By Alain Samaha, CEO of Teletrac Navman

Across the industry, the conversation around energy transition is more prevalent than ever, not just because of government policy, but because customers are demanding it.

Teletrac Navman recently conducted market research which found that 63% of fleets identified customer demand as a key driver in the transition to alternative energy sources, noting that it was also impacting the speed of their transition. This figure indicates a significant shift in the industry’s approach to transition; the issue of sustainability has moved beyond just the realm of government regulation and into the arena of customer opinion.

But what is driving this shift? Brand reputation and commercial advantage. More than half of the businesses we surveyed (58%) cited their own brand reputation and internal sustainability goals as the leading driver in their energy transition, while only 29% suggested regulatory pressure and government mandates were guiding their decisions towards net zero.

A decarbonised operation has now evolved from a future goal into a present-day brand differentiator and fleets are noticing this shift and adapting. Fleets are moving away from the notion that sustainability goals are just a regulatory hurdle for their business and instead recognising them as a pivotal requirement for their customers, with many businesses integrating sustainability goals and credentials as part of their brand identity and values.

Moreover, over half (61%) of the fleets we researched said they are making investments in more fuel-efficient vehicles, or switching to those using alternative fuels, indicating an important focus on the type of vehicle being utilised and a sign that businesses are responding to increasing customer expectations for low-carbon emission operations. This shift towards mixed-energy fleets is not just a matter of operational flexibility, but a strategic approach by businesses to show a demonstrable response to achieve a decarbonised operation, all with the aim of growing their customer portfolio through a proven commitment to delivering a sustainable fleet.

While there is no one-size-fits-all approach to reaching net zero and questions still remain about the pace and feasibility of its adoption, what is increasingly becoming clear is that customer expectation is outpacing government mandates as the driver for fleets to meet net zero. Fleets that are sitting at the forefront of their peers are the ones viewing decarbonisation not just as an environmental responsibility but as a strategic advantage for their business.

Operators must ground their decisions in accurate data and insights which will allow them to shape and deliver their energy transition effectively and efficiently, aligning their business needs with their sustainability goals and customer and prospect requirements.