Have you heard of The Climate Group or the EV100? The Climate Group is an international non-profit that uses their large network to help organizations make commitments to reach net zero carbon emissions and hold each other accountable. Their focus is on energy production, building management, industrial operations, and transportation.

Today, The Climate Group includes more than 300 multinational businesses and over 220 governments worldwide. All of these organizations are collaborating to take action and create influence.

Relative to transportation, a growing number of businesses (at least 120) have pledged to be early adopters of electric vehicle (EV) technology, and part of the EV100. By 2030 their fleets will be 100 percent electric vehicles, and they will install EV charging for employees and customers.

One of these companies with a global sales fleet of 3,400 vehicles turned to us for help with getting their arms around this complex transition.

CHALLENGE

Whether you’re diving in at 100 percent or not, converting from gasoline powered vehicles to electric is more elaborate than simply switching vehicle specs. To start, the organization must consider financial and tax implications. Second, policy and procedures for every step of the vehicle lifecycle need to be in place before the vehicles arrive. Conversations on these matters required teamwork from an array of stakeholders from across an organization.

In that regard, the various matters for which this client consulted with ARI included:

1. Determining eligibility for federal tax incentives and how to apply.

2. Structuring the lease agreement for EVs and plug-in hybrid electric vehicles (PHEVs).

3. Analyzing the in-service vehicles and driver needs to identify compatible EV applications.

4. Surveying employees for in-home charging capability, and determining how to facilitate installations.

5. Establishing a process for calculating and reimbursing employees for charging expenses.

6. Connecting with service vendors for EV maintenance and repairs.

7. Tracking and reporting emissions reduction, measuring fleet performance, and calculating TCO.

8. Addressing next steps when drivers move to new homes, change jobs, leave the company, etc.

SOLUTION

Based on the information gathered through discussions and research, the ARI Business Intelligence & Analytics team presented the client with a Qualification Report. This included baseline MPG and emissions output figures, as well as the estimated cost to charge and operate a fully electric fleet.

These initial numbers indicate the organization could:

RESULTS

The client has moved forward on their pledge and is identifying opportunities to reduce emissions in the next 24-36 months.

In addition, they are implementing an EV pilot program through which they’ll be able to clearly determine the policy and processes needed to:

  • Procure electric vehicles
  • Install charging infrastructure
  • Project and monitor operating costs
  • Track and report on emissions reduction

Altogether, it is projected these effort will help the company fully obtain their EV100 goal by the 2030 target date.

Your fleet is an investment. It’s time it paid off.

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