How Fleet Data Improves Environmental Reporting

Q: What are Scope 1, Scope 2, and Scope 3 emissions, and why should fleet operators understand them?

Scope 1 emissions refer to direct emissions from sources a business owns or controls. This includes things like the fuel burned in company vehicles. Scope 2 emissions, on the other hand, are indirect emissions tied to purchased energy, such as electricity used to power office buildings or charge electric vehicles. Lastly, Scope 3 emissions cover all other indirect emissions throughout the value chain, from supplier activities to product disposal and even employee travel. For fleet operators, grasping these categories is key to identifying the sources of emissions and implementing effective reduction strategies. For instance, switching to electric vehicles can cut down on Scope 1 emissions, while using renewable energy sources can help lower Scope 2 emissions. This understanding not only simplifies reporting but also enables fleets to move closer to their net zero objectives.

Fleet telematics automates emissions reporting, ensuring compliance and driving down costs while improving sustainability for UK operators.

Michael Bar

05 Jul 2025 • 13 min read

Fleet operators in the UK face increasing legal requirements to report emissions, with stricter rules coming into effect by 2025. However, many still rely on outdated methods like spreadsheets, leading to errors and compliance risks. Fleet telematics offers a solution by automating emissions tracking, providing real-time insights, and simplifying compliance with frameworks like SECR, ESOS, and the upcoming UK Sustainability Reporting Standards (UK SRS).

Key Points:

Current Challenges: 38% of fleet managers use outdated systems, and 26% don’t understand emissions categories (Scope 1, 2, and 3).
Upcoming Regulations: UK SRS becomes mandatory in late 2025, expanding reporting obligations for larger businesses.
Telematics Benefits: Automates data collection, tracks emissions accurately, and identifies inefficiencies like idling and harsh driving.
Cost Savings: Improved driving habits and route optimisation can reduce fuel consumption by up to 20%.
Case Study: Metro Logistics cut emissions by 34% and saved £45,000 annually using GRS Fleet Telematics.

Fleet telematics not only simplifies compliance but also helps operators reduce costs and emissions, positioning them for future regulatory changes.

How technology and telematics are helping fleets reach sustainability goals with Charlotte Argue

Environmental Reporting Requirements for UK Fleets

UK fleet operators are navigating a rapidly changing regulatory environment, with new environmental reporting standards set to come into force from 2025. Staying on top of these developments is essential to ensure compliance and avoid hefty penalties. Below, we break down the key emissions categories and reporting frameworks that fleets need to understand.

From the third quarter of 2025, large businesses in the UK will need to comply with the UK Sustainability Reporting Standards (UK SRS), which are aligned with IFRS S1 and S2. This marks a shift from voluntary to mandatory reporting, requiring detailed data on Scope 1 and Scope 2 emissions.

Additionally, fleet operators must adhere to the Streamlined Energy and Carbon Reporting (SECR) framework. This mandates annual reporting of global energy use and greenhouse gas (GHG) emissions for publicly quoted companies in the UK. Large unquoted companies and limited liability partnerships also face similar disclosure rules.

The Energy Savings Opportunity Scheme (ESOS) adds another layer of compliance, requiring organisations with 250 or more employees - or those meeting specific financial thresholds - to conduct energy audits every four years. These audits must cover energy consumption across buildings, industrial processes, and transport operations.

Emissions Scopes Explained

The foundation of UK environmental reporting lies in the three emissions scopes, but many fleet operators still struggle to differentiate between them. Research reveals that 26% of UK fleet managers cannot clearly identify the differences between Scope 1, 2, and 3 emissions.

Scope 1 emissions: These are direct emissions from sources owned or controlled by the company. For fleets, this mostly refers to fuel burned in company vehicles. Accurate tracking of fuel usage (in litres or cubic metres) is essential, with official conversion factors provided by the UK DEFRA 2022 report.
Scope 2 emissions: These involve indirect emissions from purchased electricity, steam, heating, or cooling. Fleet operators must account for electricity used to charge electric vehicles, power depots, and maintain facilities. Consumption data should be measured in kilowatt-hours (kWh) and converted using the relevant emission factors.
Scope 3 emissions: This category covers all other indirect emissions across an organisation’s value chain. For fleets, this could include emissions from employee commuting, business travel, or supply chain transport. Tracking commuting mileage, fuel used in employee-owned vehicles (grey fleet), and supplier-related emissions is vital.

UK Reporting Standards

UK reporting standards demand accuracy, transparency, and readiness for audits. Fleet operators are expected to maintain robust data management systems and clear documentation for emissions calculations.

Under SECR, companies meeting at least two of the following criteria must comply: an annual turnover of £36 million or more, a balance sheet total of £18 million or more, or 250 employees or more. Reporting requirements include energy use, GHG emissions, intensity ratios, and energy efficiency measures.

Reporting Framework	Frequency	Key Requirements	Penalties for Non-Compliance
SECR	Annually	Energy use, GHG emissions, intensity ratios, energy actions	Financial penalties and regulatory action
ESOS	Every 4 years	Energy audits and identification of energy-saving measures	Fines imposed by the Environment Agency
UK SRS	Annually	Detailed Scope 1 and 2 data	–

Environmental, Social, and Governance (ESG) disclosures are becoming increasingly important in both public procurement and private partnerships. Fleet performance data is now a critical factor in demonstrating ESG progress. The UK government’s 2024 consultation on regulating ESG ratings providers highlights the growing emphasis on verifiable ESG data.

Fleet operators should also prepare for broader reporting requirements, as the government plans to extend sustainability disclosures to all companies by 2026. This will bring smaller operators, currently exempt, into the fold.

The overall goal of these frameworks is to promote energy efficiency, cut costs, and reduce emissions. Yet, gaps in reporting remain a challenge. For instance, 23% of UK fleet managers are unaware of the financial penalties tied to incorrect emissions reporting. Moreover, 12% view emissions reporting as a "tick-box exercise", while 11% admit to feeling confused or unconfident about accurate reporting.

To meet these challenges, fleet operators should seek advice from compliance experts and invest in robust data management systems. Tracking energy use, carbon footprints, and other ESG metrics effectively will be key to navigating these stricter regulations.

Common Problems in Fleet Environmental Reporting

Even with advancements in telematics, many fleet operators across the UK still grapple with major hurdles in gathering and managing environmental data. These challenges not only increase compliance risks but also make it harder to make well-informed decisions about sustainability strategies. This highlights the importance of automated, real-time data management solutions, which we'll delve into in the next section.

Manual Data Collection Problems

A surprising number of UK fleets - 21.4% - still depend on manual systems to monitor their environmental impact. The issue with manual data collection is that it’s prone to errors, which can lead to incorrect records of fuel usage, mileage, and emissions. On top of that, it’s a slow process that often results in incomplete data sets, leaving operators with an unreliable foundation for decision-making.

Data Aggregation Difficulties

Even when fleets manage to collect data, turning it into a coherent and accurate environmental report is no small feat. Many operators struggle with outdated tools and manual processes, which makes it tough to transform raw emissions data into actionable insights. Only 27% of UK companies can confidently measure their fleet’s CO₂ output, which shows how widespread this problem is.

Missing Actionable Insights

Raw data alone isn’t enough to guide sustainable and compliant operations. Unfortunately, many operators still rely on outdated approaches - 42% of respondents across Europe, for instance, continue to use fuel-based estimates for emissions. Ian Turner, Chief Sales Officer at Alphabet (GB), put it plainly: the sector “still has work to do” in helping fleets make smarter decisions and improve emissions reporting.

Another issue is the lack of alignment with regulations. For example, the EU's Corporate Sustainability Reporting Directive (CSRD) hasn’t significantly influenced fleet planning. This regulatory gap, combined with limited adoption of advanced systems, keeps many fleets behind the curve. In the UK, only 21.4% of operators use modern fleet management systems for tracking CO₂ emissions, compared to 43% across Europe. By integrating telematics systems, fleets could turn raw emissions data into meaningful insights, helping them meet regulatory requirements and improve sustainability efforts.

How Fleet Telematics Improves Environmental Reporting

Fleet telematics has stepped in to tackle the issues of manual errors and fragmented data in environmental reporting. By automating the process of data collection and offering real-time insights, these systems address challenges like inconsistent data and lack of actionable information.

Automated Data Collection and Reporting

Telematics systems have revolutionised how environmental metrics are captured. They automatically track key indicators such as fuel consumption, emissions, engine idling, harsh acceleration, and speeding events, significantly reducing the likelihood of human error - by as much as 75%. This automation not only streamlines data entry but also enables fleet managers to measure and report their carbon footprint with greater accuracy.

The benefits go beyond just gathering data. Telematics identifies inefficiencies within the fleet. For instance, monitoring engine idling, harsh acceleration, and speeding helps managers pinpoint wasteful driving habits and take corrective actions. Cutting idling time alone can save £116 per vehicle annually, while eco-driving can reduce fuel consumption by 10%.

This automated approach ensures that data from across the fleet is unified and ready for real-time analysis.

Real-Time and Centralised Data Management

Telematics systems don’t just collect data - they centralise it, making it easier to analyse and act on. By consolidating information from various sources into a single platform, these systems improve decision-making speed and accuracy. Real-time data management gives fleet operators immediate insights into performance, enabling quick responses to inefficiencies. Companies using real-time monitoring of carbon emissions have reported reductions of up to 15% in their carbon footprint.

Centralised data also simplifies regulatory compliance by automatically recording emissions, fuel usage, and driver performance. As CRIF S.p.A. points out:

"Data plays a central role in sustainability reporting, and its accuracy and quality are crucial to the transparency, credibility and reliability of the reports".

To enhance data security and integrity, many systems include features like role-based access permissions, password protection, and audit trails.

Among the solutions available, GRS Fleet Telematics stands out for its tailored features designed specifically for UK fleets.

GRS Fleet Telematics Features

GRS Fleet Telematics combines advanced tracking technology with robust environmental reporting tools, offering solutions tailored to the needs of UK fleets. The system provides real-time emissions data, eco-driving scores, and customisable dashboards, helping operators optimise routes, cut emissions, and engage drivers more effectively. Additional features include detailed fuel efficiency tracking, idling time monitoring, and route optimisation tools. In fact, implementing route optimisation can save up to 20% on fuel consumption.

A standout example is Metro Logistics, which achieved remarkable results using GRS Fleet Telematics. The company reduced wasted fuel by 28%, cut its carbon footprint by 34%, and saved over £45,000 annually.

"GRS Fleet Telematics has transformed our sustainability efforts...we've cut our carbon footprint by 34% whilst reducing fuel costs by over £45,000 annually."
– Robert Jenkins, Fleet Manager, Metro Logistics

The system also includes a carbon offsetting feature through a partnership with Furthr, enabling fleets to take steps beyond measurement and actively reduce their carbon footprint. With pricing starting at just £7.99 per vehicle per month, GRS Fleet Telematics offers detailed sustainability reports suitable for both internal and external use.

Philip van der Wilt, SVP and General Manager EMEA at Samsara, highlights the broader impact of such technologies:

"Connected technologies can play an important role in enabling operations leaders to create a modern, sustainable fleet, providing data that can improve fuel economy, create more efficient vehicle routing, and promote more eco-friendly driver behaviour."

How to Use Fleet Data for Environmental Reporting

Addressing the challenges of environmental reporting becomes much easier with a structured, data-driven approach. Start by evaluating your current methods and then build a strategy around the insights provided by fleet data.

Review Current Reporting Methods

Before adopting new technology, take a close look at your existing environmental reporting processes. Document how you currently track fuel usage, emissions, and driver behaviour. This will help you identify gaps in your data and reduce the risk of manual errors.

It’s important to focus on the specific environmental metrics required for compliance. For example, UK fleets need to meet regulations like greenhouse gas reporting standards and upcoming emissions rules. Knowing these requirements ensures that the telematics solution you choose will collect the right data from the start.

Set measurable goals for improving your reporting, such as reducing data inconsistencies or cutting down on manual data entry. Hitting these targets not only shows value to stakeholders but also lays the groundwork for more effective sustainability efforts.

This initial review will guide you in selecting a telematics solution tailored to your needs.

Choose a Telematics Solution

Select a telematics system that fits the size of your fleet and integrates easily with your operations. Look for features like data interoperability and system integration, which provide a centralised view of your fleet’s activities.

Make sure the system complies with UK regulations, including the Working Time Directive, tachograph rules, and environmental reporting standards. Prioritise solutions with strong data security measures, such as GDPR compliance and solid cybersecurity protocols.

For environmental reporting, advanced features like AI-driven insights, real-time diagnostics, and sustainability tracking (e.g., CO₂ emissions per route) are invaluable. These tools go beyond basic data collection, offering actionable insights for improving sustainability.

For instance, GRS Fleet Telematics provides a cost-effective system with features like real-time emissions tracking, eco-driving analytics, and detailed sustainability reports. Hardware options range from £35 to £99, allowing you to choose the level of tracking that fits your budget and needs.

Once you’ve implemented a telematics system, the next step is to monitor its performance and adjust your strategies based on the data it provides.

Track Performance and Adjust Strategies

After your telematics system is up and running, use the data to benchmark your fleet’s performance and find areas for improvement. Pay attention to behaviours like excessive idling, harsh braking, and speeding, as these directly affect fuel efficiency and emissions.

The insights from telematics can also help guide eco-driving training. For instance, reducing idling by just three minutes a day could lower CO₂ emissions by 1.4 million tonnes annually. The data will help you identify which drivers need coaching and in what specific areas.

Route optimisation is another key benefit. Use real-time GPS data to avoid traffic and reduce travel distances. This not only cuts emissions but also improves overall efficiency. Additionally, set up maintenance alerts based on mileage, engine hours, or time intervals to keep vehicles running efficiently. Even small details matter - tyres under-inflated by 1 psi can decrease fuel economy by 0.2%.

Real-world examples highlight the impact of telematics. In 2023, TELUS integrated telematics into 85% of its fleet, improving fuel efficiency by over 10% while achieving its sustainability goals. Similarly, Summit Materials used telematics to close data gaps and track emissions more effectively, saving around £1.8 million in fuel costs.

Regularly review the data to refine your strategies. This ongoing process ensures that your environmental reporting stays accurate and comprehensive. By taking a proactive approach, you can turn compliance into a strategic advantage, boosting both sustainability and profitability.

Conclusion: Benefits of Data-Driven Environmental Reporting

Data-driven environmental reporting transforms fleet management from simply reacting to problems into a more forward-thinking approach that prioritises sustainability. For UK fleets, adopting telematics solutions doesn’t just tick the environmental box - it delivers practical benefits like improved efficiency, lower costs, and a reduced carbon footprint.

The numbers speak for themselves. United Utilities achieved a 35% improvement in fuel economy and cut emissions by 26% per vehicle by using data insights to transition from internal combustion engines to electric vehicles. Similarly, DB Regio slashed CO₂ emissions by 1,400 tonnes annually, saving hundreds of thousands of litres of diesel in the process.

"Sustainability can drive both cost savings and efficiency. When these initiatives are integrated into everyday business operations, they naturally reduce environmental impact while boosting the bottom line. It's a clear win-win and hard to oppose once you see the value."

Neil Cawse, Founder and CEO of Geotab

Telematics solutions also simplify processes. Automation reduces errors and cuts down on admin work, while real-time monitoring allows for instant corrective action. Predictive maintenance ensures vehicles stay in top condition, avoiding expensive breakdowns.

Beyond operational gains, telematics supports critical decisions like fleet electrification and route optimisation. By analysing data, operators can reduce unnecessary mileage, monitor driver behaviour to lower fuel consumption, and cut down on idling - resulting in better fuel efficiency and fewer emissions.

With rising fuel costs and stricter regulations in the UK, fleet operators need to adapt. Data-driven reporting doesn’t just meet these challenges - it positions companies as sustainability leaders. Those who act now will enjoy cost savings, operational improvements, and a stronger commitment to environmental standards.

This approach eliminates the pitfalls of manual errors and fragmented reporting, aligning seamlessly with the UK’s stringent environmental requirements. By integrating advanced telematics solutions, like those offered by GRS Fleet Telematics, fleet operators can stay ahead of regulatory changes, reduce costs, and demonstrate their dedication to a greener future.

FAQs

How does fleet telematics help fleets meet the UK Sustainability Reporting Standards (UK SRS)?

Fleet telematics plays a crucial role in helping businesses comply with the UK Sustainability Reporting Standards (UK SRS). It provides accurate, real-time data on vehicle emissions, fuel consumption, and operational efficiency. This information is vital for Environmental, Social, and Governance (ESG) reporting, ensuring businesses are ready for the UK SRS requirements set to become mandatory for large organisations by late 2025.

With telematics, tracking fleet performance becomes much more straightforward. It simplifies the process of collecting standardised data required for sustainability reports. Beyond compliance, telematics promotes greater transparency and accountability by delivering clear insights into carbon emissions and energy usage. This enables businesses to keep up with changing environmental standards while improving their sustainability practices.

What are Scope 1, Scope 2, and Scope 3 emissions, and why should fleet operators understand them?

Scope 1 emissions refer to direct emissions from sources a business owns or controls. This includes things like the fuel burned in company vehicles. Scope 2 emissions, on the other hand, are indirect emissions tied to purchased energy, such as electricity used to power office buildings or charge electric vehicles. Lastly, Scope 3 emissions cover all other indirect emissions throughout the value chain, from supplier activities to product disposal and even employee travel.

For fleet operators, grasping these categories is key to identifying the sources of emissions and implementing effective reduction strategies. For instance, switching to electric vehicles can cut down on Scope 1 emissions, while using renewable energy sources can help lower Scope 2 emissions. This understanding not only simplifies reporting but also enables fleets to move closer to their net zero objectives.

How can fleet telematics help reduce costs and improve environmental sustainability?

Fleet telematics offers a smart way for businesses to cut costs while also addressing environmental concerns. By streamlining routes and reducing unnecessary idling, these systems help lower fuel usage, which directly translates to reduced operational expenses. On top of that, less strain on vehicles means fewer maintenance issues and repairs, saving even more money in the long run.

On the environmental side, telematics plays a key role in cutting down carbon emissions and other greenhouse gases. This not only helps businesses stay on top of environmental reporting requirements but also signals a strong commitment to eco-friendly practices. Such efforts can boost a company's reputation and ensure compliance with UK regulations focused on sustainability.