GXO Logistics and B&Q partner for alternative fuels and AI-powered transport optimization.

GXO Logistics has partnered with B&Q to transition their entire logistics fleet to alternative fuels, operating the second largest LNG fleet in the UK. B&Q is also piloting GXO's AI-powered transport optimization platform, which is expected to save 240,000 kilometres and 150 tonnes of CO₂ annually. The partnership aims to achieve net-zero carbon emissions across B&Q's logistics operations by 2040.

GXO Logistics, Inc. (NYSE: GXO) and B&Q, the UK's leading home improvement and garden living retailer, have announced a significant milestone in their ongoing partnership aimed at achieving net-zero carbon emissions across B&Q's logistics operations by 2040. The collaboration involves the transition of B&Q's entire logistics fleet to alternative fuels, with a particular focus on Liquified Natural Gas (LNG) and Hydrotreated Vegetable Oil (HVO), both of which are expected to substantially reduce carbon emissions.

As part of this initiative, B&Q has deployed 105 LNG vehicles, making it the second-largest LNG fleet in the UK. This transition has already resulted in a reduction of carbon emissions by 16,000 tonnes since 2019 [1]. Additionally, the companies have completed the conversion of all remaining vehicles and 80 refrigerated trailers to HVO, which cuts CO₂ emissions by up to 90% compared to diesel [1]. The partnership also includes investments in electric vehicles (EVs), with five electric vans and two electric HGVs already in operation, and plans to introduce 55 additional EVs over the next five years [1].

Beyond fuel changes, GXO has implemented a range of initiatives to reduce road miles and improve operational efficiency for B&Q. These include backhaul optimization, route planning systems, and a 9.5% reduction in fleet size since 2021 through smarter scheduling and behavior-based driving improvements [1]. In Q1 2025, the companies introduced 35 new LNG-powered Volvo FH Aero tractor units, which feature extended aerodynamic cabs, improving fuel efficiency by 3% and saving an estimated 100 tonnes of CO₂ annually [1].

Looking ahead, B&Q is piloting GXO's proprietary AI-powered transport optimization platform. This technology is expected to save 240,000 kilometres and 150 tonnes of CO₂ annually by analyzing millions of route variations to identify the most efficient schedules [1]. Full implementation is planned for 2025.

The partnership exemplifies a thoughtful blend of available technologies and a shared commitment to decarbonisation, driving real progress towards B&Q's net-zero carbon emissions goal by 2040. GXO and B&Q are demonstrating how innovation, collaboration, and sustainability can create a more efficient and environmentally conscious fleet, setting a model for the industry [1].

References:
[1] https://finance.yahoo.com/news/gxo-b-q-track-meet-060000586.html