident across Europe, the real challenge remains the execution.  

“Companies that invest in electrification, integrated data systems and sustainability now will be better positioned to avoid rising costs and adapt to tightening regulations in the future. This way, they can reap the full benefits of operational savings, incentives and strategic resilience: Those who delay will pay. Those who act will lead.”