13 Nov 23

Keys to optimizing ESG practices in Latam fleet management

To optimize environmental, social, and governance (ESG) practices in fleet management, stimulating driver understanding as opposed to pushing driver obligation is key in Latin America as well as the implementation of state-of-the-art telematics. 

This is according to Raphael Muller who is Latin America fleet specialist for multinational pharmaceutical company Zoetis and Marton Kiss who is Latin America fleet and mobility coordinator for multinational chemical company Diversey.

Last Tuesday (7 November), both spoke with Fleet LatAm on the sidelines of the 9th Global Parar Conference in Sao Paulo Brazil just after presenting case studies. 

First of all, “new ESG practices should be pushed through understanding and not by obligation. Also remember that you don’t want to punish those who do not comply to your policy but focus more on positive reinforcement,” said Mr. Muller (pictured left) who manages 1,100 vehicles in Latin America (600 in Brazil).

Besides implementing electric vehicles (EVs) and hybrids in your fleet, one way to achieve ESG targets in Brazil is by taking advantage of the vast availability of ethanol powered vehicles in the country. At least 80% of the Zoetis fleet in the country accepts ethanol.

Besides power-train selection, boosting sustainability calls for correctly discarding materials such as used motor oil and tires as well as optimizing route management, said Mr. Muller, explaining that their efforts to reach net zero emissions by 2030 have resulted in an average monthly CO2 emission reduction of some 83% so far. 

“Besides taking advantage of the sugarcane-based ethanol in Brazil which absorbs CO2 during the agriculture phase, sustainability calls for being safe, and this means educating our drivers and only acquiring vehicles which have achieved 5 stars from Latin NCAP [the Latin America and the Caribbean's regional car safety assessment program],” said Mr. Kiss (pictured right) who manages 980 vehicles in Latin America (470 in Brazil).

Moreover, to achieve sustainability, data is paramount and with this, the implementation of telematics is fundamental, said Mr. Kiss, explaining that he and his team have achieved 802t of CO2 compensation in Brazil over the last 12 months.  
Absolutely, added Mr. Muller, “You cannot efficiently manage a sustainable fleet without telematics.

Top Photo: left to right, Raphael Muller and Marton kiss (copyright: Fleet LatAm, Daniel Bland)
other photos (handouts)

Authored by: Daniel Bland