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Understanding ESG criteria for vehicle fleets

Understanding ESG criteria for vehicle fleets

BD
Bertrand Deguerne
Bertrand Deguerne
 ・ 
esg criteria for vehicle fleets

Environmental, Social and Governance (ESG) criteria are playing an increasingly important role in the management of professional fleets. fleets. For companies, adopting a robust ESG strategy is no longer just a question of image, but an imperative for meeting stakeholder expectations, reducing carbon footprints and aligning with current regulations. Let's discover the implications of ESG criteria for fleet managers, the sustainable solutions available, and the benefits of a well-integrated ESG approach.

What are ESG criteria?

ESG criteria are based on three main pillars:

  • Environmental: this pillar focuses on managing environmental impacts, such as greenhouse gas (GHG) emissions, energy consumption and the use of natural resources. For a fleet, this means reducing carbon emissions, promoting energy efficiency and adopting low-emission vehicles.
  • Social: this encompasses aspects relating to employee well-being, human rights and community involvement. For fleets, this could include road safety initiatives, driver training and, more broadly, improving working conditions.
  • Governance: this pillar concerns management practices, transparency and ethical decision-making. For a fleet, good governance means rigorous management, compliance with regulations and transparent communication with stakeholders.

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The importance of ESG criteria for automotive fleets

By integrating ESG criteria, fleet managers can not only reduce carbon emissions, but also improve their company's image and meet the growing expectations of stakeholders.

Reducing emissions and optimizing costs

Car fleets account for a significant proportion of corporate CO2 emissions. To better understand and manage these emissions, 3 categories of energy expenditure have been established: Scopes 1, 2 and 3:

  • Scope 1: includes direct emissions from activities controlled by the company, such as emissions from vehicles in the company fleet.
  • Scope 2: concerns indirect emissions linked to the energy purchased and consumed by the company, for example, the electricity used to recharge a fleet of electric vehicles.
  • Scope 3: represents other indirect emissions, which are the most complex to quantify. They include emissions linked to the supply chain, the use of products sold, and business travel.

The adoption of electric vehicles, combined with the installation of charging stations, is a key solution for reducing these emissions. Not only do these actions help to reduce the company's carbon footprint, but they also make it possible to benefit from tax incentives and reduce fleet management costs (TCO - Total Cost of Ownership).

Improved corporate image

Adopting an ESG strategy for fleet management has a direct and significant impact on a company's image. In a context where sustainability is increasingly valued by consumers, investors and business partners, positioning oneself as a responsible company has become a major asset. Companies that integrate ESG criteria into their fleet management tend to be perceived as industry leaders and committed to the fight against climate change.

This positive perception translates into greater attractiveness for talent, particularly among the new generations of professionals who are looking for employers aligned with their values. What's more, a solid ESG approach can strengthen the loyalty of existing customers and attract new ones keen to work with responsible companies. At the same time, institutional investors are increasingly attentive to companies' ESG performance, and therefore more likely to favor those that demonstrate a clear commitment to sustainability.

Regulatory compliance

With the increase in environmental regulations, particularly concerning the reduction of greenhouse gas emissions, integrating ESG criteria into fleet management enables us to keep in step with current and future legal requirements.

In France, laws on the greening of fleets, such as the LOM Lawthe Climate and Resilience Law or even the CSRD directivedirective, impose strict targets for reducing GHG emissions, particularly for companies with large vehicle fleets. These regulations aim to accelerate the transition to more sustainable mobility, by encouraging companies to adopt low-emission vehicles and invest in electric vehicle recharging infrastructures.

Anticipating future regulations by integrating ESG criteria into fleet management now enables companies to prepare for regulatory changes, reducing the risk of having to make costly adjustments in a hurry. By being proactive in their compliance, companies secure their operations over the long term. In this way, they position themselves as responsible players committed to the energy transition.

How can ESG criteria be integrated into fleet management?

Complying with ESG criteria in fleet management means rethinking choices in terms of vehicles, driver training and infrastructure, while taking economic and environmental issues into account.

Transition to electric vehicles

To reduce emissions, the transition to electric vehicles is essential. This involves not only the purchase of these vehicles, but also the provision of a suitable recharging infrastructure. Companies need to plan for the installation of charging stations on their sites, and encourage drivers to use public charging solutions where appropriate.

Optimizing vehicle use

Efficient fleet management involves optimizing vehicle utilization. This includes mileage tracking, predictive maintenance and the use of fleet management solutions (ERP) to reduce operational costs. In addition, the use of data to assess and improve vehicle performance in terms of fuel efficiency is a plus.

Driver training and awareness

Training drivers in eco-driving and raising their awareness of ESG issues are important steps in reducing the fleet's carbon footprint. Training programs can include modules on the optimal use of electric vehicles, range management, and safe and eco-friendly driving practices.

The long-term benefits of an ESG strategy for fleets

By adopting an ESG strategy, fleet managers can transform their operations into an engine for increased competitiveness, while reinforcing their commitment to more responsible mobility.

TCO reduction

ESG criteria for fleet management can considerably reduce TCO. Electric vehicles, while requiring a higher initial investment, offer lower operating costs thanks to lower energy consumption and reduced maintenance costs. What's more, tax incentives for companies adopting low-emission vehicles further enhance the economic attractiveness of this transition.

Improving the company's overall ESG performance

Integrating ESG criteria into fleet management contributes to a higher rating, an important factor in attracting new investors. It also helps companies to better manage environmental and social risks, while positioning themselves as responsible, forward-thinking players.

Strengthening competitiveness

Companies that make a serious commitment to an ESG strategy strengthen their competitiveness in the marketplace. They benefit not only from a better brand image, but also from greater resilience in the face of crises and regulatory changes. What's more, they can take advantage of new business opportunities linked to sustainable mobility and the green economy.

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