Transition to Green Logistics with Sustainable Fleet Management

Sustainability and CO₂ emissions are becoming increasingly relevant for companies. Until now, only about 500 companies in Germany were required to include sustainability information in their annual reports, and now small and medium-sized enterprises (SMEs) are also included, which poses a significant challenge for them. Heinz Rothmann, Project Manager EMEA at Powerfleet, reports on this.

By: Heinz Rothmann

(Woodcliff/Düsseldorf) According to the new EU directive, all large companies with more than 250 employees and a net turnover of over 40 million euros or a balance sheet total greater than 20 million euros will be required to report. For small and medium-sized enterprises (SMEs), the thresholds are 10 employees, 700,000 euros in net turnover, or 350,000 euros in balance sheet total. The new reporting obligation poses significant challenges, especially for SMEs.

Manufacturing companies are particularly affected. This is because production and transportation of goods generate a high CO₂ footprint that needs to be reduced. The share of electric vehicles in truck fleets has doubled since 2021, according to Statista. Nevertheless, the majority still uses diesel as fuel – according to the ACEA report, this was still 98 percent of all trucks in 2022. Only 0.1 percent of medium to heavy commercial vehicles are fully battery-powered.

Customers Prefer Sustainable Transport Solutions

However, the demands from customers and clients are increasing. They increasingly prefer sustainable transport solutions that save CO₂ in the supply chain. Electric or hydrogen-powered vehicles, energy costs, short transport routes, and sustainable packaging are just a few relevant areas that need optimization. Digital solutions that allow for the analysis of CO₂ footprint and material consumption are helpful in this regard. Based on this data, companies can identify savings potential – for example, in fuel consumption – and improve maintenance. They can also better comply with legal regulations, reduce their overall operating costs, and accelerate return on investment.

Calculating the CO₂ Footprint of a Fleet

The environmental impact of a fleet can be determined in two ways: through mathematical calculation or precise measurement. Mathematically, the CO₂ consumption is calculated from the average fuel consumption of the fleet and the CO₂ emissions per liter of fuel consumed.

However, the actual consumption of a fleet varies depending on the brand, model, and usage time of the vehicles and is also dependent on driving style. For an accurate calculation, it is therefore necessary to rely on historical data of the fleet. This provides the actual consumption, which can then be multiplied by the CO₂ values to calculate the fleet’s footprint. One liter of diesel corresponds to 2.68 kg of CO₂. For gasoline, the value is 2.31 kilograms per liter.

Intelligent Fleet Management Systems Can Communicate with Devices

Intelligent fleet management systems, such as the one from Powerfleet, can communicate with various IoT (Internet of Things) and telematics devices, including those from third parties, as well as with different vehicles and business systems. For this purpose, an IoT tracker is implemented in the vehicle, which monitors the driving time, distance, charge status, fuel consumption, and maintenance status of each asset. The tool provides parameters that go beyond those of the manufacturer (OEMs). Fleet managers receive valuable data-driven insights in real-time via a dashboard to make important decisions regarding the entire fleet as well as individual vehicles. In this way, a company can enhance its public reputation and improve employee loyalty, ultimately increasing its profits both quantitatively and qualitatively.

IoT Devices Collect Important Data

IoT devices collect important data and, when processed and evaluated, show the fleet manager, among other things, how many tons of CO₂ his fleet has emitted in total and how much could be saved. The real-time analysis is conducted in comparison to the initial data and values entered into the fleet management system, such as vehicle brand, model, year of manufacture, number of vehicles used, and their respective emissions. This automatically identifies and makes transparent vehicles with high and low emissions, meaning that major emission contributors can be quickly found. Based on these valuable insights and findings, informed actions can be taken regarding maintenance, replacement with more sustainable models, and switching to vehicles with alternative fuels.

Data-Driven Analyses of Driving Behavior

Data-driven analyses of driving behavior also provide insightful indications of the emissions generated and whether they exceed the average value. Tracking the charge status, driving speed, hard braking and acceleration, as well as other measurements inform fleet managers about traffic situations and driving styles. As soon as established thresholds for fuel consumption or driving speed are exceeded, they automatically receive a warning message. They can immediately initiate appropriate measures – such as improvements in route planning or training for drivers. Additionally, heavy loading, long distances, and empty trips unnecessarily increase CO₂ emissions.

Logistics companies should regularly review their fleets to determine when which vehicles should be replaced with models with alternative drives to reduce fuel consumption and CO₂ emissions. Real-time analyses of vehicle utilization and regular monitoring of driving behavior are helpful in this regard. The age and maintenance status of the vehicles also play a significant role in decisions regarding, for example, a transition to electric vehicles.

Green Fleets as Business Drivers

Climate change, political initiatives to reduce emissions, increasing societal pressure, and the demand for environmentally friendly measures: Sustainable technologies have also become an important motivational factor for decision-makers in logistics. Offering green technologies that benefit not only the fleet and employees but also align all business processes with the ESG strategy is now essential. The use of IoT significantly supports the ESG initiatives of companies through deep, valuable insights into vehicle and driving behavior and contributes to the restructuring of fleets towards a green logistics company of the future.

Photos/Graphics: © Powerfleet

Heinz Rothmann is Project Manager EMEA at Powerfleet.

He has been working in the company for about 15 years,
initially as an Applications Engineer.
www.powerfleet.com/de
LinkedIn Profile of Heinz Rothmann:
bit.ly/44eUWMc