Australia’s corporate and public sectors are showing strong ambition when it comes to climate commitments—but a new report reveals a significant gap when it comes to fleet-specific action.
The Electrifying Australia’s Fleets: Closing the Say-Do Gap report by OC&C Strategy Consultants highlights that while 59% of ASX200 companies and all levels of government have made public commitments to net-zero emissions, only 19% of organisations have a clear plan to transition their fleets to electric vehicles (EVs).
This disconnect between broad sustainability goals and tangible fleet action has major implications for Fleet Managers, Sustainability Officers, and policy makers. Commercial fleets account for around 15–20% of Australia’s total net emissions, and without targeted decarbonisation of fleet vehicles, national climate goals are at risk.
Net-Zero Commitments vs. Fleet Action
According to the report’s analysis of ASX200 companies and state/federal government departments, there’s a significant divergence between setting high-level emissions targets and implementing fleet-specific transition strategies.
Here’s how it breaks down:
- Net-Zero Targets:
59% of ASX200 companies have publicly committed to net-zero goals. - Fleet Transition Targets:
Just 19% have a formalised strategy to electrify their fleets. - Government Action:
All state and federal governments have expressed support for fleet electrification, but only some have active policies or mandates in place, and there is still no national target for EV procurement in the public sector.
The mining industry, for example, accounts for 40–50% of commercial fleet emissions, yet very few mining companies have articulated a plan to electrify their fleets—despite net-zero pledges at the corporate level.
Why the Gap Matters
This say-do gap is more than symbolic. Corporate fleets represent two-thirds of road transport emissions, and approximately 48% of all new vehicle sales in Australia. If companies and governments don’t back their net-zero targets with specific fleet strategies, decarbonisation of the transport sector will stall.
The report warns that “Based on the current adoption rate of zero emission fleet vehicles, Australia will not come close to meeting its decarbonisation targets.”
For example, while fleet managers expect EVs to become mainstream by 2030, current uptake is alarmingly low:
- EVs represent <5% of fleet purchases
- EVs represent <1% of the fleet car parc
Sector-by-Sector Breakdown
OC&C’s research found that high-emitting industries are lagging the most in fleet-specific planning:
| Sector | Net-Zero Target | Fleet Transition Target |
|---|---|---|
| Mining | 59% | 14% |
| Logistics | 50% | 63% |
| Manufacturing | 50% | 33% |
| Energy & Utilities | 85% | 23% |
| Construction | 57% | 29% |
| Government | 100% | 100% (intent) |
Logistics stands out as the exception. It is both a high-emitting sector and one of the most proactive when it comes to fleet transition planning—demonstrating a model for how other industries can align net-zero goals with operational strategies.
Government Fleets: Leadership Without Mandates
Federal and state governments play a crucial role, not just in policy, but as major fleet operators themselves.
While many departments have expressed strong intent, the lack of a binding national EV procurement mandate limits the scale and pace of change. Some state governments (such as ACT and NSW) have committed to electrifying their fleets by specific deadlines, but the approach remains fragmented.
This presents an opportunity for governments to lead by example. With annual new fleet purchases in the thousands, government action can drive demand, test new technologies, and help build a viable second-hand EV market—critical for total cost of ownership (TCO) and residual value confidence across the broader industry.
Time to Close the Gap
The report concludes that closing the gap between emissions goals and fleet actions requires strategic planning and cross-functional collaboration. For corporate leaders and policy makers, it’s no longer enough to simply have a net-zero banner on a website or sustainability report.
Without investment in fit-for-purpose EVs, depot infrastructure, and transition planning, the fleet component of emissions will continue to climb.
“Approximately 60% of ASX200 companies have set overall emissions reduction targets, however there is a lack of specific actions directed to the decarbonisation of fleets across most sectors.”
Now is the time for CFOs, Chief Sustainability Officers, and Fleet Managers to come together and ensure that transport emissions are not left behind in the net-zero journey.
What Fleet Decision Makers Can Do
- Conduct a fleet emissions audit to understand your baseline.
- Set a fleet-specific EV transition target that aligns with your net-zero roadmap.
- Start with pilots in LCV and passenger segments, especially in logistics or urban operations.
- Use data from telematics and usage analytics to identify viable vehicles.
- Collaborate across departments—Fleet, ESG, Finance, Facilities, and Energy must work together to deliver results.
The time for high-level ambition has passed. For fleets, it’s time to put the wheels in motion.
