Skip to content
ADVERTISEMENT
BM Opinion

Net profit over net zero: Sustainability must drive cost savings

Edward Kulperger at Geotab discusses why for fleet operators, it’s not about whether to act on sustainability, but how to do it profitably.

Opinion
4 min read
Share
Edward Kulperger GEOTAB (2)
ADVERTISEMENT

We live in a world now where sustainability is constantly being questioned because of changing regulatory demands and economic pressures.

For fleet operators, it’s not whether to act on sustainability, but how to do it profitably. That’s where the current tension lies: balancing environmental goals like net zero with cost control, operational reliability and performance.

Our recently published 2024 sustainability and impact report, ‘Pragmatic Solutions for a Changing World’ highlights many companies that have adopted sustainable transport practices and generated near-term financial returns, lower costs, and higher efficiency.

Because when sustainable practices become a win-win for all business departments, they’re hard to ignore.

Data-backed decisions

Fleets have always been first movers in the use of sustainability tools, and last year Geotab grew the deployment of its sustainability solutions by 39%.

At the same time, the number of EVs connected to our platform grew by 63%, travelling over 700 million miles (1 billion kilometres). That level of use generates valuable operational data, data that’s helping fleets reduce emissions and save money.

Our analysis shows that fleets using our sustainability reporting features emitted 6.3% less CO₂ per mile on average than those that didn’t. Multiply that across 50 billion miles and the fuel savings are huge.

ADVERTISEMENT

Take California Freight, which operates more than 300 trucks. After adopting Geotab’s idling reports, they cut idle time by around 60%, saving nearly £40,000 each month.

Or Deutsche Bahn’s bus division, DB Regio, which implemented Geotab across its fleet. Since doing so, they’ve reduced emissions by 1,400 metric tons and cut diesel consumption by 25 million litres.

At an average diesel price of €1.65, that’s roughly €41m in savings – again numbers not to be sniffed at.

ADVERTISEMENT

EV growth and operational reality

The shift to EVs is underway, but uneven. We’re seeing real uptake among last-mile delivery companies. Vehicles like the Ford E-Transit, Mercedes eVito, eSprinter, and others are gaining traction in commercial fleets.

The strategy we see work best is: pilot, nail it, then scale it. In the light-duty segment, many fleets are in that second phase, refining operations and understanding costs. On the heavy-duty side, trucks are still in the pilot stage.

There are still barriers. EVs remain expensive upfront. Charging infrastructure can be patchy. Incentive programmes are stagnating or being pulled back, depending on location.

At the same time, emissions regulations are tightening. OEMs and fleets are caught between regulatory pressure and a fluctuating market. The result is financial and strategic friction.

But we continue to encourage fleet operators to think long-term while surviving short-term pressures. The key is optimisation, whether through fuel use, vehicle performance or smart procurement.

Transitioning to EVs should be a calculated move. It’s not just about capital expense, but total cost of ownership over years of use. That includes maintenance, charging, software, and residual value.

At Geotab, we support organisations at every stage, from those with 100 vehicles to those managing over 100,000. The scale varies, but the goals are consistent: reduce emissions, improve efficiency, and stay financially viable.

That’s where data becomes essential. It gives fleet managers and senior management confidence to act, backed by evidence rather than assumptions.

Practice what you preach

We apply the same standards to our own operations: Geotab is aiming for net zero by 2040 across all emissions scopes.

We’ve signed The Climate Pledge and we’re applying the same sustainability criteria to our supply chain. We want to be seen as an industry exemplar and set standards across the fleet and telematics sectors.

But fleets are under pressure: from regulators, markets and internal targets. Acting on sustainability doesn’t have to mean higher costs or operational compromise. Done right, it improves performance and protects margins.

Edward Kulperger is SVP EMEA at Geotab

Related

ADVERTISEMENT