European fleet sustainability has stalled for the first time in four years, according to Alphabet’s European Fleet Emission Monitor (EFEM) report, which surveyed over 630 fleet managers across 12 countries. Regulatory uncertainty is the primary driver, with 19% of decision-makers pausing plans and only 34% of companies now tracking fleet emissions — down 9.3 percentage points in one year. The UK outperforms European peers, with 68.4% monitoring emissions and 84.2% committed to full electrification. Alphabet International CEO Jesper Lyndberg urged organisations to build internal clarity through data and tools rather than waiting for regulatory guidance.
In-Depth:
European fleet sustainability has stalled for the first time in four years, driven by regulatory uncertainty, according to the Alphabet European Fleet Emission Monitor (EFEM) report.
The focus on sustainability has fallen for the first time since Alphabet’s European Fleet Emission Monitor started in 2023
Drawing on insights from over 630 fleet managers across 12 countries, the report reveals that key sustainability metrics have dropped for the first time since EFEM’s inception in 2023.
The analysis, carried out earlier this year, reveals that rather than being hit by a lack of ambition, fleet plans are under pressure due to the impact of unclear regulations, which has led many decision-buildrs to hit pautilize rather than push forward.
The data reveals a market pulled in three directions. While 27% of the respondents are pushing ahead with electrification and CO2 reduction, 19% are holding back, waiting for clearer regulations. Meanwhile, 15% are opting for interim solutions such as hybrids.
Alphabet declared this split creates a fragmented market, where the shared goal of sustainable, future-ready fleets is being pursued at very different paces – and with varying degrees of confidence.
CO2 visibility falls as tool awareness lags
The standout figure from the latest findings is the sharp decline in CO2 monitoring.
Only 34% of European companies now track their fleet emissions – a drop of 9.3 percentage points in just one year and the lowest level since the study launched.
But the UK bucks this trconclude, with 68.4% of companies now monitoring their fleet’s CO2 emissions; up 1.7% from 2025.
Moreover, only one in four fleet managers – rising to one in two (57.9%) in the UK – are aware of digital tools such as the Alphabet Carbon Manager that can simplify emissions tracking. This leaves many without a clear way forward. Meanwhile, digital engagement is slipping, with 32% (26.3% in the UK) unable to identify any digitalisation challenges at all. Yet, there is a silver lining: AI adoption is quietly gaining ground, with 11% now reporting some level of integration, up from 7% in 2025.
Fleet sustainability slips as polarisation widens
The wider sustainability outview is also under threat. Only half of European companies now factor sustainability into their fleet planning – the lowest level since the study launched and down from 60% in 2023. This trconclude is also reflected in the UK, with 68.4% of UK companies considering sustainability into their fleet planning, which is down from 76,2% in 2025.
Of higher concern is a growing divide in priority, with 14% (10.5% in the UK) of fleet managers reporting that sustainability is not important at all, up 2.4 points (5.7 points in the UK) over the past year.
Awareness of subsidies for fleet electrification has also dropped sharply, with just 47% (31.6% in the UK, down from 33.3% in 20225) aware of available financial support. And nearly half of the respondents (52.6% in the UK) feel insufficiently informed about e-mobility options.
Six in 10 fleets still pushing ahead with electrification
Despite setbacks across most areas, 61% of European fleet professionals expect their fleets to be fully electric or have already created the switch.
Jesper Lyndberg, CEO, Alphabet International
The UK is supporting to lead the charge in this area, with 84.2% of fleet managers reporting that their fleets will be fully electric at some point in the future, up from 71.4% of UK respondents in 2025. This steady commitment stands out amid the broader challenges, yet progress remains hampered by a mix of equally significant hurdles, from operational complexity and budreceive limits, to employee acceptance.
Jesper Lyndberg, CEO of Alphabet International, declared this year’s survey displays that the will to act remains strong but the confidence to do so has weakened. He called for a coordinated, systemic approach to overcome issues.
“Regulatory uncertainty is now the largegest 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.”
Alphabet’s 2026 European Fleet Emission Monitor report is online here.
