NZ Post started its decarbonisation journey in 2017, with the recognition that climate change and the need to decarbonise were becoming high profile issues for business, government and general society.

It was also noted that our customers need help to achieve their low carbon goals which includes managing emissions from their distribution networks.

Own internal fleet:

• 74% reduction in tCO2e for internal fleet from FY23
• TCO cost savings on forklifts and motorbikes with second generation car and van fleet cost savings projected
• Customer value pillar for attracting carbon-reducing customers
• Maintaining brand and reputation position on being viewed as a sustainable business

Contractor fleet — Last mile:

• Customer and consumer visibility of decarbonisation action being taken
• Commitment to 2032 low-emission delivery service supports EV LCV market development
• With further penetration, customer offering of reduced scope 3 emissions and VFR costs
• Positive contractor relationship impact in supporting them to transition to a more sustainable business

Contractor fleet — heavy freight:

• Demonstrating proof of concept
• Winning over contractors with LEV technology
• Deepening understanding of the true costs and complexities of transitioning to LEV

Own internal fleet:

• Cost of investment: demonstrated TCO benefits
• Resource constraints: ensured active governance oversight to maintain prioritisation of transition
• Charging infrastructure: installed a network of EV chargers across sites and at employees' homes

Contractor fleet — last mile:

• Contractor fleet model: conducted robust consultation with contractors; provided enough time/notice for business owners to plan their transition
• Suitable vehicle technology: provided expert advice to identify where technology could work; engaging with OEMs to advocate for vehicle specs; worked with an appropriate timeline
• Cost disparity: provided EV incentives
• Charging infrastructure: provided financial support for a home charger; engaging with charger providers for solutions where home charging isn't viable
• Uncertain RV: provided EV incentive for early transitions; used conservative RV in TCO modelling
• Lack of EV knowledge/experience: ran multiple demo programmes; provided expert advice through one-on-one enquiries; developed internal market insights report

Contractor fleet — heavy freight:

• Contractor fleet model: leased LEV and sub-leased to contractor
• Cost of investment: utilised external funding support initiatives
• Charging infrastructure: installed charging infrastructure at sites

Own internal fleet:

• Demonstrating the cost savings associated with decarbonisation

Contractor fleet — last mile:

• Industry-leading commitment to low-emission delivery by 2032
• Robust consultation with contractor network to ensure their voices are centred
• Level and types of support provided to contractors to help them on their journey

Contractor fleet — heavy freight:

• Excellent collaboration across stakeholders internal and external
• Taking a chunk of linehaul emissions out of our network

1. Develop a view of your full barrier profile, and how this is projected to change over time. Investing in initiatives without understanding the full picture can lead to reduced impact.
2. You will get better results if you take a supportive/collaborative approach to transitioning, rather than a purely mandate approach.
3. Plan to invest a high amount of support in early transitions — the success of these early wins is worth its weight in gold in proving the concept and seeding interest and good will in your network.
4. Get expert advice from specialists — it can take you a long way in understanding your strategic options in a short amount of time.

Own internal fleet:

• Capex investment in constrained commercial environment

Contractor fleet — last mile:

• Insufficient public and commercial charging infrastructure
• Vehicle tech still developing for longer distances

Contractor fleet — heavy freight:

• Insufficient commercial charging/refuelling infrastructure
• Significant TCO disparity
• Vehicle tech still developing

• More collaboration between transport and infrastructure
• More funding to support heavy freight charging/refuelling infrastructure development
• LEV market development guidance for business to inform their roadmap planning