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15 September 2023

Custom Fleet and Chris Tulloch feature in new AFR article

You might've seen a few stories hitting the media of late featuring our CEO Chris Tulloch. Chris has been busy talking all things Custom Fleet and the future of electrified fleets.

In an article on The Australian Financial Review's website, Chris discusses the importance of a fuel efficiency standard (FES) on the path to a greener and more sustainable future in fleet. Chris also explains how we see our role and our commitment to sustainability.

AFR

You can read the article in full below, or you can:

  • Read it on the AFR website
  • You might also find the article on one of the Nine network websites including: The Age, Sydney Morning Herald or the Brisbane Times.

If you’d like to talk to us about fleet management and/or a transition to EVs, complete our contact form, and we’ll give you a call.


Road to a cleaner future with EV fleet

When the federal government released its consultation paper on establishing a fuel efficiency standard (FES) earlier this year we took a step closer to joining the majority of the developed world who already have one.

In fact, 85 per cent of vehicles sold worldwide are covered by an FES with Australia joining Russia as one of the few developed countries without a fuel efficiency standard.

Establishing an FES is an important step in decarbonising the transport sector which according to the International Transport Forum (ITF) accounts for 23 per cent of the world’s energy related CO2 emissions with a big chunk of that attributable to road transport.

Moreover, in the ITF’s most recent ITF Transport Outlook, released earlier this year, transport also indirectly contributes to increased demand for energy through infrastructure construction, vehicle manufacturing and fuel production. All of these generate greenhouse gas emissions even before the sector locks in future emissions because of the operating life of vehicle fleets and infrastructure.

Bearing this in mind, the transition to cleaner vehicles has begun in earnest, yet the ITF highlights more needs to be done by vehicle manufacturers and governments if the world sincerely wants to reach its target of net zero by 2050.

This means ensuring we can realistically ensure all new passenger cars are zero-emission vehicles by 2050 as well as decarbonising larger vehicles as much as possible by exploring the use of electric powertrains in haulage trucks as well as increasing their operating efficiency.

Progress on cleaner vehicles is already evident in many countries. A transition is clearly underway, with governments in some regions already making firm policy commitments. In fact, the world may have already reached the peak number of internal combustion engine (ICE) passenger vehicles in the 2020s, even under the Current Ambition scenario (which assumes countries honour existing commitments).

One company taking a leading role in Australia's efforts to decarbonise the nation’s road transport is Custom Fleet who according to the chief executive, Christopher Tulloch, have been working tirelessly on their sustainability journey since 2016.

"It's a core part of what we do at Custom Fleet and one of our main strategic priorities because fleet makes up a large portion of transportation," Tulloch says.

"We recognised early that our role in fleet management operations has a significant amount of reach and influence, and we could assist our customers to focus on their sustainability objectives and then enable them to meet their targets through the service we provide.

"Put simply, we really think about it in two areas. There's the work we do at Custom Fleet as an organization, around our own sustainability journey, and then, there's the work we do with our customers to help them achieve their goals.

Custom Fleet's own journey began back in 2016 with a commitment to electrify 30 per cent of its internal fleet by 2019 and keep moving forward. At present 92 per cent of its Australian internal fleet is all electric and will reach 100 per cent by early next year.

With customers, the company provides a range of initiatives to help them reduce their emissions with the ultimate goal being that they can convert their fleet to electric.

Tulloch says given the range of vehicles large corporate customers operate, going fully electric is not necessarily achievable in the short term so Custom Fleet look for innovative ways to drive their emissions profile down.

"We provide strategic consulting services to help customers understand which vehicles in their fleet potentially lend themselves to an EV option, and then, help them through that journey of conversion," Tulloch says.

The company’s EV program called Arc covers all aspects of EV from vehicle procurement through to providing access to public charging and then having that on a single bill for their customers.

The Arc program assists with depot charging and installation, home charging solutions and ensures all the service touchpoints required to run an EV fleet are covered.

When it comes to strategic consulting the company is working with supermarket Coles who are exploring ways to decarbonise their delivery van fleet.

Tulloch says Coles' journey started with refrigeration with last mile delivery which involves ensuring groceries are delivered fresh to the customer.

"We have a trial in Queensland where the refrigeration unit is electric and runs off a separate battery so the drivers don’t have to leave the diesel engine running every time they’re doing a delivery.

"We’re also charging the battery using solar power."

According to a Coles spokesperson, the company has pledged to install electric fridges in 500 of its delivery vans following a successful trial of ten Coles Online delivery vans with solar powered electric fridges in parts of Victoria and Queensland.

"These updated vehicles will produce lower emissions than diesel alternatives, as well as reduce running costs and operational noise," the spokesperson said.

Going further, the spokesperson said the company is "proud to be working with Custom Fleet to trial our first electric powered Coles Online delivery van, that is currently fulfilling around 240 orders each week in Flagstone, south of Brisbane".

"Nicknamed 'Sparky' by our team members, the EV is quieter and produces fewer emissions when driven compared to a diesel-powered vehicle.

"We're looking forward to using the insights gained from this trial to introduce more electric powered vans to our fleet around the country soon," the spokesperson said.

For Coles, EVs offer many benefits to their supply chain and an electrified fleet will have a sizeable impact on emissions reductions associated with their transport operations and can significantly reduce operational noise, "a key benefit to support optimised delivery in a 24/7 economy," the spokesperson says.

Tulloch says Custom Fleet are working with another customer who are operating 20 fully electric vans as part of a pilot program as well although "it's not just the vehicles we're looking at but innovative ways to help customers reduce their emissions across the board".

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