Tom Middleditch, head of electric mobility at Europcar, assesses the supply chain conundrum for the EV transition. Following the government announcement in April regarding the ZEV mandate and
Tom Middleditch, head of electric mobility at Europcar, assesses the supply chain conundrum for the EV transition.
Following the government announcement in April regarding the ZEV mandate and the adjustment of the deadlines for the ban on the sale of plug-in hybrid and hybrid vehicles, there is an argument to say SMEs may have taken their foot off the EV pedal. And this situation could present a potential risk to lucrative contracts as Scope 3 emissions become a focus for major businesses.
According to a report by sustainability consultancy Sphera, the number of companies reporting their Scope 3 carbon emissions globally has grown by 27% over the past year. This focus on an organisation’s supply chain will inevitably put pressure on all businesses to demonstrate they are acting in their clients’ best interests.
Unquestionably, the Government’s plans to relax the ZEV mandate targets provided the automotive sector with some much-needed clarity and support. However, as a result of this move, it’s highly likely that the small- and medium-sized operations that are the backbone of the UK economy will be less motivated to make the switch to zero tailpipe emissions in the near future.
You can’t argue with the logic that, for smaller operations, being given more time to make the switch will help manage financial pressures as well as allow for the technology and infrastructure to develop further. However, there’s an important issue we believe some SMEs may not be considering as they delay their EV adoption plans: Scope 3 emissions.
As more big businesses consider the reputational issues around emissions, as well as having a moral desire to ‘do the right thing’, indirect greenhouse gas (GHG) emissions from sources within their supply chain that they do not own or control, but are still related to their activities – otherwise known as Scope 3 emissions – will become an urgent talking point. And scrutiny of their activities, upstream and downstream, will come under the spotlight – including transportation and distribution. Contracts with SMEs providing these services could, therefore, come sharply into focus.
So the question is how can SME fleet decision-makers – who are already facing multiple demands to manage costs and ensure that mobility solutions do not impact on productivity – address the Scope 3 emissions issue without making a wholesale switch to EV? And how can they do this while winning over the hearts and minds of drivers?
We believe the best way to understand how electric is going to work for certain parts of an organisation’s fleet is to experience it, using rental solutions.
Not only will this help a business to understand any operational adjustments that might need to be made; it will also help get drivers behind the wheel for a first-hand experience. And, crucially, it will enable an organisation to respond to Scope 3 emissions requirements without any long-term commitments typical of leasing.
Indeed, it could be an ideal solution where new contracts can only be won if electric vehicles are a guaranteed component.
