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News Article

Reducing Carbon Footprint through Smart Fleet Management

By Antonio Gozain | Wed, 03/23/2022 - 13:35

Fleet management is becoming increasingly essential for the automotive industry, while the smart practice of fleet management has become crucial in the battle against climate change, said Arturo Zapata, CEO, Corporación Zapata.

“Smart fleet management faces many challenges everywhere, yet Mexico presents a particularly challenging environment today with new vehicle scarcity, rising interest rates, crime, Carta Porte requirements and Rule of Law challenges. We need to start addressing climate change. The evidence is overwhelming,” said Zapata.

The impact of human activities on climate is well documented and led organizations such as the UN to join forces with several countries to fight climate change, as reported by MBN. The UN has launched a series of meetings with world leaders since 1972, aiming to build a mitigation plan to address challenges ahead. In 1988, the Intergovernmental Panel on Climate Change (IPCC) was created and in 1994, the UN began hosting high-level meetings called Climate Conferences (COP) to address this matter.

Countries’ efforts to fight global warming have been mirrored by the private sector. “The list of companies who have publicly committed to significantly reducing their carbon footprint is already in the tens of thousands,” said Zapata Companies are now required to measure the carbon footprint of their suppliers in addition to the variables that they directly control, he added.

Companies worldwide are integrating Environmental, Social and Governance (ESG) principles into their business strategies. In Mexico and Latin America, this implementation is often carried out in response to corporate requisites. Public companies of local origin have also begun deep diving into critical strategies and reporting based on pressure from financial institutions and their competitors. However, organizations of all sizes are also getting involved in this critical yet complex journey to manage investor, consumer and NGO expectations.

Companies worldwide are integrating ESG principles into their business strategies. The idea must be “to make sustainability profitable and profitability sustainable, without sacrificing one for the other,” said Zapata quoting Christian Klein, CEO and Member of the Executive Board, SAP. Every publicly listed company or “any of us whose customers are large or medium-sized corporate companies will most certainly be asked by the end of this current year to share what we are doing in terms of reducing our carbon footprint,” said Zapata.

The automotive and mobility industries play an essential role in reducing carbon emissions. Smart fleet management tackles several variables that reduce companies’ carbon footprint, such as fuel costs, environmental control, route optimization, driving behavior, future autonomous vehicles, EVs, security, hygiene and vehicle digitalization, said Zapata. The implementation of these technologies is no longer a luxury and has become a key resource for companies to smartly manage their assets with positive cost-benefit solutions to maximize profits while reducing their carbon footprint, as reported by MBN.

In addition, the current distribution fleet must transform into a hybrid model that uses 50 percent diesel and 50 percent natural gas, said Zapata. “Vehicular natural gas is a lot friendlier to the environment than other commonly used fuels today. It is up to 50 percent cheaper than gasoline or diesel and is considered a clean fuel.”

The D-Gid System

Italian firm Holdim Group teamed up with Corporación Zapata’s subsidiary Nortrack to develop Ecomotive Solutions, which specializes in improving the environmental performance of every engine type through alternative fuels, said Zapata. “Our D-Gid technology delivers the optimum mixture of diesel and natural gas in a dynamic way, maintaining performance and efficiency of the engines. Our dual fuel hybrid technology can be used in any diesel engine and can be applied in any industry.”

Antonio Gozain Antonio Gozain Journalist and Industry Analyst