UTILITY provider AGL Energy is to replace its 400-vehicle fleet to electric vehicles by 2030 and has become the first Australian company to sign up to the global EV100 initiative, which encourages businesses to shift to electric vehicles.

It said that moving to EVs would contribute to AGL’s target of achieving zero net emissions by 2050.

AGL chief operating officer Markus Brokhof said in a statement that sourcing the electricity used to charge the vehicles from renewable energy sources would allow it to make significant reductions to emissions from its transport operations.

“As part of our Climate Statement we have set a target to achieve net zero emissions by 2050. We know in order to meet this commitment, we need to be investing in smart and clean technologies,” Mr Brokhof said.

“EVs present a simple and effective solution as part of a cleaner energy future, with the transportation sector currently responsible for up to 19 per cent of Australia’s greenhouse gas emissions.”

He said that the fundamentals for EVs continue to grow and offered an opportunity for industries to take the lead in helping to reduce Australia’s carbon footprint.

About 10 per cent of AGL’s vehicle fleet are EVs and Mr Brokhof said now was the right time to transition the fleet to help reduce its own emissions, as well noise and air pollution.

“EV technology and manufacturing are at a point where the vehicles themselves are no longer just for early adopters, and we will begin to see prices fall into line with that of petrol/diesel equivalent vehicles,” he said.

“AGL’s commitment under EV100 is part of our growth strategy and our commitment to embrace innovation and technology to ensure we are not only achieving the best solutions for the environment but also for our employees, customers and shareholders.”

The EV100 initiative, started by The Climate Group, aims at corporate energy users committing to buying all of their electricity from renewable sources.

The Climate Group said fleet vehicles can play a critical role in establishing early markets for new technologies because they provide opportunities for large numbers of vehicles to be purchased by a single customer and then allow these vehicles to flow through into second hand markets when fleet agreements come to an end.

Its involvement in the EV100 initiative means it joins international companies including Ikea, Unilever, P&G, Air New Zealand, EDF and Bank of America.

Under the EV100 initiative, more than 80 companies have committed to shifting more than 4.7 million combined fleet vehicles to electric models by 2030. Additional commitments include installing charging infrastructure across business locations.

By Neil Dowling