News analysis: Green policies top agenda

ENVIRONMENTAL issues and health and safety remain paramount factors when developing company car policies, a new study has found.

Nearly a quarter of all fleets now have a green transport policy in place and 27% restrict car choice to diesel engines only.

Almost half of all companies (48%) now encourage employees to cycle to work and car sharing is encouraged by more than a third of companies.

The findings are produced in Company Car UK 2007, produced by PricewaterhouseCoopers’ Monks division.

The study gathered data from almost 190 companies who collectively manage more than 81,000 company cars.

It covers car availability, car allocation, flexibility, cash allowances, fuel provision, mileage allowance and taxation.

Gary Hull, director of employment solutions, said: ‘Company car policies in UK companies are continuing to evolve with many companies now taking environmental pressures and road safety into account even more so than before.

‘This will have to be recognised by providers as they need to ensure that employees have access to, and are encouraged to take up, green transport options.’

Other key findings include the fact that many companies have guidelines for work-related safety and more than 90% recognise the need to communicate with drivers on mobile phone use in cars. Also, 80% carry out driving licence checks on staff who drive on company business.

The report also found that the typical salary at which a car is provided as a standard benefit continues to rise and is now £35,000, up from £33,500 in 2006. And it notes a decrease in the number of companies providing all fuel for private use. In 70% of companies, some drivers elected not to receive fuel for private motoring.

Mr Hull added: ‘In his March 1998 budget, the chancellor said it was his intention to discourage employers from providing, and employees from accepting, free fuel.

‘The consequent increase in the taxation of the provision of fuel for private use has therefore meant that the benefit has become less desirable for many employees and so a number of companies are introducing a policy whereby the provision of fuel for private motoring is an optional benefit.’

For details of how to obtain the report, visit www.monkspwc.co.uk.

Control of fuel costs

	2007 (% companies)	2006 (% companies)



Fuel cards	54	64



Company credit cards	9	7



Company garage accounts	1	1



Reimbursement expenses



against receipted bills	21	15



Fixed pence per mile allowance	57	53



Weekly/monthly fuel allowance	4	5

Cash-for-car

	At least one employee wishing to switch	(% companies saying 'yes')



	back from allowance to company car



Company turnover	Parent	Subsidiary



Under £100m	24	56



£100m-£500m	73	41



£500m-£2,000m	60	67



Over £2,000m	72	71



Sample size	83%	89%

Vehicle replacement by job level

			(% companies)



Post	two	three	four	60,000	80,000	100,000



	years	years	years	miles	miles	miles



Chairman	4	44	48	14	32	11



Chief executive	2	43	53	14	34	21



Director	1	46	51	16	30	19



Senior manager	1	45	54	18	30	14



Middle manager	1	44	54	18	30	15



Area sales manager	2	48	49	16	35	16



Sales representative	1	52	45	16	28	15



Minimum status car	0	41	58	19	38	13



Minimum business need car	3	42	52	12	39	13

Car policy responsibility

		(% companies)



	Admin	Development	Cost



HR department	38	70	29



Fleet department	47	27	28



Finance department	13	13	34



Procurement	10	6	17



Other	9	6	9



Sample size	174	175	173

Companies and the environment

		(% companies)



	Under	£100m-	£500m-	Over	All



	£100m	£500m	£2,000m	£2,000m



Encourage walking	21	18	9	21	18



Relocation expenses	17	18	50	32	29



Flexitime	38	41	41	46	42



Promote low-emission cars	55	29	45	46	46



Promote alternative fuel cars	21	12	5	18	15



Plant trees	10	6	5	18	10



Encourage car sharing	34	59	27	46	40

Private fuel by job level

	% of companies	providing all private fuel



Post	2007	2006



Chairman	52	60



Chief executive	57	62



Director	55	59



Senior manager	41	51



Middle manager	31	36



Area sales manager	26	35



Sales representative	24	35



Minimum status car	19	23



Minimum business need car	22	25

Fuel operating costs

		Responsibility by	company	turnover %



	Under	£100m-	£500m-	More than	All%



	£100m	£500m	£2,000m	£2,000m



Full-time fleet manager	38	34	45	58	45



External fleet management organisation	9	26	42	40	28



In-house transport dept	15	8	9	21	14



Contract hire/contract purchase only	20	32	27	13	22



Another executive	42	29	18	9	25