Lead the charge: Fleet electrification accelerated

In brief

• Accenture research reveals most organizations are still in the early stages of fleet electrification.
• Alignment on strategy, internal opposition, insufficient infrastructure, and underestimation of the complexities are impeding efforts to electrify.
• Find out what challenges fleet operators are facing, and key actions to accelerate electrification towards net zero.

Fleet electrification is in early stages

The transport industry is responsible for 25% of carbon emissions globally, with road transport alone accounting for three quarters of this output. Converting fleets such as cars, vans, trucks and buses from internal combustion engine (ICE) vehicles to battery electric vehicles (BEVs) can significantly reduce the sector’s carbon footprint and help corporations and public entities meet their sustainability targets.

While numerous governments globally are taking steps to electrify public transport, ramping up the electrification of private commercial fleets will be a true game changer.

Organizations are aware of this and are moving towards electrifying their fleets in response. They are also keenly aware that electrification has critical strategic implications relating to regulatory compliance, competitive positioning and carbon reduction targets.

Our research reveals the vast majority of fleets have either not yet started the process of electrification or are less than a quarter of the way through. Whilst those in North America have made most progress there is a long way to go across all regions.

Universal challenges

A wide range of challenges are impeding progress. Capital investment and infrastructure requirements are currently the most significant challenges; however, a range of challenges across strategy, finance, infrastructure, culture, operations and digital technology are impeding progress.

How to lead the charge

Companies that build a strategic business case engaging the whole organization will set new performance standards.

• Move fleet electrification onto center stage, strategically. This transition can’t be considered solely as a sustainability issue. It can and should be driven by wider business objectives.

• Mitigate the cost burden of electrification by exploring financial mechanisms that can absorb the upfront capex needed for vehicles and charging points.

• Conduct a structured feasibility study to develop a readiness assessment, a business case and a transformation roadmap. The latter should include a communications and behavioral change plan that will address potential resistance across various groups in the organization.

• Draw on cross-functional talent to develop detailed design of future charging infrastructure and a list of required internal capabilities in order to adjust the operating model accordingly.

• Develop a transition plan and timetable that will enable the coordinated deployment of infrastructure, vehicles, driver training and systems integration.