Zenith suggests... Online greenhouse gas reporting

Zenith has created a greenhouse gas (GHG) emissions reporting tool to help our customers understand the levels of emissions produced by their fleets and to comply with the new GHG reporting regulations which came into force on 1 October 2013.

Our real time reporting through the tool shows GHG emissions across a whole fleet, by vehicle, by manufacturer and split out by greenhouse gas. Reports can be viewed online via Zenith’s Pulse 24/7 and exported to use as part of a customer’s internal reporting.

The new GHG regulations apply to all UK quoted companies which are those listed on the main market of the London Stock Exchange, a European Economic Area market or whose shares are dealing on the New York Stock Exchange or NASDAQ. GHGs are calculated from the actual fuel used where this is available. The regulations allow for GHGs to otherwise be calculated by miles travelled and vehicle type.

Is it a ‘quick win’ or in the ‘harder to do’ category?

A quick win in terms of raising awareness and reporting to comply with the new regulations – responding to it may involve changes to vehicle choice lists.

What are the potential savings (monetary and/or CO2)?

Monetary and CO2 /greenhouse gas savings will depend on what changes are implemented. Lower emissions  provide a range of benefits in terms of lower fuel costs, lower Benefit in Kind tax, lower or no road tax and lower rentals (due to capital allowances, Employer ‘s NIC, and interest rates being linked to CO2 emissions). It might be that at some point in the future greenhouse gas emissions and not just CO2 will be taken into account within the tax regime.

What are the steps to introduce it?

Greenhouse gas reporting is provided to Zenith’s customers as part of our Pulse platform free of charge.

How can any potential hurdles be overcome?

We provide advice to our customers on how to utilise the reporting and through regular consultancy assist in vehicle choice list changes and other policy adaptations.

...whole life cost analysis (WLC) and capping choice lists at 130g/km

Changes to capital allowances earlier this year, including changes to the main rate threshold and the threshold above which the lease rental restriction applies, has made leasing more expensive where CO2 emissions are above 130g/km. The 100% first year allowance has also been removed for leased vehicles that have emissions of 95g/km or less and this has impacted the cost of low emission contract hire vehicles.

Is it a ‘quick win’ or in the ‘harder to do’ category?

Fairly quick win – a leasing company will be able to assist you with carrying out a whole life cost analysis and advice on how to evolve vehicle choice lists.

What are the potential savings (monetary and/or CO2)?

Capping choice lists at 130g/km can save around £12-£14 per vehicle per month. Employees can benefit from lower BiK payments and fuel costs. 

What are the steps to introduce it?

In order to carry out WLC analysis information needs to be obtained from the customer about tax structure including corporation tax rate, VAT recovery, WACC rate, how they reimburse business miles, current fleet design and employee income tax rates. Specialist tax software can be utilised to ensure that calculations are verified. It is important to ensure that all tax changes are taken into account.

How can any potential hurdles be overcome?

Any changes to vehicle choice list need to be communicated to employees with the benefits explained. Changes to car lists need to be carefully managed to gain employee buy-in. As well as the cost benefits for drivers in the form of reduced Benefit in Kind tax and fuel, employees should be educated about the environmental benefits of selecting lower emission cars.