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16.2.2024

Driving Sustainability: CSRD compliance for your company fleet

With the introduction of the Corporate Sustainability Reporting Directive (CSRD), the European Union has introduced new requirements for sustainability reporting in order to strengthen the transparency, comparability and evaluation of companies' sustainability performance. Under the CSRD, around 50,000 companies based in the EU will be obliged to report on their sustainability activities. The reporting obligations will come into force in stages from 2024, depending on various company criteria. As sustainability reporting is now required as an integral part of the annual report, companies must disclose various aspects relating to environmental, social and governance (ESG) criteria. The data collection processes must comply with the principles of the European Sustainability Reporting Standard (ESRS), which will serve as a framework for compliance with the CSRD from January 2024. When disclosing their greenhouse gas (GHG) emissions, companies should follow the ESRS guidelines, in particular ESRS Standard E1 on climate change. This includes compliance with the principles, requirements and guidelines set out in the GHG Protocol Corporate Standard and GRI 305, which are directly aligned with the specifications of the GHG Protocol.

How do fleet emissions affect sustainability reporting?

The emissions caused by company fleets must now be recorded as part of this reporting standard. This means that fleet management will have to communicate the emissions caused by the combustion engine fleet transparently in future.

Fleet and mobility emissions fall into the following categories:

- Scope 1: Emissions include direct emissions from sources owned or controlled by an organization. This includes emissions caused by vehicles with combustion engines.

- Scope 2: Emissions include indirect emissions resulting from purchased energy, in particular electricity consumed, for example, by electric vehicle fleets during business-related kilometers.

- Scope 3: Emissions consist of indirect emissions from sources not owned or controlled by the organization, such as employee commuting miles and business travel.

In Charge to change: The influence of fleet electrification on emissions calculation

Electrification of the vehicle fleet offers numerous advantages that are in line with the criteria of the CSRD and the broader sustainability goals. By switching to electric vehicles, companies can significantly reduce their direct Scope 1 emissions, as electric vehicles do not produce any direct emissions during operation. This not only helps companies comply with reporting obligations, but also demonstrates their commitment to environmental protection and corporate responsibility.

Furthermore, the exclusive use of green electricity for charging the e-fleet can reduce Scope 2 emissions and thus eliminate the fleet's overall emissions. To ensure complete decarbonization of the fleet, the e-vehicles must therefore be powered exclusively by green electricity. This can be achieved through green electricity contracts at the sites or by setting up renewable energy measures on the company premises. In this way, companies can supply their electric fleets with clean energy and thus significantly reduce their overall ecological footprint and strengthen their sustainability balance.

How to set emission reduction targets for your company fleet

To effectively reduce emissions and manage the transition to an electrified fleet, companies need a clearly defined and strategic approach to future goals. The introduction of electric vehicles into the fleet requires careful consideration of various factors. These include assessing the feasibility of electrification in terms of different vehicle types, user groups and mobility requirements, taking into account the lease terms of the current combustion fleet and planning the necessary charging infrastructure. These factors must be reconciled with the existing sustainability criteria, among other things, and placed in a defined time frame, e.g. the next decade.

Electrification of the vehicle fleet has become an essential measure for companies to not only meet CSRD requirements, but more importantly to eliminate their direct emissions. By using electric vehicles and renewable energy solutions, companies can not only meet their reporting obligations, but also drive environmental change and secure a competitive advantage in an increasingly environmentally conscious market.

With inno2fleet, we are happy to support you in defining your own decarbonization strategy for your vehicle fleet.

We look forward to hearing from you!

Lisa Ismar
Sustainable Mobility Consultant │ Over 3 years of industry experience │ Expert for sustainability, fleet electrification & business strategies │ BSc. and MSc. In mechanical engineering & communication sciences
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