Reducing emissions with digital fleet management
Across Europe alone almost 12 million passenger vehicles were sold in 2019 with a large portion of these being sold into fleet. Company owned passenger vehicles now account for well over 22 million units in Europe not to mention over another 30 million light commercial vehicles.
If we think about how building an average passenger vehicle means generating more than 17 tonnes of CO2,then we can quickly do the maths to think of what kind of damage is being done to our planet. Some service-based companies can account for almost 60% of their environmental impact being generated by their vehicles and for many of them it remains the largest single source of CO2 emissions.
For companies to tackle this issue and really make an impact they need to focus on reducing their fleet sizes. The key to this is improving the way vehicles are utilised and shared amongst the workforce. With the average utilisation rate on a company vehicle sitting at under 50% it makes sense for companies that are committed to reducing emissions to focus on solutions that improve utilisation before simply replacing them with more fuel efficient and cleaner cars. After all, it doesn’t solve the broader problem of the emissions being generated in the first place let alone adding to congestion or the impact of mining the earth for rare minerals to build the batteries.
If companies across Europe could reduce even 1 million vehicles sold each year there would be a staggering 17 million tonnes of CO2, reduced. To think that 50% of cars are sitting around half the time it’s hard to think about to what kind of environmental impact could be achieved with the right solution.
The way forward
With new digital fleet technologies, we can start rethinking the fleet concept and transform the understanding of a traditional fleet. Increased transparency and visibility can provide alternative ways to utilise the vehicles and how they can be better shared amongst the work force. Companies can streamline their fleets to include a series of vehicles with different specifications, according to typical tasks, all shared across the company making sure they are always used, and uptime is as close to 100% as possible.
The answer to reducing emissions can be as simple as reducing cars used. Many companies are committed to making a difference and new digital fleet solutions will play a significant role in enabling change.
About the Author:
Ron Sullivan is a Co-Founder of OviDrive & been involved in the Australian arms of 2 ‘start-ups” which have gone on to be 2 of the top 5 business in the fleet sector. He has 20 years fleet leasing and management expertise, including 4½ years running his own fleet consultancy business.