Environmental, Social, and Corporate Governance (ESG) frameworks will be a priority in 2023 for fleets globally. While there are many elements to a successful fleet ESG program, the inclusion of standardized safety and sustainability driving data is a key component. With artificial intelligence (AI), any fleet with GPS data can rapidly access insights to evaluate how driver behavior corresponds with safety and environmental impact.
In 2023 knowledge, experiences, technological advances, and regulatory pressures are converging to bring the environment into sharper focus. This means customers, investors, potential business partners, and even insurance providers, are likely to have one more thing on their minds this year; the environment. Therefore, factors such as climate impact and sustainability will drive buying trends as well as corporate programs.
As fleet management professionals the question becomes, “How do we do our part to meet goals and requirements?” What, besides fuel consumption, should fleet operators measure to improve their contribution to environmental or ESG targets? Increasingly, fleet management professionals from all disciplines are recognizing the link between safety and sustainability and seeing how holistic programs can more broadly support fleet ESG objectives. They’re also discovering the importance of being transparent about the environmental impact of their activities.
Over recent years the fleet industry has strengthened its focus on safety. Globally, approximately 1.3 million people die in road traffic crashes every year and up to 50 million more are injured. With around one third of all road deaths involving someone driving for work purposes, fleet operators, as well as risk professionals that support them, have a responsibility to manage the risks of work-related road safety.
Now, there is also growing pressure on companies to take urgent environmental action to help achieve the United Nations’ 17 Sustainable Development Goals (SDGs). Added to that, the EU has become a front-runner in global sustainability reporting standards by adopting new reporting rules for multinationals. Even for those not yet required to, there is a growing expectancy for companies to produce some form of ESG or sustainability report.
According to Deloitte, environmental, social and governance “represent the 3 main topic areas that companies are expected to report in. The goal of ESG is to capture all the non-financial risks and opportunities inherent to a company’s day to day activities.”
In fleet management, the need for reliable, standardized data is becoming more important than ever. Quantifying societal impact will likely become the norm within the industry, and this is where reliable driver behavior data comes in. Without an outward-facing green strategy, companies could be mistaken for doing nothing. And data is critical to back up claims made in fleet ESG.
Gaining insight into behavior at the individual driver level is an important component in fleet ESG. Many drivers don’t know how to drive in an eco-friendly way, or simply don’t realize the impact of actions such as harsh braking or incorrect use of cruise control.
Thanks to AI we are now able to analyze, on a per-second level, the safety and eco-friendliness of driving, regardless of vehicle, fuel type, or geographical location. The output of this technology can be expressed as a percentage of savings or in absolute tons of output. The resulting data is meaningful and normalized. This is a game-changer in fleet safety and sustainability!
A simple driver score that displays the safety and eco-friendliness of each driver delivers many benefits. The data can be used to determine driver training/coaching needs, and thus guide safer, more eco-friendly behaviors. Not only does this help to reduce collisions and incidents but it helps reduce fuel use and cost. Added to that, it minimizes vehicle wear and tear, and associated repairs and maintenance, helping to prolong the vehicle lifecycle. Using vehicles longer can be a huge positive for eco-friendly fleet operation.
Data also empowers drivers to take responsibility for their own safety and climate impact. Driver scoring that shows crash probability and climate impact – along with incentives for behavior change – is a great way for fleets to engage drivers and inspire a company culture that prioritizes safety and sustainability. Remember, a large percentage of drivers will change behaviors if they can clearly see their negative impact, what is causing the negative impact and how they can change it.
All that’s needed to obtain deeper safety and sustainability insights is GPS data, which can be obtained via an API connection. Once a fleet is connected to Greater Than’s AI platform, our database processes and analyzes every trip against billions of previous real-world trips using pattern profiling.
The analyzed data can be pushed back to a company’s existing fleet management software, a driver app, or visualized via Greater Than’s range of solutions. This provides actionable information to support fleet ESG objectives as well as many other business goals.