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Three advantages of electrification

28.10.22
E-Mobility, Knowledge

Sustainable reduction of CO2 emissions

Improving the company’s carbon footprint is not only timely, but also brings some advantages. For example, in terms of CO2 taxes: All those who purchase fossil fuels (heating oil, natural gas, coal, petroleum coke and other fossil fuels) automatically pay CO2 taxes on them. Upon request, companies can be exempted if they have made a commitment to the federal government to reduce CO2 emissionsA. With an e-fleet, fossil fuels can also be significantly reduced. In addition to this cost advantage, climate-friendly companies benefit from two other points: Image and customer loyalty. A study conducted by AXA in May 2022 determined that a full 64%B of consumers feel an emotional connection to a sustainable product or company.

Competitiveness

The above-mentioned study also revealed that 86% of the companies have already been able to implement concrete measures to increase sustainability or are planning to do so. This also includes, among other things, cooperation with suppliers and partners, who are also aligned with this. Those who want to remain competitive in the long term and rely on cooperation must therefore sooner or later be able to demonstrate CO2 footprints or climate strategies.

Why is this so important?

In order to implement a sustainability strategy, the company’s carbon footprint is first measured. This includes 3 levels:

Scope 1: Direct emissions – Are produced and controlled directly by the company
For example, own vehicle fleet, heating boilers or cooling systems at the site itself, self-generated electricity, etc.

Scope 2: Indirect emissions from purchased energy – produced outside but consumed directly by the company
E.g. purchased electricity etc.

Scope 3: Indirect emissions, within the value chains
E.g. suppliers and partners, customers etc.

Scope 3 includes all activities that the company cannot control, but which are inevitably part of the value chain. This includes suppliers and partners. This explains why more and more companies are choosing parties that also have a climate strategy. After all, Scope 3 may well account for the highest CO2 emissions if no attention is paid to it. AXA, for example, now includes 50% of the selection criteria related to climate friendliness in its selection process. So reducing CO2 through e-mobility can help you stay competitive.

Savings potential in full-cost accounting

Although the purchase of e-cars can be somewhat more expensive depending on the model and equipment, the operating costs are much lower. Compared to a combustion engine, only the battery needs to be maintained and no lubricants are required. A full cost calculation, which also includes a comprehensive driving profile of the fleet users, is worthwhile and can transparently show savings potential. In addition, there are potentially financial subsidies for e-cars, which are handled differently in Switzerland, sometimes even in the municipality. In many areas, however, in addition to savings on maintenance, you also benefit from reductions on motor vehicle taxes or subsidies for the vehicle or installations of charging stations. How much you can save on individual vehicles depends largely on the type of vehicles, driving profiles and internal processes. You can compare individual vehicles online with UPTO’s e-mobility calculator. We also offer an opportunity/risk analysis that shows you the savings potential and possibilities of electrification free of charge.