April 22, 2024 Beyond the EV: Taking Control of Sustainability Programs

Companies looking to set and meet sustainability goals must build a program informed by personalized data.

By Jon Bernstein, VP of Product Management at Motus

There’s no doubt that the rise of electric vehicles (EVs) has had a considerable impact on companies’ approaches to sustainability. After all, a record 1.2 million EVs were sold in the U.S. in 2023, according to estimates from Kelly Blue Book. The growth doesn’t stop there, revenue is expected to show an annual increase of 18%, meaning that by 2028 – market volume will reach $161 billion. By that year, projections estimate nearly 2.5 million EVs putting tires to the road.

Naturally, companies are looking for ways to incorporate EVs into their sustainability goals, as a way to lower carbon emissions. Vehicles are a great place to start when seeking to diminish carbon output, as road travel accounts for three-quarters of transport emissions, most coming from passenger vehicles – cars and buses – which contributes 45.1%. Turning to EVs makes a great deal of sense but cannot be treated as a fix-all. For starters, manufacturers are finding that they are able to produce EVs significantly quicker than they can sell them. People are not yet buying at the desired rate for cutting companies’ carbon output, meaning programs that are over-reliant on EVs may find themselves falling short of sustainability targets.

Companies looking to set and meet sustainability goals must build a program informed by personalized data instead of continuing to create targets without clear guidance on how to achieve them. While 100% electrification by 2030 can be inspiring and motivating, failing to meet lofty goals has the reverse effect. A truly strong sustainability program doesn’t just rely on implementing EVs, it can be flexible both in terms of vehicle type, as well as the optimal ways to reduce carbon output.

Grey fleet emissions monitoring helps companies go green

Setting sustainability goals may seem like an easy step one, but those goals must be informed and rooted in substance. It’s important to determine contributors to the company’s current carbon footprint; evaluating industry compliance standards, timelines, and current metrics are necessary. Exploring existing company output will make the roadmap to sustainability far easier to follow. By establishing areas for improvement, companies can utilize data to make key decisions and guide best practices.

It can be difficult to understand the measurable impact on emissions, particularly when it comes to miles driven and the CO2 impact they have on the environment. Rather than immediately turning to buying company EVs, grey fleets can offer an easier transition. Grey fleet vehicles, those that are personally owned by employees but are driven for work related purposes, combined with software that helps to capture, retain, and report against miles driven by vehicle type, offer emissions monitoring that provides the requisite information to action sustainability goals. More important than an influx of EVs is quantifying current vehicle emissions, inclusive of miles driven, EPA vehicle rating, and the CO2 output these vehicles are producing. Often CO2 output for non-EV vehicles can be sensitive to vehicle trim level, making it necessary to truly have minute vehicle type details (i.e. VIN #). A vehicle management software accurately measures and monitors grey fleet emissions, identifying vehicles based on CO2 emission inefficiency. This reporting provides baseline insights that companies can use strategically to truly meet company goals, instead of looking for potential shortcuts. 

Making the most of available data

Accurate and visible data is vital throughout each stage of the goal setting and evaluating process. By consolidating into a single source of truth, better data will be produced and help accurately plan for future initiatives, as well as track against current ones. When identifying areas for emissions improvement, leveraging data tracking software can offer real, actionable insight. This may look like reducing unneeded travel, reducing wasted fuel, and/or exploring electric alternatives.

As companies look to hit short term targets with an eye towards the future, reporting and bucketing are essential. It is important for organizations to understand the difference in EPA ratings for vehicles, which range from 1 (least clean) to 10 (best for the environment). Having visibility into which buckets current organization vehicles fall into, enables leaders to make a plan that can create real change. And of course, moving lower rated vehicles up the scale can lead to massive carbon savings. In practice, a level 5 vehicle that is driven 15,000 miles per year generates 5.5 metric tons of CO2. If that is a level 6 vehicle, it means 1.1 metric tons of carbon emission savings. That is a major difference in emissions by just moving a vehicle up one level. Having that level of data insight means that organizations can clearly quantify the targets they need to hit and take the tangible steps to hit goals.

In short, data helps companies align and meet their immediate, short term, and long-term initiatives. With emissions data reports, companies can identify vehicles that generate high greenhouse gas emissions and areas where a company can incentivize employees to drive more efficient vehicles – EVs or otherwise. With data as the backbone to sustainability efforts, companies can hone the ways they can lower carbon emissions, while doing so in a more informed manner.

The importance of hitting sustainability targets

Missing sustainability goals can be costly. It can mean increased pressure – internal or external, or a worsened public perception, all while not benefiting the planet as intended. Companies must use the tools at their disposal to hit emissions targets. Whether the end goal is to boost visibility into their organization’s CO2 emissions, create programs that encourage employees to adopt vehicles to help achieve carbon neutrality, or somewhere in between, it’s important to gain insight into fleet emissions and implement policies and incentives to move to more efficient vehicles. Using a data management system allows for a single source of truth that unites processes and communicates in real time. Through this infrastructure comes a more measurable outcome that helps better achieve future initiatives, and ultimately a better planet.

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