compan-e project: Why company fleets are drivers of transformation

The electrification of corporate fleets is still in its infancy, with numerous administrative and supply-side barriers preventing a faster ramp-up in fleets, and the percentage of pure BEVs remains low. At the same time, commercial e-mobility, as a spearhead and driver of electrification and an important pilot market, would be crucial for achieving climate goals and the target of 15 million e-vehicles by 2030, as 64 percent of new car registrations are commercial. This is the broad conclusion of the three-year compan-e project, which the Öko-Institut conducted together with the Berlin-based think tank Agora Verkehrswende and the Stiftung 2°, accompanied by eight detailed publications. Leading companies are ahead of the political curve, concluded Agora Verkehrswende Director Christian Hochfeld. Significantly more speed is needed across the board, otherwise the climate targets will not be met.

Increasing Driving Distances and Fuel Quantities

Markus Becker from the Federal Ministry for Economic Affairs and Climate Action initially pointed out the discouraging traffic figures, which show a strong upward trend after the end of the pandemic. Despite record fuel prices, no decline in sold fuel quantities and driving distances was recorded, with an increase rather noted in the third quarter. The 9-euro ticket had only a short-term impact and no sustainable effect, and public transport usage is declining again. Recent CO2 limit approvals for passenger cars do not provide the decisive impetus needed and desired to achieve the sector's goals, according to Becker. The values for trucks are still pending. Therefore, national measures and a prioritization of fleet transformation are all the more urgent. These are important for the "democratization" of e-mobility, particularly with regard to a sufficient supply in the used car market. Service vehicles are held for an average of three years, while private cars are held for nine years, according to findings.

"The transformation needs more speed. And it needs pioneer companies," urged Sabine Nallinger, board member of Stiftung KlimaWirtschaft (formerly Stiftung 2°) in Berlin.

She also called for greater employee involvement and information within companies to dispel initial concerns. The aim of the initiative and project was to bring together pioneering companies. During the course of the project, it became evident that converting the fleet to environmentally friendly vehicles is still very complicated in Germany. There are particularly high bureaucratic hurdles in the installation of charging infrastructure. Nallinger mentioned the example of a company that counted 84 individual process steps for a single charging point.

"Bureaucratization clearly leads to a slowdown in transformation here," concluded Nallinger.

The transformation is currently stagnating

Florian Hacker from the Öko-Institut noted that there is an unexpected stagnation in the transformation, although it has been shown over the past three years how government measures, such as the promotion of e-mobility, could provide a boost. The transformation is still not mainstream, but rather dependent on individual committed personalities within companies. Hacker also criticized the lack of typical fleet vehicles such as station wagons, compact cars, or even commercial delivery vehicles. However, it has also been shown that there are tipping points in e-mobilization and that society is capable of acting quickly in the face of significant challenges. Hacker called for an improvement in the legal framework conditions.

Repeatedly: Problem factor charging infrastructure

Especially the issue of charging infrastructure caused major problems during the project, with many details still unresolved. In one out of every four charging points, costs of more than 5,000 Euros were incurred. There were also difficulties with charging at residential locations, such as billing issues, and rather a countertrend. Furthermore, 20 percent of the respondents in the project rely on public charging. It was especially criticized that there is no reservability, security of availability, or clear pricing. The initially highly demanded plug-in hybrids had not proven themselves in practice and are being successively phased out, as reported by Hannes Davieds from the participating R+V insurance. However, a holistic approach is generally taken here, moving away from cars, such as offering service bike-pedelec concepts. Incidentally, the range of electric vehicles has proven to be a less critical point, with BEV users quickly realizing that range increases with a calm driving style.

Unbrokenly attractive: The company car

Project leader Lukuas Minnich from the Öko-Institut pointed to the unbroken attractiveness of company cars, primarily due to tax advantages and the availability of fuel cards. There is also a clear trend towards mid-size and upper-class vehicles, especially SUVs, which are significantly overrepresented. Unlimited refueling also ensures that about a third of the respondents use the company car for 10,000 private kilometers, Minnich criticized. The PHEV trend, which initially displaced diesel, is increasingly being curbed by company car policies, as the ecological benefit is disproportionate. Generally, the company car policy results in an unwanted distribution effect from the bottom up.

Alternative to the car: Mobility budget

Sylvia Lier from TAF mobile is already one step ahead when it comes to company cars; her company already offers a mobility budget as an alternative, which she sees several advantages in. On the one hand, costs can be reduced, and mobility planning can be made more flexible. Smaller vehicles can also be used, and a pedelec, for example, can additionally be provided. Last but not least, the mobility budget contributes to occupational health care by switching to environmentally friendly means of transport. Furthermore, as of 2023, it will be mandatory to report on the CO2 emissions of company mobility. Here, the concept of the mobility budget is also very helpful. Lier also appealed that the switch away from cars must be worthwhile and calculable for those making the change; motivation for change is needed.