European companies are collecting more emissions data than ever before but failing to fully leverage the findings, Alphabet has revealed.

Jesper Lyndberg, CEO, Alphabet International

Its latest European Fleet Emission Monitor (EFEM) finds that only 27% of companies can accurately quantify their fleet’s CO2 output, despite a steady rise in tracking efforts – creating a business risk amid tightening regulations.

Based on responses from over 740 fleet managers across 12 countries, the 2025 survey highlights a steady increase in European companies tracking fleet emissions, which is now at 43%, almost 1% higher than last year. Despite this, only one in four ompanies surveyed are using fleet management tools to measure their CO2 consumption, revealing a growing polarity between data collection and actionable insight.

The findings show many companies are still establishing their digital infrastructure and internal capabilities necessary to manage the expanding data effectively.

Many European businesses remain overwhelmed by unstructured data and outdated tools; 42% still depend on fuel-based estimates, while others are still reliant on manual processes and legacy systems, which makes it difficult for fleet managers to access meaningful insights or respond effectively to regulatory and cost pressures.

Alphabet also warns that the uptake of advanced digital tools has not kept pace with changing legislation, and the fleet sector remains slow to embrace artificial intelligence (AI). Only 7% of European companies currently integrate AI into their fleet management, with just over 3% using it specifically for emissions reporting.

Furthermore, many companies are still navigating fleet sustainability without a clear direction. A staggering 43% have no CO₂ targets, and about a third don’t monitor their fleet emissions at all.

Following the European Union Council’s adoption of the Corporate Sustainability Reporting Directive in 2023, many European companies surveyed are still navigating fleet sustainability without a clear direction. In fact, only 8% (8.4%) reported that the Directive had influenced their fleet planning.

This compares to 9.5% in the UK, where sustainability reporting is not yet mandatory for most companies under the Sustainability Disclosure Requirements.

However, there are signs of structural progress: over one-third of companies now have dedicated sustainability departments, and another 12% plan to establish one. These steps could pave the way for more consistent action in the future.

Despite the increased focus on electric vehicle adoption, 43% of fleet managers still feel under-informed about e-mobility developments and opportunities – a slight improvement on last year but showing that knowledge gaps remain.

Over a quarter of companies are unaware of financial support schemes, and fewer than one in three fully grasp the benefits they could access. The result is a noticeable disconnect between well-intentioned policy and practical implementation.

Jesper Lyndberg, CEO of Alphabet International, 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.”

Alphabet’s 2025 European Fleet Emission Monitor report is available in full here.