Going Electric

Last month we unveiled the first fully integrated, zero-emission refuse truck.?The truck is designed and built by our long-time, trusted supplier Oshkosh.?We have been collaborating with them for years to bring this truck to market.?We have long had an aspiration for a purpose-built, integrated, zero-emissions electric vehicle.?The announcement has generated lots of excitement and some skepticism.?I wanted to provide more color on our thinking and aspirations, and why I hope this new truck inspires others to commit to a zero-emission footprint for their fleets.

Why electric?

The world is heating up. Our company has both a moral obligation and a business opportunity to take action. ?Our fleet of 18,000 vehicles is currently a meaningful part of our carbon footprint.?A zero-emissions vehicle helps us reach our climate leadership goals.?It also helps our customers – cities, major companies and small businesses – achieve their own sustainability goals.?We are no stranger to innovating our fleet powertrain technologies.?Today, about 21% of our vehicles are powered by Renewable Natural Gas (RNG).?In many cases they utilize the RNG we produce from our own landfills.?This can reduce emissions by as much as 70%.?However, it is not good enough.?Customers want, and our planet needs, a zero-emissions solution. Electrification is the answer.?

We think our industry is a perfect application for electric.?The trucks return to the facility each evening - eliminating the need for remote charging infrastructure.?Our trucks charge overnight, avoiding peak grid hours.?Our trucks make hundreds of stops every day, allowing regenerative braking that lowers both energy and maintenance costs.?We have piloted several electric vehicles in the last two years from multiple manufacturers, including Mack and Peterbilt.?That has led to important insights on how to best manage weight and range limitations, weather concerns and infrastructure.?It has also given us the confidence to move forward, at scale, with electrification.

More than electric.

The benefits of this new vehicle go well beyond its zero-emission footprint.?This truck is designed with safety in mind.?It has a much larger windshield for greater visibility.?It has 360-degree cameras, lane departure warnings and active braking.?Passenger cars like my Toyota Camry have had these features for years.?Even though commercial vehicles are 10x more expensive, they do not have many of the same safety advancements seen in passenger cars.?This new truck will give our frontline colleagues world-class safety technology.?It will also make the job more comfortable.?Removing the engine from underneath the cab frees up space and reduces heat.?Finally, the dramatic increase in sensors and other technology in the truck will improve predictive maintenance.?The truck is effectively the office for more than 15,000 of our colleagues, and this improves their office on every dimension.

More than a truck.

Our years piloting EV trucks have resulted in some successes and some mistakes.?Both have taught us going electric involves more than buying a truck. ?We built internal capabilities on the charging infrastructure needed to power our fleet.?In addition, we established important relationships with third parties including construction companies, O&M suppliers, and power utilities.?State and local government relationships are also key to our success. They have provided incentives to accelerate early adoption and will be important anchor customers during our EV roll out.?We understand it’s the combination of our internal capabilities with our network of partners and customers that will make electrification a success.

The road ahead.

Of course, any time you lead, you invite criticism.?One of the complaints is that it will take too long. ??We expect to have around 25 EVs on the road by the end of the year, including Oshkosh’s first two prototype trucks.?We expect an additional 50 or more EVs in 2024, and plan to operate around 200 EVs from multiple suppliers in 2025.?By 2028, we expect 50% of our truck purchases to be electric.?We replace about 7-8% of our fleet each year.?So, yes, it will take a couple of decades to fully electrify the fleet.?However, to make a shift of this magnitude, it must be orderly and economically sustainable.?A colleague once told me there are two good times to plant a tree, twenty years ago and right now.?We are planting our tree.?The other main criticism is battery EVs will get supplanted by hydrogen.?That could be the case over time, and we’ll learn and adjust if that technology becomes optimal in our space.?However, I have been working in automotive and transportation for more than 25 years.?Every year for the last twenty-five years, fuel cells have been five years away from commercialization.?BEVs are ready, and we are well-positioned to bring them to market.?

The truck Oshkosh has developed, in close collaboration with us, is a game changer.?We are proud to be the anchor tenant that supported them making this investment.?Ultimately, they will sell the truck to other customers.?We remain committed to a multi-supplier strategy for our vehicles.?My dream is our move inspires others. ?I hope other suppliers step up to develop a clean-sheet EV with all the safety, comfort and technology features a new design enables.?I hope our competitors commit to a zero-emission footprint for their fleets.?A sustainable future requires a contribution from everyone.?Our kids and our grandkids are counting on us.

Note: Some of the information in this article contains forward-looking statements about Republic Services, Inc. that are intended to be covered by the safe harbor in the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, are not guarantees of performance and may be materially different from actual results. The SEC filings of Republic Services discuss factors that could cause Republic Services' actual results to differ materially from expectations.