Thilo von Ulmenstein, managing partner, Fleetcompetence Group, on electrification and a wider mobility approach.

Thilo von Ulmenstein, managing partner, Fleetcompetence Group

The main issue that will concern us with increasing intensity over the coming years is climate change. Governments have already introduced measures, regulations and subsidies that will have a considerable influence on the actions of fleets. One example is the EU’s Green Deal – part of which targets the transport and mobility sector. Meanwhile, there are stricter regulations on CO2 emissions by fleets and the steering mechanisms of CO2 emissions trading. All of this will also have an impact on the operators of vehicle fleets.

If you think you are already going full steam ahead in converting your car fleet to electric vehicles, you might think you’re on the right track. Even if this is true in principle, this measure can only be a starting point. It is foreseeable that the regulatory and control measures will focus beyond the vehicle fleet on other emitting areas in the company.

CO2 emissions from company vehicles belong to the direct emissions listed in the so-called Scope 1 of the Greenhouse Gas Protocol. Scope 2 concerns purchased electricity, heat and steam. The most interesting area, however, is the so-called Scope 3, which includes waste disposal, use of sold products, transport and delivery (upstream and downstream) as well as business travel and commuting. Scope 3 emissions account for 75% or more of CO2 emissions for many companies. For example, if you look at Apple’s most recent Environmental Progress Report 2020, you can see that mobility in the context of business travel and commuting caused more than 30 times the CO2 emissions, compared with company cars.

Until now, companies have only had to report on Scope 1 emissions. However, the EU Commission’s initiatives are clearly aimed at an expansion that will make all listed companies obligated from 2026.

So, let’s get back to the conversion of the vehicle fleet to electric vehicles. Of course, this is a right and important step. But it can only be the first step on the way to reducing CO2 emissions in the context of mobility.

An Austrian fleet manager, who is responsible for more than 1,000 company cars, said to me two years ago: “I will never achieve the company’s goal of CO2 neutrality with the conversion of the vehicle fleet to electric vehicles alone. To do this, I have to look at all the mobility caused by our company.” He had clearly recognised that we are facing a huge change that requires us to revise our perspective on company vehicles only.

So it’s time to broaden the view beyond the vehicle fleet and develop a comprehensive mobility concept for the company. This means that companies need to be clear about how they can also implement changes in business travel. But above all, they must also focus on the ‘grey fleet’ of commuters or cash allowance takers. Also, examine how these employees can be made offers within the framework of an innovative mobility policy that reduce emissions. The pandemic has already brought about unintentional changes here, leading to a higher proportion of home office work. Because this avoids commuter mobility.

Embracing this change means thinking broadly. I was impressed to see how, in the context of one of our partners consulting projects in Spain, changes were considered deeply within the commuter population, designing a bundle of measures including job bikes, bus shuttle, business and private car sharing app. To get things started, a permanent mobility committee was established as well as a mobility newsletter.

There are a lot of approaches. Start develop creative concepts to meet challenges – before change is knocking at your door.