Sustainability: The Driver Behind the Fleet Revolution

Fleet sustainability has become a critical issue, not only from an environmental perspective but also as a strategic approach that ensures operations can continue efficiently and effectively into the future. Companies today must align their practices with sustainability standards and meet the growing demands of customers who prioritize sustainability in their purchasing decisions. In this sense, for sustainability initiatives to be truly effective, they must make financial and operational sense: strategies like improving fuel efficiency, reducing operational costs, and meeting emission reduction targets will be helpful in achieving these goals. 

Today, most global companies have integrated sustainability considerations into their daily operations, with structured frameworks for reporting. According to the Arval Mobility Barometer, 22% of companies are eligible for regulatory public reporting, and another 40% expect to be eligible within the next two years. 

Aside from reducing their own direct emissions, fleet managers play a crucial role in helping their clients meet their sustainability objectives by implementing strategies that enhance operational efficiency and reduce environmental impact. One of our main contributions is to improve fleet efficiency, thereby producing a positive environmental impact that contributes to our client’s sustainability goals. Success in this regard can be measured through indicators such as carbon emissions per mile and vehicle utilization. If we use data, plan correctly and make bold decisions, we might not need as many vehicles in the street as we have today. 

Strategies to Achieve Efficiency and Sustainability

Reducing operational costs for our clients is a key pillar at Element. To optimize productivity and efficiencies that will translate into increased profitability, it is necessary to analyze supply chain factors in detail. Fleet management companies help others determine which vehicles are best suited to transport specific products on specific routes, the right sizing of vehicles will reduce unnecessary CO2 emissions, reduce cost per mile driven and reduce times in logistics chains. Then we can determine how to optimize scheduled delivery times and choose the most cost-efficient logistics routes by analyzing traffic patterns, the proximity of delivery points, and driver behavior on the road. All this can be achieved through tracking vehicles and driver behaviors. 

Additionally, fleet managers must consider the number of vehicles available, delivery times for regular and urgent shipments, and the locations of logistics centers. 

Improving fuel efficiency is another cornerstone of fleet sustainability. Fuel consumption has a significant impact on both performance and savings, directly influencing a fleet's profitability and environmental footprint. Integrating a telematics solution specialized in fuel performance can identify opportunities for savings and improvements. Telematics allows fleet managers to monitor fuel use, reduce idling time, and guide track operator behavior to minimize fuel misuse. Efficient fuel use not only reduces costs but also contributes to the transition toward greener fleets. For example, one gallon of gasoline produces around 20 pounds of CO2, which means that the average vehicle emits approximately 6 to 9 tons of CO2 per year. By optimizing fuel efficiency, companies can significantly lower these emissions.

Meeting emission reduction targets is a crucial component of fleet sustainability. Global investment in the energy transition reached US$1.8 trillion in 2023, a 17% increase from the previous year and a new record. Electrified transport is now the largest sector for spending in the energy transition, growing by 36%. To achieve reduced emissions, companies must develop clear strategies that incorporate electric vehicles (EVs) as strategic allies. Each electric vehicle that replaces a conventional car can save approximately 1.5 tons of CO2 per year, representing a 62% reduction compared to a petrol-powered car and a 53% reduction compared to a diesel-powered car.

Implementing the right initiatives can help companies tackle multiple goals simultaneously. The pace of the decarbonization and the fulfillment of sustainability goals needs to accelerate. Fleet decarbonization can be a powerful lever to ensure that we are environmentally responsible and profitable. To achieve this balance, businesses must implement successful strategies that deliver results in both areas.

Fleet decarbonization involves a comprehensive approach that integrates environmental and operational strategies. Improving fuel efficiency, reducing operational costs, and meeting emission reduction targets are essential components of this strategy. As global investment in the energy transition grows and electrified transport becomes more prevalent, fleet managers must continue to innovate and adapt to ensure their operations are both sustainable and profitable. By reducing carbon emissions, we are making the right investment choices for our companies and the planet.