Back in May at Truck Show X hosted by HVIA, Scott Donnelly from TR Group and I presented on the forces shaping decarbonisation in fleets and manufacturing. We were joined by numerous industry leaders from Australia and NZ.
For those who couldn’t attend, we covered:
- Old ways vs new
- What is driving change?
- ESG (incl Carbon)
- Carbon measurement in supply chains
- Quality + Security of supply
Old ways no longer work
Simply disposing of product end of life is old school. Regardless of where you sit on climate change, end-of-life disposal is a practical problem. Landfill or incineration are the default outcomes for a mudguard that isn’t designed for reuse.
What’s driving change
Change is driven by three things – consumers, law/regulations and reporting.
In both NZ and AU, most our exports go to countries mandatory climate disclosures proposed or in force:
- Australia – mandatory climate disclosure laws took effect on 1 January 2025, requiring large and medium-sized businesses to report on climate-related risks, opportunities, and greenhouse gas emissions under the Australian Accounting Standards Board (AASB) S2 standards, alongside the Australian Sustainability Reporting Standards (ASRS).
- New Zealand – large financial market participants, known as Climate Reporting Entities (CREs), must publish annual climate statements under the climate-related disclosures regime overseen by the External Reporting Board.
- European Union – Regulation 2024/1610 requires a 7.5-10% CO2 reduction for trailers and semi-trailers.
ESG and consumer demand
Investors are driven by this thing called ESG – Environmental, Social, and Governance criteria used to assess company performance beyond financial results.
Kantar consumer research across multiple measures shows customers value sustainability, poor practices alienate companies and over half of people will pay more (source: Kantar).
ESG reporting is now standard practice for investors and many corporates – it’s well documented. Many companies report on it annually.
Carbon measurement in supply chains
Carbon measurement is not some out there thing. It is possible – in some cases perhaps easier than you might think. For RHINO, our freight company Mainfreight can report carbon by delivery. We took the leap ourselves and measured the carbon footprint on our PL12063 product. It took a long time but it was worth it.
Quality and security of supply
Everyone says they want quality products, but not everyone wants to pay for it. We measured the replacements on TR Group fleet – 3.2% of its mudguards each year are replaced through ordinary repairs and maintenance. Separately, 4.1% of guards are purchased specifically to refurbish a truck or trailer back to like-new condition ahead of resale, reflecting how guard condition factors into a vehicle’s resale value. That’s a long time to replace guards…
Lower quality products can have a material financial impact as they can cost thousands of dollars if you factor in failure, downtime, rework, tyre damage or early replacement. Then you add in the carbon footprint. You can have a high quality product and lower carbon footprint.
The 2026 Middle East conflict has now brought security of supply into play. Plastics come from oil. Having better control over that supply chain by utilising recycled plastic helps security of supply.
Parting challenge
- Every initiative adds up
- Who is your customer’s customer – what do they value?
- Regulations will continue to tighten – Australian, NZ and European reporting are all a starting point
- Low carbon vehicles = low carbon parts
- Whole of life cost is key + security of supply
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