European Fleet Managers: Focus on Sustainability Drives Rapid Adoption of Electric Vehicles
DBRS Morningstar has released a commentary “European Fleet Managers: Focus on Sustainability Drives Rapid Adoption of Electric Vehicles”, which discusses the large European fleet managers' efforts to reduce the environmental impact of their vehicle fleets and the potential impact on their credit profile from such actions.Key highlights include:
- European fleet managers are undergoing a rapid change in their fleet mix in favor of low emission vehicles.
- The evolution of the fleets reduces exposure to transitional risks related to the residual value of diesel vehicles. However, a rapid adoption of EVs presents other challenges in managing residual value risk.
- European fleet managers have funded their growing investment in EVs through green bond issuances, accessing new ESG investor pools and diversifying their funding.
“We see the European commercial fleet managers' sound ability to navigate changing regulatory environment, evident in the rapid roll-out of the low-emission vehicles offering, as proof of their good asset management capabilities and a positive for their credit profiles. However, the rapid adoption of electric vehicles presents other challenges from the point of view of managing residual value risk”, said Tomasz Walkowicz, Vice President in DBRS Morningstar’s European FIG team.
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