Majority of fleets risk missing compulsory EU CO2 targets
A majority of European companies are well behind schedule in their obligations to record and report their vehicle greenhouse gas emissions, according to a huge new survey of more than 1,000 fleets operating in 12 countries and multiple industry sectors.
The European Commission’s Corporate Sustainability Reporting Directive (CSRD) requires 49,000 of the EU’s largest businesses to account publicly for their CO2 emissions from 2024.
But the European Fleet Emission Monitor (EFEM) 2024 by Alphabet, published today, found that 56% of respondents to the survey have yet to engage with the directive.
The EFEM has identified an alarming disconnect between the 64% of companies that say the development of a sustainable vehicle fleet is a strategic priority, the 51.7% that have set CO2 reduction goals, and the 42.4% that actively monitor their emissions.
The analysis also found substantial regional differences in attitudes to fleet sustainability. In Belgium, for example, 89% of companies are prioritising sustainability in their fleet planning, compared to 66% in Germany and 43% in Spain.
CO2 monitoring
Worryingly, 22% of the 1,000-plus fleets surveyed have no record at all of their CO2 emissions, and if you can’t measure it, you can’t manage it, as the business school mantra states. The majority of fleets are relying on potentially inaccurate or incomplete sources of emissions data, such as manufacturer fuel consumption figures, fuel card receipts, and leasing company evaluations, said Alphabet.
Without detailed emissions monitoring, fleets risk failing to meet future EU-wide regulatory standards, warned Markus Deusing, CEO Alphabet International.
Yet only 31% of companies are using digital fleet management systems to monitor and analyse their real-world CO2 emissions.
“By not leveraging the insights gained from data analysis, companies are overlooking a golden opportunity,” said Deusing.
“A dedicated tool for monitoring and calculating CO2 emissions empowers fleet managers to make sustainable decisions and to implement measures to reduce CO2 emissions.”
The transition to a carbon-neutral fleet takes time, he added, yet many fleets, “still undervalue the extensive effort needed to minimise CO2 emissions and move towards electrification.”
The EFEM did find encouraging news in the steady reduction in average fleet CO2 emissions among those fleets that can measure it, but it also found fewer fleets this year (62%) believe they will eventually become 100% electric, compared to last year (69%). A quarter of fleet surveyed said they will always have vehicles powered by petrol or diesel. This shift in the wrong emissions direction might reflect the increase in real-life experience of running electric vehicles, with fleets still reporting challenges in range and charging.
Regardless of whether these are real or imagined barriers, by 2025 the European Union expects businesses to be engaged in a process of continuously reducing their CO2 emissions, said Deusing.
“Without digitalising fleet management, electrifying the fleet and deploying AI and data monitoring, fleets will not meet these targets and will exceed the thresholds,” he said. "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.”
Illustrations: Alphabet
