Alphabet suggests... plug-in hybrids

While the media is full of comment and advice on electric vehicles (EVs), remarkably few businesses have so far made the leap to plug-ins. With more investment in charging infrastructure and many more new models coming to the market, that situation is changing rapidly. In my experience, many managers are still making decisions on EV adoption based on data or market information that is now years out of date. The switch to low carbon cars could be a quick win, especially if your older, higher emission vehicles are approaching the end of their contracts.

In terms of savings, given the right fleet profile, moving to a low CO2 fleet can save significant amounts of fuel, employers' National Insurance costs and lower benefit in kind tax for the driver. And of course, EVs lower your organisation's emissions, which is good for CSR and customer relations.

The big challenge here is being able to identify whether a low emission vehicle is fit for purpose, and if so, which specific make and model is best for you. This vital lack of information for fleet managers has so far been the stumbling block for many businesses that want to go green, but don't have enough clear information on which to base a decision. We're looking to radically change that position by offering organisations an independent assessment of their EV options, looking at the business case for Plug-ins, the vehicle choice, charging solutions and even alternative travel options for staff when appropriate.

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

Often fleet managers inherit car policies that were introduced years ago, which are simply no longer relevant. The world changes and so should vehicle fleets! This is a longer term strategy that can have a big impact on your green credentials. Put simply, it requires a complete review of your car policy: what type of vehicles are offered? To whom? And for how long? More enlightened companies now adopt a whole life cost (WLC) based approach to formulating their fleet policies, as opposed to the discredited approach of looking at the price tag of the car. A robust and independent assessment of the case for EVs could help many more businesses go green overnight.

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

Potential savings for businesses can be huge in terms of both cash and carbon. Our experience shows that businesses that focus on mileage reduction schemes can easily reduce carbon emissions and costs by between 10 and 15%. Often fleet managers inherit car policies that were introduced years ago, which are simply no longer relevant. The world changes and so should vehicle fleets! This is a longer term strategy that can have a big impact on your green credentials.

Put simply, it requires a complete review of your car policy: what type of vehicles are offered? To whom? And for how long? More enlightened companies now adopt a whole life cost (WLC) based approach to formulating their fleet policies, as opposed to the discredited approach of looking at the price tag of the car. This long term, more fundamental change to fleet strategy can have big environmental implications. While there are significant potential fuel savings, National Insurance and associated costs are also reduced. WLC-based policies are also proven to deliver significant savings on carbon emissions too. One customer that recently switched to a WLC-based fleet policy saved between 15 and 20% in fleet costs and emissions, which shows how much impact this approach can have on fleet efficiencies. 

What are the steps to introduce it?

The key steps to achieving fuel reduction involve the measurement of current business mileage, how it is monitored/managed and how it can be reduced. Once these basic facts are established, a policy can be developed and the relevant tools and technology – such as telematics – can be implemented.

How can any potential hurdles be overcome?

While the technical and managerial tools are not significant hurdles to success here, culture and communications can often scupper plans. Clearly communicating the new policy to staff, and getting them to understand the benefits of the new thinking, is a key determinant to success when tackling the sometimes emotive issue of fuel. The biggest hurdle here is corporate inertia and gaining stakeholder buy-in. However if time is spent to put together a strong business case, with support from both fleet and HR departments, then meaningful change can happen.