Sustainability in fleet management: 7 steps to a successful ESG implementation

This may not be news to you, but Brazil is increasingly consolidating its position in adopting ESG practices across various industry segments.

Until mid-2020, these operations were concentrated in a few sectors, such as paper, cellulose and renewable energies. However, this changed when other fronts such as transport, logistics and biofuels embraced this type of practice.

That is, if you want to take the lead when it comes to sustainability in fleet management, the first step is to do what you can to understand how to bring this to your company.

Furthermore, the topic was extensively discussed and was among the main themes of the 8th edition of the PARAR Global Conference , held in November 2022, where the changes in the notion of sustainability with the consolidation of ESG were addressed.

As the search for sustainable financing – green, social, sustainability-linked and transition bonds – gains increasing traction in our country and proves to be a promising market, we have prepared a practical guide with implementation tips.

Read on to find out where ESG fits into fleet management and a step-by-step guide to successful implementation.

Why is ESG important for fleet management?

ESG is widely used as a metric for an organization's ethical standards. This is because the acronym encompasses environmental, social, and governance criteria.

Therefore, when a manager embraces these pillars in his culture, he has the following market differentials:

• Increased company reputation and transparency
• Investment guarantee for projects linked to sustainable practices
• Business cost reduction
• Decrease in the emission of toxic gases into the atmosphere
• Attracting employees, customers and suppliers
• Satisfaction with the personal relationships involved in the business

It's no coincidence that the demand for green bonds is growing; the volume of operations issued in Brazil with sustainable labels reached R$ 86,10 billion in 2021, as revealed by a consultancy from Natural Intelligence (NINT).

It is worth highlighting that the Global Consumer Pulse survey by Accenture Strategy showed that 83% of Brazilian consumers prefer to buy from companies that advocate for purposes aligned with their life values ​​and reject those that prefer to remain neutral.

The same survey shows that 79% of participants prefer brands that take a stand on issues related to society, culture, the environment, and politics.

That is, climate issues are increasingly on the agenda and are decisive factors in the purchase decision, since consumers are guided by the purposes of your brand.

Thus, it is essential to delve into ESG. And to assist your company with implementation, we've put together a step-by-step guide to improving your sustainability credentials.

Read more: ESG in fleet management: what it is, benefits and challenges of its implementation.

How to implement ESG in fleet management?

Reduction in the direct emission of polluting gases

One of the main areas of focus for the transport sector, and consequently for fleet management, is decarbonization.

Furthermore, a survey conducted by Carbon Brief revealed that Brazil ranks fourth among the world's largest emitters of greenhouse gases.

In this sense, using ethanol as fuel is both an alternative for implementing ESG (Environmental, Social, and Governance) principles and contributing to the environment, since CO2 emissions are lower compared to conventional gasoline.

Other steps you can take to make sure your fleet management is meeting your carbon dioxide reduction targets are:

• Plan more efficient routes with a focus on reducing unnecessary journeys
• Prioritize the choice of gas stations in strategic locations
• Establish parameters for the exclusive use of ethanol in its fuel cards

Promoting a more upright conduct among employees

Well, another important step is implementing training programs in your company to educate your employees about the importance of safer driving.

Therefore, regular training focused on defensive driving is a great ally for your fleet management.

Another measure within your reach to reduce risky behavior is to invest in cars that have a higher safety rating, for example.

Just as you should pay close attention to your own fleet policy , since that's where all your company's processes are outlined.

Indicate that for a driver to be considered fit to operate in your fleet, it is necessary to undergo awareness training and promote safer driving in everyday life. This way, you ensure that your team has the best driving practices in traffic.

Read more: AHEAD 2022: Why is a Safety Culture indispensable in fleet management?

Ensuring that tax processes are carried out correctly

The integrity of your audit processes should also be one of your priorities. After all, failing to give due importance to taxes and fees can lead to major problems with the tax system in Brazil.

Since governance practices are one of the pillars of ESG, it's important to understand the taxes involved in your operations to avoid fines and negative consequences for your company's image.

It is worth mentioning that some seals of reliability guarantee that your fleet management is using the best practices and demonstrate this recognition to your target audience.

Read more: Stay ahead of ESG with a fleet management system

Implementation of a recycling strategy

Another alternative is to be more aware of the large amounts of waste that are still being sent to landfills.

Therefore, it is essential to ask yourself what your company can do to reduce its participation. One strategy is to conduct an assessment focusing on analyzing the type of waste being produced and how it can be recycled.

Furthermore, your company can go a step further and consider a more sustainable choice of vehicles to acquire.

Car manufacturers, for example, strive to improve their environmental credentials and offer vehicles that are more in line with what current fleet management should invest in.

Read more: Sustainability in transportation: how can light vehicle fleet management adopt this practice?

Elimination of the use of paper

A large portion of businesses still base their processes on pen and paper. However, besides becoming outdated, this leaves room for manual errors and the loss or misplacement of important information.

Therefore, if your fleet management still relies on traditional methods, it's important that one of your sustainability goals is to fully digitize your operation.

To achieve this, it's important to increase the automation of services with the support of technologies in fleet management, such as a telemetry system and real-time driver monitoring applications.

Read more: Guide to choosing the ideal tracking system for your company's fleet management

Fulfillment of purposes and values

In addition to the necessary concern for energy and sustainability practices, it is important to consider that fleet management is only possible with the support of its human workforce.

That is, even more important than just establishing your company's purposes and values, is actually following them.

All of this is possible by thoroughly examining and continually revising how the relationship between your company and your community takes place, supported by:

• Diversity and inclusion policies
• Ensuring a safe workplace
• fair remuneration
• Capacity building and training for your staff

And if you want to take this commitment beyond the work environment, other alternatives are to support social causes and charitable initiatives that are aligned with the objectives of your fleet management.

smart power management

Well, fleet management has several possibilities when it comes to energy savings derived from your cars.

Some practical examples include an effective preventive maintenance plan , vehicle resizing, improved driver behavior, and optimized routes.

Read more: Fuel economy: 8 tips for reducing fleet expenses

If you've made it this far, you've surely noticed how a few simple steps promote the implementation of ESG in your fleet management and have a positive impact on the environment and your drivers.

Golfleet understands the importance of environmental, social, and governance pillars for its business and our society as a whole.

So, to go even deeper into the subject and align your company with these sustainable practices, check out a complete and free guide we prepared on ESG: