Carbon dioxide (CO₂) emissions stemming from transport within a distribution system are generally acknowledged to increase as the system is centralised, since transport work is increased owing to such a change. At the same time, this type of centralisation creates new opportunities to make changes in the system that are not viable in a decentralised distribution system; changes that can decrease CO₂ emissions at the same time as the provision of cost-efficient customer service is not affected negatively. Based on an extensive literature review as well as case studies, the paper discusses and illustrates the circumstances under which it is possible to achieve such simultaneous improvements in the performance of a distribution system. Paramount in achieving concurrent positive results in terms of cost, service, and environmental impact is an understanding of what drives and affects the performance of the system.