Questions on Electric Vehicles posed to Paola Felcaro, with advice from Schneider Electric, comprising 8 points.
In an ambitious move towards a greener future, Schneider Electric has announced plans to achieve 100% fleet electrification by 2030. This transition is part of the company's broader sustainability targets and its commitment within the EV100 initiative.
To achieve this goal, Schneider Electric is adopting a comprehensive approach that includes scaling EV charging infrastructure, deploying smart fleet management and payment technologies, emphasizing economic benefits, complying with and leveraging policy drivers, and fostering multi-stakeholder partnerships.
The company's strategy involves expanding the EV charging network, with a focus on integrating smart, scalable charging infrastructure suitable for large commercial fleets. This push for widespread charging stations—one every 25 km along highways and in dense urban grids— aligns with industry data and expectations as fleets electrify.
Simplified expense management platforms that enable real-time financial control and operational transparency for electric fleets are also crucial. Schneider Electric may adopt or develop such integrated solutions to support fleet operators’ transition, similar to initiatives like Octopus Energy’s Electroverse Business Payments Card.
Economic incentives play a significant role in fleet electrification. Operators can benefit from up to 30% reductions in maintenance and fuel costs by moving to electric vehicles. Schneider Electric is likely leveraging these economic incentives in its electrification strategy to persuade fleet clients and accelerate adoption.
The company's electrification plan also aligns with global and regional mandates targeting zero-emission fleets by 2030, driven by government incentives and regulatory requirements in key markets. Schneider Electric is making strong investments in both vehicles and EV charging installations, supported by taxation and incentives.
However, challenges remain. Administrative complexity arises when leased fleets are involved, as tax incentives are often for vehicle owners, not leasing companies. Local regulation has a direct impact on the speed of the EV implementation roll-out for Schneider Electric. In some countries, double taxation of EV charging costs for business travel is a major obstacle.
Schneider Electric's electrified fleet currently counts for 1.2% in North America and more than 35% in Europe. Countries like Norway, Sweden, Netherlands, the UK, and the DACH region have an EV fleet of over 60%. Europe accounts for a significant portion of Schneider Electric's electrified fleet, with investments in EV charging infrastructure being necessary for a successful fleet electrification strategy.
Successful fleet electrification also requires a transversal approved commitment across multiple departments (Finance, HR, Real Estate, Sustainability, Strategy) and strong partnerships with leasers and Original Equipment Manufacturers (OEMs) to ensure vehicle availability. Sponsorship from top-level management, including the CEO and SVPs, is crucial for fleet electrification.
Schneider Electric achieved a 23% global EV fleet at the end of last year and has set a target of 33% fleet electrification by 2025. The company's commitment to a 100% electrified fleet by 2030 underscores its dedication to sustainable practices and its role as a leader in the transition to electric fleets.
[1] EV charging infrastructure: https://www.schneider-electric.com/en/services/sustainability/electric-mobility/charging-infrastructure/ [2] Economic incentives: https://www.schneider-electric.com/en/services/sustainability/electric-mobility/economic-incentives/ [3] Simplified expense management: https://www.schneider-electric.com/en/services/sustainability/electric-mobility/expense-management/ [4] Multi-stakeholder partnerships: https://www.schneider-electric.com/en/services/sustainability/electric-mobility/partnerships/ [5] Public-private partnerships and telematics-driven corridor planning: https://www.schneider-electric.com/en/services/sustainability/electric-mobility/corridor-planning/
- To fuel its pursuit of 100% fleet electrification by 2030, Schneider Electric is exploring technological advancements in EV charging infrastructure, smart fleet management, and payment technologies, as showcased on their official website. (Resource: [1])
- As part of their electrification strategy, Schneider Electric is emphasizing the economic benefits associated with fleet electrification, including up to 30% reductions in maintenance and fuel costs, a crucial factor for fleet operators considering the switch to electric vehicles. (Resource: [2])
- Schneider Electric's business model for fleet electrification involves strengthening multi-stakeholder partnerships with leasers, OEMs, and participating in public-private partnerships and telematics-driven corridor planning, essential steps for a successful and sustainable transition to green transportation. (Resource: [4] and [5])
