Shell Report Reveals Key to Net-Zero Fleet Management
There are approximately 1.3 billion cars and 70 million trucks on the road, a rising number which reflects their essential place in our daily lives.
It is also a figure which accounts for a significant contribution to global greenhouse gas emissions; 11% in 2023.
Shell’s new Fleet Decarbonisation Report shows how businesses can leverage available energy solutions to move towards net-zero emissions by analysing their fleet data.
This data helps assess operations, build decarbonisation roadmaps and identify suitable energy solutions.
Geotab, a leading global commercial fleet telematics provider, is already seeing evidence of fleet operators using data for decarbonisation purposes; 70% of its telematics subscribers used at least one sustainable fleet solution in 2023.
Shell’s Accelerate to Zero (A2Z) programme, in partnership with Geotab, helps businesses utilise their fleet data to implement effective energy solutions and transition towards sustainability.
“The only way to understand how we are progressing against ambitious sustainability goals is through management and measurement,” says Neil Cawse, Founder and CEO at Geotab.
“In fact, according to our own data, 69% of fleet managers reported that fleet sustainability data helped reduce operating costs within the first year of implementation.
“Fleets that are empowered with data can make better decisions, and are more transparent and accountable on their sustainability journey.
“At Geotab, we are seeing the impressive impact that data-driven insights and AI are having in advancing fleet decarbonisation across the globe.”
Digitisation is the key to sustainability
Shell’s research indicates that ineffective data collation is a significant barrier to digitisation for 15% of delivery fleets, 13% of professional fleets and 10% of operational fleets- hampering sustainability efforts.
Integrated solutions, such as Shell Fleet Insights, combine telematics with fuel and charging data to provide a comprehensive view of operations.
This streamlines data integration, enabling fleet managers to make informed, sustainable decisions.
Telematics provides fleet managers with real-time, actionable data, aiding in decarbonisation decisions. Shell outlines that this fleet data can give professionals insights into EV suitability assessments, total cost of ownership calculations and CO₂ emissions benchmarking, to ensure they can make informed decisions.
It can help decide if a vehicle is suitable for electrification; for example, 81% of medium-duty trucks drive less than 150 miles daily, while 58% of heavy-duty trucks drive less than 200 miles a day – making them more suitable for electrification.
Additionally, the report outlines telematics with Gen AI-enabled analysis can be a powerful tool for analysing vehicle data generated by telematics solutions.
In sifting through data such as predictive maintenance information, trip data, EV statistics and GPS, AI tools (including Geotab Ace) can ensure fleet managers get the insights they need faster.
Fleet electrification
The report from Shell also described its decarbonisation roadmap to implement energy solutions for the company's fleets.
Geotab's data shows 40% of light-duty fleets could reduce CO₂ emissions, making electrification a key pathway to its sustainability goals.
Heavy-duty vehicles, for which electrification isn't yet feasible, can adopt lower-carbon alternatives such as renewable diesel (hydrotreated vegetable oil from waste materials) and bio-LNG (from organic waste).
Once these new energy solutions are adopted, Shell says companies should continuously monitor and analyse data to help fleet managers identify further emission reduction opportunities, ensure investment returns, comply with evolving policies, manage new vehicles efficiently and provide credible ESG reporting.
Effective data use also optimises EV charging schedules, such as charging outside core hours to reduce costs and manage grid usage.
“In Malaysia, DHL Express has around 350 last-mile delivery vehicles, so decarbonising our fleet is a top priority," addss Julian Neo, Managing Director for DHL Express Malaysia.
"Through our collaboration with Shell, we are on our way.
"The Accelerate to Zero programme provides us with a roadmap of actionable recommendations, the charge points installed by Shell Fleet Solutions in our depot are vital for managing our EV fleet, and the Shell Card and Shell Fleet Hub facilitate better cash flow and operational insights.
"All of this makes us nimble and improves service quality.”
Shell’s Accelerate to Zero programme
In the report, Shell not only outlines what businesses could (and should) be doing to future-proof their supply chain fleets, but also presents a solution; the Accelerate to Zero programme.
It is designed to provide fleets with the support and direction they need to select and implement customised energy solutions, based on their specific operational needs.
Shell's programme offers data-driven tools like Shell Fleet Insights to assess businesses' operational needs for adopting EVs and alternative fuels and provides expert consultancy to transform data into actionable insights, creating tailored decarbonisation roadmaps.
The programme also grants access to comprehensive mobility solutions, including EV charging networks, infrastructure, alternative fuels and carbon compensation, to help reduce fleet emissions.
Additionally, it offers integrated reporting on cost management, investment and carbon reduction to track and analyse the financial impact of decarbonisation efforts.
These new insights from Shell's Fleet Decarbonisation Report reveal key takeaways for supply chain leaders, equipping them with the knowledge to use data to achieve their net-zero goals.
******
Check out the latest edition of Supply Chain Magazine and sign up to our global conference series – Procurement and Supply Chain LIVE 2024.
******
Supply Chain Digital is a BizClik brand.
- Starbucks Leads the way in Sustainable Coffee Supply ChainsSustainability
- DS Smith: Examining the UK's Plastic Packaging ProblemSustainability
- Are Companies Prepared for the EU’s CSDDD Regulations?Sustainability
- Assent: Why Trade Restrictions Must be on Your RadarSupply Chain Risk Management