European fleet managers unprepared for CSRD requirements

Over half (56%) of fleet managers do not consider the European Union’s (EU) Corporate Sustainability Reporting Directive (CSRD) to be a major incentive for improving sustainability measures, including how businesses collect CO2 emissions data, according to Alphabet International's second European Fleet Emission Monitor (EFEM) report.
 
By 2025, as part of the CRSD, the EU will expect businesses operating within the EU to report on their fleet emissions and continuously reduce their CO2 output. Although this is an EU legislation, it will affect some UK Fleet Managers.

The lack of awareness about the new legislation and how it will affect fleets and their reporting process does not stem from disinterest in progressing towards sustainability goals. In fact, 64% of European businesses are focused on making their fleet more sustainable as a part of their strategic business goals, and 62% of businesses aspire to become fully electric in the future. Despite these ambitions, the research – which surveyed data from over 1,000 respondents across 12 countries – also unearths the obstacles that businesses are facing in managing and progressing towards their emissions targets.
 
Despite the growing ambition among European businesses to reduce their carbon emissions and meet sustainability targets, the latest EFEM report shows that only 42% of these businesses currently monitor their fleet emissions, leaving more than half of fleet managers out of the loop on their carbon footprint. Among managers that are tracking fleet emissions, a quarter (25%) find it difficult to comprehend and understand the data they are collecting.  
 
The data also reveals that, despite the growing availability of digital fleet management systems, only three in 10 (31%) businesses are utilising this service to automate and analyse their fleet emissions reporting to streamline collecting and interpreting the data.  
   
The EFEM report reveals a significant gap in knowledge when it comes to a business’ sustainable intentions and its fleet processes. Currently, 44% of fleet managers feel inadequately informed on how to minimise their emissions through vehicle electrification. This has reduced from 51% in 2023, demonstrating that, although adequate education around electrified vehicles (EVs) still poses a challenge, this understanding is being developed over time. Uncertainty around EVs is often the result of businesses overestimating the complexity of electrification. As a result, they are being deterred by challenges, such as range anxiety and concerns around charging infrastructure. 
 
“Transitioning to a carbon-neutral fleet is a complex and gradual process,” says Markus Deusing, CEO of Alphabet International. “Under the CSRD, companies within the EU will be obligated to report on their sustainability journeys, yet many still undervalue the extensive effort needed to minimise CO2 emissions and move towards electrification. Without utilising the insights from fleet data, such as emissions tracking, companies are overlooking a golden opportunity.  
 
“Unless businesses digitalise their fleet management and electrify their fleet, they will not meet new regulatory targets and will exceed the thresholds. At Alphabet, we are actively developing cutting-edge solutions to help customers overcome the challenges identified in our study and advance their sustainability goals to make their mobility easier.”