Fleet’s Green Scorecard: Looking Good

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February 5, 2010

For fleet managers who may need a supportive boost in pursuing green fleet initiatives, a comprehensive new report, released just this week from GreenBiz.com, details positive news on growing environmentally friendly efforts among the nation's commercial fleets. "State of Green Business 2010". examines the state of environmental efforts throughout the U.S. business place.

While the economy's travails have kept consumers out of auto dealer showrooms, "corporate and institutional buyers provided a bright spot for the industry - a bright green spot," says the GreenBiz summary.

"Fleet buyers ramped up their purchases of hybrid-electric, diesel, biodiesel, electric, and other so-called alternative-fueled vehicles, from taxis to trucks," the GreenBiz report states, citing initiatives by such companies as Coca-Cola Enterprises (See the Work Truck feature.) and Frito-Lay (See Automotive Fleet's article.) 

Driving the Green VehicleTraction

A number of reasons are driving the gaining traction of green vehicles among commercial fleets, says the GreenBiz report. Those reasons, familiar to Automotive Fleet readers, include fleet involvement in overall corporate sustainability goals, greater volume-buying, price-reducing power by fleet management companies, and technology, including the ever-widening use of telematics. GreenBiz references a GE Capital Fleet Services case study of a large cable and telecommunications customer's telematics use, which produced a 40-percent reduction in idling, leading to a 30-percent drop in fuel expense.

Right-sizing is also credited in advancing greener fleets. "Some are calling the trend of downsizing to four-cylinder engines the 'new normal,' with the recession making it a stronger business case," GreenBiz editors state. "Others, meanwhile, are taking the concept of 'right-sizing' a step further than simply moving down a vehicle class," and are examining vehicle applications to move to more efficient cars or trucks when possible.

(According to the Environmental Defense Fund's Jason Mather's recent blog on the GreenBiz report, "Abbott Labs, Infinity Insurance, and Owens Corning were among the first companies to demonstrate the value of moving to more [efficient] vehicle on a wide scale.)

Beyond vehicle selection, says the GreenBiz report, driver education and training, and better maintenance are significant measures in helping fleets drive cleaner and more fuel-efficiently. PHH Arval's GreenFleet program, which promotes these proactive steps, is cited for its success in helping companies cut their fleet operating costs "by an average of 7 percent a year." 

Fleet Emissions Drop Sharply

In reducing greenhouse gas (GHG) emissions - another driving force in many corporate environmental aims - fleets also are among the leaders, reports GreenBiz, which gathered GHG data from several large U.S. fleet management companies, including Automotive Services International (ARI), Donlen, Enterprise Fleet Management, GE Capital Feet Services, LeasePlan, and PHH Arval. These companies, as GreenBiz notes, oversee vehicles for hundreds of large companies.

Emissions from fleet vehicles dropped sharply in 2009 - declining nearly 18 percent from 2008 levels. The fleet management companies told GreenBiz the economic downturn was the major factor in the sudden dive; however, such measures as switching to four-cylinder vehicles will "likely lead to gains that will become more apparent in the coming years," notes GreenBiz.

Still, the overall downward year-over-year trend in fleet GHG emissions presents a positive picture:

Estimated Annual Greenhouse Gas Emissions Per Vehicle (in tons)

• 2006 - 14.81
• 2007 - 14.63
• 2008 - 14.6
• 2009 - 12.5

Fuel Prices Remain a Factor

Fuel prices will remain a dominant factor in corporate attention to green fleet initiatives, opines the GreenBiz report. Companies responded to the 2008 fuel price spikes by downsizing and right-sizing their fleets. The recession, says GreenBiz, "dragged down fuel prices, but no one expects the low prices to last." (In his AF Market Trends blog this week, Editor Mike Antich addresses the likelihood of 50-cent per gallon price hikes in fuel by 2011, based on recent reports issued by Goldman Sachs and Morgan Stanley.)

The bottom line for GreenBiz: green strategies and practices have become "ever-more valued, seen by top brass as a way to cut costs, improve operations, foster innovation, engage employees, and satisfy customers - all critical during tough economic times. The result was that for some companies, environmental improvements and innovations became a means of surviving lean times, and being more competitive once things rebound."

A helpful perspective in building a green fleet.