European fleets face electrification challenges and opportunities, study shows.

European fleets are increasingly focusing on sustainability as a top priority, but many are not fully prepared to tackle the challenges posed by electrification, according to a recent study conducted by Alphabet.
Alphabet, a leasing giant, conducted its second annual European Fleet Emission Monitor (EFEM), surveying over 1,000 decision-makers across 12 European countries, including EU and non-EU countries like Switzerland and the UK.
The results of the study highlighted the complex obstacles facing companies, from digital transformation hurdles to challenges in adopting e-mobility, raising questions about their readiness to align with and leverage regulatory standards for environmental goals.
The research revealed that 64% of European businesses now consider sustainable fleets a strategic goal, a slight increase from 61% in the previous year. Additionally, 62% of companies aspire to transition to fully electric fleets.
Despite the growing interest in sustainability, over half of fleet managers (56%) do not view the EU’s Corporate Sustainability Reporting Directive (CSRD) as a major incentive for improving sustainability measures, particularly in terms of collecting CO2 emission data.
Under the CRSD, businesses operating in the EU will be required to report their fleet emissions and work towards reducing their CO2 output by 2025. This upcoming regulation underscores the importance for businesses to understand their fleet data and have a solid electrification plan in place.
Markus Deusing, CEO of Alphabet International, emphasised that transitioning to a carbon-neutral fleet is a gradual and challenging process that requires significant effort. Companies will now be obligated to disclose their progress under the CSRD, highlighting the need to reduce CO2 emissions and move towards electrification.
The study highlighted a positive trend towards reducing vehicle emissions, with half of the companies committing to lower their emissions. In addition, there has been a 5% increase in leaders monitoring their emission goals, with 42% of companies actively working towards reducing CO2 output to below 100g/km.
However, the study also revealed that many companies are struggling with digital fleet management and data analysis. A concerning 22% of companies reported not being able to accurately determine their fleet’s CO2 emissions due to insufficient digitalisation.
While specialised fleet management tools can help bridge this gap by providing reliable data, only three out of 10 fleet managers currently utilise such tools to measure and analyse CO2 emissions.
Deusing further explained that companies are missing out on valuable insights by not leveraging data analysis for sustainability reports and optimizing their drivetrain mix.
Despite the growing interest in fleet electrification, the study found that fewer companies (62%) now believe they can transition to fully electric fleets in the future, marking a decrease from the previous year. This shift may indicate a lack of understanding of the complexities involved.
Challenges in adopting electric vehicles still include concerns about charging infrastructure and perceived range limitations.
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