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Driver Training & Assessment
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Fleet Composition & Vehicle Management
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Route Planning & Efficiency
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Carbon Reporting & Reduction Targets
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Driver Training & Assessment
1. Does your business provide ongoing safe and fuel-efficient driver training to drivers, either through an external provider or in-house training programme?
Opportunity
Providing safe and fuel-efficient driver training is a practical and effective way of reducing fuel use, improving safety outcomes, and demonstrating your decarbonisation credentials to customers and corporate clients. There can be up to a 35% difference in fuel use between a good and poor driver
Effective driver training can increase fuel efficiency by between 10-15 percent. SAFEDNZ has trained 7,956 drivers to date, with an average fuel saving of 7.64% for truck drivers.
There are several safe and fuel-efficient driver training providers available, including TR Group. Additional providers can be found at SAFEDNZ.govt.nz. The International Road Transport Union also has a 13-minute training video available for operators looking for a free in-house resource.
2. Does your business monitor the performance and actions of your drivers (including any of the following: overspeed, heavy braking, ABS/EBS activation, or idling)?
Opportunity
Over-speed, heavy braking and acceleration and idling all have a negative impact on fuel consumption and CO2 emissions. An idling diesel heavy vehicle can use 2-litres of fuel per hour. Heavy vehicles also use 20% less energy to move at 90km/h than 100km/h.
Monitoring the performance and actions of your drivers can be an effective way of reducing fuel consumption – whether through fleet management telematics providers like Teletrac Navman or EROAD, or manual calculation of fuel use. It also produces useful data to demonstrate a commitment to decarbonisation across your fleet.
A leading New Zealand provider reported in 2017 that more than half of their telematics customers saw a fuel efficiency improvement of 6% or more. Those that engaged with their drivers to encourage improvements saw improvements of up to 20%. For a heavy truck travelling 100,000km a year, savings from reduced idling alone could be worth up to $3,000 per year. For those operators with smaller fleets, where fleet management telematics may be less viable, a manual comparison of mileage to fuel use can provide useful data, and a basis for driver coaching or check-ins.
While not directly impacting fuel use, it is also important to consider operator fatigue when monitoring and managing your drivers. Truck driving is a demanding occupation, that frequently involves long and challenging hours. NZTA have produced a Good Practice Guide: Preventing fatigue in the commercial road transport industry.
3. Does your business operate a ranking or assessment system for drivers based on efficient and safe driving metrics?
Opportunity
Ranking or assessing drivers based on efficient and safe driving measures is a practical method of supporting fuel efficiency and decarbonisation. This can be coupled with performance and incentive programmes such as financial bonuses, increased wages, vouchers or prizes, or league table rankings.
27% of New Zealand’s vehicle fleet operators are operating recognition and rewards programmes, and 25% have or are introducing performance-based bonuses, according to one recent industry survey.
Note: Ranking or assessment systems for drivers may not be appropriate for all road freight businesses. Firms with a low number of employees, driving different routes or working in different sectors may have difficulty fairly assessing driver performance. Ranking and assessment may also not be compatible with firm culture.
Fleet Composition & Vehicle Management
4. Does your business have a vehicle management policy that supports fuel efficiency and performance across your fleet?
Opportunity
With freight customers becoming increasingly environmentally conscious, having a robust vehicle management policy is crucial for trucking firms aiming to demonstrate their commitment to efficiency sustainability.
Having a vehicle management policy can formalise many of the other actions set out in this assessment. This could include some of the following components: regular maintenance scheduling, aerodynamic improvements, fuel efficiency technologies, idling reduction, procurement standards and fuel use reporting.
Transporting New Zealand members can access our vehicle management policy template here.
5. Is your business performing regular preventative maintenance (in line with manufacturer guidelines, or more frequently) and daily pre-trip walk-around vehicle inspections, with a concentration on fuel efficiency?
Opportunity
Good vehicle maintenance is essential for safety and freight efficiency purposes, but it can also have a marked impact on fuel consumption. Preventative maintenance, including ensuring drivers are proactively monitoring for early warning signs and risks (like dragging brakes or tyre wear) can reduce overall maintenance costs and vehicle emissions.
Poorly tuned engines can increase fuel use by 50 percent, and underinflating tyres can markedly reduce fuel efficiency. Managing aerodynamic losses through the use and maintenance of cab roof deflectors, side skirts and bonneted trucks can effectively reduce fuel consumption.
An NZTA driver pre-trip walk-around inspection guide is available here. Your truck manufacturer, leasing company, or mechanic can advise how regularly preventative maintenance measures are required, in light of your vehicle type and usage.
6. Is your business operating any of the following lower or zero emission vehicles?
Opportunity
Euro VI: European vehicle emission standards regulate harmful emissions or air pollutants, rather than carbon emissions. However, as well as improving air quality, Euro VI engines can also offer reduced fuel consumption and carbon emissions. According to manufacturers, Euro VI trucks are between 5-10 percent more fuel efficient than previous generation Euro V models.
High Productivity Motor Vehicles: Heavy truck and trailer combinations that can carry larger loads than standard truck combinations can reduce CO2 on a kilometre/weight basis by up to 35% compared to standard trucks, as the number of necessary truck trips is reduced.
Battery Electric (full electric or hybrid): Battery electric trucks, producing zero tailpipe emissions, or significantly reduced emissions in the case of electric hybrids, offer significant carbon emission reductions over traditional internal combustion options. This is helped by New Zealand’s high rate of renewable electricity generation.
The life-cycle emissions on battery electric trucks, including the impacts of battery manufacturing and maintenance are between 63-84 percent lower than for diesel internal combustion trucks. Although their current price premium and limited range and freight capacity restricts their viability for many freight businesses, their capability is continuously improving.
Hydrogen Electric: Hydrogen electric heavy vehicles offer reduced CO2 emissions compared to diesel equivalents. This is regardless of whether the hydrogen is produced using renewable, natural gas, or carbon-based electricity sources. They also typically offer higher range and load capacity than battery electric trucks.
Dual Fuel Hydrogen: Dual fuel hydrogen vehicles have a combustion engine that uses a hydrogen injection system to run on a blend of hydrogen and diesel. This technology can reduce carbon emissions by up to 40% in dual-fuel mode, while maintaining range and load capacity. The technology can be retro-fitted into diesel internal combustion vehicles, reducing cost.
Co-funding of up to 25 percent of the purchase price of low and zero emission heavy vehicles is available through EECAs Low Emissions Heavy Vehicle Fund.
You can also compare the total cost of ownership across heavy vehicle types by using the Ara Ake (National New Energy Development Centre) Long-Distance Heavy Freight - Total Cost of Ownership Comparison Tool.
7. Does your vehicle use low rolling resistance tyres where appropriate?
Opportunity
Tyre procurement can have a sizeable impact on road freight emissions. Low rolling resistance tyres are designed to minimize the energy required to keep the tyre rolling, which enhances fuel efficiency and reduces emissions by between 6.89-8.37 percent.
Route Planning & Efficiency
8. Does your business use route optimisation methods such as back-loading, route optimisation and trip-chaining where appropriate?
Opportunity
Implementing route optimisation methods such as back-loading and trip-chaining offers numerous benefits to freight companies and their customers. These methods enhance logistical efficiency, leading to substantial reductions in operational costs.
Route optimisation can reduce journey times and reduce unnecessary trips, substantially reducing fuel consumption by and associated vehicle maintenance and repair costs. This reduction in fuel use also directly contributes to a decrease in CO2 emissions.
There are many third-party technology providers providing freight efficiency services. You can register with backloading services to find customers, or enquire with telematics companies including EROAD and Teletrac Navman about their route optimisation software.
Carbon Reporting & Reduction Targets
9. Do you offer CO2 reporting or vehicle efficiency information to your customers?
Opportunity
Offering CO2 reporting and vehicle efficiency information can be a valuable practice for trucking companies looking to demonstrate their commitment to emissions reduction.
Providing clients with insights into their freight’s carbon footprint, and the policies and practices that support emissions reduction, demonstrates a commitment to environmental responsibility and help clients make informed decisions that align with their own sustainability goals. This transparency can also strengthen client relationships and create a competitive advantage in an increasingly eco-aware industry.
Carbon emissions can be categorised into three types: Scope 1, Scope 2 and Scope 3.
Scope 1: Emissions from sources that a company owns or controls directly – the primary category of emissions for most road freight companies. This includes emissions from operating diesel trucks and any other internal combustion vehicles.
This can make achieving substantial reductions to your Scope 1 emissions challenging, as a hard-to-abate sector heavily reliant on diesel technology. Scope 1 emissions aren’t limited to transport – it would also include emissions such as operating non-electric boilers or furnaces, or processing waste onsite.
You can complete a simple calculation of your Scope 1 emissions from diesel use by multiplying your diesel volume in litres by 2.67kg – the amount of CO2 created per litre. You can also use EROADs easy to use emissions calculator, for a more detailed fleet calculation.
Scope 2: Emissions from the generation of purchased energy. This includes the electricity used to operate, heat and light your depot and offices. Energy used to charge electric vehicles would also be classified as Scope 2.
You can make a simple calculation of your Scope 2 emissions by determining your annual kilowatt usage and multiplying this by 0.0729 (the average grid kg CO₂-e/unit of purchased electricity in 2023).
Scope 3: Indirect carbon emissions, occurring from assets not owned or controlled by your business, but connected to your operations and value chain. This includes business travel with third party providers (flights and taxis), staff commuting, emissions associated with purchased goods like plastic packaging or pallets.
Recycling and reusing packing materials, choosing lower-emission products, or incentivising low-emission travel choices for staff for business and their commute may all be practical methods of Scope 3 emission reduction.
10. Has your business set an emissions reduction target or emissions action plan for Scope 1, Scope 2 and/or Scope 3 emissions, including ongoing monitoring and reporting?
Good
Setting emissions targets and action plan can demonstrate your company’s commitment to decarbonisation, and sends a message to clients, management and staff that efficiency and sustainable practices are a priority.
To acknowledge the various challenges and opportunities involved with reducing different emissions categories, setting up different targets for Scope 1, Scope 2 and Scope 3 can be advisable. You can read more about creating a climate action plan at Gen Less.
Scope 1 emissions targets and action plan: As a hard-to-abate sector with relatively high Scope 1 emissions, setting emissions reduction targets or management plans can be a challenging prospect. Low and zero emissions heavy vehicles technologies are still in their infancy, with internal combustion diesel engines still playing an indispensable role in the industry into the medium term.
To allow for business and freight task growth, it may be advisable to set a CO2 per tonne reduction target, rather than an absolute figure. For example, a Scope 1 emissions reduction target could be a 5 percent per-year reduction in emission-intensity per tonne/km of freight transported.
Scope 2 emissions targets and action plan: Reducing usage of purchased electricity can be done in two ways. Firstly, operating more energy efficiently through steps like upgrading lighting and heating sources.
Secondly, by producing your own renewable electricity through solar technology. EECA has a number of co-funding opportunities that can help support renewable electricity adoption. Some retail banks also offer preferential interest rates on loans for sustainable purposes, such as supporting renewable electricity usage.
More information on business energy savings can be found at Gen Less, or you can contact your energy company to discuss practical methods of tracking and managing your businesss power usage.
Scope 3 emissions targets and action plan: While Scope 3 emissions are not produced directly by your business, your operational decisions can achieve meaningful CO2 reductions. This can be particularly important for road freight companies, given the relative difficulty in reducing Scope 1 emissions from diesel use.
There are many different categories of Scope 3 emissions, including purchased goods and services, business travel, waste, employee commuting, and external investments. There are carbon accounting software services available that can help you identify and measure your scope three emissions, as well as free tools available through Gen Less.
You can use this information to identify potential action items, and start conversations with your suppliers and staff about how you can achieve practical Scope 3 reductions.
Third party carbon certification system: Third party providers including Toitū and Ekos can provide independent verification of your business’s decarbonisation efforts, providing greater credibility during procurement processes.
A comprehensive list of sustainability certifications is available through the Sustainable Business Network, including both environmental, social and ethical certification options. When assessing sustainability certifications for your business, SBN recommends asking:
Which are the most important certifications included in your customers’ corporate or council procurement policies?
How much does it cost to achieve certification, in both time and finances? Is this good value for your business?