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Company Fleet and Transportation

Materiality Assessment Topics: Impact of company fleet | Global Reporting Initiative G4 Indicators: EN15, EN19

Issue Summary

In the United States, transportation accounts for 28% of greenhouse gas emissions.i Finding cleaner, more efficient methods of powering our vehicles is important for our country’s economy, security and environment. The challenges of transitioning away from petroleum are many — from infrastructure to cost — but they are crucial to solve.

Our Position

With one of the largest commercial fleets in the U.S., we know we need to be part of the solution. As of December 31, 2016, AT&T operated more than 114,500 fleet assets, which includes over 82,300 vehicles and over 32,200 “wheeled equipment units,” such as portable power units and utility trailers used for emergency conditions and transporting supplies and equipment.

Additionally, we offer our customers wireless fleet management solutions for their commercial truck and van fleets, which can lead to reduced idle time, better management of miles driven per day, improved route planning and reduced travel time and costs.

Data Highlights

2016 Key Performance Indicators
  • Percent decrease in AT&T fleet greenhouse gas emissions (2008 baseline): 12% 


2020/2025 Goals
  • 2020 Goal: Reduce the emissions of our fleet by 30% by 2020 from our 2008 baseline (includes DIRECTV’s fleet)

Click here to learn more about our 2020/2025 Goals.

Targets to our 2020/2025 Goals
In Progress
2017 Target: Reduce the emissions of our fleet 15% by the end of 2017
  • PROGRESS: By the end of 2016, AT&T reduced fleet emissions by 99,000 metric tons of CO2e, or 12% from our 2008 baseline.100% of passenger sedans procured in 2016 were hybrid vehicles. In addition, AT&T reduced the size of its domestic fleet by 1,800 vehicles.

Our Action

Strategies for achieving a 30% reduction in fleet emissions

AT&T is always looking for ways to modify its fleet strategy in an effort to reduce fleet-related emissions. These efforts include deploying an Alternative Fuel Vehicle (AFV) fleet, deploying the most efficient technology and leveraging our own fleet management solutions for commercial trucks and vans.

Alternative Fuel Vehicles (AFVs)

In 2009, we set a goal to deploy 15,000 AFVs in an effort to reduce our emissions. Since then, our traditional vehicle fleet has improved in efficiency sufficiently, so we are beginning to identify new strategies for reducing our fleet emissions.

  • In 2016, we re-focused our strategy to include a new goal to lower AT&T fleet emissions by 30% by 2020 from our 2008 baseline.
  • We remain committed to deploying hybrid passenger vehicles. All passenger sedans procured in 2016 were hybrid vehicles that significantly reduce emissions and improve the efficiency of our fleet.
  • Through 2018, AT&T has proposed the deployment of an additional 2,000 hybrid-plus vehicles, including 100% of the new passenger vehicles. 

Vehicle Reduction Efforts

  • Changes in our business strategy that encourage streamlining fleet services are also helping us to significantly reduce our total fleet numbers. Taking vehicles off the road completely is the most impactful way we can reduce our fleet environmental footprint.
  • In 2016, AT&T reduced the size of its domestic fleet by 1,800 vehicles.
  • Our plan is to reduce our total fleet numbers by more than 13,000 vehicles. 

U.S. EPA SmartWay program managed by AT&T Global Supply Chain

AT&T participates in the U.S. Environmental Protection Agency SmartWay program. Through this program, we benchmark and measure progress in our transport emissions management, which helps us further integrate energy efficiency, air quality and climate change considerations into our decisions. The program also enables us to identify potential carbon reductions and cost savings opportunities in our distribution network.

Highlights include:

  • Dedicated distribution: AT&T uses a dedicated distribution network that covers 21 states. The Transportation Control Center works with suppliers to consolidate shipments and create full truckloads on its dedicated fleet and uses EPA SmartWay carriers to reduce costs and carbon emissions.
  • Transport optimization/better route planning: AT&T performs daily inbound planning through a transportation management system to select optimal transportation modes and consolidation opportunities for optimal routing. In 2016, AT&T’s Transportation Control Center managed shipments via the following modes:
    • 6% truck load
    • 10% less than truck load
    • 50% AT&T distribution network
    • 34% parcel
    • Less than 1% other (expedite, intermodal, air)
  • Consolidation: We analyze regional ordering volumes, ordering frequency and delivery capacity in order to consolidate demand and reduce unnecessary inbound transport. In 2016, 62% of our inbound orders through the Transportation Control Center were consolidated.
  • In 2016, more than 99.8% of the miles covered by the AT&T Transportation Control Center were by carriers that participate in the EPA SmartWay program. AT&T also increased the number of SmartWay participating carriers we will utilize going forward into 2017, including incorporating those suppliers used by DIRECTV.
  • All of DIRECTV’s carriers are SmartWay certified. In 2016, DIRECTV managed shipments shipped via the following modes of transport:
    • approximately 53% Less Than Truckload
    • 41% Truckload
    • 6% Other (Intermodal and Air combined).

Customer Fleet Technology Solutions

AT&T is one of the largest U.S. wireless providers of fleet management solutions for commercial truck and van fleets. AT&T’s technician vehicles are equipped with similar solutions, and optimizing our fleet operations is a crucial component to making real changes. We use best practices to efficiently manage our fleet every day, and we continue to explore new ways to reduce fuel use and drive fewer miles. Our efforts include:

  • Automated vehicle maintenance alerts and proactive monitoring of tire pressure, oil changes and idling;
  • Behavior-changing tools that will be deployed as necessary to improve driver- and vehicle-efficiency;
  • GPS routing technology that will be deployed where our fleet can identify improvements that have significant impacts on our gallons used per truck roll;
  • AT&T’s idling reduction policy, which discourages excessive and unnecessary idling.

Read more about these solutions at our wireless and enterprise business sites.

iEPA, https://www.epa.gov/ghgemissions/sources-greenhouse-gas-emissions#transportation, 2015

Updated on: Aug 17, 2017

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