Sustainability is a top priority for European businesses, but many are still unaware of the environmental impact of their fleet operations.

Alphabet is planning a new tool that will help fleet managers balance economic efficiency with sustainable practices

A new study by Alphabet found that while every second company (51%) has set concrete CO2 targets for the future, only a third (37%) are actively monitoring their fleet emissions and 17% have no knowledge of them whatsoever.

Promisingly, the study – carried out among over 700 corporate fleet managers from 12 countries – found reducing fleet CO2 emissions is a key focus for 83% of companies surveyed. In fact, more than half of these businesses have set specific CO2 goals for the future, with over a third aiming to achieve them within the next two to five years.

Yet without vital information from monitoring emissions, businesses have no way of knowing if they’re on track to achieve their goals or what measures to adjust in order to reach them.

When it comes to those companies that are monitoring fleet CO₂ emissions, a significant number (48%) do not use a suitable fleet management tool and rely on their own calculations based purely on fuel consumption data instead. While a further 31% turn to manufacturer data collected in Excel spreadsheets.

The company said the results show a pressing need for a comprehensive and user-friendly CO2 monitoring solution – particularly with the EU Corporate Sustainability Reporting Directive (CSRD) coming into effect from 2024.

It’s something that the company is looking to tackle with a comprehensive monitoring tool to support organisations with tracking and reducing CO2 emissions

Andreas Baron, sustainability and consulting expert at Alphabet International, said: “Our aim is to guide fleet and sustainability managers towards their CO2 objectives, and an important initial stride towards achieving this is ensuring they have access to a reliable system that gives them a clear snapshot of their current position and enables them to adjust their fleet accordingly.

“That’s why Alphabet is investing in a new CO2 monitoring tool. We’re teaming up with an esteemed external partner to develop an innovative offering that empowers fleet managers.”

More details will be announced in the coming months but Alphabet says the tool will help fleet managers balance economic efficiency with sustainable practices and make well-informed, meaningful decisions with ease.

Electrification still a major challenge

Alphabet’s survey results also underline the importance of electrification. According to the study, the majority (69%) of decision-makers believe their fleet will be fully electrified in the future; 30% anticipate it being entirely free of petrol and diesel vehicles within the next six to ten years and 29% expect to make the switch in less than five years.

But there are still significant barriers to electrification. Fewer than 1% of companies surveyed have fully transitioned to EVs, and an overwhelming 94% of fleet managers see challenges on the road to zero with range and charging infrastructure topping the list of concerns. Employee reluctance to transition from traditional ICE vehicles was also identified as a major obstacle by 7% of respondents.

While it’s clear that fully electrified fleets are on the horizon, there is still much work to be done to overcome these roadblocks and make sustainable fleets a reality for the majority.

“We are witnessing a shift in economic thinking. Sustainability has gained a much higher significance in decision-making over the past couple of years,” says Markus Deusing, CEO of Alphabet International.

“Fleet planning is a great example of how challenging it can be to bring economic efficiency or profitability in balance with a sustainability-orientated business model. Success and sustainability need to be compatible, and they can be. The first step is to make sure fleet managers have access to a system that allows them to fully understand their status quo and make changes accordingly.”

Deusing added that the survey results serve as a call to action for companies to take immediate steps to reduce their emissions and adopt a more sustainable approach.

“It is the responsibility of all of us to lead by example and implement measures that help create a greener future for generations to come,” he concluded.

Alphabet’s full European Fleet Emission Monitor report is available to download here.