Looking ahead, the manufacturing, transport, and logistics sectors are likely to see major changes as sustainability becomes more deeply embedded into business models.

Companies in these industries are already embracing new technologies and practices that will help them meet regulatory requirements and reduce their environmental impact, but there’s more to come.

One key trend in manufacturing is the move towards a more circular economy. Companies are starting to design products that are easier to recycle or reuse, making it possible to create closed-loop production systems. This shift helps manufacturers reduce waste and conserve natural resources(1).

The rise of smart manufacturing technologies, including AI and automation, is also likely to improve energy efficiency and reduce emissions(2).

In transport and logistics, electric vehicles (EVs) are rapidly becoming the norm. The UK government’s commitment to banning the sale of new petrol and diesel vehicles by 2030 means that businesses will need to adopt EVs or face penalties(3). Companies that transition early to electric fleets will benefit from long-term savings on fuel and maintenance costs.

Hydrogen-powered vehicles are also gaining attention as a potential solution for longer-haul logistics, and we could see more investment in this technology as it matures(4).

On a larger scale, the Carbon Border Adjustment Mechanism (CBAM) is expected to significantly impact UK manufacturing and logistics. This EU regulation, which imposes tariffs on carbon-intensive imports, will incentivise businesses to adopt greener practices to avoid costly penalties(5).

However, it could also create opportunities for UK businesses to become leaders in sustainable manufacturing and supply chain management, especially if they can prove their environmental credentials.

Smart logistics will also be a game-changer in the years to come. With advances in AI, big data, and IoT, logistics companies will be able to optimise routes, reduce fuel consumption, and better manage supply chains(6). These technologies will not only help businesses cut costs but also reduce emissions, making logistics operations more sustainable and efficient.

Bibliography

1 The circular economy and sustainable manufacturing (Accessed May 2025) https://post.parliament.uk/the-circular-economy-and-sustainable-manufacturing/

2 The Sixth Carbon Budget Surface Transport (Accessed May 2025)  https://www.theccc.org.uk/wp-content/uploads/2020/12/Sector-summary-Surface-transport.pdf

3 Government sets out path to zero emission vehicles by 2035 (Accessed May 2025) https://www.gov.uk/government/news/government-sets-out-path-to-zero-emission-vehicles-by-2035

4 Hydrogen Fuel Cell Vehicles: All Hype and No Substance or the Vehicle of the Future? (Accessed May 2025) https://environment.umn.edu/education/susteducation/hydrogen-fuel-cell-vehicles-all-hype-and-no-substance-or-the-vehicle-of-the-future/

5 Carbon Border Adjustment Mechanism (Accessed May 2025) https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en

6 The Sixth Carbon Budget Surface Transport (Accessed May 2025)  https://www.theccc.org.uk/wp-content/uploads/2020/12/Sector-summary-Surface-transport.pdf