19 OCTOBER 2022

NZ Post tackles carbon emissions with 60 new electric vans

Leading the way in business sustainability in Aotearoa, NZ Post proudly unveiled the first consignment of its 60 new all-electric Mercedes-Benz panel vans this week to add to its vehicle fleet – a $20 million initiative which will significantly reduce its carbon emissions. A line-up of 22 of the 60 new Mercedes-Benz eVito panel vans was on show on Tuesday, 18 October at NZ Post’s Auckland Operations Centre, Highbrook.

These will replace diesel and petrol vans used by NZ Post and some of its delivery partners for last mile delivery and help achieve its science-based target to reduce its emissions by a third by 2030.

The bulk purchase has enabled NZ Post to overcome supply chain challenges in accessing the electric vehicles – a move made possible through an arrangement with New Zealand Green Investment Finance (NZGIF), with each party contributing $10m.

“Transport is one of the largest sources of emissions in Aotearoa at 17 per cent – and we are playing our part to help meet our national reduction plans” says Dawn Baggaley, NZ Post’s Group Sustainability Manager. “Our ambitious carbon reduction target aims to have all our own fleet and a quarter of our last mile delivery contractor fleet electric by 2025 – with the balance of the contractor fleet electric by 2030.”

“Electric vehicles cost a lot less to run, but the initial purchasing cost can be a barrier. Teaming up with NZGIF and offering this competitive finance deal means our contractors can shift into electric vans sooner rather than later. There are over 2000 vans in our own fleet and contractor fleet for last mile that we will be transitioning over to electric to meet our science-based target.”

“We’re excited about this initiative and what it represents for a low-carbon future here in Aotearoa,” says NZGIF CEO Craig Weise.

“Not only does this deal help NZ Post electrify their fleet, it will also help kickstart the second-hand commercial EV market, as these vans are on-sold to subsequent owners. This sort of innovative financing is needed to help accelerate investment that supports New Zealand’s decarbonisation.”

Managing Director of Mercedes-Benz Vans Australia and New Zealand, Diane Tarr, said, “This is a very exciting step towards a more sustainable future for Mercedes-Benz Vans and our important partner NZ Post. We are now ready with a strong customer-centric electric product portfolio and can’t wait to see the eVito come to life on the road through NZ Post and their delivery partners.”

Electric vehicle future

NZ Post received a shipment of 22 new all-electric Mercedes-Benz eVito panel vans at the end of July 2022. It was the first delivery of 60 such vehicles on order, with the remainder due to arrive by the end of 2022.

At the time of order, it was the largest single overseas order of electric Mercedes-Benz Vans by a commercial operator. The vans will be made available for NZ Post’s delivery partners to acquire, with the inclusion of an NZ Post incentive.NZ Post, with NZGIF, have structured an innovative deal that offers to NZ Post’s contract delivery partners competitive financing and pricing benefits from a tiered leasing model. Alongside this, delivery partners have access to expert independent advice through Carbn Asset Management (also an NZGIF majority-owned entity) on the best option for their individual needs.

“It’s a milestone to celebrate at a time when climate change is impacting our communities.” says Baggaley. “It’s a matter of urgency that we do everything we can to reduce emissions, and we are also seeking to assist our delivery partners shifting to low carbon delivery.”

“Sustainability is embedded in our culture at NZ Post, and this is just another way we’re showing we are committed to our people, our communities and delivering for our planet.”

NZ Post has one of the largest EV delivery fleets in the country, including more than 400 Paxters - the award-winning electric delivery vehicles used by its posties. The company also launched the first hydrogen truck for commercial use in New Zealand in July. The Hyundai XCIENT FCEV (Fuel Cell Electric Vehicle) will save 170 tonnes of C02 per year from being emitted into our environment, displacing approximately 100 passenger cars.

Find out more about NZ Post’s sustainability goals and successes.

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