Toll Group has demonstrated how it tackles decarbonisation, safety and regulatory pressure without losing commercial momentum.
This follows a sustainability report, released last month, which marks a clear shift from ambition to execution – particularly for road transport
It reads less like a corporate ESG statement and more like a playbook for those operating in a hard-to-abate, asset-intensive industry.
Road transport sits at the centre of Toll’s sustainability agenda. With 44,000 vehicles, vessels, plant and equipment across its network, fleet emissions remain its single biggest challenge and opportunity.
In FY25, Toll reduced Scope 1 and 2 emissions by 18 per cent year-on-year. While part of that reduction reflects portfolio changes, the company has been explicit about separating structural shifts from operational improvements.
Toll committed $67 million – co-funded by the Australian Renewable Energy Agency (ARENA) – to deploy 28 heavy battery-electric trucks and more than 30 charging ports across Toll and customer sites.
The rollout included Volvo FM prime movers and Volvo FE rigids, targeting metro and near-metro freight tasks where duty cycles are better understood and infrastructure can be controlled.
Toll estimates the project could cut annual emissions by 1,810 tonnes of CO₂ and, critically, is working with RMIT University to publish operational insights on charging demand, utilisation and total cost of ownership.
Meanwhile, diesel optimisation is also delivering material gains for Toll.
Fleet modernisation delivered up to 10 per cent lower fuel consumption per vehicle, while load maximisation – through better trailer combinations and payload efficiency – reduced the number of trips required to move freight. For linehaul and contract carriers, these measures remain the fastest, lowest-risk emissions levers currently available.
Toll has also signalled increased engagement with OEMs and fuel partners to explore renewable liquid fuels and hydrogen, recognising that long-haul and regional freight will remain technology-constrained for some time.
For road transport leaders, sustainability that ignores safety rarely survives board scrutiny. Toll’s FY25 safety results show the two agendas are increasingly linked.
Toll reported a 22 per cent reduction in Critical Incident Frequency Rate and an 11 per cent drop in avoidable motor vehicle incidents. Programs such as ‘Together Stronger’ are using wearable tech and motion analysis to reduce musculoskeletal injuries which is still one of the most common risks in transport and warehousing operations.
Toll has also begun rolling out AI-powered pedestrian alert systems on forklifts, automatically slowing vehicles when people enter defined safety zones. More than 200 units are scheduled for deployment, reinforcing the role automation now plays in risk reduction.
Scope 3 emissions, and subcontractor safety, remain two of the road transport sector’s most complex issues. Toll has made progress on both by tightening data and compliance frameworks.
In Australia, the company has embedded ComplyFlow for road freight subcontractor pre-qualification and launched a risk-based vehicle audit program. At the same time, improved transport management system data is allowing more accurate calculation of subcontractor emissions based on verified distances and tonnages rather than estimates.
For operators reliant on mixed fleets and third-party carriers, this approach foreshadows what regulators and major customers will soon expect as standard.
Toll is also preparing for mandatory climate reporting under AASB S2. As a Group 1 entity, it will be among the first Australian transport companies required to disclose climate-related financial risks and opportunities.
To support this, climate risk is being embedded into enterprise risk management, capital allocation and board oversight including internal carbon pricing and marginal abatement cost curves. Extreme weather, technology limitations and contract rigidity are now formally recognised as material business risks.
This is a signal to the wider industry where sustainability reporting is moving decisively from marketing to governance.
Also, Toll’s sustainability progress has not come at the expense of growth. FY25 revenue rose to $5.1 billion, with a 9.0 per cent uplift year-on-year and improved EBIT margins.
Investment in automation, healthcare logistics and e-commerce capability is reported to continue alongside fleet decarbonisation.
In other news, Toll and Qube have both secured land lots at Pilbara Ports’ new Lumsden Point logistics hub in Western Australia.
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