Procurement of Alternative Fuel Vehicle (AFV) Fleets

PASSENGER TRANSPORT

Segment    Family    Class

78

11

0

SDG Alignment

9. Build Resilient Infrastructure, Promote Inclusive and Sustainable Industrialization and Foster Innovation

UN SDG Target

9.4

Target Description

By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities

Level of Effort

Level of Effort Scale

3

1 -Quick Wins: solution involves adding criteria for the good or service being purchased (ex: certifications), minimal internal process changes.

2 -Long Term Adoption: solution requires some changes to internal processes and/or more capital investment (ex: digital transformation to reduce paper use).

3 – Disruptive Opportunities: requires significant investment and changes to internal processes (ex: retrofitting building)

Category Assessment

ETCH Procurement Process .png

Assessment

• Assess current passenger transport operation costs; compare direct and indirect costs to fuel consumption and carbon emission reports. Identify available transport alternatives.

Opportunity Identification 

Business:
Transport fuel cost reduction options, increase supplier diversity, and support infrastructure growth with alternative fuel vehicles

Sustainability:
Reduce carbon emission, city development planning and quality of life for future street design could be improved with the transition to less carbon-intensive transportation.

Strategy Build & Execution

• Approach suppliers and discuss their long-term solutions and targets regarding public transportation
a) Consider working with your suppliers to adopt retrofitting existing vehicles to operate as AFV

• Determine your AFV options with an Request for Information (RFI)I, including your current suppliers

Supplier Negotiation & Contract

• Review contracts with your current supplier, see if there is interest to retrofit vehicles, and negotiate contract renewal/ extensions base on agreements. Leverage relationships with suppliers for discount rates. Agree on quality and maintenance accountability and responsibility, quality management, the turnaround time for remodeling, and operation transitions.

• With new suppliers, leverage the volume of fleets in negotiation.

• Award suppliers that are already operating with green transport policies and vehicles with greater consideration.

Supplier Performance & Management

• Regularly report on your transport cost and use the data to determine your quarterly or yearly emission performance. Compare this data to your historic data while using traditional fuels. Share this information with stakeholders and track your progress as you make the decision to shift towards more AFV fleets.

• Annually monitor CSR reporting (internal and external) of supplier and stakeholders.

Resource Links

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