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Fleet management company EROAD releases new data on sustainability

  • Written by EROAD

Transportation technology services company EROAD, released their inaugural sustainability sentiment survey, Road to Sustainability, designed to identify how prepared businesses are for shifts in compliance towards sustainability. 

EROAD, a telematics company that offers fleet management software and products designed to improve driver safety, manage vehicle fleets and reduce costs associated with driving, gathered data and insights from 1,134 key business decision makers across Australia and New Zealand to facilitate the report. 

While there is still a long way to go within the industry, with 42% of all businesses not currently reporting on any sustainability goals there are shifts towards a more sustainable future. The biggest shift highlighted in the form of electric vehicles, with over 37% of light fleets and 21% of all heavy fleets expected to be fully electric or alternatively powered by 2025 across Australia and New Zealand. 

Tony Warwood, Executive General Manager of EROAD said, “The Road to Sustainability report has given EROAD the opportunity to see where we can help our clients adapt to new government regulations and also help drive further change within the industry. 

“The report highlights a growing need to acknowledge and work towards sustainable measurables within the broader transport industry. The report also reveals the obstacles that are in the way, such as regulations and financial backing. This report needs to be used as a launchpad to bring sustainability towards the front end of the conversation when discussing transport carbon footprint emissions and everything associated with it. 

“Our goal at EROAD is to create safer, more sustainable roads and we are committed to sustainable business practices. We recognise the role our business plays in providing positive outcomes for the communities we operate in and the environment we share. Hopefully, this report and its findings provide a step closer in helping us with our sustainability efforts within the industry,” Mr Newman said. 

The Australian and New Zealand markets are very similar and across both countries regulatory standards / reporting requirements and government funding / grants are the top 3 motivators to increase environmental sustainability efforts with 30% percent of all businesses being motivated by regulatory changes, government funding or punitive action. 

But despite New Zealand’s more robust climate change regulations, Australia is leading the way in a few key areas including the greening of assets. Thirty-two percent of all assets / mobile plant & equipment in Australia are currently alternatively powered compared to only 19% of all fleets that could be considered ‘green’ assets in New Zealand. As well as in Australia, 60% of all large and very large asset fleet owners (1000+ assets) stated they would pay more for carbon neutral assets, compared to just 21% of all large and very large fleet owners in New Zealand. 

Another division in sustainability efforts is between Public and Private companies in both Australia and New Zealand. The percentage of Public companies (11%) indicated they will invest in transitioning fleets to alternate power sources, which is almost double that of Private Companies (6%). 

As with most businesses the bottom line of return on investment is key in making decisions for the future and while there are many factors holding back the industry, one major factor is the lack of return on investment in sustainability initiatives. Across Australia and New Zealand only 6.3% of businesses see a positive impact on return on investment in sustainability. 

The insights prepared within the Road to Sustainability report is one component EROAD is using in order to create safer and more sustainable roads. 

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