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

This may not be news to you, but Brazil is increasingly consolidating its adherence to ESG within the most diverse sectors of the industry.

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.

In fact, the subject was widely discussed and was among the main themes of the 8th edition of the PARAR Global Conference, held in November 2022, where it addressed what changes in the notion of sustainability with the consolidation of the ESG.

As an the search for sustainable financing – green, social bonds linked to sustainability and transition – is gaining more and more space in our country and if it shows 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 of an organization's ethical standards. This is because the acronym comprises the criteria environmental, social and governmental.

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 is no wonder that the demand for green bonds is increasing, the volume of transactions issued in Brazil with sustainable labels reached BRL 86,10 billion in 2021, as revealed by a consultancy from natural intelligence (NINT).

It is worth noting that the Global Consumer Pulse survey, by Accenture Strategy, showed that 83% of Brazilian consumers prefer to buy from companies that defend purposes aligned with their life values ​​and dismiss those who prefer to remain neutral.

The same survey shows that 79% of respondents prefer brands that take a stand on society, culture, 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.

In addition, a survey by Carbon Brief revealed that Brazil ranks fourth among the largest emitters of greenhouse gases in the world.

In this sense, using ethanol as fuel is at the same time an alternative to implement the ESG and contribute to the environment, since it the emission of CO2 gases is lower when 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 the implementation of training in your company to educating your employees on the importance of safer driving with your vehicles.

When choosing where to stay, regular training focused on defensive driving are great allies in your fleet management.

A measure that is also within your reach to reduce the risky behavior is to invest in cars that have a higher safety ranking, for example.

Just like having a increased attention with your own fleet policy, after all, it is where all the processes of your company are located.

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 Culture of Safety 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. In the end, not giving due importance to taxes and fees can lead to major problems with the tax system in Brazil.

As one of the pillars of ESG is government practices, It is important to know the taxes involved in your operation 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.

We also pack any your company can go a step further and consider a more sustainable choice of vehicles that are purchased.

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 transport: how can light fleet management adopt this practice?

Elimination of the use of paper

A large portion of businesses still base their processes on pen and paper. Although, in addition to being outdated, this makes room for manual errors and the loss and misplacement of important information.

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

For this, it is important to intensify the automation of services with the support of technologies in its fleet management, such as a telemetry system and real-time driver monitoring apps.

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 with energy and sustainability practices, it is necessary to take into account that fleet management is only possible with the support of its human force.

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 are a maintenance plan effective and preventive, resizing vehicles, improving driver behavior and optimizing the routes taken.

Read more: Fuel economy: 8 tips to reduce 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.

A Golfleet understands the importance of the environmental, social and governmental pillars for its company 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: