Transport Is 18.5% of Emissions: Where Business Fleets Fit

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Transport accounted for 18.5% of New Zealand's greenhouse gas emissions. For most businesses, fleet is the largest directly controllable source.

Ministry of Transport data puts transport at 18.5 percent of New Zealand’s total greenhouse gas emissions in 2023, against 49.84 billion vehicle kilometres travelled in 2024.

For most businesses outside heavy industry and agriculture, vehicles are the largest source of emissions they directly control — and increasingly the one customers ask about.

Why you will be asked

Climate reporting entities disclosing their value chain emissions need data from suppliers. That requirement flows down through supply chains regardless of whether the supplier has any regulatory obligation of its own.

Note that the reporting regime tightened in 2026 — the listed issuer threshold rose from $60 million to $1 billion in market capitalisation from 31 March 2026, and managed investment scheme managers came out of the regime. Fewer entities report, but those that do still need supplier data.

Banks assessing climate risk in lending and insurers assessing exposure ask as well. The practical position is that emissions measurement is becoming a condition of doing business with large counterparties, arriving commercially rather than through regulation.

Measuring fleet emissions is straightforward

Fuel purchase records give you the number directly. Litres of diesel or petrol multiplied by the emissions factors the Ministry for the Environment publishes free gives you Scope 1 emissions for the fleet.

Then get the denominator right. Total emissions rise with activity, so the useful measure is intensity — emissions per tonne-kilometre, per delivery, or per unit of revenue. That tells you whether you are actually improving.

The levers that work fastest

Load utilisation. The largest single factor in freight emissions intensity is how full the vehicle is. Empty running and part loads mean the same emissions move less product.

A fleet running at 60 percent utilisation that reaches 75 percent has reduced intensity by a fifth without touching a vehicle. Levers: better load planning, consolidated deliveries, backloading, and where practical collaborating with other operators.

Route optimisation. Fewer kilometres for the same work. Routing software pays for itself on any multi-drop operation, and the emissions reduction is a by-product of the cost reduction.

Driver behaviour. Harsh acceleration, speeding and idling all increase fuel use substantially. Telematics with feedback and coaching produces measurable improvement and improves safety at the same time.

Idling is worth targeting specifically — vehicles running during loading, at depots and at breaks consume fuel for no distance.

Maintenance. Correct tyre pressure, alignment, clean filters and proper servicing all affect consumption. Cost saving that happens to reduce emissions.

Right-sizing. Using a smaller vehicle where the load allows rather than defaulting to the largest available.

Then vehicle replacement

Battery electric vehicles now number 105,796 in the New Zealand fleet. For light commercial vehicles returning to base daily within real-world range, electrification is straightforward.

Model total cost including purchase or lease with a residual assumption, energy at depot rate, road user charges — which light EVs now pay, changing the old comparison — maintenance, and charging infrastructure, which is frequently the largest capital item and routinely omitted.

Depot electrical capacity is usually the binding constraint. Talk to your lines company before ordering vehicles.

Mode shift

Rail moved 17.01 million tonnes in 2024 and carries substantially lower emissions per tonne-kilometre than road. It suits consistent volume on predictable timeframes and suits variable, time-critical freight poorly.

Worth modelling for the portion of your freight that fits, and the assessment should include the handling at each end rather than just the line-haul comparison.

Claims must be substantiated

Any public claim about emissions reduction is subject to the Fair Trading Act, which prohibits representations made without reasonable grounds at the time. Be specific, state the baseline, and hold the evidence.

Vague claims like “low emission” or “carbon neutral” without a defined and evidenced basis are exactly what is being scrutinised.

The Ministry of Transport publishes fleet, freight and emissions data under an open licence; the Ministry for the Environment publishes emissions factors under CC BY; and EECA publishes transport decarbonisation material.

Figures: Ministry of Transport statistics — emissions share for calendar year 2023, vehicle kilometres and rail tonnage for calendar year 2024, fleet data updated 11 August 2026. General information only.

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