Deloitte Canada recently released a new report that explores the benefits, complexities, and opportunities of fleet electrification, and outlines a business strategy that organizations can use to start reaching their own emission reduction goals.
The transport sector is a key target to achieve Canada’s net-zero emissions by 2050, and rightly so: in Canada, commercial vehicles account for 20 per cent of all vehicles, but generate over 60 per cent of the country’s road transport emissions. Globally, the transport sector is responsible for 25 per cent of global greenhouse gas (GHG) emissions.
The report explains that because the decarbonization of the transport sector is a priority to reaching the country’s climate goals, the federal government is offering significant incentives and subsidies to organizations that are willing to move toward fleet electrification now.
“The shift to electric vehicles will transform any organization that operates or relies on commercial fleets. It is more than just transitioning to a new vehicle and energy source—it creates an opportunity to reimagine its value proposition to the customers and constituencies it serves,” says Yvonne Rene de Cotret, leader of Future of Mobility Canada, Deloitte.
Yvonne Rene de Cotret, National Transport Sector Leader Future of Mobility Canada Leader, Leader, Future of Mobility Canada, Deloitte Canada. Image credit: Deloitte Canada.
According to the report authors, beyond reducing emissions, there are numerous operational, financial, competitive, and reputational benefits for organizations that move quickly to electrify their fleets. The report takes a deep dive into each of these and goes beyond to offer advice on how to seize the opportunity now.
The benefits of fleet electrification
- Demonstrated market leadership in sustainability: Consumers are choosing the brands that are seeking to reduce carbon emissions. Companies that electrify their fleets quickly may therefore reap the rewards of loyalty.
- Reduced operating costs: Between fluctuating gas and diesel prices and the greater costs of maintaining ICE vehicles, switching to EVs will minimize operating costs for commercial transportation.
- First-mover advantage: Capture a competitive advantage by becoming recognized as part of the solution to reducing Scope 3 emissions.
- Preparing for the future: Carbon taxes will continue to climb and the march toward 100% zero-emissions to progress. Companies that act to electrify now can minimize the disruption that’s coming.
To read the complete report, click here.