Stagecoach has launched a new sustainability strategy for its transport operations in the UK, mainland Europe and North America.

It aims to reduce further the group's carbon emissions and water consumption, and improve recycling.

The five-year strategy, produced in partnership with the Carbon Trust, follows a 30per cent reduction in the group's carbon intensity since 2007-08 and the achievement of previous targets 12 months ahead of schedule. Its new targets include cutting transport fleet like-for-like carbon emissions by 2per cent over four years, as well as lowering water consumption by 9per cent and buildings emissions by 7 per cent. It also aims to improve its waste recycling rate from 77per cent to 83per cent.

Stagecoach Group has already been awarded the Carbon Trust Standard for measuring, managing and reducing its global carbon footprint, becoming the first public transport operator to have its boundaries certified outside Europe.

Martin Griffiths, chief executive, said: "We are proud of our track-record and reputation of being a sustainable business and a force for good. But we need to do more and our plans for the next five years set further stretching targets for improvement. I believe that by working together we can turn our shared responsibility into a positive shared future."

Plans include a £1.3million capital spend on buildings which should yield cost savings of £4.7m by 2019.

Stagecoach, the largest end user of biodiesel in the UK and the biggest operator of hybrid electric vehicles, says it will " investigate further options to switch to alternative fuels" .