Fleet Management
45% of Fleets are Putting Sustainability and Carbon Reduction at the Top of Their Priority List - Have You?
(Posted on 22/08/24)
Fleet managers often find themselves grappling with tough decisions, especially amidst the pressing need to decarbonise operations and tackle rising costs. The essence of the matter lies in understanding that decisions regarding fleet management extend beyond just drivers; they profoundly impact the entire business ecosystem. Today, fleets are more interconnected with various stakeholders than ever before, necessitating preparedness for imminent changes to avoid missing crucial goals and targets.
Decarbonisation stands out as a paramount focus for many businesses presently due to the government's net zero target by 2045 to 2050. Additionally, measures such as the Ultra Low Emission Zone (ULEZ), clean air zones, and Benefit-in-Kind (BIK) tax incentives are being implemented to deter businesses from maintaining high-emission vehicles in their fleets. However, numerous obstacles loom, including regulatory compliance, staffing constraints, and operational limitations. Shell's research underscores this, with a significant majority of fleet owners anticipating mounting pressure to decarbonise from regulators, customers, and employees.
It is a daunting prospect as the change is significant for any fleet, and many will have already started their plan to decarbonise not just their fleet but other areas within their business. From investing in lower-emission vehicles to completely zero-emission vehicles, the start is here with many already reducing their emissions. For instance, companies are increasingly turning to electric and hybrid vehicles, which offer substantial emission reductions compared to traditional internal combustion engine vehicles or new lower emissions vehicles.
To navigate these challenges effectively, it's imperative to mitigate the adverse effects of organisational hurdles on the business's decarbonisation strategy. This entails crafting a clear decarbonisation strategy that aligns seamlessly with overarching business objectives and strategies. Implementing new policies and allocating budgets with well-defined endpoints is pivotal for success and clarity within the organisation. For example, fleet managers should be aware of specific regulations, such as the EU's CO2 emission standards, which mandate gradual reductions in vehicle emissions over the coming years. Understanding these requirements can help in planning and avoiding penalties. Additionally, this knowledge can help prioritise areas in your fleet that need more attention, such as high-emission vehicles that frequently operate in clean air zones and ULEZ areas.
Furthermore, emphasising the human aspect is essential. Ensuring alignment across all levels of the organisation is critical for achieving net-zero operations. In today's climate, decarbonisation must be prioritised by fleet managers, who should possess a keen understanding of the technological and operational cost factors at play. It's crucial that drivers and employees grasp the importance of decarbonisation initiatives, whether through transitioning to EV vehicles or adapting driving behaviours.
Having both employees and drivers on board is crucial for the success of this initiative, and they will be part of the change for your business. Many businesses within their strategies for decarbonisation have made changes such as ensuring that, when possible, drivers take the most eco-friendly route. Little things like this make a difference in reducing emissions. Drivers have to be trusted to do this when possible, making efforts such as taking different routes to help contribute to reducing vehicle emissions. Incentives for drivers who consistently follow eco-friendly practices can also be a motivating factor.
Failure to establish these foundational elements could lead to significant setbacks in the decarbonisation journey. Smooth transition and implementation require cohesive alignment and a thorough understanding of performance requirements. Assessing vehicle performance data comprehensively can aid in identifying suitable candidates for transitioning to EVs while ensuring operational efficiency is maintained throughout the fleet.
Comprehensive support for fleet decarbonisation hinges on both technological advancements and streamlined processes. Businesses must be prepared to adapt their IT infrastructure and operational procedures swiftly to meet evolving requirements, such as implementing new maintenance protocols. Technologies like telematics can provide real-time data on vehicle performance and driver behaviour, enabling better decision-making. Additionally, fostering a data-driven decision-making culture within the organisation is indispensable for effectively measuring decarbonisation progress. Key performance indicators (KPIs) such as fuel consumption, CO2 emissions, and vehicle downtime should be monitored and analysed regularly.
Lastly, infrastructure plays a pivotal role in the decarbonisation journey. Maintaining full control and knowledge of the fleet's vehicles is paramount. Access to and control over vehicles, especially regarding replacements, are crucial steps in the decarbonisation path. Ensuring the availability of necessary infrastructure, such as EV charging stations, is essential for seamless fleet operations. Investing in widespread charging infrastructure and working with partners to ensure accessibility can help overcome one of the significant barriers to EV adoption.
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