Major international companies are charging ahead on electric vehicles (EVs) to address the climate crisis, tackle air pollution and meet growing customer expectations – but they are increasingly confronted with a lack of vehicle supply says a new report by global non-profit The Climate Group.
The Climate Group runs the global EV100 initiative, which brings together leading companies to accelerate the switch to electric transport and make EVs the new normal by 2030. They represent the fastest moving big business buyers and have a strong understanding of the state of the EV market.
This year’s EV100 Progress and Insights Annual Report shows that members are speeding ahead, with approx. 80,000 EVs already deployed and over 10,000 charge points installed to date.
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However, the slow roll-out of electric vehicles from the auto industry is the top barrier to switching their entire fleet, cited by 79% of respondents – up by a third from last year.
Other key findings:
- The membership of EV100 has more than doubled in the last year, rising from 31 to 67 members in 80 markets;
- Members include major leasing companies, who have committed 2.3 million vehicles to go net zero – see new joiners below;
- The number of members with service contract commitments requiring taxi companies and similar contractors to offer EV based services, has doubled;
- Members have committed to install charging at 3,200 sites worldwide – as a result, over a million employees set to gain access to charging;
- At least 43% of members are using 100% renewable electricity for charging.
As corporate ambition shifts gear, the auto industry is not responding fast enough for supply to match demand. While the European EV market is expected to grow in response to tough EU emissions rules, the US in particular risks being left behind globally – with the right for State-level leadership on vehicle emissions standards being fought out in the courts later this year.
Helen Clarkson, the CEO of The Climate Group, said: “For years automakers have raised the lack of demand as a problem for moving faster on electric vehicles. Our report shows that big business demand for EVs is increasing but is still not being met by manufacturers. If automakers want to stay competitive, they need to shift to a higher gear on producing EVs – or risk losing their largest customers.”
Christine Weydig, Director, Environment and Energy Programs, Port Authority of New York and New Jersey, said: “Vehicle availability is a big challenge and as of now we mostly seek to procure American vehicles – and we’re seeing that US manufacturers are much further behind some of their foreign counterparts. As more fleet owners like us look to adopt electric vehicles and expand these fleets, we’ll have the purchasing power to catalyze the US market and domestic manufacturers.”
Five more companies have joined EV100 today from the UK, France, US and Denmark. This includes two major UK-based vehicle leasing companies both committing to net-zero emission customer fleets, totaling approximately 400,000 vehicles.
The UK’s Lloyds Banking Group will convert its own commercial fleet of 12,000 vehicles and continue to install 83 charging sites at relevant locations for staff and customers. Its vehicle leasing subsidiary, Lex Autolease, has committed to achieve net zero emissions across its customer fleet of approximately 350,000 vehicles.
Zenith, independent leasing, fleet management and vehicle outsourcing business, will electrify all of the 48,000 vehicles in its fleet which it procures on behalf of its customers, as well as its own corporate fleet. The company will install charging for staff and customers at relevant corporate sites, and work with clients to promote EVs.
Schneider Electric works on the digital transformation of energy management and automation. The company will convert its fleet of 14,000 vehicles in over 50 countries, as well as installing EV charging at major office and factory sites for employees.
Headquartered in San Francisco, California, Lime runs electric scooter, electric bikes and pedal bike-sharing systems in various major cities around the world, aiming to reduce dependency on cars for short distance journeys. Lime is converting its fleet of over 300 maintenance vehicles to EV by 2030, and will charge them with renewable electricity.
Danfoss Group engineers and manufactures energy-efficient technologies that enable reduced energy consumption and efficient resource use. Danfoss is committed to electrifying its entire fleet of 2,300 leased or owned company vehicles to EV by 2030, as well as supporting EV uptake by staff by installing charge points at all its factories.
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