Study reveals significant untapped eco-potential for sustainable fleets

• Companies underestimate requirements resulting from CSRD obligations
• Digitalisation and electrification pose major challenges for fleet management 
• Over one in five businesses still unaware of their fleet’s CO₂ footprint
   

MUNICH 07/05/2024 – In the face of evolving environmental mandates, 64% of European businesses regard sustainable fleets as a strategic goal, with 62% aspiring to fully electrify. Yet, the second European Fleet Emission Monitor (EFEM) by Alphabet reveals a disconnect: a significant number of fleet managers report either limited awareness or deem the EU’s Corporate Sustainability Reporting Directive (CSRD) irrelevant to their sustainability plans, indicating a major gap in regulatory engagement. These findings, derived from responses of over 1,000 decision-makers across 12 countries, underscore the complexities companies face, from digital transformation hurdles to e-mobility adoption challenges, questioning their readiness to align with and leverage regulatory standards for environmental objectives.

Approximately 49,000 EU companies will be impacted by the Corporate Sustainability Reporting Directive (CSRD) by 2026. The largest among them must disclose how environmental, social, and ethical governance aspects affect climate change in a sustainability report starting this year. Despite this, EFEM findings unveil a striking disconnect: 56% of companies remain unresponsive to the CSRD’s push for sustainable fleet transformation. “Transitioning to a carbon-neutral fleet is a challenging and gradual process, not an overnight shift,” states Markus Deusing, CEO of Alphabet International. “Under the CSRD, companies are now obligated to reveal their progress, yet many still undervalue the extensive effort needed to minimise CO₂ emissions and move towards electrification.”

Carbon cutting: persistent monitoring drives CO₂ reduction
The study echoes the green shift of 2023, highlighting that half of the companies now pledge to cut their vehicle emissions. There’s positive movement, with a 5% increase in leaders who keep tabs on their emission goals, now at 42%. Among these, 35% are winning the race, keeping the CO₂ output below 100 g/km. However, 44% still hover above this limit, showing a 6% drop compared to last year’s figures – a sign of slow but sure progress. “These findings prove that with persistent oversight, businesses can indeed achieve a continuous decline in their fleet’s greenhouse gas emissions,” explains Markus Deusing.

Unlocking fleet insights: data drives transparency
The EFEM sheds light on a struggle for data transparency: just over one-fifth of European companies are still in the dark about their fleet’s CO₂ emissions. While specialised fleet management tools enable businesses to bridge this gap by providing reliable data, many businesses find themselves at a crossroads. “The adoption of digital tools and platforms remains a challenge for many businesses,” says Markus Deusing. Only 3 out of 10 fleet managers currently utilise tools to measure and analyse CO₂ emissions. Deusing further elaborates, “By not leveraging the insights gained from data analysis, companies are overlooking a golden opportunity. Such data is not only pivotal for enhancing sustainability reports but also for compiling the best drivetrain blend.”

Underestimated complexities: electrification challenges for fleet managers
The latest findings hint at a crucial yet complex journey towards fleet electrification. Currently, 62% of businesses believe their fleet can become fully electric in the future, marking a decrease of 7 percentage points compared to 2023. This shift may reflect companies underestimating the complexity involved. Accordingly, 44% of surveyed fleet managers express feeling either not adequately or somewhat informed about e-mobility topics. Challenges in deciding on electric vehicles still include charging infrastructure and supposedly insufficient range. 

“Understanding the complexities our customers face in fleet electrification, Alphabet is dedicated to guiding each one through this transition with tailor-made solutions and strategic support,” emphasises Markus Deusing, CEO of Alphabet International. 

Leveraging innovation for enhanced emission reductions 
The future ahead demands more than just being aware of one’s fleet emissions. By 2025, the European Union expects businesses to continuously reduce their CO₂ output. Markus Deusing underscores the critical role of innovation in this objective: “Without digitalising fleet management, electrifying the fleet and deploying AI and data monitoring, they will not meet these targets and will exceed the thresholds. At Alphabet, we are actively developing cutting-edge solutions that empower our customers to navigate the challenges our study identified and advance their sustainability goals – to make their mobility easier.”