Lack of supply delaying switch to electric vehicles, say leading global

  • Global businesses are charging ahead on EVs, but cite a lack of supply from automakers as the top barrier to switching their fleet;
  • The Climate Group calls on automakers to turbo charge EV supply to meet market demand and deliver on their responsibility to tackle climate change;
  • International business members at the forefront of the auto industry have already committed to go electric by 2030;
  • Members of The Climate Group’s EV100 initiative have committed over 2.5 million vehicles by 2030 and are set to save 42 million metric tons CO2e, equivalent to the annual emissions of 11 coal power plants;
  • Five more companies join EV100 today including UK leasing companies Lex Autolease (Lloyd’s Banking Group) and Zenith

London, UK: 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, a new report by global non-profit The Climate Group reveals.

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.

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.

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, CEO, 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.”

Jim Massey, Global Vice-President, Global Sustainability, AstraZeneca, said, “There are obstacles we face, such as infrastructure, such as access to the electric vehicles we’re going to bring into our fleet. So we’re putting out there the demand and the need for infrastructure so that all of us – government, other sectors – can help solve this problem together.”

Other key findings

At the time of publishing:

  • 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, have 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.

New joiners

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.

Richard Jones, Managing Director of Motor Finance and Leasing, Lloyds Banking Group, said:

“Last year we made strong progress towards helping our customers be more sustainable and signing up to EV100 is proof of our determination to continue over the long term. Our business customers have an important role to play in meeting the government’s ambitious climate change targets and we’re uniquely placed to help them make the switch, providing insight and expertise for businesses with fleets of all sizes. Through these commitments we are also helping to signal the UK as an attractive destination for electric vehicles in the global context.”

Zenith, an 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.

Tim Buchan, CEO, Zenith, said: “Zenith’s ambition is to become synonymous with electric vehicles. Zenith has restructured its own car policy to support all employees in gaining access and making the transition to an electric vehicle. This is to support the target of Zenith’s own fleet being 100% electric by 2025. Vehicle charging is available to all employees while at work and we provide support to employees looking to install a home charging solution and help with journey management. Joining EV100 is an exciting step in our EV journey; it provides a great platform to work with businesses that share our passion and vision for the future of mobility.”

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.

Leonid Mukhamedov, Executive Committee Member, Chief Strategy Officer, Schneider Electric, said: “At Schneider Electric, we committed to net zero operational carbon emissions by 2030, in line with a 1.5°C science-based climate trajectory. Joining EV100 is a key step to deliver this ambition. Such a transformation allows us to embark thousands of our employees, customers, start-ups, together into a variety of innovations. We believe electricity is the future of mobility and we want to demonstrate that a rapid scale-up of EVs is within reach in 10 years.”

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.

Joe Kraus, President, Lime, said, “Lime is a company founded on clean electrified micromobility solutions and committing to 100% electric vehicles in our operations is the next step on our journey in fighting climate change. We’re honored to join EV100 as the first global e-scooter operator with the hopes to influence an industry that demands change. We’re focused on new solutions that drive a zero-carbon future and are acting today for a greener tomorrow.”

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.

Kim Fausing, President & CEO of the Danfoss Group, said: “E-mobility is a cornerstone for a sustainable energy system and joining EV100 is a natural next step for Danfoss to support this transformation toward accelerated infrastructure development and demand. We believe in electrification as part of our business strategy and successfully produce solutions for an electrified transport sector, both to sea and land. Now we also do our part by committing to electrify our own car fleet as the infrastructure becomes available.”

Thanks to our reporting partner, the Carbon Trust, who led on data collection and analysis for this year’s annual report.

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