Sustainability makes good business sense

Regardless of your views on climate change, having sustainable practices and goals is pretty much essential to a successful customer-facing business.

Customers are demanding good environmental measures through their supply chains and if you are in the business of trying to attract younger workers, they want to work for companies that take protecting the planet seriously.

Transport is responsible for about 18% of New Zealand’s total greenhouse gas emissions each year, and the race is on to reduce that. While plenty of car brands are developing light vehicles to run on “clean and renewable” alternatives to fossil fuels, there has not been the same progress in truck manufacturing, because the fuel alternatives available present some challenges when upping the size scale.

So, it was exciting to attend the launch of New Zealand’s first long-haul, electric-vehicle road freighter this week. Auckland-based laundry business Alsco put the Hino truck on display at Eden Park, with Energy and Resources Minister Dr Megan Woods and Climate Change Minister James Shaw speaking at the event.

Alsco’s Group General Manager Mark Roberts had a great story to tell about the company’s sustainability journey and he spoke about taking the gamble to pioneer intercity electric vehicle freight movement. He said it wasn’t about waiting for the production to be perfect, but on starting today, to focus on three important business aspects – people, planet and prosperity. He outlined Alsco’s “big, bold, meaningful goals” for 2030, including reducing water use by one-third (remembering they are a laundry business); generating zero waste; reducing CO2, including by eliminating coal as an energy source; and converting one-third of the vehicle fleet to electric energy.

It’s important to take a sustainability view across the business and to get staff buy-in. Those companies running heavy vehicles that haven’t thought about sustainability should start, right now. There is quite a bit that can be done, including adopting the current best technology to manage environmental considerations with fuel efficiency and reduced emissions. This will have an immediate positive impact on the environment.

The Energy Efficiency and Conservation Authority (EECA) runs a low emission vehicles contestable fund. This supports projects that encourage innovation and investment in electric and other low emissions vehicles in New Zealand. It offers up to $7 million a year to co-fund projects with private and public sector partners and Alsco sourced some of this funding to start electrifying its fleet.

Alsco’s EV truck will do the Rotorua/Tauranga and Rotorua/Taupo routes, travelling about 286km/day. Fully laden, it will be up to 22.5 tonnes in weight.

It is estimated to save at least 25,000 litres of diesel and 67,610 kilograms of CO2e per year. Roberts said there was in fact, a compelling argument that supported the higher investment for a heavy EV compared to a diesel equivalent, due to a swift payback on operational expense. He said operational savings would justify the higher capital expense by recouping the additional investment in less and six months, thereafter providing a consistent financial advantage over a similarly tasked diesel truck.

Climate Change Minister James Shaw said in his speech that “innovation is a function of constraints”. There is no doubt that the constraints on fossil fuel vehicles are tightening and for the wider heavy vehicle industry, Alsco’s journey will be one to watch.

You can find out more about Alsco’s EVs and sustainability plans here.

– Nick Leggett, CEO, Road Transport Forum


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