In the third part of our series on how technology can accelerate the pace of decarbonisation, we look at how intelligent route optimisation can substantially enhance fleet efficiency, reducing Scope 3 emissions (and costs) for the owners/operators of logistics buildings

One significant change to the built environment in recent years has been the rise of logistics hubs, to service the ever-growing demand for e-commerce. Bridges has been a significant investor in this transition: our Property funds have developed (or are in the process of developing) around 7m sq.ft, of logistics and industrial space, including some of the most sustainable commercial buildings in the UK.

But the corollary of this rise in ecommerce is that we need more vehicles to transport goods to and from these sites – which potentially has a significant carbon and financial impact. Some estimates suggest that last-mile delivery accounts for up to 50% of total logistics emissions* (and in urban areas particularly, increasing congestion is only exacerbating this problem). So for a logistics operator, these ‘Scope 3’ emissions contribute substantially to their carbon footprint, potentially jeopardising ESG targets. Equally, as cities tighten regulations – like the zero emission zones in London, Paris, and Amsterdam – the financial cost of non-compliance is getting ever more significant. In short: ignoring these ‘Scope 3’ vehicle emissions is not an option.

The good news is that commercial fleet operators are electrifying their vehicles, which reduces emissions. But electrification also creates a raft of additional challenges – particularly around charging capacity as fleets expand rapidly to meet demand. If EVs are not used efficiently, or charged efficiently, the result can be range anxiety, wasted miles and suboptimal charging schedules. This can potentially erode some of the benefits of electrification.

One important way we can mitigate this challenge – with the help of technology – is through vehicle route optimisation. These systems calculate the most energy-efficient routes by factoring in traffic patterns, elevation changes, and charging station availability. They also integrate with fleet management software to schedule charging during periods of low-carbon grid intensity, further reducing emissions. For example, a logistics operator serving a mixed-use development could use routing software to plan deliveries that minimise energy consumption while ensuring vehicles recharge at optimal times. This can be transformative not only for emissions, but also for operational efficiency – minimising downtime, avoiding missed delivery windows, and reducing costs.

For all its potential, adopting this technology across the sector will not be straightforward. Many logistics operators still rely on legacy systems or manual planning processes, making integration difficult. Others face data‑quality issues: without accurate information on traffic patterns, energy use, vehicle performance or delivery time windows, even the most sophisticated algorithms will struggle to deliver optimal results. And for operators running large or geographically dispersed fleets, implementing new software can feel risky: concerns over operational disruption, cost, and staff training often hamper progress. In other words: the organisations that could benefit most from this technology are often those with the highest implementation barriers.

Happily, these challenges are increasingly surmountable. Open APIs, modular software design and turnkey fleet‑management platforms now make integration far easier than even two or three years ago. Telematics hardware (like that offered by Bridges portfolio company Matrix iQ) has become cheaper and more accurate, improving real‑time data quality. Cloud‑based optimisation tools can be deployed gradually, starting with a single depot or vehicle type before scaling fleet‑wide. And crucially, operators don’t need to become data scientists: modern tools increasingly come with automated insights, intuitive dashboards and built‑in machine‑learning models that refine routes continuously.

The upside here is substantial. By combining cleaner vehicles with smarter routing, operators can dramatically cut avoidable mileage, reduce energy consumption, and make every journey more purposeful. For developers and asset owners, this means logistics hubs that operate more efficiently, place less strain on local infrastructure, and deliver meaningfully lower Scope 3 emissions for occupiers. And for fleet operators, the upside is even greater: more predictable schedules, better asset utilisation, lower operating costs, and a future‑proofed pathway to meeting tightening ESG and regulatory expectations. So if we can continue to remove the barriers to adoption, route optimisation has the potential to become one of the simplest, smartest and highest‑impact tools in the decarbonisation toolbox.

*PostTag via Sustainability Beat (2023): “Last mile of delivery responsible for up to 50% of total emissions”.