Most fleet owners pressured to decarbonise, reveals global report
More than two thirds (68%) of fleet owners around the globe are expecting increased pressure from regulators, customers, and employees to decarbonise their operations in the short to mid-term.
This is according to a report by Shell and Deloitte called “Navigating Fleet Decarbonisation: A guide to driving a successful transition,” which also highlighted that this is a complex and overwhelming task which will require support along this net-zero journey.
The issue is top of mind this week as it is just ahead of the United Nations Framework Convention on Climate Change COP27 which will take place 6-18 November in Sharm El Sheikh, Egypt.
According to the report, which includes the opinions of more than 150 vehicle fleet executives and experts in 12 markets across the globe, several challenges are at hand.
Among them are those associated with Creating a Case Study for Change. Many fleet owners find the prospect of decarbonisation overwhelming, due to uncertainties around the cost, reliability, and availability of low and zero carbon solutions.
Developing Organisational Readiness will also be a test for them. Internal misalignment on goals and incentives, challenges around stakeholder buy-in or a lack of supporting technology, such as IT systems, also present key barriers to implementing a successful transition.
Finally, Supporting Electrification looks to be an uphill battle for many. While electric vehicles (EVs) are the clear path to zero emissions for fleets, concerns around the capabilities of EVs, supporting infrastructure and procurement process means that electrification is not always considered a viable short-term solution.
To address these challenges, the report included a set of practical tools and frameworks from fleet owners that have already employed a decarbonisation strategy.
Path toward solutions
One is developing an Accelerate to Zero Roadmap. Make sure you provide a clear framework for fleets to navigate the decarbonisation transition. Determine the different steps required to ensure a holistic, fully integrated approach to zero-emissions fleet operations.
Moreover, develop an Organisational Readiness Toolset. Consider the organisation’s maturity across a series of internal decarbonisation success factors. Offer guidance on how to identify and potentially mitigate organisational challenges related to strategy, governance, people, technology, process, assets and infrastructure.
Last but not least, put together an EV transition Toolset which helps fleet owners navigate the complexity of rapidly changing markets by making more effective decisions to achieve their EV transition goals.
2022 Tesla Model Y, best-selling full-electric car in many countries this year (courtesy of Tesla)
In the Numbers
• Three quarters (75%) of fleet owners surveyed have already implemented at least one solution to reduce emissions.
• However, nearly half (46%) of executives questioned have cited that they have no decarbonisation targets or are uncertain how existing targets translate to their fleet.
• Meanwhile, (46%) of survey respondents cited restrictive operations – such as staffing, systems and current duty cycles – as a major barrier to deploying their decarbonisation strategy. (e.g. one executive said they had to pause their transition for six months due to organisational challenges).
So, with this is mind, know that your business will be facing incrementally more pressure to decarbonise in the coming months and years and also know that reducing emissions in the mid-term will be critical.
In the end, fleet owners should explore all available solutions - including a transition of your fleet to EVs - to achieve your path to zero emissions.
For more on developing sustainable fleets and conneceting with your colleagues and peers in the European market, attend the 2022 Fleet Europe Summit taking place in Dublin on 16-17 November.