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63% of fleets say customer demand is biggest influencer to energy transition
Teletrac Navman, a leading connected mobility platform and Vontier company, has launched its Mobilising the Future of Fleets Report: 2025 Energy Edition, which found 63% of fleets are reporting customer demand as influential in their decision to switch to alternative energies, and the speed at which they do it.
This is supported by over half (58%) of the businesses surveyed, citing their own brand reputation and sustainability goals as the leading drivers in their energy transition, showing “net zero fluency” is far more weighted towards customer perception and demand than it is a compliance priority, with only 29% suggesting regulatory pressure and government mandates were guiding their decision making.
“Fleets are focusing on their own net-zero goals as a part of their corporate reputation and long-term commercial strategies, rather than just seeing it as a compliance checkbox,” said Alain Samaha, CEO of Teletrac Navman.
“Customers recognise the importance of sustainable operations, and according to our research, are making active decisions around the businesses they support based on their sustainability credentials.”
As fuel continues to be a critical and volatile cost centre, fleets are favouring getting the most out of their current set-up, with 84% focusing on operational improvements rather than considering new vehicle investments.
Regular vehicle maintenance (49%), optimising vehicle utilisation (36%), and investing in driver training (28%) are some of the key areas of investment cited by fleet businesses globally to ensure better handling of their existing vehicles on the road.
Conversely, a significant 61% of fleets are indeed making Capex investments by upgrading to more fuel-efficient vehicles (48%) or switching to those using alternative fuels (31%), indicating an important focus on the type of vehicle being utilised and a longer-term approach being considered by businesses when reviewing and planning for their carbon reporting and impacts.
Stephanie Haszczyn, Logistics UK's Senior Policy Manager said: "The findings of this report really reflect that the drive for net zero is stemming from reputational opportunity and risk, with businesses wanting to show that they are doing what they can to reduce emissions in their operations today.
“This is a sector which is taking steps without government intervention and support, but which will need prioritisation in years to come as demand for grid connections exponentially increases. Logistics UK is working with government to highlight this need, especially as the transition is already underway.”
The report also uncovered that the larger the fleet (by number of vehicles), the more advanced these businesses were in their transition – 62% of fleets with 50 or more vehicles indicated that they were already tackling their sustainability performance, with an active strategy to continue improving.
Yet, respondents were split on their approach – 46% indicated that they complete vehicle suitability assessments with the help of external consultancy (8%), while 42% preferred an end-of-life replacement approach.
Thirty per cent of fleets had also completed a Total Cost of Ownership (TCO) analysis, “which is a crucial step to avoid costly mistakes in expenditure and vehicle choice further down the line,” added Samaha.
With the shift to mixed-energy fleets continuing, 61% of operators indicated that they used more than one energy type, with 32% using three or more energy sources; PHEV (39%), BEV (37%) and natural gas (23%) were the most widely adopted alternative energy sources.
Furthermore, 8% of fleets had already transitioned at least half of their fleets and 48% expected to reach the same milestone within the next two years, increasing to 85% of fleets in the next five years.
“The push for fleet sustainability is at a pivotal moment. There is no single viewpoint on the best path forward and while concerns persist, many operators see decarbonisation as a strategic advantage,” continued Samaha.
“The pace and feasibility of adoption remain points of debate, however, access to accurate data and actionable insights will be critical factors in making informed decisions that align with both business needs and sustainability goals.”
To view the full report, click here.
Published On: 15/07/2025 12:00:00
