Survey shows: Fleet emissions knowledge emerges as critical piece in puzzle to attain CO₂ targets

MUNICH 04/04/2023 – Sustainability is one of the most important aspect in decision-making for companies in the EU: But while every second company has set concrete CO₂ targets for the future, only one third of them are actually monitoring their CO₂ emissions. This is just one finding of the European Fleet Emission Monitor by Alphabet (EFEM)*. These and further results from the survey reveal: The industry lacks a holistic tool to measure and thus successfully reduce CO₂ emissions to meet sustainability goals.

Within European-based companies, sustainability has gained space in business strategies. Alphabet took this to learn more about it and therefore collected and released the European Fleet Emission Monitor (EFEM) a survey throughout more than 700 fleet managers in Europe. As claimed by the findings of this study, companies may need to adopt a more comprehensive approach to achieve their sustainability goals. It aimed to determine if companies are meeting their sustainability targets and identified overall the need for a holistic tool to measure and reduce CO₂ emissions. According to the survey, while 51% of companies acknowledge the significance of sustainability in their business decisions, only 37% of them actively monitor their emissions.

Remarkably, 17% of companies surveyed had no knowledge of their CO₂ emissions at all. These results indicate that many companies may not be taking adequate measures to track and reduce their carbon footprint, despite recognising the importance of sustainability in their operations.

„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 Alphabet International. “Fleet planning is a great example for how challenging it can be to bring economic efficiency or profitability in balance with a sustainability-oriented business model. Success and sustainability need to be compatible, and it can be. The first step is to provide a system that allows fleet managers to draw a reliable picture of their status quo and make changes accordingly.”

Sustainability is a potential deal-breaker

Despite 61% of companies acknowledging the importance of sustainability in their fleet planning, the majority still neglect CO₂ monitoring, as indicated by the data. Sustainability is recognised as one of the most crucial factors for fleet managers, with nearly the same number (60%) acknowledging its overall significance in making business decisions. Another 38% are aware of its importance and discuss it, but do not always consider sustainability when making decisions. Only 9.6% of companies explicitly stated that they would not consider sustainability in their company-wide decisions.

Companies need to know their numbers

Four out of five Alphabet customers in Europe consider the reduction of CO₂ emissions of their fleet important. In fact, 51% of these customers have established specific CO₂ goals for the future, with over a third targeting these goals within the next two to five years. To achieve their emissions targets, companies must monitor their fleet's CO₂ emissions. However, almost 20% of the companies surveyed do not monitor their emissions at all. On the other hand, only 37% of companies currently monitor their fleet's emissions.

Those who do not have a suitable monitoring solution use their own calculations based on fuel consumption data (48.3%), while another third rely on manufacturer data collected still in excel sheets (31.3%).

“By truly understanding and valuing our customers, we've identified a pressing need for a comprehensive and user-friendly CO2 monitoring solution," states Andreas Baron, Sustainability and Consulting expert at Alphabet. This is also due to the upcoming CSRD (Corporate Sustainability Reporting Directive) obligation from 2024 onwards especially for corporate customers. "Our aim is to guide fleet and sustainability managers towards their CO2 objectives, and the initial stride towards achieving this is to provide a reliable system that offers a clear snapshot of their current standing and enables them to make sustainable modifications. That's why Alphabet is investing and teaming up with an esteemed external partner to develop an innovative CO2 tool that empowers fleet managers to make conscientious and meaningful decisions. In the upcoming weeks and months we will present more exciting updates about our new collaboration". With Alphabet's forthcoming cutting-edge solution, fleet managers will have the power to balance economic efficiency with sustainable practices, making well-informed choices with ease.

Electrification still biggest challenge

The report's findings underlines the importance of electrification for customers' journey towards sustainability. A staggering 69% of customers believe that their fleets will eventually be fully electrified, with 30% expecting their fleets to be completely petrol- and diesel-free within the next six to ten years. Despite this optimism, the survey also revealed significant challenges that must be addressed before electrified fleets become a reality. An overwhelming 94% of fleet managers cited major obstacles in their path towards electrification, with range (38%) and charging infrastructure (36%) topping the list respectively. Additionally, employer reluctance to switch from traditional vehicles was identified as a concern by 6.8% of those surveyed. It's clear that while electrification is on the horizon, there is still much work to be done to overcome these obstacles and make sustainable fleets a reality.

“I believe the survey is a kind of wake-up call for companies to take immediate action 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”, states Markus Deusing.

Please download the full “European Fleet Emission Monitor” here.

*Survey conducted in Q4 of 2022 among Alphabet customers (fleet managers) in 12 European countries.

About Alphabet

Alphabet is a leading global provider of business mobility solutions. Founded in 1997 in the UK as a division of the BMW Group, Alphabet's expertise in car and commercial vehicle management helps companies to manage their corporate mobility in an effective and sustainable way. Future orientation and responsible action have always been the basis of Alphabet's economic success. With its portfolio of innovative, digital, and flexible mobility options, Alphabet is driving the sustainable change: With Alphabet Rent, Alphabet Mobility Budget, Alphabet App and its holistic approach including the comprehensive E-Mobility consulting for a tailored and individual electrification strategy, Alphabet helps its customers to reduce their carbon footprint and to build a better future of mobility.

Today, Alphabet manages a portfolio of around 700,000 leased cars and light commercial vehicles of all makes in 33 countries and has its headquarters in Munich, Germany. As a company of the BMW Group, Alphabet meets the same high quality and process standards as the parent company. For more information, please visit alphabet.com.