Fleet News

How is Schneider Electric's new company car policy cutting CO2 emissions by 10%?

Mandi Nicol of Schneider Electric

Schneider Electric has launched an ultra-low emission company car policy as part of its efforts to cut CO2 emissions by 10%.

The company, which operates an employee car ownership (ECO) scheme, currently has average CO2 emissions of 133g/km.

When it launched is ECO scheme in 2010, its original CO2 cap was 160g/km, but has since lowered this to 130g/km. It introduced its ULEV policy in June.

Employee car ownership schemes are tax efficient schemes in which an employee owns their vehicle from day one, significantly reducing company car tax and national insurance contributions as a result.

Eligible employees are a monthly salary allowance to spend on a car of their choice, but receive all the maintenance and insurance benefits of a traditional company car.

The allowance is worked out individually for drivers and is based on their car grade, tax bracket and annual business mileage.

Mandi Nicol (pictured), fleet manager at Schneider, said: “We’ve got around 185 of our current order take as ULEVs.

“In order to maintain some of the savings that the ECO scheme gives us, the average driver contribution is going to be less as the BIK falls, so we have had to reduce the allowances which seems bizarre as an EV of PHEV costs more than an ICE vehicle.

“What we’ve tried to do is that if we compare a driver between a ULEV and a traditional ICE vehicle is to ensure they would be no worse off, and they should be better off in terms of what they are paying out.”

As part of its environmental commitment, Schneider is also increasing the number of charging points at its main UK sites.

Nicol said Schneider, which has a car fleet of 1,300, is also seeing a big shift to petrol among its user-choosers, with BMW, Audi, and Kia among the most popular brands.

The company also has a target to cut business mileage by 10% this year, and is currently 5% ahead of that ambition.

> Nicol was speaking at the September meeting of the Fleet200 Executive Club. 

Join the Fleet200 Executive Club

The Fleet200 Executive Club is a group of the most influential fleets operating in the UK.

It produces research on key fleet trends and holds events which bring together the UK’s most professional fleet decision makers to debate the issues of importance to their businesses, share ideas on new initiatives and industry developments, and hear from outstanding, thought-provoking speakers.

More on the Fleet200.

The final meeting date in 2019 is:

Tuesday, November 19, Hilton St Anne's, Wokingham RG40 1ST

If you're a fleet decision maker interested in joining the club and attending the final meeting of this year and our meetings in 2020, email emma.bunce@bauermedia.co.uk. Membership is free.


Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment


No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee