Leading fleets reveal their decarbonisation strategies
Leading fleet decision makers have outlined how their businesses are slashing vehicle emissions on their quest to become carbon net zero before challenging deadlines.
Speaking at the Fleet Europe Days conference in Lisbon, fleet executives said companies cannot wait for the TCO (total cost of ownership) seesaw to tip in favour of battery-powered vehicles in every market before transitioning away from internal combustion engines if they are to achieve their global net zero objectives.
Silvia Branca, global fleet and mobility manager, Tetra Pak (pictured top right), said the packaging company has a goal to be net zero by 2030, and has adopted a top down approach to ensure its 4,200 company cars transition rapidly to electric powertrains.
“We have a global approach, so countries cannot decide. In some countries we reach a positive TCO for EVs, and others not, but our strategy is clear – net zero emissions,” she said.
“We are putting in place a global charging strategy, installing office chargers in all of our European office sites that we own, and we are supporting home charging by financing wallboxes.”
Takeda is on a similar trajectory for is 6,500-strong fleet, aiming for a 40% reduction in CO2 emissions between 2021 and 2025, as battery electric models account for a rising share of its company cars.
“We need to take EV opportunities where they exist, taking advantage of quick wins where the TCO is beneficial,” said Elena Malagarriga, global category manager – fleet and movability, Takeda (pictured top centre).
“In other countries where this is not the case, we need to work with manufacturers and leasing companies to keep costs stable. And we are having conversations with finance directors and country managers so they understand they need to invest, because EVs will be cheaper in two or three years.”
Globally, Takeda’s fleet costs are static despite its electrification programme, with TCO savings in certain markets offsetting higher costs in others.
Selecting green suppliers
At the same time, Takeda is pushing its suppliers to achieve parallel sustainability goals.
“Our preferred suppliers need to submit to SBTI [Science-based Target Initiative] targets, and all our new RFPs have questions about sustainability,” said Malagarriga.
EY's mobility strategy
Electrification may be the swiftest solution to green fleets, but it is even more attractrive to offer alternatives in smart and zero-emission mobility in addition to company cars.
EY first adopted a mobility strategy a year ago, looking to optimise the employee journey while reducing costs and carbon emissions. In an industry where recruitment and retention are highly competitive, the offer of a mobility alternative is proving popular, said Marc Wittenberg, global procurement manager automotive mobility, EY (pictured below).
“In interviews, people ask us what mobility solutions they can have, and that influences their choice of whether to come and work for us or go to a competitor,” he said. “Offering a company car to someone who does not want a car, perhaps because they live in a city centre, makes no sense. The secret is to offer flexibility.”
In the 12 months since EY introduced its mobility strategy the number of staff leaving the organisation has dropped by 40%, added Wittenberg.
He explained that EY has outsourced its mobility provision to a specialist mobility as a service company, which is the only way to keep pace with rapidly changing travel and transport providers as well as local tax treatments.
“They provide one report on all the mobility we use, from company cars to trains and so on,” said Wittenberg, adding that the integration of the supplier’s app into EY’s IT system had proved to be the principal obstacle, given the data security and data privacy issues involved.