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‘Scepticism and lack of trust’ surround Zero Emission Government mandates

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Teletrac Navman’s annual industry survey has revealed less than half of respondents believe the governments will follow through with planned zero emissions mandates, while two-thirds of global fleets are currently operating PHEV, BEV or FCEV vehicles in their fleet.

The 2024 Telematics Survey (TS24) sheds light on the industry’s latest trends and challenges, as well as the viewpoints of global operational leaders on topics including safety, AI adoption, alternative energy and 2024’s biggest obstacles for fleets. Taking data from more than 500  global fleet businesses, the annual report focuses on three key areas: Sustainability, Safety, and Efficiency.

With more than half of fleets (65%) feeling environmental pressure to transition to alternative energy, many are operating a multi-energy fleet or are about to begin their transition while still experiencing a lack of awareness and readily available, trustworthy guidance.

“Fleets of all sizes and scales are already planning and navigating their transition, but we know there simply isn’t enough credible information out there to help simplify what is a complex move for any business. Alternative energy is still such a new concept for many fleet operators and the process of switching can feel overwhelming,” said Alain Samaha, Global President & CEO of Teletrac Navman.

When seeking guidance on transitioning fleets to electric or alternative energy, a quarter of respondents (25%) prefer advice from experts, and 15% would opt for dedicated training courses.

While the switch to alternative energy keeps rising on fleet operators’ agendas and a quarter of TS24 respondents (25%) name tackling rising fuel costs as a key motivation, challenges still remain. The frequency of emerging new technologies, high purchase cost of alternative energy vehicles and limited public charging points available have been identified as the top obstacles for businesses on their way to decarbonisation.

This is highlighted even further as nearly three quarters (72%) of respondents state that ongoing cost pressures will likely delay their transition to EV or alternative energy vehicles. While they feel environmental pressures, over half (56%) do not believe the UK government will go ahead with their planned ban on fossil fuels. In the US, 46% doubt the government will go ahead with the planned ban on fossil fuels – outnumbered by Australia and New Zealand where 69% express doubts.*

Driver safety: Safety and wellbeing top business focus for 2024

Driver safety remains a top priority for fleets, with half of the businesses surveyed currently monitoring and measuring driver behaviour and 30% of respondents planning on investing in driver wellbeing technology this year.

Over two thirds of TS24 respondents (73%) have seen fewer accidents on the job since adopting telematics solutions, and 73% are actively rewarding drivers for better performance.

TS24 also found 71% of respondents have seen improved driver performance through driver rewards programmes.

Incentivising drivers has become crucial for retention, especially in the face of economic challenges such as Brexit and the cost-of-living crisis. This data also aligns with the industry’s focus on driver well-being and a rising interest in recognition and rewards programmes to retain and support drivers.

More than half of the businesses surveyed (62%) recognise the cost-of-living crisis’ impact on their drivers’ mental health, and Teletrac Navman has seen a 110% increase year-on-year in driver appreciation activities, a 54% increase in adopting reward programs, and a 52% increase in the promotion to senior driver.

Rising fuel costs are considered in driver behaviour management as well, with a 33% increase in businesses implementing new driver behaviour programmes in an effort to navigate rising fuel costs since last year.

“The last 12 months have come with their own set of challenges for fleets, and rising insurance and fuel costs have been a leading concern for operators globally,” said Samaha. “This in turn has led to an even higher emphasis on safety, prompting operators to prioritise safe processes and behaviour to manage costs effectively as well as look after staff wellbeing.”

Efficiency and Streamlining

TS24 also found businesses are working towards keeping up with the latest technologies in order to achieve streamlined operations.

With the top costs for fleets listed as fuel, followed by equipment and vehicle maintenance and purchase, almost all TS24 respondents (96%) say they have made measurable savings by implementing telematics, across admin time savings, fuel savings and overall cost savings.

According to the industry-wide survey, asset visibility, meeting compliance regulations and more efficient routing and dispatching are the top three benefits operators have seen since implementing telematics solutions.

Despite the widespread adoption of telematics solutions (98%), less than half of businesses (43%) feel they are using these tools to their full potential.

“Businesses are facing many different challenges now, with the ‘great resignation’ leading to the higher turnover of people and therefore the need for more frequent training and handovers. Furthermore, technological advancements may require deeper training, and the varying needs of different departments can result in underuse across the diverse features of platforms,” said Samaha.

While AI technology is beginning to grow in prevalence the market is increasingly recognising the possibilities of data-led and machine learning applications, with 47% of TS24 respondents currently leveraging AI solutions.

“Businesses are slowly but surely embracing new technologies, and there is an anticipation of increased availability of advanced AI tech in the near future, enabling more sophisticated applications and vehicle and driver monitoring,” added Samaha.

Data data data – The key for logistics and transportation businesses to meet their sustainability goals in 2024

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By Serge Schamschula, Head of Ecosystem at Transporeon, A Trimble Company

It is fair to say that the EU has certainly been in full ‘green mode’ in recent years, with the aim to reduce net greenhouse gas emissions by at least 55% by 2030. And, in its bid to meet this ambitious, long-term environmental and climate goal, they have published a raft of sustainability regulations and guidance.

An example of one of these regulations affecting the logistics and transportation sectors is the Greening Freight Package, launched in June 2023. This package contains a number of measures – including the CountEmissions EU chapter, which creates a common methodology for measuring door-to-door greenhouse gas emissions and, in turn, requires an enhanced focus on sustainability reporting. For shippers, carriers and logistics service providers alike, compliance requires three things – data, data and yet more data. Serge Schamschula, Head of Ecosystem at Transporeon (A Trimble Company) explores this further.

What does this mean for the logistics industry?

The EU is aiming to enhance supply chain transparency and equip all stakeholders with sustainability data to factor into their decision-making processes. When it comes to sustainability, being data-driven is crucial. For instance, large investments within hydrogen, autonomous vehicles and exhaust heat recovery are just three decarbonisation measures that we see touted as ‘innovative’ and ‘industry-leading’. But these have limited tangible impact on lowering emissions – at least in the short term.

When it comes to sustainability, it’s crucial to look below the surface. Headline-grabbing decarbonisation measures aren’t always the most effective. And the only way to sort the wheat from the chaff is through accurate, in-depth data and reporting.

Scope one, two and three emissions reporting

The Greenhouse Gas Protocol (a global, standardised framework) stipulates that emissions fall into three categories – scope one, two and three.

Scope one emissions originate from a company’s owned assets, like the fossil fuels burned by their own fleet of trucks. Scope two includes indirect emissions from purchased energy generated offsite, like the electricity used to charge electric vehicles. Lastly, scope three includes all other indirect emissions from a company’s upstream and downstream value chain. It’s by far the largest source of emissions for most organisations – more than 70% of their entire footprint on average. For instance, the services of a carrier or logistics service provider would fall under their clients’ scope three emissions.

Until now, most EU companies have only reported on scope one and two – just a third measure their scope three emissions. But, due to the Corporate Sustainability Reporting Directive, this is changing in the 2024 financial year. Under the proposed value chain sustainability reporting, companies will also be required to report on scope three, as well as their reduction targets and progress for reports published in 2025.

What does this mean for shippers, carriers and logistics service providers?

As scope three reporting is due to become the norm, we’ll likely see end-user customers pressuring shippers to decarbonise. Why? Customers will want to reduce their own scope three emissions, while preserving their reputations among increasingly environmentally savvy consumers.

Similarly, the services of carriers and logistics service providers are often a considerable source of scope three emissions for shippers. Since they’ll also be under more pressure to account for and reduce their emissions, they too will prioritise sustainability by voting with their wallets. This could mean contracting carriers based on their sustainability practices, offering longer freight contracts to carriers with lower carbon emissions or even paying a premium for lower carbon transport.

All this demonstrates that implementing a robust decarbonisation plan and accurate process for reporting emissions isn’t just the ecologically sound path. It makes smart business sense.

Reducing emissions – two parallel paths

In Europe, the vast majority of freight is still transported by road. When it comes to road freight, there are several routes to decarbonisation. One route is to improve the efficiency of vehicles and another is to boost the efficiency of transport logistics operations.

Obviously, a combination of both is needed for successful long-term decarbonisation. But EV and hydrogen technologies are still relatively immature, and require substantial infrastructure investment. Meanwhile, digital solutions to drive efficiency can be implemented now at marginal cost and with hardly any upfront investment. So, it makes sense for shippers and carriers to first ensure their operations are as efficient as possible. This means reducing empty mileage, tackling unnecessary dwell times and optimising operations in the yard – that integral inflexion point between the road and the warehouse. And of course, shippers and carriers should look at how to combine multiple transport modes intelligently to minimise carbon emissions.

How can companies ensure they’re making the right decisions?

To ensure companies are making smart decisions on decarbonisation – and to level up its reporting capabilities – shippers, carriers and logistics service providers will need to rely on technology. Although, this seems to be a big leap for many businesses. Transporeon’s 2024 Transportation Pulse Report revealed that 60% of carriers and shippers named AI as their top concern shaping supply chain management in the next five years.

To ensure accuracy, companies will need to rely on sensor-based (mostly telematics) data – also known as primary data. In recent years, the industry precisely measured 20% of its emissions – scope one and two – using this kind of sensor data. But it falls short on calculating scope three – the remaining 80% – with the same level of precision. With the automation and data analytics capabilities of a smart transportation management platform, companies should be able to solve this problem.

Given the abundance of data points involved in sustainability reporting, companies can further enhance accuracy and minimise employee workload by automating workflows. Similarly, sophisticated data analytics capabilities enable companies to capture real-time insights and make informed decisions throughout the process of managing transportation logistics.

But the road to decarbonisation is a long one, and there’s only so far that companies can travel alone. Adopting a ‘network’ approach is key, as it enables connected information flow between otherwise disparate companies and ensures that emissions aren’t measured in isolation from other factors. It also enables shippers, carriers and logistics service providers to work together to reduce unnecessary driving time by streamlining processes like freight sourcing, transport execution, dock scheduling, and freight matching. As the saying goes, if you want to go far, go together.

Photo by Mads Eneqvist on Unsplash

ITF: Tackling transport CO2 emissions ‘reduces investment needs for core infrastructure’

 960 640 Stuart O'Brien
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An ambitious transition to sustainable transport could be cheaper in terms of investment into core transport infrastructure than continuing as is – if action is taken now.

This is the main message of the ITF Transport Outlook 2023 report of the International Transport Forum at the OECD, presented on 24 May at the global Summit of transport ministers in Leipzig, Germany.

All transport decarbonisation measures currently in place and already committed to will reduce global transport-related CO2 emissions by only 3% by 2050. The transport sector would miss by a wide margin the reduction needed to keep climate change in check.

If action to decarbonise transport is ratcheted up and accelerated, the transport sector can still reduce its CO2 emissions by about 80% over the next 25 years (compared to 2019).

This drop would put transport on the right path for limiting the global temperature increase to “well below” 2 degrees Celsius above pre-industrial levels, the goal of the Paris Climate Agreement.

ITF-Transport-Outlook-2023-Current-and-High-Ambition-scenarios-ENGLISH.PNG

“Reaching this high-ambition scenario requires a combination of complementary policies that successfully avoid unnecessary transport activity, shift more trips from fuel-burning to no-carbon transport and improve the efficiency of transport generally”, said ITF Secretary-General Young Tae Kim in presenting the report.

“It will be absolutely essential to quickly scale up cost-competitive technologies and fuels to move people and goods with far, far fewer emissions. We can do all this if we take more decisive action now.”

Such an accelerated transition to low- and no-carbon transport requires significant investment. Providing the core infrastructure for the High Ambition scenario in the report, however, would require about 5% less investment than under current policies, according to the ITF’s projections.

“Freight transport will roughly double in the next 25 years if we stay on the current path, and passenger transport will grow by 79%. So we will also have to invest heavily under this scenario to accommodate this additional demand – and, from what we know,  probably more so than if we invested in a low-carbon future”, said Orla McCarthy, project lead for the ITF Transport Outlook 2023.

These projections consider investment needs for the core transport infrastructure – including rail lines, roads or ports – required to cater for future demand. Estimates for the extra investment needs for electric charging networks are also included in the report. This is the first edition of the ITF Transport Outlook to include estimates for infrastructure investment needs under both scenarios, to support policy decisions.

The report makes five recommendations for policy makers:

  1. Develop comprehensive strategies for future mobility and infrastructure
    Instead of providing infrastructure as a reaction to predicted demand, governments should take a “decide and provide” approach to investment, with a view to achieving certain public policy objectives.
  2. Accelerate the transition to clean vehicle fleets
    Accelerating the transition towards clean vehicles and fuels requires targeted policy support with ambitious objectives and support measures. Enabling infrastructure requires additional investment.
  3. Implement mode shift and demand-management policies where they are most effective
    Measures to reduce trips and travel distances, and encourage the use of more sustainable modes, work well in cities. For longer-distance travel, a transition to cleaner vehicles and fuels is the priority.
  4. Consider the additional benefits for urban areas when evaluating policies
    Many policies to decarbonise urban transport can make mobility more affordable, improve access, reduce congestion, free up space, reduce crash risks and limit air pollutants.
  5. Reform vehicle taxation to capture external costs of new vehicle fleets
    Falling fuel-tax revenues will hit revenues and make fuel taxes less effective as a policy lever as vehicles become emission-free. Road pricing and congestion charging can mitigate both.

Connected EVs save fleets 15 tonnes of CO2 per vehicle, per year

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European fleets using EVs have cut their carbon emissions by more than 15 tonnes of CO2per vehicle, per year, equating to a fuel saving of 5,665 litres.

Webfleet published this information in the first instalment of Electrifying Data, a series of reports that map the commercial EV opportunity in exclusive telematics data. The first report provides clear insights on the fuel and carbon emission reductions that are made possible via fleet electrification.

According to latest government figures, in 2020 transport was responsible for producing 24 per cent of the UK’s total greenhouse gas (GHG) emissions, the country’s largest emitting sector . Furthermore, it was responsible for 33 per cent of nitrogen oxides (NOX) emissions and 14 per cent of particulates (PM2.5).

‘The decarbonisation of the transport sector sits at the very heart of our collective ambitions to tackle climate change’, said Beverley Wise, Webfleet Regional Director for Bridgestone Mobility Solutions.

‘Fleet businesses have been leading the charge in the transition from ICE to EV vehicles, and this data reinforces the impact they can have in helping to deliver a more sustainable future.’

‘Although electrification is gathering pace, it remains, however, a significant change management undertaking. Dedicated fleet management solutions such as Webfleet can play an important role in supporting fleets as they target net zero.’

Taco van der Leij, Vice President of Webfleet Europe added: ‘The significant CO2 savings shown in the Electrifying Data report emphasise how electrifying your fleet can have a significant environmental impact.’

‘In Webfleet, you can access the Fleet Electrification Report, a feature that shows clearly which of your vehicles could be replaced with an EV. Following the fuel price rises in March of last year, we saw a 300 per cent increase in usage of this tool. So, it’s clear the electrification of fleets is top of mind for many businesses.’

‘We want to show all fleets that making the move to electric mobility is a game-changer when it comes to transport decarbonisation.’

Anglo Scottish Asset Finance helps Newcastle and Gateshead businesses achieve clean air compliance

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Anglo Scottish Asset Finance Ltd has been appointed by Newcastle City, and Gateshead Council to deliver the financial assistance scheme to support businesses affected by the introduction of a clean air zone in Newcastle City Centre.

The financial assistance scheme has been launched to support Newcastle and Gateshead’s Clean Air Zone (CAZ), which will charge some of the most polluting vehicles to drive in the city centre. From 30 January 2023, non-compliant taxis, buses, coaches, and HGVs will be charged to enter the zone, with charges for vans and light goods vehicles beginning in July 2023. The scheme only affects buses, coaches, taxis, vans, and heavy goods vehicles that do not meet national Clean Air Zone emissions standards and will not affect private cars.

The scheme has been created in response to a legal direction by the UK Government to the councils in Newcastle and Gateshead to take action to reduce illegal levels of traffic-related pollution. Financial support will be provided in the form of a grant to help reduce the cost to businesses to replace non-compliant vehicles and avoid paying a daily charge for driving in the city centre, it will also aid in the city’s goals to meet the government targets in the shortest possible time.

The initiative is funded by the Government’s Clean Air Fund, to help businesses to upgrade non-compliant vehicles, as well as to educate businesses and individuals on how to switch to more sustainable forms of transportation. You can find out if you’re eligible by visiting Newcastle and Gateshead councils dedicated Breath-Clean Air website.

Established in 2007, Anglo Scottish is an independent finance broker, providing a range of financial services across the UK including asset finance, business loans, as well as personal vehicle solutions, and vehicle sourcing.

Anglo Scottish has previously worked with Bath & North East Somerset, and Bristol Council to develop the two city’s pioneering financial assistance scheme and has helped over 400 businesses to replace non-compliant vehicles and avoid daily charges to enter the respective city centres.

Businesses can benefit from Anglo Scottish’s clean air zone services which include, grant application assistance towards the acquisition of new compliant vehicles, retrospective grant applications for vehicles already purchased, financing to spread the cost, and vehicle sales/part exchange facility to source and replace their existing vehicles.

“We’re delighted to be working with Newcastle City and Gateshead councils to support businesses in becoming clean air compliant.” Commented David Foster, MD at Anglo Scottish.

“As a North East based business, we already deal with many companies who regularly drive in and out of the city centre, and the Anglo Scottish team is in a fantastic position both in our expertise and geographical location to be able to support all affected businesses with our “one-stop-shop” solution of grant assistance, cost-effective finance, and vehicle sourcing to reduce the pressures on businesses”

A spokesperson for Newcastle and Gateshead councils, said: “Poor air quality has a serious impact on people’s health and one of the ways in which we are seeking to address this is by introducing a Clean Air Zone.

“This will help to reduce harmful emissions by encouraging individuals and businesses to upgrade and replace older, higher polluting vehicles – with financial assistance available to help towards the cost of doing so.

“We’re pleased to be working with Anglo Scottish to deliver these funds to local businesses.”

Automakers told they can cut material emissions by 60% by 2040

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By WhichEV

Electric vehicles are easier to design, easier to make and easier to maintain. However, they have forced every major car company to reconsider their manufacturing processes and supply chains – because of the new technologies being developed and used.

Across the whole of the automotive sector, 30% of the world’s pollution emissions are created. That’s something that car makers are addressing as they prepare for the manufacturing processes of tomorrow.

The move to electricity takes care of a lot of the emissions from fuel oils, but what about the manufacturing process itself?

Specialist consultancy Bain & Company, help major organisations ‘think differently’ about the markets in which they operate and to give fresh consideration to how they do business at all. Bain & Company call this new way of thinking an ‘insurgent mindset’ and they have been helping companies reinvent themselves since 1973.

A new analysis by Bain & Company shows that the European automotive sector could reduce emissions associated with materials used to produce vehicles, by up to 60% before 2040.

Read the full story over at WhichEV…

Breedon fleet cuts emissions and idling time with driver rewards tech

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Leading construction materials group Breedon has succeeded in introducing significant improvements to its fleet of delivery vehicles with the help of Lightfoot’s pioneering real-time in-cab driver coaching technology.

Instances of aggressive and inefficient driving have been dramatically reduced, resulting in a 12.2% fall in fuel costs, a 10.9% drop in carbon emissions, and a 24% reduction in pollution caused by vehicle idling. Over the next 5 years, Breedon is on target to reduce fleet CO2 emissions by 1,651 tonnes – the equivalent of removing 359 passenger vehicles from the road.

Lightfoot’s fleet management system works by providing drivers with visual and verbal feedback as they travel, helping them to correct their driving in the moment and adopt a safer, smoother style. Better driving is incentivised through the Lightfoot Driver App, which rewards drivers who reach the performance target with weekly giveaways, exclusive discounts, and top spots on the leaderboard.

Installed across Breedon’s 380-strong fleet, Lightfoot has been key to improving driver safety. Within a month of being fitted, aggressive driving had decreased by 80%, with harsh acceleration falling by 63%, severe braking by 28%, and cornering at speed by 19%.

Learn more about Breedon’s achievements with Lightfoot here.

Find out how much you could lower your fleet’s fuel consumption today

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Lightfoot’s fuel and emissions calculator will show you how much your fleet could be saving simply by training your drivers on the go and helping them to drive more efficiently in real-time.

The green tech company’s game-changing in-cab driver coaching technology helps create cleaner, greener fleets by steering drivers towards a smoother driving style through real-time feedback. By correcting harsh driving behaviours in the moment, Lightfoot can make a tangible difference to fleet performance without the need for any awkward conversations, time-heavy data analysis, or long-winded training courses.

The result is a 15% average saving on fuel expenses across the fleet, which can make a significant difference to a business’s bottom line. More importantly however, by training drivers to handle their vehicles in a more efficient, eco-conscious manner, Lightfoot helps fleets reduce their CO2 emissions by as much as 15%. This goes a considerable way in helping businesses move towards their decarbonisation goals and reduce the carbon footprint of their fleet.

See the difference it could make to your fleet by trying out the calculator for yourself here.

Greener Transport Solutions lobbies Chancellor on carbon tax

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Greener Transport Solutions has called on the Chancellor to introduce a ‘universal carbon allowance’ to help households cope with the cost-of-living crisis and accelerate the transition to net zero.

The not-for-profit cites the war in Ukraine means that oil and gas prices have risen sharply, whilst food prices have hit record highs, while last week the cost of filling up an average family car with petrol hit £100 for the first time and inflation is expected to reach 10% later this year – and as high as 14% for poorer households.

On 26th May the Chancellor announced a £21 billion package to help households with their energy bills. However, Greener Transport Solutions says further measures are likely to be needed by the autumn and has asked how the Chancellor will ensure the right level of targeted support for those who most need it whilst avoiding inflationary pressures in the economy.

Its answer is to urge the Chancellor to develop a strategy to tackle the cost-of-living crisis that will accelerate the transition to net zero and protect our energy security. Namely, he should introduce a universal carbon allowance for every individual in the UK funded by putting a carbon price on everything we consume.

This would be a very progressive measure, the organisation claims. Individuals on higher incomes would pay more in carbon tax through all the goods and services they buy, whilst receiving the same fixed allowance as those on lower incomes. According to the Treasury’s Net Zero Review, higher income households consume three times more carbon than lower income households.

The IPCC has warned “now or never” if world is to avoid climate disaster. To avoid overshooting 1.5C global emissions must peak before 2025 and fall by 43% by 2030.  Such rapid emissions reduction is possible but only if every sector of the economy is targeted. Reducing energy demand across all sectors could deliver a 40-70 per cent reduction in greenhouse gas emissions by 2050.

Greener Transport Solutions has published a report on its ‘Pathways to Net Zero’ roundtable discussion series investigating how to decarbonise transport.

The key conclusion is that we are not seeing anywhere near the scale of change needed to achieve our net zero targets for transport.  Lack of leadership and lack of joined-up thinking undermines net zero ambitions. Spending is skewed towards road building and unsustainable transport policies.  We are still building car dependent housing developments. It says urgent focus is needed on traffic reduction.

Claire Haigh, Founder & CEO of Greener Transport Solutions, said: “The transport sector on its own cannot achieve net zero.  It’s clear that we urgently need a new approach.  We need a solution for the whole economy.

“The current crises we face all demonstrate that we must break our dependency on fossil fuels.  If we are to wean ourselves off fossil fuels, we must price properly for carbon.  This will generate the revenue needed to tackle the cost-of-living crisis.

“Record high fuel and energy prices are a game-changer.  We urge the Chancellor to seize the opportunity to tackle the cost-of-living crisis, shore up our energy security and accelerate the transition to net zero at the same time.”

The case for decarbonising existing fleet vehicles

 960 640 Stuart O'Brien
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Lightfoot have launched their latest video titled ‘Doing Nothing Is Not An Option’, the video makes the case for actively decarbonising existing ICE vehicles within fleets whilst concurrently planning for the electric future.

Whilst the transition to EVs is the accepted long-term solution for the fleet industry, the reality is that the supply of electric vehicles is not currently available for an all-out adoption of EV fleets, and many fleets simply do not have the resources or infrastructure to go fully electric today.

Instead of making future plans to tackle decarbonisation solely through the eventual replacement of ICE vehicles with EVs, industry-leading green-tech provider Lightfoot argues that fleets should instead be looking to their existing fleet vehicles to reduce emissions, reduce fuel consumption, and take action now to protect the planet.

Watch the video to learn more.