Shell report shows cost is biggest barrier to decarbonisation

Shell Fleet Solutions has released a report which explores the impact of the cost on fleet decarbonisation efforts and provides recommendations to mobility managers to get the most from their investments.

The report features research amongst 742 businesses and fleet decision-makers across Europe, North America and Asia, which found that the cost of decarbonisation is perceived as the biggest challenge to fleets looking to achieve their sustainability goals.

The research also showed that only 1 in 5 (21%) of fleets surveyed have made a formal commitment to decarbonisation in their key performance indicators (KPIs), and the majority of fleets surveyed have not yet transitioned to EVs, but higher EV adoption is expected in the future.

Solutions to drive efficiency were listed as a top-three desired benefit for the next 3-5 years among surveyed fleets. On top of this, reducing total cost of ownership (TCO) is the most highly desired benefit for delivery, operational and professional fleets.

In response to these findings, Shell Fleet Solutions has identified three practical steps mobility managers can take to address cost challenges when decarbonising their fleet:

The first is to ensure fleets understand the TCO of EVs versus Internal Combustion Engine (ICE) vehicles in their fleet: By exploring factors beyond upfront costs (such as reduced refuelling and maintenance costs and increased uptime) fleets can better understand the economic impact electrification can have on their operations.­

The second is to learn about the charging infrastructure you need to power your fleet: Fleets can look to get the most from their charging cycles by implementing an ecosystem of public and private charging solutions at depots, offices, or homes. This can help to enhance convenience and reliability and create cost-effective charging schedules aligned with operational needs.

Recommendation three is to drive efficiency across your fleet no matter what powertrain you operate to reduce costs and emissions: Impact can be achieved by using telematics data – from utilisation to maintenance – to inform decision-making and help reduce the environmental impact of ICE vehicles. Fleets can also explore renewable diesel and alternative fuels to drive emissions reduction in the short term.

Giorgio Delpiano, Senior Vice President, Business Mobility, Shell, commented: “As fleets advance their decarbonisation journey, they need to balance the need to decarbonise with continuing to operate at low cost. Our latest report explores practical steps that fleets are taking to manage costs and unlock the value of low- and zero-carbon solutions.”

Alongside the research, Shell Fleet Solutions is also supporting businesses through its Accelerate to Zero programme (A2Z). Whether fleets are just starting their decarbonisation journey, or have already made significant progress, the A2Z programme is designed to help fleet managers and other business decision-makers take action, by working with them to build an integrated, evidence-based decarbonisation roadmap, tailored to their needs.