How to reduce operational costs while accelerating decarbonisation of fleets

April 27, 2023

The public sector must tread a careful line between saving money and increasing the decarbonisation of fleets, here’s how Shell Fleet Solutions think we can do it

The public sector in the UK faces a period of rising uncertainty. Increasing inflation has put spending under the microscope, meaning public service organisations will need to explore ways to generate efficiencies and employ decarbonisation strategies wherever possible.(1) At the same time, the public sector can’t afford to step back from efforts to reduce its carbon footprint. In 2021, all four UK health services committed to reaching net zero, with the decarbonisation of fleets set to play a key role in reaching their targets.(2)

So, how can the public sector reduce costs while addressing the decarbonisation of fleets? To manage the situation, fleet managers will need to maximise service delivery, while implementing integrated measures to drive efficiencies. A critical step towards achieving this is to shift towards a mindset that focuses on reducing operational costs and improving total cost of ownership (TCO).

This doesn’t mean simply cutting back on costs or choosing the easiest, cheapest way of running your fleet. Instead, it’s a way of looking at your operations holistically – identifying the best-placed opportunities to reduce costs and emissions across your fleet operations.

Adopting a TCO mindset to inform your fleet’s strategy will be vital long after you’ve adapted to the current economic challenges. Laying the foundations for a futureproofed fleet can help you to deliver a more efficient service, while accelerating your journey to net zero.

Three steps to help you reduce TCO and meet sustainability goals

The real question then is how you make the shift.

Here are three steps you can take to help you drive efficiency, lower TCO and hit your sustainability targets:

1. Identify opportunities for immediate action

Driving change doesn’t always mean implementing major long-term programmes immediately. There are some quick win initiatives available that can kick-start the process of lowering your overall TCO. For example, a good place to start is by taking advantage of a fuel card that simplifies fleet management, helps you to cut fuel costs and offers drivers easy access to on-the-go charging solutions.

With solutions like the Shell Card, you can manage traditional fuel and electric vehicle (EV) charging payments with a single card, avoiding time-consuming admin while maximising the potential of the data your fuel card generates.

Another opportunity to drive efficiency is mobile refuelling through services like Shell TapUp, which delivers fuel to a fleet’s depot – helping fleets to save time, reduce costs and avoid the emissions from the miles driven to fuel stations. Equally, as your fleet progresses on its journey to net zero, there will be some emissions you currently can’t avoid. We can help you to mitigate them with CO2 compensation. This can go beyond your fleet to cover your organisation’s total emissions, though it isn’t a substitute for switching to lower-carbon fuel alternatives.

2. Leverage fleet data with end-to-end digital solutions

Improving visibility of your fleet operations allows you to highlight areas to generate efficiencies, which can also inform your decarbonisation strategy. Digital solutions like telematics systems bring together historic and real-time data, making it easier to analyse and identify areas for improvement.

Connecting the dots across your fleet, Shell Telematics combines Shell Card and fleet data to offer actionable insights into vehicle maintenance, utilisation rates and fuel-efficient routes – helping you to improve performance, fuel economy and reduce emissions.
Beyond that, telematics can help you advance your decarbonisation journey by building the business case for your EV transition. By matching your existing telematics data to real-world EV performance data, an EV Suitability Assessment (EVSA) can identify the EVs that meet your specific needs – helping you to transition in a way that makes financial sense.

3. Advance Electrification with end-to-end charging solutions

While there are solutions available to help you reduce or compensate your fleet’s CO2 emissions, transitioning to EVs presents a clear pathway to net zero.(3)

However, the vehicles themselves are far from the only element you need in place to deliver a successful transition. To keep your EVs running smoothly and supporting your services, you need easy access to charging solutions at home, at work and on-the-go.

To achieve this, you should look to work with a partner that can deliver an ecosystem of solutions that meet your needs. For instance, in addition to our on-the-go network of more than 12,000(4) charge points and 22kW home and office chargers, ubitricity – part of the Shell group – works with local councils to transform lampposts into vehicle charging points. This helps to provide on-street home charging for drivers who don’t have a private parking space.(5)

When shifting to a TCO mindset, collaboration is critical. Finding an expert partner that can deliver integrated, end-to-end solutions will be vital in reducing your costs while accelerating your decarbonisation journey.

At Shell Fleet Solutions, we work closely with partners and customers – combining consultancy with end-to-end solutions and services to meet your specific needs. We help you adapt in an evolving landscape by optimising your operations and delivering a lower TCO.

Together, we can turn ambition into action – helping to protect public sector fleets while accelerating to zero.

Discover how Shell Fleet Solutions can support your journey towards the decarbonisation of fleets.

References
1. IFS. “[The inflation squeeze on public services].” 2022
2. UK Government. “[UK health services make landmark pledge to achieve net zero].” 2022
3. Shell & Deloitte. “[Navigating Fleet Decarbonisation: A Guide to Driving a Successful Transition].” 2022
4. Shell. “[Find a charge location with Shell Recharge].” 2022
5. ubitricity. “[We’ve installed over 5,500 public EV charge points].” N.D.