ESG challenges in fleets: how to address them

ESG is a sustainability approach that is increasingly relevant to companies in various sectors, including transport. This management methodology aims to apply actions that preserve environmental, social and governance aspects. In practice, governance involves processes, controls and procedures used to monitor, manage and oversee sustainability-related risks and opportunities.

Because ESG is a recent approach in many operations, ESG challenges are still very present in transport companies and fleets.

To understand how these challenges arise and the best way to address and overcome them, explore each ESG challenge in detail below. They include:

• Lack of metrics and indicators;
• Lack of senior management engagement (or operational employee engagement);
• Full knowledge of the ESG agenda;
• Finding the most suitable actions for the company;
• Organizing the entire operation.

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(video in Portuguese)

Lack of metrics and indicators

It is essential to keep track of and measure actions and processes implemented in the fleet through metrics and indicators. This is what makes it possible to understand whether actions are generating improvements or otherwise affecting your management.

One of the main ESG challenges in transport is the absence of clear metrics and indicators to measure the impact of implemented sustainable actions, making it harder to understand whether ESG processes generate effective results.

To overcome this problem, it is essential to keep track of results in detail for each action applied. For example, if the ESG measure adopted was eco-friendly vehicle washing to reduce water consumption and waste, you need to compare usage before and after implementing this practice.

This way, you will have concrete, grounded answers about the impact obtained through this measure and whether it delivered the results expected from applying ESG in the fleet. When the company organizes sustainability data, it also gains a basis for identifying risks, seeing opportunities and acting more consistently.

Lack of senior management engagement (or operational employee engagement)

Another ESG challenge faced by fleets is a lack of engagement and commitment from the company’s senior management. This may happen because of a lack of indicators showing the importance and impact of these transport sustainability actions.

To overcome this challenge, you need to present the company’s management team with a complete plan showing how ESG will be implemented in your operation, what the general benefits are and how it could bring greater operational efficiency.

On the other hand, there are cases where management is involved and even leads the project, but employees lack engagement, because including these practices means carrying out new processes and, in some cases, learning new activities to incorporate into their routines.

In this case, the solution lies in educating employees and providing appropriate training. Show the importance of their actions and how the new processes are actually intended to make routines easier and faster rather than create new inconveniences.

Full knowledge of the ESG agenda

The challenge of knowing the full ESG agenda is very common, since many aspects make up this sustainability approach. The agenda may involve responsibilities related to human rights, labor relations, the environment and anti-corruption, as well as governance practices that guide how the company keeps track of risks and opportunities.

To address it, you need to dedicate sufficient time yourself or hire a consultant or an in-house professional to take responsibility for ESG, potentially even creating an ESG department in your fleet.

This way, the fleet will always be up to date on the topic and best practices, ensuring compliance with legal requirements and the constant development of your operation’s sustainable actions.

Among ESG challenges, this one is quite straightforward and practical to resolve, since the agenda already exists and is ready to be read and consulted. The greater task lies in understanding how actions apply specifically to your operation.

Finding the most suitable actions for the company

Since ESG actions cover many areas and there are various possibilities, managers may have difficulty identifying the actions best suited to the fleet’s specific needs.

This is also because different circumstances, such as vehicle types, operations and even the company’s operating location, can affect available resources and effective actions.

To overcome this challenge in implementing ESG in your operation, you need to start with a fleet assessment, identifying where there are opportunities for sustainability improvements.

In addition, you can use benchmarking to understand how other companies in your sector are working to adapt to an ESG strategy (in Portuguese).

Organizing the entire operation

ESG challenges also include reorganizing and adapting existing processes, ensuring that all fleet stages and teams are effectively aligned.

After identifying actions and completing the planning, you can begin internal communication. This is essential so all employees are aware of the changes and new guidelines they should follow.

In this regard, one possible alternative is to publish an update to your Fleet Policy.

In addition, you should acquire the necessary solutions and tools to control and keep track of the new practices implemented. It is more worthwhile to invest a few weeks in organizing all processes and the sequence of actions than to end up with inconsistencies and a lack of collaboration from your team.

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