Driving the future: Sustainability strategies for fleets

Did you know that the transportation sector is responsible for more than 20%¹ of UK carbon emissions? As country delegations, non-governmental organisations and global business leaders meet in Dubai for COP28, the automotive sector finds itself once again in the spotlight for its contribution to global warming.

We have seen fleets are waking up to the business and environmental realities and benefits of striving for net-zero targets set by governments – all with varying degrees of speed and success. In the roll out of sustainability strategies across the supply chain, embracing technologies that can assist with reducing emissions while making the business more efficient is no longer a choice but an imperative.

What are the most effective and innovative strategies for fleets to become truly sustainable?

Electric Vehicles (EVs): Electric vehicles have become the key focus for sustainability in fleet management. EVs produce zero tailpipe emissions, are highly energy-efficient, and require less maintenance. However, to make these accessible to many businesses such as in the commercial van market, upfront costs will have to come down and the charging infrastructure needs a massive boost.
Alternative fuels: Biodiesel, natural gas, and hydrogen are fuels which produce fewer emissions compared to petrol or diesel, making them a viable choice for fleets looking to reduce their environmental impact.
Telematics and data analytics: Using technology allows fleet managers to optimise routes, monitor driver behaviour, and maintain vehicles more efficiently. Data-driven decision-making using geodata enhances the environmental and financial efficiency of fleets by planning or amending routes in real-time, leading to fuel cost savings and reduced emissions.
Renewable energy sources: Companies can adopt renewable energy sources to power their fleet operations. Solar panels, wind turbines, and other forms of renewable energy can be used to charge electric vehicles, further reducing the carbon footprint, however a significant upfront cost is required.
Driver training and tracking: Promoting eco-friendly driving practices through training and incentives encourages responsible driving habits. These efforts contribute to the sustainability of the fleet by reducing fuel consumption and emissions.
Circular economy principles: Embracing circular economy principles in fleet management means reusing, refurbishing, and recycling vehicle components. This reduces waste and conserves resources, aligning with sustainability goals.

Data insights power success

Adopting these practices are all well and good but my concern is fleets should be gaining more valuable insights from the data that comes from these strategies to experience the full environmental and financial benefits.

ESG data provides a comprehensive understanding of environmental, social, and governance factors, offering insights into the sustainability practices, social impact, and governance structures of the fleet operations. This data enables informed decision-making, risk assessment, and the development of strategies to enhance overall sustainability and responsible business practices within the fleet management ecosystem.

Fleet companies need to be leveraging technology and implementing tools like machine learning algorithms and artificial intelligence to help them analyse vast amounts of ESG data to identify patterns and use predictive analytics to turn data insights into actionable strategies for the business.

Conclusion

Sustainable fleet management is part of a transformation which needs technology to support its future. By adopting innovative approaches and leveraging technology, companies can not only reduce their environmental impact but also enhance their social responsibility and financial viability.

Sustainability is often perceived as expensive, challenging to implement, and overly complex. At CGI, we tackle real-world sustainability challenges with passion, employing creative thinking to develop a streamlined strategy that aligns with your organisational vision, values, people, and processes.

References:

¹ https://www.gov.uk/government/statistics/transport-and-environment-statistics-2022/transport-and-environment-statistics-2022

About the author:

Jane is a Senior Mobility Account Manager responsible for developing trusted partner relationships with organisations in the finance & mobility community.

With several years’ experience in the automotive industry Jane has built strong relationships with major industry players, working with clients to understand strategies and identify areas where they can digitise their operations for the best business outcomes.

Contact Jane via email at jane.bird@cgi.com or LinkedIn at https://www.linkedin.com/in/janebird18/