Fleet decarbonisation driven more by customer demand than compliance, new 2025 energy report reveals

Teletrac Navman, a leading connected mobility platform and Vontier company, has published its Mobilising the Future of Fleets Report: 2025 Energy Edition, revealing that 63% of fleets see customer demand as a key factor in transitioning to alternative energies.

Details on fleet decarbonisation

The report highlights that 58% of businesses cite brand reputation and sustainability targets as the main motivators behind their energy transition. By contrast, only 29% said regulatory pressure or government mandates were guiding their decisions.

“Fleets are focusing on their own net-zero goals as a part of their corporate reputation and long-term commercial strategies, rather than just seeing it as a compliance checkbox,” said Alain Samaha, CEO of Teletrac Navman. “Customers recognise the importance of sustainable operations, and according to our research, are making active decisions around the businesses they support based on their sustainability credentials.”

Rather than immediately investing in new vehicles, 84% of fleets are concentrating on operational efficiencies, with 49% focused on vehicle maintenance, 36% on utilisation, and 28% on driver training. However, 61% are also making capital investments, including upgrading to more fuel-efficient vehicles (48%) or switching to those powered by alternative fuels (31%).

Larger fleets are further ahead in their transition efforts: 62% of those operating 50 or more vehicles are actively working on sustainability performance. Yet, approaches vary. While 46% assess vehicle suitability, 8% using external consultants, and 42% follow an end-of-life replacement strategy. A further 30% have conducted Total Cost of Ownership (TCO) analyses to guide decisions.

Mixed-energy fleets are becoming more common, with 61% of respondents using multiple energy types. Plug-in hybrid electric vehicles (PHEVs) were most used (39%), followed by battery electric vehicles (BEVs) at 37%, and natural gas vehicles at 23%.

Currently, 8% of fleets have already transitioned at least half of their vehicles. Nearly half (48%) expect to reach that milestone within two years, rising to 85% within five years.

“The push for fleet sustainability is at a pivotal moment,” added Samaha. “Access to accurate data and actionable insights will be critical factors in making informed decisions that align with both business needs and sustainability goals.”

To view the full report, click here.