Transition Pathways: Transport and Logistics

In the second instalment of HSBC's Transition Pathways, we’re focusing on the transport sector and taking a look at business sentiment across the air, maritime, road (freight and services), rail and the logistics verticals of the industry. Whilst the sector was affected by the COVID-19 pandemic, emissions and demand have returned, especially in emerging markets. Despite the challenges, momentum is building with many businesses in the sector seeing net zero as crucial to commercial growth, driving action to decarbonise their Scope 1 and 2 emissions and embedding new technologies related to electrification and sustainable fuels in their operations and value chains.

Transition plans will become increasingly important and are becoming the new normal in an increasing number of markets, as well as a regulatory and disclosure requirement for both corporates and financial institutions. Transition plans demonstrates action and practical steps against ambition and show regulators, financiers, investors and customers how an organisation intends to reach net zero, often by 2050, across its operations and value chains.

Our net zero ambition means aligning financed emissions – the greenhouse gas emissions of our clients – to net zero by 2050. We’re setting 2030 targets in different sectors, focusing on the heaviest emitters first. Our targets include reducing financed emissions from the aviation and automotive sectors.

How is the sector transitioning?

How prepared are transport and logistics businesses for growing consumer, investor and regulatory influences to transition to net zero? What factors are helping or hindering their decarbonisation? With Kantar, we've asked over 300 companies in over 15 markets, what the transition means for their business. (Methodology available below).

Read on to discover how much road, air, sea and logistics businesses are investing and where they are focusing their efforts.

Growth

88%

of businesses see net zero as a significant contributor to business growth

Macro drivers

52%

say technology developments are accelerating their transition

Capex

29%

are already allocating more than 10% of their capital expenditure towards decarbonisation

Drivers and roadblocks: How are transport and logistics businesses approaching the low-carbon transition?

Download Global Infographic

There is real momentum behind the transport sector’s transition to a lower-carbon future. As businesses put their decarbonisation plans into action, access to finance, investment and strategic advice will be of paramount importance.
Jon Connor | Global Head of Transport, Logistics, Infrastructure and Construction, HSBC

Survey methodology

For HSBC’s Transition Pathways survey, HSBC has worked with Kantar. The survey is not limited to or wholly-representative of HSBC’s customer base and covers 302 key financial decision makers from businesses operating in the transport sector, comprising Road and Rail (108 businesses, with Road covering freight/services and excluding autos/passenger) Air and Maritime (64 businesses) and Logistics and Delivery (93 businesses). The survey findings and responses have not been independently verified. Businesses were further identified as Freight only (148), Passenger only (49) and those transporting both freight and passenger (105).

Businesses were located across Europe (137), North/Central America (77), Asia (52) and the Middle East (36). Overall, 61 (20%) had a turnover between $5 and $10m, 101 (34%) had a turnover between $10 and $500m, 140 (46%) turnover in excess of $500m of which 65 (22%) had a turnover in excess of $2.5bn. The majority, 191 (63%) had been established for more than ten years and a further 63 (21%) for more than five years.

Data was collected through an online questionnaire and the survey ran for three weeks from 28 September to 18 October 2022.

In preparing this survey, HSBC has relied upon appropriate available data, information and responses given at the time of writing. This report should not form the basis of any third party’s decision to undertake, or otherwise engage in, any activity and third parties do not have any right to rely on it. Neither HSBC nor Kantar accept any duty of care, responsibility or liability in relation to this research or its application or interpretation, including as to the accuracy, completeness or sufficiency of it or any outcomes arising from the same.

Disclaimer

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