GXO and B&Q partner to enhance logistics sustainability, transitioning to alternative fuels and implementing AI for emissions reduction.
Quiver AI Summary
GXO Logistics has partnered with B&Q to transition the retailer’s logistics fleet to alternative fuels, now operating the UK's second-largest LNG fleet. Since their partnership began in 2015, they have worked towards achieving net-zero carbon emissions in B&Q’s logistics operations by 2040. Their joint efforts have led to a 40% reduction in emissions forecast for 2024, and B&Q has deployed 105 LNG vehicles, cutting carbon emissions by 16,000 tonnes. Additionally, they are converting all remaining vehicles to Hydrotreated Vegetable Oil (HVO), which can reduce CO₂ emissions by up to 90%. Both companies are also investing in electric vehicles, with plans to introduce more in the coming years, while implementing AI-powered transport optimization to save an estimated 240,000 kilometers and 150 tonnes of CO₂ annually. This collaboration exemplifies the integration of technology and sustainability in retail logistics.
Potential Positives
- GXO has transitioned B&Q's logistics fleet to alternative fuels, now operating the second largest LNG fleet in the UK, showcasing leadership in sustainable logistics.
- Implementation of AI-powered transport optimization is estimated to save 240,000 kilometres and 150 tonnes of CO₂ annually, highlighting GXO's commitment to innovation and efficiency.
- GXO and B&Q have successfully reduced their emissions forecast by 40% in 2024, demonstrating effective progress towards their net-zero carbon emissions goal by 2040.
Potential Negatives
- Emphasis on decarbonisation efforts suggests potential previous shortcomings in GXO’s sustainability practices before this partnership.
- Dependence on alternative fuels, including LNG, may raise concerns about long-term sustainability and reliance on fossil fuels amidst growing environmental scrutiny.
- Implementation challenges or delays in the AI-powered transport optimization platform could undermine projected CO₂ savings and operational efficiencies.
FAQ
What is the main goal of GXO and B&Q's partnership?
The main goal is to achieve net-zero carbon emissions across B&Q’s logistics operations by 2040.
How many LNG vehicles does B&Q operate?
B&Q operates 105 Liquified Natural Gas (LNG) vehicles, making it the second-largest LNG fleet in the UK.
What are the savings from GXO’s AI-powered transport optimization platform?
The platform is expected to save 240,000 kilometres and 150 tonnes of CO₂ annually.
What alternative fuel is being used to cut CO₂ emissions?
B&Q has converted its fleet to Hydrotreated Vegetable Oil (HVO), reducing CO₂ emissions by up to 90% compared to diesel.
What initiatives have GXO and B&Q implemented for sustainability?
Initiatives include backhaul optimisation, route planning systems, and a 9.5% reduction in fleet size since 2021.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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$GXO Analyst Ratings
Wall Street analysts have issued reports on $GXO in the last several months. We have seen 8 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Susquehanna issued a "Positive" rating on 08/07/2025
- Oppenheimer issued a "Outperform" rating on 08/07/2025
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$GXO Price Targets
Multiple analysts have issued price targets for $GXO recently. We have seen 9 analysts offer price targets for $GXO in the last 6 months, with a median target of $60.0.
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- Thomas Wadewitz from UBS set a target price of $58.0 on 08/07/2025
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- Brian Ossenbeck from JP Morgan set a target price of $65.0 on 08/07/2025
- Bascome Majors from Susquehanna set a target price of $60.0 on 08/07/2025
- Lucas Servera from Truist Securities set a target price of $62.0 on 07/11/2025
- Brandon Oglenski from Barclays set a target price of $52.0 on 07/10/2025
Full Release
GXO partners with B&Q to transition their entire logistics fleet to alternative fuels, now operating the second largest LNG fleet in the UK
B&Q piloting GXO’s proprietary AI-powered transport optimization platform, driving estimated savings of 240,000 kilometres and 150 tonnes of CO ₂ annually
LONDON, UK, Aug. 27, 2025 (GLOBE NEWSWIRE) -- GXO Logistics, Inc. (NYSE: GXO), the world’s largest pure-play contract logistics provider, and B&Q, the UK’s leading home improvement and garden living retailer, are making strong progress toward their shared goal of achieving net-zero carbon emissions across B&Q’s logistics operations by 2040.
Since the partnership began in 2015, GXO has managed B&Q’s retail transport network, including national and regional distribution centres, Store to Home final mile services, returns processing, and a flagship seasonal warehouse. B&Q has a strong online presence and marketplace, with over 700,000 products available for home delivery or click and collect. Together, the companies are driving innovation and sustainability in retail logistics, aligned with B&Q owner Kingfisher’s vision of “Better Homes. Better Lives. For Everyone.”
“Achieving zero-emissions in logistics transport is a significant challenge - one that can only be met through a combination of strategies,” said Gavin Williams, Managing Director, GXO UK & Ireland. “Our partnership with B&Q exemplifies this, showcasing how a thoughtful blend of available technologies and a shared commitment to decarbonisation can drive real progress. B&Q’s approach stands out as a model for the industry, proving that innovation, collaboration, and sustainability can go hand in hand to create a more efficient and environmentally conscious fleet.”
Darren Hall, Director of Logistics at B&Q said: “Decarbonisation of our fleet and use of up to date and available technologies is a vital step in our transition to alternative fuels, allowing us to give customers more choice in sustainable delivery options and reducing our impact on the environment. It’s great to work alongside GXO to help us to drive our ambitions forward and reach our 2040 net zero goals."
Accelerating Toward Net Zero
In 2022, GXO and B&Q launched the B&Q Sustainability Glidepath, a comprehensive roadmap to decarbonise the logistics fleet. Thanks to a combination of performance improvements, accurate emissions reporting, and strategic initiatives, the companies reduced their emissions forecast by 40% in 2024, placing B&Q ahead of schedule on their journey to net zero.
Fleet Transformation Through Alternative Fuels
A cornerstone of the decarbonisation strategy is the transition to alternative fuels. Since 2019, B&Q has deployed 105 Liquified Natural Gas (LNG) vehicles – now the second-largest LNG fleet in the UK – reducing carbon emissions by 16,000 tonnes. In December 2024, the companies completed the conversion of all remaining vehicles and 80 refrigerated trailers to Hydrotreated Vegetable Oil (HVO), which cuts CO₂ emissions by up to 90% compared to diesel.
Electrification and Innovation
GXO and B&Q have also invested in electric vehicles (EVs), with five electric vans and two electric HGVs already in operation. Two more electric HGVs will be added in 2025, with plans to introduce 55 additional EVs over the next five years. The current EV fleet is projected to save 250 tonnes of CO₂ equivalent annually.
Beyond fuel changes, GXO has implemented a range of initiatives to reduce road miles and improve operational efficiency for B&Q. These include:
- Backhaul optimisation, saving 104 tonnes of Scope 3 emissions in 2024 alone.
- Paragon and Microlise systems to enhance route planning and driver performance.
- A 9.5% reduction in fleet size since 2021 through smarter scheduling and behaviour-based driving improvements.
In Q1 2025, the companies introduced 35 new LNG-powered Volvo FH Aero tractor units. These vehicles feature extended aerodynamic cabs that improve fuel efficiency by 3%, saving an estimated 100 tonnes of CO₂ annually.
AI-Powered Logistics of the Future
Looking ahead, B&Q is piloting GXO’s proprietary AI-powered transport optimisation platform. This technology analyses millions of route variations to identify the most efficient schedules, with early results indicating potential savings of 240,000 kilometres and 150 tonnes of CO₂ annually. Full implementation is planned for 2025.
As part of its path to decarbonisation, GXO operations in the UK employ an activity-based carbon accounting methodology, using DEFRA conversion factors to calculate emissions from fuel usage and energy consumption. This data is submitted monthly to Kingfisher and independently audited annually.
About GXO
GXO Logistics, Inc. (NYSE: GXO) is the world’s largest pure-play contract logistics provider and is positioned to capitalize on the rapid growth of ecommerce, automation and outsourcing. GXO has more than 150,000 team members across more than 1,000 facilities totaling more than 200 million square feet. The company serves the world’s leading blue-chip companies to solve complex logistics challenges with technologically advanced supply chain and ecommerce solutions, at scale and with speed. GXO corporate headquarters is in Greenwich, Connecticut. Visit GXO.com for more information and connect with GXO on LinkedIn , X , Facebook , Instagram and YouTube .
About B&Q
B&Q is the UK’s leading home improvement and garden living retailer with 318 stores throughout the UK and Ireland, offering great prices, with over 700,000 products available to order at diy.com for home delivery or click and collect.
For trade professionals, B&Q TradePoint offers exclusive membership to those in trades such as electricians, plasterers, fitters, plumbers, roofers, decorators, joiners, tilers, builders, landscapers and facilities and maintenance professionals. TradePoint members have exclusive access to dedicated TradePoint counters at around 200 B&Q stores as well as to Tradepoint.co.uk.
B&Q launched the UK’s first home improvement marketplace in March 2022, adding additional choice for consumers. The marketplace offers a unique, integrated experience with in-store returns for many products and Click + Collect options being explored.
The team of more than 21,000 colleagues of all ages are respected nationwide for providing great home improvement help to customers. They’re the beating heart of B&Q and their iconic orange aprons are worn with pride.
Every year, more than 20 million people improve their homes and make life better with B&Q, and every year the company achieves ever-higher standards for sustainable operations and sourcing, and supports our local communities, including funding B&Q Foundation grants and Shelter’s DIY Skills Advisors. For more information on our community initiatives visit diy.com/corporate/community or to read our Build a Life Project annual report visit diy.com/responsible-business
B&Q is part of Kingfisher plc, the international home improvement company, operating 2,000 stores in 8 countries across Europe.
Follow B&Q on LinkedIn .
Media Contact
Jack Woodhead (GXO)
+44 (0)7929104482
[email protected]
