Benefits and Challenges of Running an Eco-friendly Fleet

V3 Smart Technologies Pte Ltd.

Climate change has always been a hot topic affecting many industries. However, as fleet operations grow with demand each year, carbon emissions are being monitored with increased stringency. In recent times, the pressure to minimize carbon output is heating up for businesses that rely heavily on transportation and logistics services, especially with several laws and regulations that exist primarily to keep track of these emissions. A famous example you may have heard of is The Paris Agreement.

About the Paris Agreement and how it impacts fleet businesses

The Paris Agreement is an international accord that was adopted by almost every nation in 2015. It focuses on addressing climate control, in particular, the negative effects that follow it. It aims to promote more avenues to reduce global greenhouse gas emissions. Also included in this agreement are the commitments of a number of countries promising to cut down on pollution and find ways to reduce their carbon footprint.

Thanks to the Paris Agreement, a framework was created which enables the transparent monitoring and reporting of a country’s individual and collective climate goals. Organizations can plan out and take proactive steps in order to find ways to comply with the regulations. This is especially apparent within the transportation industry, as it is known to be one of the biggest contributors to greenhouse gas production. Knowing this, fleet organizations are strongly urged to seek various solutions which can help them stay within emission limits.

Benefits of going green

The Paris Agreement was only one of the main pushes for companies to go green. Aside from this, there are also a number of other benefits for companies to become eco-friendly on their fleet operations. Below are three major reasons why having an eco-friendly fleet will benefit not just the environment, but also fleet companies.

1. Lesser carbon emissions mean more fuel economy

If your company starts to focus on ways to start fuel saving, it will not only help to reduce emissions, but also reduce fuel costs. There are different ways to go about this, but an efficient method would be to start investing in fleet management software that can spot fuel-wasting actions such as idling, harsh accelerating, or even unplanned journeys. Fleet management software can also provide more details in real-time to help fleet managers make accurate decisions in reducing fuel usage.

2. Customers prefer companies which are environmentally conscious

Another benefit will be the possible addition of a new customer base. Due to climate change, consumers have become more aware of the businesses and products they invest in. A recent study from IBM was able to uncover that an average of 70% of consumers are willing to pay more for sustainable brands, with more than 82% stating they would choose more environmentally-friendly transport options even if the costs are higher. It was inferred from other reports as well that addressing ethical concerns in a committed manner was important to consumers. So not only will going green help you gain happier customers, but you’re more likely to develop a deeper relationship that will help grow your customer loyalty.

3. Going green boosts ROI and talent acquisition

Besides reducing business costs and increasing company reputation, sustainability planning also enables companies to secure higher ROI and makes them more appealing to employees. Investors and partners also see green initiatives as more attractive. Companies with sustainability initiatives will also fare better with resource management that aligns with global climate change policies. Employees, especially Gen Zs and millennials, will in turn prioritize companies that have a reputable track record and are transparent about their environmental welfare efforts. All of these will give a company that competitive edge needed to secure funding and talent while optimizing their assets.

When you put yourself out there as an eco-friendly organization, you need to commit to the measures that create your brand image. Some ways you can make sure your company can contribute to eco-friendly efforts are: switching to better and cleaner fuel for the environment, investing in low consumption vehicles, or investing in vehicle fleet management or vehicle tracking systems that help monitor the real-time inefficiencies of fleet operations.

Challenges of implementing eco-friendly fleet measures and what to do

1. Evaluate the costs and process of transitioning to an eco-friendly fleet

Of course, on the other hand, there will be challenges that come with the shift to eco-friendly solutions. The first challenge is probably knowing where to start. You’ll need to evaluate the cost-benefit relationship of the transition. Some important questions to ask would be: Should you replace your entire fleet in one go? Or is there a need for a slower transition? How would you get the rest of the team behind this decision? What would the next steps take? As with any project, buy-ins and timelines are needed, but with the proper planning and right investments, things will eventually fall into place.

2. Choose the right vehicle specifications for vehicle replacement

Another challenge to going green includes making the right call when switching to more eco-friendly vehicle options that also align with your company’s goals. When purchasing vehicles that will help reduce emissions, managers need to look at all alternatives on top of their benefits. This will help weigh out the best choice for your business. Some factors to note are vehicle mileage, durability, functionality and dependability. For example, smaller-sized vehicles generally consume less fuel, but may not be the best-fit for certain companies which need the larger capacity for transport purposes. In such cases, they can look to vehicles with engines that use less fuel without compromising on vehicle utility.

It may take more effort to figure out the most suitable vehicle model and type to replace your fleet with, but if you take extra time to evaluate your choices instead of rushing things, you will create a sustainable business in the long term. This is all the more necessary if your business is switching over to electric vehicles, which you can also read more about here.

3. Use fleet management software to track fuel consumption

Having the most fuel-efficient vehicle models may not necessarily result in less fuel use if you have no tools to track fuel efficiency and your drivers are taking longer routes than needed to their destinations. Fleet management software is helpful here as it will allow fleet managers to actively track fuel usage and take actions to optimize routes and replace vehicles if necessary.

By monitoring and analyzing their vehicle performance, maintenance upkeep and fuel consumption, fleet managers can optimize vehicle routes, driver schedules and vehicle repairs, all of which will contribute to fleet and fuel efficiency. Over time, this will result in minimized fuel usage, which translates to fuel cost savings for the business, on top of a reduced carbon impact on the environment.


If every company does its part in reducing carbon emissions, the world would be a much cleaner, healthier and better place. While ensuring a minimal carbon impact may not be easy, however the benefits of doing so outweigh the cons. If you want to learn more about how you can track fuel efficiency with a fleet management software, we can help. Talk to us to know more.