7 tips for sustainable fleet management solutions for small businesses

In an era where concern for the environment is an expectation, small businesses are reshaping their practices to align with sustainability goals. When embracing eco-friendly initiatives, small business fleets find themselves looking for ways to minimize their environmental footprint while maximizing fleet efficiency.

This article explores actionable strategies to help small business owners implement more sustainable fleet management practices.

The benefits of adopting eco-friendly fleet practices

Beyond the environmental benefits that a more sustainable fleet brings to the planet at large, fleet managers can expect some bottom-line-lifting benefits of a more eco-friendly fleet, too:

Cost savings

While investment in eco-friendly technology may seem difficult because of higher price points, they often translate into long-term savings. How? Electric and hybrid vehicles tend to have lower operational costs and are less impacted by fuel cost volatility.

Kelley Blue Book compares the cost of ownership for both EVs and traditional vehicles over five years. Best-in-class, mid-size ICE cars, for example, cost about $50,121, which includes fuel, maintenance, insurance, repairs, and more. A best-in-class, comparably-sized EV, on the other hand, costs about $42,624.

Competitive edge

As sustainability is becoming a core part of business strategy, companies adopting eco-friendly initiatives are gaining a competitive edge over businesses that don’t. As a result, they’re better positioned to meet consumer demands for environmentally friendly services and attract investors and partners looking to do business with organizations that align on personal values.

Positive environmental impact

Traditional fleet management contributes to a significant portion of greenhouse gas emissions. Fuel emissions, mainly from fossil fuel-powered engines, have increased air pollution, contributing to climate change. In fact, for the last five years, transportation has been responsible for the most CO₂ emissions of any sector, underscoring the environmental importance of shifting to green fleet management strategies.

Brand image

As consumers become more aware of the impact business practices have on the environment, they may become more vocal and even scrutinize business operations. Businesses choosing to adopt green business strategies enjoy a positive reaction from consumers and create a more favorable brand image, enhancing brand loyalty.

7 ways small business fleets can go green

With those bottom-line benefits in mind, here are seven ways to start transforming your small business’s fleet into something a little more eco-friendly:

1. Consider transitioning some or much of your fleet to electric or hybrid vehicles

Electric and hybrid vehicles are already popular for personal use, but they also hold great potential for commercial utilization. Various types of EV chargers can be installed at home, at a business, or can be found at charging stations nationwide. The transition to EVs is increasing as the market continues to grow; while the initial purchase cost of an EV is higher, the savings down the road can help lower business expenses overall.

2. Invest in renewable energy

Investing in a renewable source of energy is multi-beneficial. Energy sources like solar, wind, and hydropower (water) can match the needs of your fleet while creating farther-reaching environmental benefits. By installing on-site energy infrastructure, your business could see more stable and reliable energy and smaller operational costs over time. 

The U.S. The Department of Energy describes multiple perks that businesses may receive by installing solar energy, including tax write-offs and installation credits. For example, the 2023 solar panel tax credit covers 30% of all eligible costs.

3. Build a community of environmentally conscious partners

One way to motivate and support fleet sustainability efforts is to collaborate with other eco-oriented organizations. Find out which local, municipal, and federal organizations offer incentives that could help support your business in implementing eco-friendly initiatives.  

Your drivers are a valuable resource, too. Train them to prioritize fuel conservation and prep them with all the information they need to make smart decisions on the road.

4. Reduce idle vehicle emissions by planning efficient routes

Idle time can represent a quiet menace to small business fleets. Without proper planning, vehicles can sit around idling for hours before loading or unloading, burning money away.

The U.S. The Department of Transportation Federal Highway Administration estimates that long-haul trucks typically idle anywhere from 1,800 to 2,400 hours per year.

As a fleet manager, using purpose-built fleet management software and fleet tracking technology can help you identify where idle time occurs so you’re better equipped to recognize driver behavior and patterns. While road traffic can be somewhat unpredictable, specific locations during specific times of day often experience predictable levels of traffic congestion.

Strategically plan your routes using the least congested times/days/hours to get your load to its destination quickly and efficiently. This approach minimizes potential delays, allowing you to maintain a precise schedule, better conserve fuel, and, most importantly, save money.

5. Turn your fleet sustainability metrics into marketing points

Data collected from tracking tools can enhance your brand image. How? By highlighting your sustainability efforts in your marketing materials. Metrics that communicate fuel conservation, decreased fleet emissions, and other noteworthy sustainability achievements are eye-catching. Expand your company’s visibility and attract new customers by communicating your commitment to environmental responsibility.

6. Take advantage of financial incentives

Financial incentives such as tax credits, grants, and rebates reduce the upfront costs of adopting green technologies like electric vehicles (EVs), hybrid vehicles, or more fuel-efficient models. This makes it easier for small businesses to invest in cleaner options without a large capital outlay.

Furthermore, subsidies for elements like EV charging infrastructure can lower ongoing expenses, making green fleet practices more economically viable over time.

7. Implement fleet technology

Telematics and GPS tracking are powerful technologies that can contribute significantly to greener fleets for small businesses by improving efficiency, reducing emissions, and promoting more sustainable operations.

Telematics systems, for example, provide data on driving behaviors such as speeding, idling, harsh braking, and rapid acceleration. By identifying and coaching drivers on these behaviors, small businesses can improve fuel efficiency and reduce emissions over time.

In terms of maintenance, telematics can monitor vehicle health and alert fleet managers to maintenance needs before they become serious issues. Timely oil changes, tire pressure adjustments, engine tuning, and other regular maintenance can also keep vehicles running more efficiently.

Additional tips to align your employees with your sustainability goals

Getting employees onboard is part of the strategy. The more that your drivers identify and agree with your green goals, the more likely they are to want to help you achieve them. These additional tips can help get employees excited about your eco initiative:

• Define and share your vision: Clearly articulate the company’s green goals and the reasons behind them. Ensure that employees understand the environmental, financial, and social benefits of these goals.
• Sustainability training programs: Provide training on sustainable practices behind the wheel, such as efficient vehicle operation and the importance of sustainability in green fleet management.
• Reward systems: Implement incentive programs that reward employees for meeting or exceeding sustainability targets. This could include bonuses, recognition awards, or other perks.
• Technology and tools: Equip employees with the necessary tools to achieve sustainability goals, such as telematics systems for monitoring vehicle performance.

The more employees know about the impact they can make by implementing good driving practices and using the technology their vehicles are equipped with, the easier it gets to hit their sustainability targets.

EV fleet management solutions made easy

To learn more about EV solutions and mixed fleets, visit:

• EV opportunities for fleet managers
• How to best incorporate EVs into your fleet
• EVs and AI

To learn more about WEX, a dynamic and nimble global organization, please visit our About WEX page.

To learn more about WEX’s EV offerings visit our EV page.

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Editorial note: This article was originally published on February 6, 2024, and has been updated for this publication.