How EVs Impact a Company’s Carbon Footprint

Shedding your carbon footprint is a priority for businesses because it’s a priority for consumers. According to a small business survey, eight out of ten participants said reducing emissions is now a “high priority.”

Transforming transportation is one of the most impactful actions to drive down brand emissions. To understand the scale of the problem, a European Union (EU) study found combustion engine vehicles contribute 70% of transport emissions. This is why there is a concerted worldwide effort to make electric vehicles (EVs) the norm.

According to one study, electric vehicles are expected to number 145 million by 2030, meaning now is an ideal time to join the EV revolution. Here’s how doing so can tackle corporate carbon footprints in different ways.

Reduce Tailpipe Emissions to Zero 

Driving emissions originate with the tailpipe. This is where the greenhouse gases leave vehicles and enter the atmosphere. According to the U.S. Environmental Protection Agency (EPA), EVs have no tailpipe emissions.

For example, a fuel cell electric vehicle using hydrogen would emit only water vapor, which is harmless from a climate perspective.

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Lower the Lifetime Emissions of Every Vehicle

Some correctly highlight that the intensive battery manufacturing process of EV vehicles generates considerable emissions. This is correct because mining minerals like cobalt and lithium creates significant emissions.

An MIT study reveals an 80 kWh lithium-ion battery for a Tesla Model 3 could create up to 16 metric tons of CO2, 80% more than building a gas-powered car. But this ignores the gains made later in an EV’s lifecycle.

The more miles an EV racks up, the more the benefits grow. According to a University of Michigan study, the extra emissions during production can be eliminated quickly. It takes just 1.5 years for sedans, 1.6 years for pickup trucks, and 1.9 years for SUVs to overcome that emissions gap.

In other words, over a vehicle’s lifespan, EVs record a dramatic drop in a company’s carbon footprint. MIT’s Insights Into Future Mobility study reveals that gas-powered vehicles emit 350g of CO2 per mile, whereas EVs create just 200g.

Double Down with the Correct Energy Source 

EV charging infrastructure also defines the impact on a company’s carbon footprint. Each EV charger will utilize different energy sources to produce electricity.

If a company uses renewable energy sources, such as wind or solar, for their EV chargers, this represents another climate win.

Improved Efficiency

The difference between gas-powered vehicles and EVs doesn’t stop at the power source. EVs are also built to run more efficiently than their internal combustion counterparts.

Efficiency in vehicular terms pertains to the percentage of energy from the power source used to propel the vehicle. The Office of Energy Efficiency & Renewable Energy reported that 77% of electrical energy is transferred from the source to the wheels. Contrast this to the 12-30% of energy used to power the wheels in gasoline-powered vehicles.

More efficiency means less energy wasted when driving a business vehicle.

The Decarbonization Race

Auto manufacturers recognize a need to tackle the carbon-intensive EV battery production process. According to McKinsey & Company, they expect the climate cost to drop in the next ten years as manufacturers rapidly update their processes.

Some actions manufacturers have taken already include changing their target markets and production locations and integrating new technologies. They have predicted that companies could decarbonize EV battery production by 80% in the next decade, with little added cost for customers.

Conclusion: Slashing Emissions at Pace with EVs

The reality of EVs is they are more efficient and produce far fewer emissions. Despite the initial investment, companies are making a green investment with a guaranteed positive ROI.

If you’re ready to electrify your fleet, then connect with fleet@thebluedot.co to learn how Bluedot can help you navigate your EV transition. Bluedot streamlines public and at-home charging for fleets, giving fleet managers the tools and insights necessary to inform their pilot decision-making.