Study Shows Increasing Pressure for Sustainability in the Transportation Sector

Geotab Inc., in collaboration with Bobit's Research Group, surveyed U.S. fleet professionals. 

The survey aimed to assess how organizations in the transportation sector are progressing in their sustainability plans given increasing pressure to address climate change.

Business Costs Continue to Rise

The survey found that while business costs continue to rise, more large U.S. fleets are setting environmentally focused goals to align with customer preferences and regulations, and to offset increasing expenses. 

However, the challenges for the industry are clear: 

• 87% anticipate an increase in their business costs throughout 2024.
• 42% of fleet professionals believe customers will demand more fleet sustainability initiatives in the next 1-3 years to continue doing business with them.
• 39% indicate new vehicles as the largest portion of their costs.
• 28% report vehicle maintenance, and 15% report fuel costs as the biggest driver of cost.

Leveraging Data Insights and AI Models for Sustainability Operations 

Fleet managers are leveraging data insights alongside the growing integration of AI models. Trusted data intelligence enables better decision-making to improve fleet sustainability operations, performance, and cost management. 

The survey found that:

• 60% found data intelligence critical to reducing operational costs through better maintenance and scheduling.
• 31% are using data insights to measure and track sustainability progress.
• 41% found data intelligence helpful in determining driving behavior that contributes to more sustainable practices, such as reducing idling and route planning.

The survey also found that strong support structures are advancing sustainability. 

Fleet professionals are optimistic about the support structures in place and their ability to advance sustainable operations. Key findings include: 

• 84% report company leadership that supports progress on sustainability goals.
• 68% report feeling adequately equipped with data intelligence tools.
• 67% feel positive about the availability of requisite training and education.

How Effective are Fleet Sustainability Plans?

Building upon prior findings, a comparative analysis with a survey from 2023 highlights the effectiveness of sustainability plans. A remarkable 69% of fleet managers who implemented these initiatives reported a significant decrease in operating expenses over the previous year. 

Last year, 54% of fleets surveyed already had EVs in their fleet or on order. As that transition continues, trusted data intelligence will be critical to the management of those vehicles, and to accelerate ROI.

“Sustainable fleet transformation includes switching to low- and zero-emission vehicles, and extends to adopting a measured approach that helps organizations optimize operations. Data is core to unlocking those insights– including reducing idling and instituting better routing and driving practices,” said Charlotte Argue, Geotab’s Senior Manager of Sustainable Mobility.