Transitioning to more eco-friendly technologies and business practices has many environmental and financial benefits, but it’s often easier said than done.
Many advantages of managing a green fleet take time to show meaningful gains, and it’s not always clear which strategy is best. Consequently, you must measure the impact of the changes you make to understand their efficacy and guide future improvements. With that in mind, here’s how you can create and track an effective green fleet initiative.
CHOOSE WHICH METRICS TO TARGET
The first step in measuring any sustainability project’s impact is determining which factors matter most to the company. Tailpipe emissions are an obvious target for green fleets, but they’re not the only option.
Environmental impact is often complex, requiring attention to multiple metrics. While vehicle electrification will eliminate tailpipe emissions, according to the EIA, 60 percent of U.S. electricity comes from fossil fuels. A more accurate analysis would also track the CO2 equivalent from a fleet’s electrical usage. Miles driven and idling times are other less obvious sustainability-affecting factors to consider.
Non-environmental factors may also be worth measuring to provide a business perspective on the strategy’s impact. These may include fuel costs, maintenance expenses, vehicle depreciation, tax payments and any changes in client spending. All such metrics can be valuable, but it’s best to identify a few that matter most to your goals to simplify the project.
IMPLEMENT RELEVANT TRACKING TECHNOLOGIES
Once you know which factors you want to focus on, you need to find applicable tracking solutions. In some cases, you may not require much, if any, additional investment. You can gauge electric vehicle (EV) charging-related emissions through your utility bill or using government estimates for average emissions per kilowatt-hour.
Other metrics require specific technologies to track efficiently. Internet of Things (IoT) sensors can monitor tailpipe emissions, and telematics services offer data on route length, idle time, and maintenance concerns.
Many fleet-tracking software solutions include features to keep all resulting data in one place. As mentioned on Revolutionized, some software offer near-real-time driver monitoring and automated alerts for things like fuel consumption. Fleets already using such software should look at their platform’s available functions to see if they can perform these actions without any new purchases.
BENCHMARK BEFORE GOING GREEN
After collecting the necessary tracking solutions, you should benchmark your current performance. Ideally, you’d do this before implementing your green fleet strategy to compare its results objectively to the pre-green business model. Benchmarking after the initial implementation can still be useful but remember it won’t reveal the full scope of your improvements.
Measure whichever metrics you’ve chosen to gauge your sustainability initiative. The specific results from the process don’t matter as much as the way you gather and report them. Your initial test sets the bar for future comparisons, so the important thing is to be consistent.
Any units of measure, tracking technologies and documentation formats you use here must be the same as those you’ll use in the future. Deviation from this standard will limit the reliability of your post-project results, so plan accordingly.
CREATE GOALS BASED ON BENCHMARKS
You can now set target improvements based on the results of your first measurement. Review the benchmarking report to determine where and by how much you’d like to progress. By setting goals early on, you judge the effectiveness of your strategy more accurately down the road.
Remember to keep your aspirations realistic. You can turn to industry averages, past research, and expert insights to determine the level of change you may expect to see. Consider secondary benefits, too. Emissions reduction may be the primary goal for EV adoption, but it can also reduce your maintenance costs by 50 percent or more, according to Reading Truck.
Failing to meet your first targets does not necessarily mean your green fleet initiative was a failure. Rather, it may suggest that you should tailor your expectations or pay attention to factors you may not have noticed at first. Regardless of the situation, though, you can only make effective changes if you set goals to compare your progress to.
ALIGN GREEN FLEET STRATEGIES WITH GOALS
At this point, it’s the ideal time to create the specifics of your green fleet strategy. While you may already have a general plan in place, you should take the time to align individual steps with the targets you just set.
Any changes you make to your fleet or business practices should relate to your goals. Consider replacing diesel trucks with EVs first for the largest emissions reduction, as diesel generally emits more CO2 per gallon than gasoline, according to the EPA. Alternatively, if you want to balance costs with sustainability, consider how route optimization and maintenance changes could improve emissions, which will produce slower but cheaper results.
You can meet your targets in many ways, so feel free to compare multiple strategies. The optimal approach will vary depending on your budget, the kinds of vehicles in your fleet, applicable tax credits and more. That’s why aligning your measures with your specific aspirations is critical.
TRACK, ADAPT AND REPEAT
Finally, you can enact any planned strategies. As you do, keep tracking the same key performance indicators (KPIs) you used for your initial benchmark.
Compare these KPIs at least once a year to your benchmarks to track your progress. If you fall behind your goals or if any metrics change in the wrong direction, investigate why. Do the same for any unexpectedly large improvements. Digging into the root causes of such shifts will inform effective changes in the future.
Remember to respond to your results, expanding or adjusting your approach, as necessary. Repeat this process over time, setting new goals and implementing new strategies to make your fleet as sustainable as possible.
ANY GREEN FLEET STRATEGY NEEDS ONGOING ASSESSMENT
Positive change is only possible if you know what works and what doesn’t for your specific business. Regular reviews and adaptation are essential to ensuring the success of your green fleet strategy.
Whether you’ve already begun your sustainability transition or not, following these steps will help you stay on track. When you know how and why to measure the impact of such projects, you can drive the greatest possible results.
about the author
Emily Newton has eight years of creating logistics and supply chain articles under her belt. She loves helping people stay informed about industry trends. Her work in Global Trade Magazine and Parcel showcases her ability to identify newsworthy stories. When Emily is not writing, she enjoys building Lego sets with her husband.
