Corporate responsibility in action: How businesses are reducing their carbon footprints using electric vehicles
The induction of electric vehicles (EVs) within corporate fleets is on a steadfast rise, marking a pivotal shift towards sustainability in the business world.
In a world saddled with innumerable challenges such as poverty, inequality, health access, climate change, pollution, growing carbon emissions, etc., it becomes imperative to acknowledge and commend businesses for their efforts towards mitigating these as part of their corporate social responsibility (CSR). This acknowledgment highlights their impact on both the environment and society. CSR acts as an internal evaluation tool for businesses, prompting them to analyse whether they are making responsible choices. Considering the automotive sector as an illustration, it emerges that while a large number of vehicles continue to rely on fossil fuels, which have adverse environmental effects, electric vehicles (EVs) present a tangible alternative to lowering pollution emissions. In India, a growing number of businesses are embracing EVs and demonstrating heightened environmental awareness. Major corporations are exclusively opting for EV cabs to position themselves as leaders in reducing carbon footprints. ARC Electric is setting an example in this regard by providing one of the largest fleets of EVs for B2B services in Delhi, NCR.
India's bustling economic landscape relies heavily on business vehicles to transport goods and people, contributing significantly to the nation's productivity. As per the PTI report, the commercial vehicle segment produced approximately 10 lakh (1 million) vehicles in 2023, highlighting the enduring significance of this sector in India's transportation and economy. This data emphasises the urgency of implementing sustainable substitutes, like the adoption of electric vehicles, to address the environmental and societal consequences associated with the increasing presence of commercial vehicles on Indian roads. Let's now analyse the challenges presented by carbon emissions resulting from the widespread reliance on diesel and gasoline engines.
Problems with Carbon Footprints
We are all aware of the extensive utilisation of vehicles for the transportation of commodities on the roads on a daily basis, and these commercial vehicles are indisputably exacerbating the global carbon footprint. They are a significant source of greenhouse gas emissions and air pollutants, contributing significantly to environmental degradation and climate change. Each diesel truck operating in India emits approximately 1,300 tons of carbon dioxide (CO2) in its operational lifetime. Furthermore, it's estimated that a medium-sized gasoline-powered car emits approximately 192 grams of CO2 for every kilometer it travels. These emissions clearly demonstrate how carbon footprints are increased as a result of the use of internal combustion engines.
Having established the substantial carbon footprint generated by conventional fossil fuel vehicles, it's imperative to explore viable solutions. This is where the rise of electric vehicles (EVs) emerges as a beacon of hope. EVs have garnered global attention to combat the environmental and societal issues associated with gasoline and diesel engines. The adoption of EVs by businesses and the broader transportation sector represents a tangible stride toward a more sustainable future.
EVs Gaining Momentum in Corporate Fleets: Accelerating Sustainability
The induction of electric vehicles (EVs) within corporate fleets is on a steadfast rise, marking a pivotal shift towards sustainability in the business world. Corporates across various industries are increasingly integrating EVs into their fleets, aligning with global initiatives to reduce carbon emissions and promote environmental responsibility. The numbers also reflect this transformative trend. In 2023 alone, over 2,000 businesses in India incorporated EVs into their fleets, representing a remarkable 150 percent increase from the previous year. By the end of 2023, these corporate fleets had collectively replaced over 15,000 traditional IC engine vehicles with electric counterparts, resulting in a significant reduction of approximately 120,000 tons of CO2 emissions annually.
A recent study conducted by a leading sustainability consultancy firm revealed that companies that incorporated EVs into their fleets experienced an average reduction of 35 percent in their greenhouse gas emissions within the first year. A notable industry leader like Amazon has more than 6,000 EVs in its delivery fleet in India and is committed to deploying 10,000 EVs by 2025. The active participation of companies such as Mahindra, Tata Motors, ARC Electric, AON, Genpact, Indus Towers, Wipro, Airtel, and so on is reducing emissions, which play a crucial role in addressing global climate challenges. Government incentives, such as tax credits and subsidies, have catalysed this transformation. Technological advancements, such as extended battery life and the development of rapid charging infrastructure, have further fueled the growth of electric vehicle adoption.
The decarbonisation of their transportation network by transforming their fleet to EVs stands as a commendable testament to their commitment to a greener future and sustainability. Many B2B EV fleet providers, like ARC Electric and Evera Cabs, have positioned themselves as frontrunners in the market to meet the escalating demand for EVs and assist corporations in considerably mitigating their greenhouse gas emissions in addition to operational costs. They exemplify corporate responsibility in action by actively tackling climate concerns through the incorporation of EVs into operations. Leading companies are championing the movement toward a more sustainable business environment by setting inspiring examples for others to emulate. These initiatives play a vital role in laying the groundwork for a society in which environmental responsibility and corporate prosperity coexist harmoniously.
Abhinav Kalia is the CEO and Co-founder of ARC Electric. Views expressed are those of the author.
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