By Nada Jiddou, Executive Vice President and Chief Digital Officer, Clarience Technologies
June 12, 2024
Fleets have never been under more pressure to reduce greenhouse gas emissions than they are today. With governments worldwide setting increasingly ambitious carbon reduction targets and investors prioritizing environmental sustainability, companies are being pushed to focus on decarbonizing their transportation and logistics operations. At the same time, regulatory bodies here in the United States, such as the SEC, CARB and EPA, are rolling out complex requirements for GHG emissions reporting, making carbon accounting a challenge for fleet managers that must be addressed in a timely fashion.
While electric and fuel cell technologies offer carbon free options, there are many things fleets can do before fully migrating their assets that will aid in organizing and managing their carbon footprint data. Fleets must find ways to reconcile the many reporting requirements and collect and collate data from assets and systems. This includes leveraging digital technologies that streamline the data collection process to allow for better carbon accounting. This approach will enable them to not only ensure compliance but also identify opportunities to reduce emissions and operating costs, which will improve both their bottom line and environmental performance.
The most important first steps for fleets to take to reduce their carbon footprint are:
- Establish real-time monitoring of fuel consumption and vehicle performance data to track emissions more accurately.
- Analyze the data received from this monitoring to identify ways to optimize routes, reduce idling time, and improve overall efficiency.
- Upgrade to more efficient vehicles and explore zero-emission vehicle options.
Just getting started is often the hardest step, but advanced telematics solutions that automate data collection and reporting can significantly simplify carbon accounting. By capturing data on both upstream factors affecting fuel efficiency (vehicle weight, tire conditions, maintenance, duty cycle, route grade, weather conditions) and downstream factors (HVAC usage, APUs, other auxiliary equipment, driver behavior), fleets gain a comprehensive view of their emissions profile. Integrating this data enables the most accurate activity-based accounting of fuel usage and GHG output.
There are three main approaches to accurately calculate carbon accounting:
- Consumption-based: uses the actual gallons of fuel consumed.
- Activity-based: estimates fuel used based on miles traveled and average miles per gallon (MPG)
- Spend-based: estimates fuel used based on what is spent on fuel and the average price per gallon
While spend-based and consumption-based methods provide estimates, activity-based accounting using telematics data delivers the highest accuracy. Consider, for example, a sample fleet of 100 Class 5 delivery trucks, each traveling 6,000 miles annually at an average of 12 MPG. Activity-based accounting calculates a total annual emission of 509 metric tons of CO2. With this granular data, the fleet can easily identify which vehicles and routes contribute disproportionately to emissions and target improvements accordingly. Improving just one element like tire pressure through automatic tire inflation can increase fuel efficiency by 1-2% which can reduce CO2 emission by 2-3 metric tons.
As they gear up for more rigorous GHG accounting, fleets should ask:
- What is our current (baseline) carbon footprint?
- Where are the biggest opportunities for us to reduce fuel consumption and emissions based on our fleet’s unique characteristics and operating patterns?
- What investments in cleaner vehicles and technologies will have the greatest impact in making progress towards our GHG reduction targets?
- How can we automate data capture and reporting that will maximize accuracy while simultaneously minimizing administrative burden?
By proactively implementing digital solutions, analyzing performance data, and optimizing vehicles and behaviors, fleets can not only navigate the new era of carbon accounting but also unlock fuel savings and efficiency gains. The businesses that do it best won’t just stay compliant, they’ll gain a competitive edge and contribute to a more sustainable transportation future.
About the author
Nada Jiddou is the Executive Vice President and Chief Digital Officer for Clarience Technologies. Jiddou joined the Company in 2021 bringing over 20 years of strategic management and technology leadership experience.
