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Private sector and government agencies accelerate electric vehicle adoption

Dec 15, 2023

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Businesses and the U.S. government are investing more in the electric vehicle (EV) movement, with corporations and agencies pushing to electrify their fleets. EV use has surged in the private sector, and the federal government is also moving ahead with plans to use more EV and hybrid vehicles.

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From making Amazon and FedEx deliveries, to helping serve customers of telecommunications providers like Comcast and AT&T, corporate electric vehicle usage has grown across America.

“We have a responsibility to take bold action in addressing climate challenges,” said Frederick Smith, FedEx Corp chairman and CEO. “This goal builds on our longstanding commitment to sustainability throughout our operations, while at the same time investing in long-term, transformational solutions for FedEx and our entire industry.”

Roughly one quarter of emissions produced by the transportation sector come from commercial vehicles, a number that several EV initiatives throughout the private sector are focused on reducing.

By 2030, Amazon is planning to have 100,000 EVs on the road and FedEx plans to make all of the company’s new vehicle purchases electric. Both delivery giants have committed to achieving carbon neutral vehicle fleet operations by 2040.

“We hope our custom electric vehicle helps create a sense of urgency in the industry to think big about embracing sustainable technology and solutions—whether you’re a package delivery company, a logistics company, an ice cream manufacturer, or almost anyone else with vehicles on the road,” said Ross Rachey, director of Amazon’s global fleet and products.

Comcast wants to reach the milestone of carbon neutrality sooner than Amazon and FedEx, with plans to do so come 2035. Comcast has said its emissions reductions since 2019–as a result of going electric–have eliminated 960,000 tons of greenhouse gases, equivalent to taking 200,000 gas-powered cars off the road for a year.

“We’re taking action towards a greener future by reducing our carbon footprint across our enterprise – going carbon neutral by 2035,” Comcast said in a statement. “We have the roadmap to carbon neutral, and we’re letting it guide us to a better, more sustainable future.”

AT&T is also aiming for carbon neutrality by 2035. The Comcast competitor recently announced a deal with EV maker Rivian to add more zero-emission models to its fleet by as early as next year.

“Our network is tested by climate change and natural disasters every year,” said John Stankey, CEO of AT&T. “We recognize the long-term impact these commitments can have, and we owe it to the millions of customers who rely on our services to create the most resilient and sustainable business we can.”

In the public sector, the federal government is making its own commitments to transition away from gas-powered vehicles. In 2021, President Joe Biden directed the government to stop purchasing vehicles with combustion engines by 2035, adding that all light-duty federal acquisitions by 2027 should be EVs or hybrids.

“The federal government owns an enormous fleet of vehicles, which we’re going to replace with clean electric vehicles made right here in America, made by American workers,” Biden said. “The future of the auto industry is electric.”

To date, the White House has acquired 14,000 zero-emission vehicles for the government’s fleet, and 19% of the vehicles purchased this year are electric–up from just 1% in 2021.

“These new commitments will save taxpayers money by increasing the use of EVs and taking other cost-effective actions on clean transportation associated with business travel for the federal workforce,” the White House said in a statement. “President Biden’s Federal Sustainability Plan aims to reach net-zero emissions from overall federal operations by 2050, including a 65% emissions reduction by 2030.”

The Biden administration has also issued a new directive for all government employees to be transported by either an EV, electric rideshare vehicle, or train during official business travel when feasible. With an annual business travel purchasing budget of $2.8 billion, this move is projected to cut the government’s emissions output.

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[Jack Aylmer]

BUSINESSES AND THE GOVERNMENT ARE INVESTING MORE IN THE EV MOVEMENT, WITH CORPORATIONS AND AGENCIES  PUSHING TO ELECTRIFY THEIR FLEETS OF VEHICLES.

 

IN THE PRIVATE SECTOR, EV USE HAS SURGED. FROM MAKING DELIVERIES, TO SERVING TELECOMMUNICATIONS CUSTOMERS, ABOUT A QUARTER OF EMISSIONS PRODUCED BY TRANSPORTATION COME FROM COMMERCIAL VANS, A TREND EV INITIATIVES AT A NUMBER OF COMPANIES SEEK TO COMBAT.

 

AMAZON IS PLANNING TO HAVE ONE HUNDRED THOUSAND EVS ON THE ROAD BY THE END OF THE DECADE.

 

2030 IS ALSO THE DEADLINE SET BY FEDEX TO MAKE ALL OF ITS NEW VEHICLE PURCHASES ELECTRIC.

 

BOTH DELIVERY GIANTS HAVE COMMITTED TO ACHIEVING CARBON NEUTRAL VEHICLE FLEET OPERATIONS BY 2040.

 

COMCAST WANTS TO REACH THAT MILESTONE EVEN SOONER, WITH PLANS TO DO SO COME 2035. THE COMPANY SAYS ITS EMISSIONS REDUCTION SINCE 2019 IS A RESULT OF GOING ELECTRIC, EQUIVALENT TO TAKING TWO HUNDRED THOUSAND CARS OFF THE ROAD FOR A YEAR.

 

LIKE COMCAST, AT&T IS ALSO AIMING FOR CARBON NEUTRALITY BY 2035, RECENTLY ANNOUNCING A DEAL WITH RIVIAN TO ADD MORE ZERO-EMISSION E-V MODELS TO ITS FLEET BY AS EARLY AS NEXT YEAR.  

 

MEANWHILE IN THE PUBLIC SECTOR, THE FEDERAL GOVERNMENT IS MAKING ITS OWN COMMITMENTS TO TRANSITION AWAY FROM GAS-POWERED VEHICLES.

 

IN 2021, PRESIDENT BIDEN ISSUED AN EXECUTIVE ORDER DIRECTING THE GOVERNMENT TO STOP PURCHASING VEHICLES WITH COMBUSTION ENGINES BY 2035, ADDING THAT ALL LIGHT-DUTY FEDERAL ACQUISITIONS BY 2027 SHOULD BE EVS OR HYBRIDS.

 

TO DATE, THE WHITE HOUSE HAS ACQUIRED FOURTEEN THOUSAND ZERO-EMISSION VEHICLES FOR THE GOVERNMENT’S FLEET, WITH NINETEEN PERCENT OF THOSE PURCHASED THIS YEAR HAVING BEEN ELECTRIC. THAT’S UP FROM JUST ONE PERCENT IN 2021.

 

THE BIDEN ADMINISTRATION ALSO ISSUED A NEW DIRECTIVE FOR FEDERAL EMPLOYEES TO BE TRANSPORTED BY EITHER AN EV, ELECTRIC RIDESHARE VEHICLE, OR TRAIN WHEN TRAVELING ON OFFICIAL BUSINESS WHEN  FEASIBLE. 

 

WITH AN ANNUAL BUSINESS TRAVEL PURCHASING BUDGET OF TWO POINT EIGHT BILLION DOLLARS, THIS MOVE IS PROJECTED TO MAKE SERIOUS CUTS TO THE GOVERNMENT’S EMISSIONS OUTPUT.