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CSRD: ESG assessment made easier thanks to real-time fleet data

The Corporate Sustainability Reporting Directive (CSRD) requires  large companies as well as small and medium listed companies to monitor and publishan ESG (environmental, social and governance) balance sheet known as “extra-financial”. , It concerns non-monetary information monitoring, in particular the impacts and risks on environment, society, human beings and the company’s entire ecosystem.

With transport responsible for 25% of CO2 emissions in Europe, according to  the European Environment Agency, the question of the environmental impact of vehicle fleets must be at the forefront of ESG reports. To help them consolidate the information and draw up this report, the transmission of vehicle data in real time to a single interface will be of great help to the finance department.

Vehicle fleet: the importance of monitoring CO2 emissions

This obligation is set to apply to a growing number of companies as the application thresholds change. In addition, a company that is not subject to the CSRD, but is a subcontractor or supplier of another company that is, may itself be required to submit an annual CO2 impact report.

In this new legislative context, the ability to provide reliable and structured information on its CO2 emissions will increasingly tend to become a competitive advantage for a company, even a small one.

However, the CSRD regulation is not necessarily the only reason for a company to monitor its CO2 emissions. The French Climate and Resilience Act (published in the Journal Officiel on 24 August 2021) introduces a new target of 70% low-emission vehicles in fleet renewals by 2030. At the same time, the Loi d’Orientation des Mobilités (Mobility Orientation Law) requires companies to give preference to vehicles emitting less than 60g of CO2 per km when renewing their fleets. The aim is to prepare managers, drivers and mindsets for an all-electric future, with a ban on the sale of new combustion-powered vehicles by 2035. 

Day-to-day monitoring of the fleet’s CO2 emissions is the only way for decision-makers to :

  • Evaluate the current situation and assess the scope of the work to be carried out
  • Quantify the changes needed to progress and comply with future standards
  • Implement the energy transition at local level through appropriate decisions
  • Measure the progress of the project
  • Communicate internally and externally on the subject

Several assessment methods

The question is how to assess and monitor the environmental impact of the use of  fleet vehicles over time, and in particular their CO2 emissions. There are two possible solutions:

  • An estimate based on the number of kilometres driven and fuel consumption
  • Precise measurement based on the transmission of actual vehicle consumption data

While the first method requires no investment, it does have a number of disadvantages. One of them being the need to consolidate, at company level and over an entire year, all the journey made. This means a considerable amount of administrative work. Secondly, each vehicle needs to be assigned an average fuel consumption figure to enable the calculation to be made. The result is bound to be somewhat inaccurate, given that the official fuel consumption figures communicated by the manufacturers may differ from the figures recorded in real-life conditions.  Hence the need for a solution capable of transmitting the vehicle’s actual consumption, as measured at time T by its flowmeter.

Using vehicle data to monitor emissions

To implement the second technique, Echoes’ CarFleet solution relies on real-time data transmitted natively by vehicles to the manufacturer via an on-board 4/5G chip. This data is generated by the many sensors found in recent vehicles, from odometers and flow meters to speedometers and traction battery charge levels.

Consolidated in a dedicated interface, this data can be analysed and exported for further use. This data includes, over a period of time to be defined by the user :

  • The exact composition of the connected fleet
  • Total mileage covered by the vehicle fleet
  • Total fuel consumption by internal combustion vehicles
  • Total CO2 emissions from internal combustion vehicles
  • Total consumption of electric or plug-in hybrid vehicles, in kWh

CarFleet, a solution for measuring and taking action

CarFleet also offers a wide range of functions to monitorfleet’s fuel consumption on a day-to-day basis and take the necessary steps to control and reduce it:

  • Geolocation and trips history to optimise jtrips and choose the least energy-consuming routes
  • The average fuel consumption of vehicles, allowing action to be taken on drivers and/or vehicles with abnormally high figures.
  • Mechanical alerts, particularly those concerning tyre pressure. If tyre pressure is too low, fuel consumption can rise by up to 10%.
  • Monitoring the charging of plug-in hybrid vehicles, to detect vehicles that have not been charged or have not been charged sufficiently, thus consuming too much fuel.

Thanks to Echoes’ exclusive “Vehicle Data as a Service” technology, the CarFleet solution enables you to fulfil your CSRD reporting obligations and track your fleet’s CO2 emissions. And with no commitment and no box to install on the vehicles.


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