Photo Courtesy of Geotab
For today’s fleets, many are feeling the mounting pressure to prioritize sustainable practices. We can understand why. Addressing the challenge of carbon reduction and supporting sustainability goals has become essential for fleet managers, given that transportation is one of the largest contributors to global carbon emissions.
In a recent survey conducted by Geotab, a global leader in connected transportation solutions, more than half of the surveyed fleet professionals anticipate increased demands for sustainability initiatives from their customers in the next 1-3 years. The study, conducted in collaboration with the Bobit Research Group, aimed to assess the progress of organizations in the transportation sector towards their sustainability goals, particularly in light of growing pressure to address climate change.
Recognizing the pivotal role of quality data intelligence, fleet managers can leverage it to make informed decisions, track progress, improve performance, and mitigate the risk of “greenwashing”. It was also found that fleet sustainability data played a crucial role in reducing operating costs for 69% of respondents in the past year. The survey revealed the significance of quality data in guiding sustainable decision-making, improving regulatory reporting, and facilitating the transition to electric vehicles (EVs).
Bottom-Line Benefits
While cost, lack of data, and differing priorities were identified as key hesitations to initiating sustainability actions, the survey highlighted that 69% of fleet managers who implemented sustainability plans experienced a reduction in operating costs in the past year. This finding underscores the tangible benefits that prompt action can bring to the bottom line in a relatively short period. A recent global survey of 3,000 CEOs revealed that over 80% of them anticipate higher business results from sustainability investments over the next five years. In line with this trend, 66% of fleet managers in Geotab's survey expressed their intent to invest more in sustainability initiatives to meet customer and organizational requirements.
Regulatory Reporting Requires Reliable Data
Globally, 51% of CEOs consider sustainability a top challenge, as they face increasing pressure from boards and investors to take action. As companies look to achieve their climate targets, having reliable sources of data for decision-making and reporting is critical. The survey found that 73% of fleet professionals currently use fleet management solutions and telematics data insights to monitor and manage the sustainability of their fleet. However, only 24% of fleet professionals leverage telematics data to support regulatory reporting. As regulatory pressure for carbon reduction intensifies, there is a clear opportunity to utilize data insights for transparent reporting while minimizing the risk of "greenwashing" challenges.
Accelerating Fleet Electrification
Fleet electrification is rapidly gaining momentum, with S&P Global Platts Analytics reporting a record high of 6.3 million units of light-duty electric vehicle sales in 2021, a year-over-year increase of 102%. Geotab's survey revealed that 54% of fleet professionals already have electric vehicles in their fleet or on order. Fleets that have embarked on their sustainability journey are experiencing tangible environmental and social benefits, including reduced fuel consumption, CO2 emissions, and idling. By continuing to embrace data-driven sustainable fleet practices and adopting EVs, organizations may also enjoy increasing returns on investment (ROI).
The findings from Geotab's survey demonstrate the pivotal role of fleet sustainability data in reducing operating costs, improving regulatory reporting, and accelerating the transition to electric vehicles. As organizations face increasing demands for sustainability initiatives and regulatory pressure for carbon reduction, leveraging reliable data insights becomes vital for achieving environmental goals, maintaining customer satisfaction, and driving business success. By investing in sustainability and embracing data-driven decision-making, fleet managers can have a significant impact on cost reduction, performance improvement, and a better future for the planet.
“Greening the Fleet” is a survey of 110 fleet professionals across the U.S. View the full survey findings:
For more information on how Geotab helps power the sustainability journey, visit:
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