IKEA assembles greenest fleet as business case for EVs charges up
SYDNEY, 9 March 2023 - The 2023 Electrify Fleets Rankings, from Greenpeace Australia Pacific, has seen Swedish homewares giant IKEA take the top spot for its commitment to electrifying its car and trucking fleet, as a new report shows the case for electric vehicle fleets is rapidly strengthening.
- IKEA topped the list, scoring 9.5 out of 10, while the podium was completed by Bank Australia with a score of 7.5 and Westpac with a score of 6.5
- Bank Australia received an honourable mention for not only its commitments to fleet electrification but also ruling out lending for fossil fuel vehicles
- Major supermarkets have a lot of catching up to do, with Woolworths scoring 3 out of 10 and Coles scoring 2.5 out of 10
- Rental car company Avis took out the wooden spoon, with a score of 0.0, with Aldi, Officeworks, JB Hi-Fi, Myer, and David Jones rounding out the bottom of the pack
- The national average score of companies ranked was only 3 out of 10, showing Australian companies really need to hit the accelerator on cleaning up transport emissions
Alongside the rankings, Greenpeace Australia Pacific today released a new report, Charging Corporate Action: The Case for Renewable-Powered Electric Vehicle Fleets, which shows that by 2025 electric vehicles will soon be the cheaper option for corporate fleet managers when acquiring and operating new vehicles.
Greenpeace Australia Pacific’s new report, Charging Corporate Action: The Case for Renewable-Powered Electric Vehicle Fleets, shows:
- Fleets make up more than 40% of new car sales each year, with approximately 450,000 purchased for business, government and rental fleets annually.
- Switching to renewable-powered electric cars, utes and vans in corporate fleets could reduce annual climate pollution from cars by up to 10% and light commercial vehicles by up to 30% according to estimates based on the market share of corporate fleets.
- This will help make a wider range of more affordable electric cars accessible to more Australians sooner, given that fleet vehicles typically move quickly into the second-hand car market.
- In more developed international markets, electric vehicle uptake has followed a sharp adoption curve that picks up rapidly after hitting 10% of new car sales. As fleets are responsible for over 40% of new car sales each year, businesses have a key role to play in hitting the tipping point of 10% of new vehicle sales to accelerate electric vehicle adoption in Australia.
- By 2025, the total cost of ownership gap for medium passenger vehicles falls below zero for all utilisation bands.
Greenpeace Australia Pacific Senior Campaigner Violette Snow said the rankings and report demonstrated the business and environment case for renewable energy-powered fleets, and shone a light on the uneven progress made by organisations in Australia.
“Transport is the third largest and fastest-growing source of climate pollution. The companies which operate corporate fleets in Australia can play an outsized role in tackling this present and growing threat to the climate, while benefiting their own bottom line.
“Many companies are already seeing the commercial benefits of switching to electric fleets, and by 2025 electric vehicles will be the cheaper option for all passenger vehicles, and in almost all use cases. Switching could also reduce annual climate pollution from cars by up to 10% and light commercial vehicles by up to 30%.
“Customers, employees, and investors are all crying out for companies to show leadership on tackling climate change. It’s time for Australian corporates to get into the fast lane on fleet transition.
“The Electrify Fleets Rankings shows who is making the right choice today. IKEA stands out for its leadership, setting an example of other organisations around Australia. By committing to 100% renewable electricity by 2025, to electrify all cars and vans including a target for zero-emissions last mile delivery by 2025, and to zero-emission electric trucks by 2040, the company is showing what is both possible and right.
“At the other end of the spectrum, Avis, Officeworks, JB Hi-Fi, Myer, and David Jones are now on the record as being stuck in first gear. Major supermarkets Coles and Woolworths also have a lot of work to do. We hope this serves as a starting gun for these companies to hit the accelerator on greening their car and trucking fleets.”
IKEA Australia CEO and Chief Sustainability Officer Mirja Viinanen said:
“Customers have increasing expectations for the retail sector to reduce the environmental impact of its delivery services, and at IKEA Australia we are leading the way by accelerating the integration of electric vehicles into our delivery fleet. We’ve so proud of the progress we have made with our delivery partners so far, and there is much more to do as we journey towards a zero emissions future.”
Bank Australia Head of Impact Jane Kern said:
“Bank Australia’s commitment to achieving net zero carbon emissions by 2035 places us as the most ambitious bank in the country. Transitioning transport, including our own fleet, away from fossil fuels to electric vehicles will be a key part of achieving this target.”
“We’ve chosen 2025 to cease funding car loans for new fossil fuel vehicles because the change to electric vehicles needs to happen quickly. We believe it can with the right supporting policies in place to bring a greater range of more affordable electric vehicles to Australia.”
“Our customers tell us taking action on climate change is a top priority and we think decisive leadership from businesses and government can help catalyse the action our customers and the wider community want to see.”
Ricky Spencer, EV owner and dad of two from the Blue Mountains, said:
“As a consumer, knowing a company’s commitment to renewables and achieving net zero is important to me because I believe in being environmentally responsible and supporting companies that share my values.
“Companies that prioritise sustainability are not only making a positive impact on the environment, but are also positioning themselves as leaders in their industry and demonstrating their commitment to creating a better future for all.
“I’m doing my part to clean up transport emissions by switching to an electric vehicle. I expect the brands I use and buy from to do the same.”
About the Rankings
The Electrify Fleets Rankings is based on an analysis of a range of measures, including commitments to electrify passenger, light commercial and trucking, powering them with renewable energy, progress on a commitment to 100% renewable energy, advocacy behaviours, education and incentive programs to promote electric vehicles and associated supportive policies, and commitments to installing electric vehicle infrastructure for staff and customers.