The future starts here. Shell Fleet.

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The future starts here

What the move towards net-zero carbon emissions means for SMEs

AS governments and businesses strive to reduce carbon emissions, the subject has aroused a tremendous amount of interest in recent times.

According to Shell, the options for fleets are to:

• Avoid emissions by switching to zero-carbon alternatives such as electric vehicles (EVs), or fuel-cell vehicles that use green hydrogen;

• Reduce emissions by transitioning to low-carbon fuels (e.g. natural gas, biomass), transitioning to hybrid vehicles, or changing how their vehicles are used (i.e. fleet optimisation); or to

• Offset fleet emissions by participating in schemes that result in reduced or captured emissions elsewhere.

Each business will have the opportunity to have its own unique journey to decarbonisation, which is good for the planet and future generations, but a problem for SMEs that put off modernisation for too long.

To learn more, Shell sought the perspectives of over 150 fleet executives and experts, representing 125 organisations across 12 markets, in a collaborative study with Deloitte.

The study concluded that light-duty fleet owners feel increasing pressure to decarbonise. In addition, EVs are an increasingly competitive solution and the only way to hit net-zero emissions.

However, many fleet owners find decarbonisation overwhelming, and face organisational and market barriers on their journey.

WelcomeIf you’re an SME executive, you may be wondering how to proceed – in which case, the answer may lie with Shell Fleet Solutions.

For years now, Shell has been preparing for this extraordinary transition and has developed the infrastructure and payment methods to guide you through it smoothly.

Tangible examples of change, such as innovative new fuel types and the many thousands of EV charging locations springing up across the country, are only part of the story.

If you digitise your fleet with the help of Shell fuel cards, you won’t just be starting a decarbonisation journey. You’ll be saving money and boosting your company’s efficiency into the bargain.

The benefits of using Shell Fleet App – available to SMEs with up to 10 cars or vans – include savings on fuel costs and less time spent on administration.

The same applies to Shell Fleet Hub, for companies with up to 30 cars or vans. You take control of your outgoings and achieve useful data insights along the way.

In the pages that follow, we’ll look at why decarbonisation is vital, how SMEs can play their part in achieving it and the business benefits of doing so. We hope you’ll come along for the ride.

Amid mounting concern over climate change, Shell has been talking to commercial fleet owners and industry executives across the globe about transport’s future.
3 WELCOME Contents 04 A vital task 07 Infographic: Our energy transition strategy 08 The drive to decarbonise 14 How are fleets changing? 18 The road ahead DECEMBER 2022

A VITAL TASK

As the world transitions to a lowcarbon energy system, small delivery fleets will act as technological pioneers. Shell’s Global Head of SME, Deepti Behl, tells us why.

IN the years ahead, we’re all going to notice changes in the way we and our deliveries move around – and if we’re to decarbonise road transport, everyone will need to play their part.

According to analysts Frost & Sullivan, commercial vehicles in Europe produce 20% of all vehiclerelated greenhouse-gas emissions. What’s more, since fleet vehicles are much more likely than passenger cars to have a diesel engine, there’s growing unease about particulates in commercial fleets’ exhausts.

The adjustments that need to take place by 2040 are, however, achievable – and as Shell’s Global Head of SME can attest, customers across the world are increasingly keen to join in the decarbonisation effort.

Over the past 12 years, Deepti Behl has worked in various roles across Shell’s mobility operations and fleet card business, in Singapore, India and now the UK. When she took up her latest role, the UK’s Covid-19 lockdown was coming to an end.

Many small and medium-sized enterprises had been through an extremely difficult time, but the appeal of being Global Head of SME lay in

helping business owners to manage their companies more efficiently through technology.

“My father used to be an SME owner,” she says, “so the role immediately resonated with me.”

Managing the SME platform for every country that hosts Shell’s fleet business, she explains, is a unique, challenging job that encompasses product strategy and implementation, marketing, channel management and customer operations, among other tasks.

The objective is the end-to-end management of Shell’s SME proposition, such as identifying ways to support SMEs’ energy needs. In both our personal and professional lives, she adds, “we all have to play our part in the journey towards decarbonisation”.

Avoid, reduce, compensate Shell is helping customers chart their decarbonisation journey with its Shell Fleet Solutions initiative, designed to help SME fleets move faster towards more sustainable, more efficient ways of working.

It’s a three-pronged approach. Where appropriate, fleets made up

of electric vehicles (EVs) or those powered by hydrogen fuel cells will generate no lifecycle emissions.

When that isn’t possible – for instance, with heavier goods vehicles – innovative fuels and lubricants will reduce a fleet’s emissions instead. Techniques such as fuel consumption reports, and telematics to track driving behaviour, will reduce the carbon footprint further.

The third part of the plan involves compensating for emissions that are remaining. Here, Shell calculates ‘wheel-to-wheel’ carbon dioxide emissions for those drivers who refuel with a Shell Card and then buys carbon credits that protect and restore nature.

On the all-important road to a cleaner energy future, this fundamental change in mindset will affect everyone. “Shell is working towards the company’s Powering Progress strategy,” says Deepti.

“We currently have a sectoral approach, where we internally find synergies across our offers and bring them together to accelerate decarbonisation for a sector.”

In practice, that boils down to meeting SMEs’ energy needs with the right fuel products while encouraging the development of electric fleets wherever possible.

“Eventually,” says Deepti, “I need to find more avenues where energy is consumed by SME businesses and give a holistic solution.

“Shell has been working on and investing in alternate renewable energies for many years and in the last few years, I have seen this accelerating.”

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SHELLFLEETSOLUTIONS.CO.UK DEEPTI BEHL INTERVIEW

Urgent priorities

All in all, it’s hard to overstate the changes ahead. Over the next 20 years, we will be seeing a proliferation of alternative fuels, says Deepti.

We aim to keep our customers well informed and some already have detailed decarbonisation plans and targets in place. But with respect to EVs, range anxiety – the concern that a vehicle might run out of power prematurely – often comes up in her conversations.

“Many of our customers here in Europe need a reliable partner for charging to alleviate this anxiety,” she says.

Now that low-emission zones in some cities are hastening the transition to electric fleets, the good news is that SMEs may well be early adopters. Most last-mile delivery services are managed by SMEs, and taxi drivers and florists are among those likely to be technological pioneers.

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At the same time, companies with small to medium-sized fleets must start planning for the changeover now or risk being left behind. “We will have to move ahead together,” says Deepti. “Our job is to help make all this simple for them.”

The task that faces them is urgent. “How can they manage their small fleets with similar operations to those they have now? How should they deal with charge anxiety? How do they achieve clearer and transparent billing? How can they estimate their return on investment?”

“Our job is to provide answers to these questions in an accessible way. Unless you have a reliable partner, you won’t be able to make the switch to EV. It’s up to us to simplify the decisionmaking and facilitate the execution, whether that means full transition of their fleet, partial transition or helping those still evaluating the costs of transition.”

Fear of the unknown Given the scale of the changes, what sort of feedback has Deepti encountered from customers?

“I see that the awareness is rising, especially when many governments have laid out the clear goal of going electric in the next few years,” she says.

“Any change needs to overcome the usual barriers of inertia and fear of the unknown, especially at a time when inflation is at an all-time high across economies.”

In addition, supportive policies and a trustworthy partner may provide a boost to early adopters. “That is what we are trying to do, through a reliable and vast charging network. Shell is investing in charging infrastructure and new digital and technical capabilities to give our customers a seamless experience.”

At Shell, she notes, “we know that there will be significant learnings for any new venture, especially when

done at scale”. Given the company’s formidable reputation and age – it was founded in 1907 – consumers on the whole are confident that it can “learn fast and fix it faster. I think that experience will help us bring these new energies to customers at a large scale across different countries.”

But with innovations such as driverless vehicles on the horizon, isn’t it understandable that some staff might be worried?

“History has proven that every new technology comes with new opportunities,” she says, “as well as a tapering down of existing use cases. Such changes will happen over time, especially if they make business and social sense.

“In my opinion, there will be enough time for business owners to understand what will happen and make the right decision for their operations now.”

Reliable information will play a key role in dispelling any doubts, she suggests. “In the end, it will come down to what makes business sense.”

Fleet App benefits

It’s worth noting that in the UK and the Netherlands, Shell’s EV chargers are powered by Shell Energy, which draws on renewable sources.

More broadly, though, why should SMEs choose Shell’s services rather than those of a competitor?

“SMEs should choose what is best for their business,” says Deepti. In her personal and professional experience, she knows that SMEs keep a close eye on every penny of expenditure and

income.

As a result, she’s confident that the Shell Fleet App will appeal to SMEs across the board. Aimed at businesses with 10 vehicles or less (and registered for more than a year), it enables managers to save time and money while managing their fuel costs in one convenient app.

Fleet App, she explains, “saves SMEs considerable administrative time which would have been otherwise spent in collecting and filing fuel bills. It allows the SMEs to drive now and pay later. SMEs can self-enrol in the programme by simply downloading the app and following the instructions.”

Drivers can use their Shell Fleet App cards at more than 3,800 fuel stations across the UK. That includes 1,100 Shell stations and those of its partners Esso, Texaco, Morrisons, Gulf, Gleaners, Topaz and Total.

“In the UK, they also enjoy the commercial benefits of 3p per litre off,” says Deepti. There’s also the option of ordering a hybrid card – ideal for hybrid and electric fleets – in the UK and the Netherlands. Added to which, drivers of fossil fuel vehicles can offset their carbon emissions.

“The enrolment is at no cost,” adds Deepti. “So, if I ran an SME, I’d try the Shell Fleet App and realise the benefits.”

To find out more and download the Shell Fleet App for free CLICK HERE

6 DEEPTI BEHL INTERVIEW SHELLFLEETSOLUTIONS.CO.UK
“History has proven that every new technology comes with new opportunities”

OUR ENERGY TRANSITION STRATEGY

OUR TARGET is to become a NET-ZERO ENERGY BUSINESS BY 2050

OUR CARBON TARGETS for ALL ENERGY WE SELL, SCOPES 1, 2 & 3

REDUCING NET CARBON INTENSITY gCO2e/MJ

2016 baseline as measured by the NCF methodology, more information available on shell.com

Carbon intensity 2016 baseline 79 gCO2e/MJ 0 gCO2e/MJ

Absolute carbon 1.7 gtpa 2018 0 gtpa

* Reduced by 2.5%

REDUCING ABSOLUTE CARBON EMISSIONS: FROM 1.7 GTPA TO NET ZERO BY 2050 We believe total carbon emissions from energy sold peaked in 2018 at around 1.7 gigatonnes CO2e per annum (gtpa) and will be brought down to net zero by 2050

WORKING WITH OUR CUSTOMERS ACROSS SECTORS

OUR RECOMMENDED APPROACH

AVOID emissions, for example by adopting solutions that are emissions-free when used.

REDUCE emissions, for example by making use of lower-carbon fuels and technologies.

COMPENSATE remaining emissions through the use of high-quality carbon credits.

OUR BUSINESS MILESTONES

Operational efficiency Eliminate routine flaring by 2025 Maintain methane emissions intensity <0.2% by 2025

Portfolio changes

Growing gas share to 55% of hydrocarbon production Oil production decline 1-2% per annum

No new frontier exploration entries after 2025

TO ACCELERATE THE TRANSITION TO NET-ZERO EMISSIONS

CCS

>50 million households equivalent renewable power 2.5 million electric vehicle charge points

Low-carbon power Double electricity sold from 2020

Targeting 25 mtpa by 2035

Low-carbon fuels (biofuels, hydrogen) Natural sinks

Produce 8x more low-carbon fuels

Increase lowcarbon fuel sales to >10% of transport fuels

Aiming for 120 mtpa High-quality cardon credits only

Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and Net Carbon Footprint (NCF) targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target and 2035 NCF target, as these targets are currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target. Please read the full Legal Disclaimer at: https://www.shell.com/energy-and-innovation/the-energy-future/our-climate-target.html”

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2-3% by 2021 3-4% by 2022 6-8% by 2023 9-12% by 2024 20% by 2030 45% by 2035 100% by 2050 ACHIEVED* 2050
8 SHELLFLEETSOLUTIONS.CO.UK THE DRIVE TO DECARBONISE

THE DRIVE TO DECARBONISE

Pressure is increasing to rapidly reduce emissions in the global vehicle fleet

PROFESSIONAL, delivery and operational fleets, consisting of light commercial vehicles and/or passenger-carrying vehicles, are a significant contributor to global CO2 emissions.

However, businesses are increasingly looking to decarbonise their fleets, with many of the world’s leading companies committing to switch to electric vehicles (EVs) by 2030. Therefore, it is up to fleet owners – whether they are the head of operations in a large logistics or delivery company, a sustainability manager in a utility provider, procurement lead at a leasing business or the head of HR in a Fast Moving Consumer Goods firm – to act now, to future-proof their businesses and meet decarbonisation targets.

That said, many fleet owners are struggling to turn ambition into action. They feel overwhelmed, and do not know what the best solutions are, the best way to implement those solutions, or how to get the business buy-in required.

A key role to play

The 2015 Paris Agreement committed the 196 participants at COP21 to limit the increase in global warming to well below two degrees Celsius (and preferably to 1.5 degrees

Celsius), compared with pre-industrial levels. Subsequently, many countries, industries and individual organisations set targets for limiting their CO2 emissions, and began developing plans on how to reach them.

The transport sector has a key role to play in this. Road transport – particularly cars and vans – is an essential part of our lives, and the backbone of our economies, with most consumer products transported by road at some point in their delivery journey. Over 87 billion passenger miles were completed globally by private vehicles in 2022. However, these vehicles, albeit essential, are a highly visible source of emissions, being synonymous with fumes, noise and congestion. Pressure is increasing to rapidly reduce emissions in the global vehicle fleet.

Transport as a whole was responsible for 7,153 million tonnes (MT) of carbon dioxide (CO2) emissions in 2020, which is equivalent to 21% of all global CO2 emissions. Most transport emissions (78%) result from on-road transport.

Some forms of transport – aviation, shipping and heavy-duty freight – have been categorised as “harder-to-abate” sectors, because of the need for larger stores of energy, and difficulties to electrify. Solutions for lighter-duty

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vehicles are comparatively clear, and while operational and market challenges still exist, the global fleet is already showing significant signs of change.

There are 1.3 billion passengercarrying vehicles (PCVs) and light commercial vehicles (LCVs) in use, which represents 95% of total vehicle volume (Exhibit 1). They generate 48% of total transport CO2 emissions – more than almost all other forms of transport combined. Ownership of such vehicles is split between personal and business users; this report focuses on those owned by businesses.

How these vehicles are used

Business-owned light vehicles are used for four main purposes:

1. Delivery fleets – focusing on transporting goods; primarily for lastmile delivery.

2. Operational fleets – enabling workers to perform their job (e.g. moving construction workers and their equipment to job sites, or repair workers supporting customers in the field).

3. Professional fleets – provided to employees as a benefit.

4. Aggregator fleets – indirectly owned or operated vehicles, such as carsharing and ride hailing.

Of these, operational fleets represent the large majority, although they are highly fragmented with a large number of businesses with relatively small fleets. This is followed by delivery fleets, where there are fewer providers, but often with larger fleet sizes. Finally, we have professional fleets, which vary in size and prevalence depending on the country they operate in. Fleet owners across these three

categories play different roles within their organisation, have varying degrees of influence, and different responsibilities and success metrics (Exhibit 2). This impacts decarbonisation decision-making, and the strategies and solutions that will best work for these types of fleets.

The case for change

The case for fleet decarbonisation is becoming more and more compelling. Pressure is increasing from regulators, customers, employees and the broader societies in which business fleets operate. At the same time, new opportunities are arising: technology is improving, providing more alternatives to internal combustion engine vehicles (ICEVs), and these alternatives are becoming cheaper. This helps create the conditions required for fleet owners to credibly explore new solutions, and

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LIGHT COMMERCIAL VEHICLES (LCVs) PASSENGER-CARRYING VEHICLES (PCVs)1 OTHER VEHICLES (E.G. HEAVY GOODS VEHICLES, BUSES, COACHES, TRACTORS AND TRAILERS) EUROPE CHINA UNITED STATES INDIA REST OF WORLD PRIVATELY OWNED BUSINESS-OWNED OUT OF REPORT SCOPE Sources: Tracking Transport (2021), IEA. | Final Van Statistics Great Britain (2020), Department for Transport. | Top Private Fleets (data sourced 2022), FleetOwner500 Light commercial vehicle production in China for 2010 to 2021 (2022), OICA, Statista. | Registered vehicles by country (2020), WHO. | Monitor Deloitte Analysis 2022. 1 This includes estimated two- and three-wheelers, although limited data available on this. 0 50 100 LCV private vs business ownership 68m 94m PRIVATELY OWNED LCVs BUSINESS-OWNED LCVs 0 50 100 PCV private vs business ownership 1,071m PRIVATELY OWNED PCVs BUSINESS-OWNED PCVs 93m 73 MILLION 1.4 billion VEHICLES EXHIBIT 1: GLOBAL NUMBER OF VEHICLES, SEGMENTED BY VEHICLE T YPE AND REGION MILLION 1,16 4 162 MILLION SHELLFLEETSOLUTIONS.CO.UK THE DRIVE TO DECARBONISE

EXHIBIT 2: FOCUS SEGMENT FLEET-OWNER PERSONAS

Delivery fleet

Typically

Key challenges

•Reducing CO₂ footprint of fleet

•Reducing total cost of mobility

•Ensuring fleet meets customer expectations in most efficient way

•Not knowing what decarbonisation support they need

•Delays to repairs and replacement vehicles •Driver shortage and staffing challenges

Priority metrics • Delivery times • Fleet cost • Fleet utilisation

Operational fleet

Typically managed by Head of Fleet/Operations

Focused on enabling workers to get to the job site, or from point A to point B

LOW

Professional fleet

Typically managed by Head of Benefits/HR/Procurement/Sustainability

Focused on providing workplace benefit to employees

Source: Fleet owner interviews.

Key challenges

•Reducing CO₂ footprint of fleet

•Reducing total cost of mobility •Handling day-to-day operational issues –e.g. broken down vehicles

fleet value and vehicle utilisation (uptime) •Delays to repairs and replacement vehicles •Not knowing what decarbonisation support they need

Priority metrics •Meeting customer Service Level Agreement requirements

Key challenges •Reducing total cost of mobility •Managing multiple projects at once

fleet risks and fraud •Reducing CO₂ footprint of fleet

car/mobility scheme is meeting new employee ways-of-working requirements

Priority metrics •Employee satisfaction •Employee retention •Fleet CO₂ emission reduction

1This illustration reflects how critical the fleet is to the fundamental business model – i.e. a fleet is a delivery businesses product. It is not an indication of how important these job roles are.

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LOW
“My fleet is a finely tuned
HIGH Fleet importance to business1
instrument.”
managed by Head of Fleet/Operations
Focused on transporting goods, including short- and long-haul delivery
HIGH Fleet importance to business “We can’t waste money with out-of-action vehicles.”
•Maximising
•Fleet cost •Fleet utilisation
LOW
HIGH Fleet importance to business “Fleet management is just one thing on my long to do list.”
•Managing
•Ensuring
DECEMBER 2022

Reducing

the impetus for those already taking action to accelerate their transition.

Meanwhile, government regulation on LCV and PCV emissions has intensified significantly in recent years. Over 50% of new vehicle sales are now in markets that have announced a full phaseout of ICEV sales in the near future.

Specific measures are also being applied at local and regional levels. For example, from 2030, petrol and diesel vehicles will be banned from entering Amsterdam, and Singapore is aiming to achieve 100% cleaner

energy vehicles by 2040.

Regulatory pressure will only intensify, with some markets, such as the UK, bringing ICEV sales bans forward by up to 10 years.

The decarbonisation imperative is also shaping customer and employee decision-making. Forty percent of employees entering the workforce cite sustainability as a key factor for job selection, and one in five consumers prioritise sustainability when making transport choices. One delivery fleet operator noted this trend: “It is not even a differentiator at this point, it is starting to become about ability to operate.”

Although consumers in Europe have been leading the transition, behaviours and attitudes are changing globally. In India, 90% of surveyed consumers state they would be willing to pay more for CO2-neutral delivery, and 35% of surveyed Chinese consumers name sustainability as an important purchasing factor.

Reducing fleet emissions is moving from a preference to a necessity.

Inaction could result in higher costs, loss of market share, or even business failure. These risks are compounded by recent supply issues, where wait times for EVs have in some cases been extended to 18 months. While these issues have been made more acute by short-term factors, such as the global semi-conductor shortage, interviewees expect these challenges to intensify, as demand increases from more fleets looking to meet decarbonisation targets.

As one large delivery fleet owner noted: “We have moved our targets forward; if we don’t start securing the vehicles we need today, there is a risk we won’t get them when we need them.” Indeed, there are gains to be made by being a fast mover. Actions today will define the future winners or losers.

For more help on Navigating Fleet Decarbonisation

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fleet emissions is moving from a preference to a necessity
CLICK HERE SHELLFLEETSOLUTIONS.CO.UK THE DRIVE TO DECARBONISE
14 SHELLFLEETSOLUTIONS.CO.UK HOW ARE FLEETS CHANGING?

HOW ARE FLEETS CHANGING?

Technology improvements and growing charging infrastructure are making electric vehicles an increasingly competitive alternative to the internal combustion engine

THE size of the global business fleet has been affected by several factors in recent years. Delivery fleets have been growing rapidly, reflecting the increase in last-mile delivery caused by pandemic lockdowns and the rise in e-commerce. Operational fleets continue to grow in line with GDP, as vehicles are used to perform established work tasks.

Professional fleets have faced growing pressure in recent years, as home-working, digitisation and functional centralisation have increased, and businesses have adopted a more holistic perspective on employee mobility (e.g. mobility-as-aservice).

Overall, the number of business vehicles – and total emissions –is expected to grow, with light commercial vehicles (LCVs) alone having increased by 21% from 2020 to 2021. Immediate action is needed if we are to meet Paris commitments.

Avoiding emissions

For zero-emission targets to be hit,

avoiding emissions must be the longterm priority for fleet owners. Solutions such as hydrogen fuel cell electric vehicles (FCEVs) and synthetic fuels are unlikely to play a role at scale for light-duty fleets, given their scarcity and cost. Therefore, unlike many sectors, the pathway to zero emissions for LCVs and passenger-carrying vehicles (PCVs) is clear – transition to electric vehicles (EVs).

Although EVs may not be viable in all use cases today, battery ranges are improving, costs are coming down and the number of charging points is increasing exponentially. The result of this can be seen by looking at the global EV fleet, which continues to grow.

State of fleet electrification

EVs have been around since the inception of the automobile. In the early 1900s, they represented 25–30% of vehicle sales in the US, saw a resurgence in the 1960s and 1970s, and started to enter the market again at the end of the 20th century.

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With each wave, EVs have been limited by cost, range concerns and inadequate infrastructure. Although many of the same challenges exist today, we have reached an inflection point in the adoption of EVs.

Technology improvements and a growing charging infrastructure base are driving increased demand, which is in turn driving investments from original equipment manufacturers. This creates a virtuous circle of improvement, which has made EVs an increasingly competitive alternative to internal combustion engine vehicles (ICEVs) –indeed more attractive in some cases.

This dynamic is reflected in the numbers, with over 11 million electric PCVs on the road globally in 2021 – a

figure that has almost doubled over the past two years. This momentum is expected to continue, with 95% of survey participants stating they expect to begin bringing EVs into their fleet within the next five years.

Charging infrastructure has also scaled up significantly to support the growth in EV sales, with almost 1.8 million (fast and slow) public charging points now available globally: more than four times as many as five years ago. Investment – across both EVs and charging infrastructure – has also increased, to reach $273 billion in 2021, a 48% year-on-year improvement since 2014.

Common objections

Two objections are often raised regarding the impact of EVs on net global emissions:

Objection 1: EVs are no better than ICEVs, because of the negative effect of battery production on the environment.

Although the initial manufacturing footprint of an EV is higher than that of the average diesel or petrol vehicle due to the battery, EVs contribute fewer lifecycle emissions as a result of using electricity as the main energy carrier (Exhibit 3).

Objection 2: EVs are no better than diesel if the electricity is generated by polluting sources.

The relative benefit of EVs is indeed diluted in countries with a high proportion of hydrocarbons in the national energy mix. However, even in scenarios in which most electricity is generated from fossil fuels – such as India, where fossil fuels constitute 90% of the national energy mix – EVs still release fewer CO2 emissions over their lifetime. For instance, looking at India and considering its current energy mix, EV CO2 emissions are still estimated to be 19–34% lower than those of ICEVs.

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0 BEV 3 ICEV 2 10 20 30 40 50 tCO2e 42 t CO 21 t CO VEHICLE MANUFACTURING BATTERIES – ASSEMBLY AND OTHER BATTERIES – MINERALS ELECTRICITY FUEL CYCLE (WELL-TO-WHEEL) EXHIBIT 3: COMPARATIVE LIFECYCLE GREENHOUSE GAS EMISSIONS OF A MID-SIZE BEV AND ICEV 1 Per vehicle lifetime, 2 – ICEV base case 3 – High GHG Minerals Case. Source: Comparative life-cycle green house gas emissions of a mid-size BEV and ICE vehicle, (2021), IEA. 2e1 2e1
SHELLFLEETSOLUTIONS.CO.UK HOW ARE FLEETS CHANGING?
EVs contribute fewer lifecycle emissions as a result of using electricity as the main energy carrier

Overcoming market challenges

Although there are cost implications of changing vehicle types and investing in new infrastructure, some senior stakeholders will understand and prioritise the broader benefits for their business and society in decarbonisation decision-making.

However, other stakeholders will not, relying solely on unit economics to determine their assessment. Procurement limitations such as this can lead to the appearance that the EV transition business case is less viable, or more expensive, than it could be.

It is important to identify all major drivers of cost across the life of the vehicle. Although EVs may look more expensive initially, the total cost of ownership (TCO) may be lower when

considering fuel, maintenance taxes and tolls.

The value of these cost drivers will vary by market, vehicle class, duty cycle and scale of purchase; however, in some cases, the TCO for EVs has already reached parity with ICEVs.

Over time, this business case is expected to become increasingly compelling, as vehicle production volumes grow, the cost of batteries decreases, and governments become increasingly restrictive around highemitting vehicles.

To find out more and download the Shell Fleet App for free

Common misconceptions/ challenges fleet owners need to overcome

• Thinking transitioning to electric vehicles is the only way to decarbonise a fleet, meaning other quick wins such as fleet optimisation are missed.

• Not considering how the organisation (i.e. people, processes and IT) will handle decarbonisation changes, meaning progress is halted.

• Assuming EVs aren’t applicable to most of their fleet vehicles, meaning targets and decarbonisation opportunities may be missed.

• Overlooking hidden costs, leading to halting progress, or unnecessary cost later.

• Waiting until there is absolute certainty in the approach and business case, meaning targets and decarbonisation opportunities may be missed.

• Not utilising monitoring solutions, such as telematics, to track and report impact of new decarbonisation initiatives on greenhouse gas emission changes.

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What can Shell Fleet Solutions do to help?

E-mobility with Shell Recharge

EV charging for fleets on-the-go, at home or at the office, or support in turning sites and depots into new charging locations, and joint development of fleet hubs.

Shell Card

Track fuel use, electric charging and other mobility expenses with a single payment solution.

THE ROAD AHEAD

Shell Telematics

Get critical data and business intelligence for clear visibility of vehicle utilisation and performance, driving habits, and electric vehicle readiness through our Electric Vehicle Suitability Assessment. (EVSA).

How Shell is helping customers decarbonise

SHELL’S ambition is to become a net-zero emissions energy business by 2050 – but when it comes to decarbonisation, the best strategy in the world will mean nothing without the mutual support of government, industry and customers.

Why, though, should a fleet owner or a mobility manager choose Shell as a partner in their fleet decarbonisation journey?

to-end propositions, built from industry expertise and innovative technologies, it helps its customers keep things simple, smart and sustainable.

Charging up

CO2 Compensation Scheme

Offset unavoidable fleet CO2 emissions through our global portfolio of nature-based solutions.

Shell Fleet Solutions is one of the global leaders in business mobility. It collaborates with businesses that have a fleet of commercial passenger cars, and light- and medium-duty vehicles.

And with its evolving portfolio of end-

The number of electric vehicles (EVs) on the UK’s roads is increasing steadily – but for SMEs to transition to electric fleets, they need to feel confident that convenient, reliable recharging facilities are available.

Shell already one of the largest public charging networks in the UK, which offers access to more than 12,000 EV charging points. By 2030, it aims to increase that number to 100,000.

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SHELLFLEETSOLUTIONS.CO.UK

Of these, 11,000 will be rapid chargers at locations including forecourts and supermarkets. This means 90% of all UK drivers will be within 10 minutes of a Shell rapid charger.

Another ambition is to install 50,000 on-street charge points in the UK by 2025, in effect widening the availability of EV charging to include millions of drivers without private parking.

Shell also has plans for up to 800 charging points in as many as 100 Waitrose stores by 2025, enabling customers to charge up while they shop.

Shell Fuel Cards

The beauty of Shell Fuel Cards is that they save businesses time and money while also helping to save the environment.

If you’re an SME with as many as 30 vehicles, Shell Fleet Hub lets you pay by card at over 3,800 stations nationally. That’s 1,100 Shell stations, plus Esso, Texaco, Morrisons, Gulf, Gleaners, Topaz and Total.

The same goes for Shell Fleet App, designed specifically for businesses with 10 vehicles or less. It’s the smart way to manage fuel costs, cutting your administrative chores while offering cash discounts to you and your drivers.

Fleet App benefits

Managed from your phone, Shell Fleet App offers a range of convenient features that save you time and give you more control over your vehicles’ fuel costs.

Once you’ve set up the app, you’ll get monthly fuel credit of £3,000 for up to 10 vehicles. What’s more, you’ll enjoy 4p per litre off V-power and 3p per litre off standard fuels at Shell.

Further benefits include:

• A locator that directs drivers to their nearest station.

• Transaction visibility by driver, so you can see exactly what’s being spent when and where.

• Flexible controls that allow you to

freeze and unfreeze cards that are lost or stolen.

• The ability to set credit allowances for your drivers, which you can adjust at any time.

• Consolidated, downloadable, VATcompliant invoices for tax reporting and recovery.

• Automated payments for all your fuel expenses, taken on the last day of each month.

• Pay for all types of fuel, lubricants, motor accessories and car washing.

Download Shell Fleet App via Google Play or the App Store. If you’re a limited business that’s been registered for more than a year, your account can be set up and cards sent out the same day.

To find out more and download the Shell Fleet App for free

19
DECEMBER 2022
CLICK HERE
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