ESG Reporting for EV Fleets: What You Need to Know
Why ESG Reporting Matters for EV Fleets
In recent years, Environmental, Social and Governance (ESG) reporting has moved from being voluntary to mandatory for many businesses, forming a core part of how they are judged by regulators, investors and customers. With transport being the biggest contributor to carbon emissions in the UK( 1), statutory reporting requirements have tightened. For companies with a fleet, the shift to EVs is a way to stay compliant and demonstrate leadership.
The Current ESG Landscape
As per UK law, large businesses are already subject to a range of ESG-related reporting standards. For fleet owners, the most prominent of those is the Streamlined Energy and Carbon Reporting (SECR) framework.
Every UK incorporated company listed on either the London Stock Exchange, a European Economic Area market, New York Stock Exchange, or NASDAQ must comply with these regulations. Large Limited Liability Partnerships also come under the SECR framework; for all other companies this reporting is voluntary but encouraged.
The SECR framework maintains that qualifying companies must disclose their energy usage and carbon emissions, but what does that mean for your fleet?
If you fall within the designated specifications, you must report upon:
- fuel usage
- emissions generated
- any reductions from previous years
With the OZEV deadline approaching, it’s anticipated that the level of data required will increase, so switching to electric soon is both practical and advised.
How does switching to an EV fleet make ESG reporting easier?
Switching from Internal Combustion Engine (ICE) vehicles to EVs can directly reduce your organisation’s carbon footprint. By switching to EVs, you can remove the need for reporting on tailpipe emissions, although you must still report on energy usage for charging purposes. In addition, connecting your charging solution to renewable electricity sources can help to significantly lower emissions further.
Nowadays, many modern EV fleet management systems integrate with reporting software to provide accurate figures surrounding charging, mileage and energy usage. Ultimately, this saves time and enables you to collate the data and include it with your ESG disclosures.
Key Metrics to Include in EV Fleet ESG Reports
If your company is running a fleet of EVs, here are some of the key points to highlight in your ESG reports:
- The makeup of the fleet. How many vehicles are EVs versus how many are ICE?
- Energy consumption. Break it down between renewable and grid sourced.
- How many carbon emissions have been saved by utilising EVs?
- How much is being invested in EV charging infrastructure, whether depot, workplace, or providing home chargers?
By demonstrating this information in your ESG reports, you not only satisfy regulatory requirements, but also help to build trust with your investors and customers through your sustainability commitments.
How EV Fleets Support the Social and Governance in ESG
We discussed above how EV fleets can link easily to the “E” (environmental) side of ESG. But they can also contribute to the social and governance parts as well.
For instance, cleaner air benefits the health of the community, while implementing workplace charging improves access to sustainable transport for your employees. Both of these reinforce how a fleet transition empowers the social aspect.
Meanwhile, for “G”, or governance, an EV fleet helps demonstrate leadership and proactivity towards mitigating climate risks, helping stakeholders and investors to gain confidence in your organisation’s sustainability activities.
Find out more
If you are interested in finding out more about how you can electrify your fleet and future proof it, download our depot charging e-guide.
