QUICK GUIDE GREEN FLEET INITIATIVES. Saving the Environment and Your Budget. Green Fleet Initiatives: Saving the Environment and Your Budget

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1 QUICK GUIDE GREEN FLEET INITIATIVES Saving the Environment and Your Budget 1

2 Green Fleet Initiatives Saving the Environment and Your Budget Approximately 10% of the world s greenhouse gases stem from fossil fuel combustion. In terms of fleets, it s estimated that a fleet of 500 vehicles can put 6,000 tons of greenhouse gases into the air each year a precarious situation for the future of our environment 1. The most compelling reasons companies invest in fleet management technology are to streamline their operations, increase efficiencies, and improve their bottom line. This creates a win-win for both the companies and the environment. However, some traditional approaches to implementing green technology, such as scaling down vehicle weight and using lower-carbon fuels, have proven to be cost-prohibitive and time-consuming. As fleet contributions to harmful greenhouse emissions continue to rise, $$ finding solutions that are both fiscally and environmentally responsible is imperative. This quick guide will examine alternative methods in which technology can optimize fleet resources and lessen their impact on the environment while providing long-term savings. 2

3 Automatic Vehicle Location (AVL) Automatic Vehicle Location (AVL) or vehicle tracking enables dispatchers and office staff to track all vehicles in real-time. An installed GPS device sends vehicle location data to an in-office map which allows dispatchers to respond to jobs, calls or incidents by sending the closest available vehicles. A recent study by Motorola reported that vehicles equipped with a GPS solution decrease travel downtime by 53%. 2 In addition to saving fleets money by increasing efficiency, the ability to implement closest vehicle routing reduces gas pollution, thus improving environmental quality and customer service at the same time. The data transferred through AVL technology keeps dispatchers informed as to where vehicles are located, as well as how they are being used. Vehicle misuse can cause inflated fuel and overtime expenditures, which negatively impacts the environment and a fleet s bottom line. Government Incentives Depending on factors such as fleet size, vehicle and fuel type, state or region of operation, and overall revenue, fleets can now qualify for various green incentives organized by the U.S. government. Upon purchasing new fuel-efficient commercial vehicles, fleets may be eligible to receive grants, rebates and vouchers, low cost loans, and/or tax credits and exceptions. To access a comprehensive guide on the application process and how these stipulations may apply to your fleet, click here. 3

4 In-Vehicle Navigation An in-vehicle computer can be installed on a vehicle s dashboard to optimize driver routing to ensure on-time customer service. Using information provided by satellite, the most direct route to a location is calculated and the driver is directed to his destination via turn-by-turn audio prompts. In addition, dispatchers are no longer responsible for the time-consuming task of providing directions for lost drivers. Randall Frantz, Manger of Telecommunications and Location-Based Service Solutions at the Environmental Systems Research Institute says, Route optimization and planning, connected to navigation, are allowing operators of fleets to realize efficiency improvements of 15 to 25%. This allows them to realize considerable cost reductions for fuel and labor. 3 Decreased travel time from lost or misdirected vehicles directly corresponds to lower fuel costs and reduced carbon footprint. 4

5 Vehicle Telematics The collection of vehicle telematic data through on-board computers provides fleet managers with the ability to monitor driver behavior and address inefficient performance. Aggressive Driving Aggressive driving habits such as speeding, rapid acceleration and harsh braking make inefficient use of fuel. Since the United States Department of Energy estimates that the cost of a gallon of gas increases 25 cents for every 5 miles per hour driven above 60 miles per hour 4, minimizing poor driving behavior can save fleets money and improve safety, while reducing environmental impact. Unnecessary Idling Idling is another costly example of unproductive driver behavior. Reducing idling time by 10% can increase fuel efficiency between 10 and 20%. 60 minutes of idling time is equal to between 80 and 120 minutes of driving time and wastes roughly one gallon per hour 5. Since each gallon of gasoline burned additionally releases 19.5 pounds of carbon dioxide into the air, this translates to a real environmental cost for an hour of unnecessary idling. Preventative Maintenance Adhering to maintenance schedules is key to ensuring fuel efficiency and preventing excess greenhouse gas emissions. Managers can schedule preventative maintenance and anticipate maintenance issues by using vehicle telematics to analyze engine diagnostics. With proper vehicle care based on these metrics, managers can avoid underor over-maintaining vehicles, thus extending the longevity of vehicles while reducing maintenance costs. In addition, routine maintenance can also have an impact on idling. A poorly-tuned engine uses up to 15 percent more energy when idling than a well-tuned engine. 6 5

6 Electronic Work Orders According to the Minnesota Office of Environmental Assistance, the average office worker uses 10,000 sheets of copy paper each year. 7 Electronic work orders enable work order information, driver job status, time tracking, and on-the-fly job changes to be transmitted in real-time between office software and in-vehicle computers. By implementing a system that features paperless work orders, an office of twenty-five workers could save over $3,400 and 250,000 sheets of paper per year. Can a Small Change Make a Difference? The efficiency benefits of implementing green strategies give fleet managers the opportunity to accomplish more tasks with fewer resources. For example, removing just ten 2013 Ford Taurus sedans each traveling 15,000 miles annually would reduce fuel consumption by about 71,400 gallons and would save the company over $24,928 each year. In addition to these substantial savings, this fuel preservation reduces the amount of CO2 emissions by 6.3 metric tons, which is enough to fill 14.8 barrels of oil or 264 propane cylinders used for home barbecues. 8 6

7 Conclusion Adopting green practices can have a mutually beneficial impact on the environment and a company s bottom line. AssetWorks technology offers extensive ways in which fleets can measure, manage, monitor and track greenhouse emissions and fuel consumption. As a customer for over ten years, the State of Utah reported a 2007 reduction in greenhouse emissions of 3,700 metric tons, equivalent to 672 vehicles off the road, and annual savings of about $1.8 million. 10 To learn more about how AssetWorks can help you to improve your savings and environmental impact, visit

8 Sources April 27, PHH Arval. PHH Greenfleet. Accessed April 21, Howland, Sarah. The Economic Advantages of Fleet Management. Integrated Solutions. January/February Accessed April 27, Albright, Brian. AVL Systems 3. Albright, Brian. AVL Systems Provide a Bargain for Fleet. Integrated Solutions Magazine. Accessed April 27, Albright, Brian. Fleet Tracking Boosts The Bottom Line for Operators. Integrated Solutions, April Accessed Ope Ibid. 6. Stop Idling! Go Green! Save on Fuel Costs! Save Wear & Tear on Your Car! Celebrate Earth Day! Kelly Auto Group. N.d. Web. 18 July Reduce.org. Reducing Waste in the Workplace. Reduce.org. Accessed April 21, Greenhouse Gas Equivalencies Calculator. EPA. Environmental Protection Agency, n.d. Web. Accessed July Nissan Electric Car: 5 Advantages and Disadvantages. CarsDirect. N.p., n.d. Web. 18 July Nissan Electric Car: 5 Advantages and Disadvantages. CarsDirect. N.p., n.d. Web. 18 July