Sustainable Transport and the Rise of Electric Vehicles
Globally, road transport is a significant contributor to greenhouse gas (GHG) emissions, necessitating a transformation in the transport sector to mitigate climate change and air pollution. Battery electric vehicles (BEVs) are pivotal in this transition. As part of the Ambition Zero Carbon program, a bold target has been set to transition company-leased and owned fleets to BEVs where technically feasible by the end of 2025. Currently, over 63% of the fleet is fully electric, including in regions such as the EU, Japan, and the US, with Turkey reaching 65%. With over 14,000 BEVs deployed across numerous markets globally, leadership in the EV100 initiative is evident.
Creating a Sustainable Business Model
The transition to BEVs is integral to building a sustainable business and supporting new technology adoption. In Europe and Canada, the first fully BEV markets have been achieved, with BEVs constituting 86% of the regional fleet by the end of 2024. This shift is part of a science-led approach to decarbonize operations and fleet, aiming to reduce Scope 1 and 2 GHG emissions by 98% by 2026 from a 2015 baseline. Switching to 100% renewable electricity by the end of 2025 is also a key objective, including electricity used for charging the fleet.
Healthier Environment through Reduced Emissions
BEVs produce fewer GHGs and air pollutants over their lifecycle compared to internal combustion engine vehicles. By investing in BEVs, companies are not only reducing harmful emissions but also promoting cleaner air, thereby decreasing pollution-related respiratory diseases and other health issues. Key milestones in the transition include:
- 2024: Over 63% of the global fleet is fully electric.
- 2023: Europe and Canada reach 50% BEVs, with transition pilots starting in challenging markets.
- 2022: Japan achieves 50% BEV fleet, and the Netherlands becomes the first 100% BEV fleet.
- 2020: Launch of the Ambition Zero Carbon program.
Collaborative Efforts for a Greener Future
As a member of the EV100 platform, collaboration with other entities showcases corporate leadership and facilitates best practice sharing. Commitments have been made to various Climate Group initiatives, including EP100, RE100, and EV100, focusing on energy productivity, renewable energy, and maximizing the transition to EVs.
Driving a Successful Transition
Several factors have been crucial for the BEV transition, including clear targets backed by science, senior leadership support, knowledge-sharing, and strong local leadership. A combined bottom-up and top-down approach is used, integrating external assessments of market readiness. A global car fleet policy ensures alignment, with a rigorous process to assess non-BEV additions, limited to areas with significant infrastructure or supply challenges.
Challenges and Future Directions
Despite progress, challenges persist, including the lack of vehicles and charging infrastructure. Measures to expand public and private charging infrastructure and clear BEV incentives are necessary to accelerate the transition. Beyond fleet electrification, efforts to decarbonize transport include reducing business travel by 50% by 2030 and exploring sustainable travel and freight decarbonization methods. Initiatives like the Every Mile Matters campaign encourage sustainable travel practices among employees.
Conclusion
The transition to BEVs is a critical step towards achieving net zero goals and creating a healthier environment. Through leadership in BEV adoption, commitment to renewable energy, and collaborative efforts, companies are paving the way for a more sustainable future in transport.
