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How to Calculate Your Fleet’s Carbon Footprint

Last updated : December 4, 2024
Sustainable Mobility

For fleet managers, sustainability is a top priority, with many companies striving to achieve net zero CO2 emissions as part of their efforts to combat climate change. However, reaching decarbonisation targets without disrupting fleet operations can be a complex challenge.

Mobility is essential for driving business growth, yet fleets often account for a significant portion of an organisation’s carbon footprint. This leaves fleet managers with a clear but demanding task: enhancing the performance of company vehicles while simultaneously cutting costs and improving sustainability.

Adding to the complexity, no two companies share the same path to net zero. Factors such as fleet size, vehicle composition, and unique business needs all influence the decarbonisation strategy. To begin charting your journey, it’s crucial to first assess how your fleet is performing today. In this guide, you’ll learn how you can calculate your fleet’s CO2 emission levels alongside other important aspects.

How to calculate your fleet's carbon footprint

There are two ways to calculate the environmental impact of your fleet: through a mathematical estimation or an accurate measurement.

1) Mathematical estimate

Step 1: Work out how many litres of fuel you use

If you know how many litres of fuel you buy and use each month, this step is easy. If you don’t, take the number of miles that your fleet has completed in one month and your average MPG.

With your miles and miles-per-gallon figures, you can calculate the number of litres of fuel your fleet has burned. We’ll explain exactly how to do this in the example below.

Step 2: Calculate how many kilograms of CO2 this creates

One litre of diesel creates 2.54kg of CO2. So you can simply multiply the number of litres you’ve used by 2.54 to work out how many kilograms of CO2 your fleet has emitted in a month. Most of our customers’ fleets run on diesel but, if you have a mixed fleet, you can also account for the fact that, when burned, one litre of petrol will produce 2.31kg of CO2.

Example

Imagine you manage a fleet of 100 vans. Every month, each vehicle covers 1500 miles at an average MPG of 25. That means each vehicle burns 60 gallons of fuel each month (1500/25). This translates to 272 litres, as there are 4.54 litres in a gallon.

272 litres of diesel will create 691 kg of CO2 (272 * 2.54 = 690.88). So your entire fleet’s emissions are 69,088 kg of CO2.

It’s worth noting that this is a very rough estimate. This is because each vehicle’s actual consumption will vary depending on its make and model, age, and the driving style of your workers. So, with this method, it can be impossible to work out where improvements should be made to reduce your emissions and costs.

2) Accurate measurement with fleet management services and solutions

It’s now time to look at how you can get a more precise measurement with fleet management services and solutions.

Vehicle tracking technologies like MICHELIN Connected Fleet collect information about your MPG and real fuel consumption straight from your vehicles. This data can then be analysed to provide you with new insights and actionable advice for improving your fleet’s sustainability and profitability. With one simple dashboard, we provide fleet and operations managers with car-by-car results, as well as a detailed overview of how your fleet performs as a whole.

You can see the real MPG of each vehicle at any point in time, as well as compare different results from vehicles on the same route or across the same car models. A simple dial on the dashboard also shows you fuel consumption on aggregate, while automatic reports highlight the best actions to improve your environmental impact. If you’re interested, then be sure to make an enquiry today.

What is a fleet’s carbon footprint?

A fleet’s carbon footprint refers to the greenhouse gas emissions (GHG), such as carbon dioxide (CO2) and methane, produced by fleet operations. These emissions primarily result from burning fossil fuels like petrol or diesel to power vehicles. These gases trap heat in the Earth’s atmosphere, contributing to global warming and climate change.

For fleet managers, understanding the carbon footprint of their vehicles is essential as operations often represent a significant share of an organisation's overall emissions, making them a critical area for improvement.

Importantly, reducing a fleet's carbon footprint not only supports global efforts to combat climate change, but also brings tangible business benefits. For instance, lowering emissions can decrease fuel and maintenance costs, increase sustainability, and improve the company's reputation with environmentally conscious customers and stakeholders.

What is fleet CO2 reporting?

Fleet CO2 reporting, or greenhouse gas emissions reporting, involves tracking and disclosing the carbon emissions from a business’s or company’s vehicle operations. Since April 2022, the UK’s Financial Conduct Authority (FCA) has required publicly listed companies to report their climate impacts under the Task Force on Climate-related Financial Disclosures (TCFD) framework. For businesses with fleets, this includes CO2 emissions from vehicles.

Relatedly, In January 2024, the EU’s Corporate Sustainability Reporting Directive (CSRD) expanded these requirements, mandating certain companies to disclose the environmental impacts of their operations, including fleet emissions.

The crux is that without accurate fleet data, reducing CO2 output and tracking sustainability progress becomes impossible. Moreover, as regulations tighten, businesses risk penalties and revenue loss if they fail to comply. Consequently, precise reporting is now essential for both regulatory compliance and achieving sustainability goals.

What are scope 1, 2, and 3 emissions?

Scopes are the foundation of CO2 reporting, dividing emissions into three distinct categories. Understanding these scopes is essential for fleets aiming to measure, report, and ultimately reduce their carbon footprint.

  • Scope 1: These are direct GHG emissions generated by a company’s own operations. For example, the fuel burned by company-owned vehicles falls under Scope 1.

  • Scope 2: These emissions are indirect and come from the production of energy purchased by a business. This includes emissions from electricity used to power offices or recharge electric vehicles.

  • Scope 3: The most extensive category, Scope 3 encompasses emissions along the supply chain. This includes upstream emissions from producing raw materials or goods a company purchases and downstream emissions from the use or disposal of the products it sells.

One area of potential confusion lies in vehicle classifications. Company-owned or directly leased vehicles fall under Scope 1, as they are considered part of the business’s direct emissions. However, vehicles funded through operating leases are treated as Scope 3 emissions, as they are technically owned by the leasing company.
The MICHELIN Connected Fleet team

Written by The MICHELIN Connected Fleet team

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