Driving Change: Corporate Fleets Must Embrace Electrification Without EU Legislation

“This may sound geeky, but it’s not,” remarked Stef Cornelis, Director of the Electric Fleets Programme at Transport & Environment, in response to an often-overlooked yet transformative sentence in Ursula von der Leyen’s mission letter to Apostolos Tzitzikostas, the new European Commissioner for Sustainable Transport and Tourism.

The letter, a seven-page blueprint outlining expectations for Mr. Tzitzikostas, subtly yet powerfully underscores the European Commission’s commitment to accelerating the electrification of corporate fleets:

“You will put forward a legislative proposal for clean corporate fleets.”

This seemingly minor statement is poised to have a significant impact on Europe’s transportation landscape, particularly the role of corporate fleets in shaping a sustainable future.

The Pivotal Role of Corporate Fleets

Why is electrifying corporate fleets so crucial? Cornelis explains:

? Market Influence: Corporate fleets account for 60% of new car registrations in the EU, making them the largest segment of vehicle buyers.

? Usage Intensity: These vehicles typically cover double the mileage of privately-owned cars, amplifying their environmental impact.

? Trickle-Down Effect: After just 3–4 years, corporate vehicles dominate the used car market, driving affordability and accessibility for consumers.

By targeting this segment, the European Commission can fundamentally alter the dynamics of the electric vehicle (EV) market. Increased demand for EVs in corporate fleets will cascade into the used car market, making EVs more accessible and contributing to the decarbonization of road transport across Europe.

Why Businesses Should Act Without Waiting for Legislation

The prospect of EU legislation mandating clean corporate fleets should not be seen as a necessary trigger for change. There is no justifiable reason for companies to delay action until regulations force their hand. Proactive adoption of EVs by businesses is not only good for the planet but also makes sound financial sense. Here’s why:

1. Cost Savings: The total cost of ownership (TCO) for EVs is rapidly decreasing, often outperforming internal combustion engine (ICE) vehicles when factoring in lower fuel, maintenance, and operational costs.

2. Corporate Responsibility: In an era where sustainability is a competitive differentiator, companies adopting EVs demonstrate leadership, innovation, and commitment to reducing their carbon footprint.

3. Future-Proofing: Transitioning to EVs ahead of legislative requirements allows businesses to adapt at their own pace, avoiding potential penalties or rushed transitions later.

The Role of the EU: Support, Not Force

The European Commission’s intention to legislate on clean corporate fleets is a step forward, but legislation should serve as a supportive framework rather than a mandatory crutch. Businesses should not rely on external pressures to adopt sustainable practices. Corporate leaders have the responsibility—and opportunity—to act independently, setting a precedent for others to follow.

Furthermore, EU policymakers should focus on enabling, not enforcing, this transition by:

? Expanding Charging Infrastructure: Simplifying the deployment of charging stations to accommodate growing EV adoption.

? Streamlining Payment Systems: Standardizing charging fees and payment methods to make EV usage more seamless for businesses and employees.

? Providing Incentives: Supporting businesses with tax breaks, subsidies, or grants for early adoption of EVs.

These measures will ensure that the transition to electrification is economically feasible and logistically practical, making it easier for businesses to lead the way.

A Call to Action for the Rental and Leasing Sectors

It is not just corporate fleets that need to embrace change. Rental car companies, often lagging in EV adoption, have a significant role to play in this transition. By electrifying their fleets, rental businesses can tap into a growing market of eco-conscious consumers while contributing to emissions reduction.

As Stef Cornelis aptly noted, the adoption of EVs in corporate and rental fleets is not just a matter of regulation—it’s a business opportunity. The shift to electrification will reshape consumer expectations and redefine competitive advantages in the mobility sector.

The Road Ahead

Europe’s corporate fleets have a pivotal role in shaping the future of sustainable mobility. The writing is on the wall: electrification is no longer a distant goal but an immediate necessity. While the European Commission’s forthcoming legislation will provide a helpful push, the real momentum must come from businesses themselves.

Let’s not wait for laws to tell us what is clearly the right thing to do. The opportunity to lead, innovate, and build a more sustainable future is now. Businesses across Europe must recognize that the shift to electrification is not just about compliance—it’s about securing their place in a greener, more resilient economy.

As Ursula von der Leyen’s mission letter highlights, the EU is ready to support this transition. But the real question is: are businesses ready to take the wheel?