More and more businesses are turning to green strategies to help reduce their carbon emissions and meet the long-term plans of their organisations. From adopting electric and plug-in hybrid vehicles to utilising data to reduce overall costs, there’s plenty for you to tackle.
In this article, we wanted to explore some of the strategies that fleet managers and company owners can use to reduce costs, improve environmental reputation and minimise the impact on the world around them.
Research vehicle choice
Sourcing the most fuel-efficient, cost-effective vehicle for your fleet is an essential step in implementing a green fleet strategy. More companies than ever before are focusing on reducing their carbon emissions, and with the Worldwide Harmonised Light Vehicle Test (WLTP) still impacting delivery schedules, it’s crucial to research available options before investing in new vehicles.
For example, choosing a vehicle that is more efficient not only saves on fuel consumption, but also on Vehicle Excise Duty (VED), National Insurance contributions, corporation tax and Benefit-in-Kind (BiK) tax.
Implement a grey fleet policy
Many organisations will have a number of employees that use their own vehicles for both personal and business use. However, having a grey fleet means that you are not always aware of their maintenance schedule, insurance terms and fuel economy.
Another way to implement a green fleet strategy is to work alongside other departments to draw up a comprehensive guide that outlines rules, regulations, criteria and sustainability requirements.
Once complete, this policy can be rolled out to the company as a whole, and incorporated into ‘new starter’ packs. Not only does this help adhere to your Duty of Care requirements, but also helps to accurately record grey fleet data and create a consistent standard across the business.
Manage the overall mileage
There’s plenty to consider when it comes to managing the overall mileage of your fleet. For example:
- Are all drivers taking advantage of their full mileage allowance?
- Does the company accurately record personal mileage vs business mileage?
- Are some vehicles taking longer routes than necessary?
These are the types of things that fleet managers and business owners need to consider when looking to improve their mileage management strategies.
For example, if a small portion of the fleet are utilising the full mileage allowance and the rest are considerably under, then it would be worth considering reducing the total allowance for the business. This helps reduce fuel costs and saves on fuel reimbursements, if this is something the company offers.
Utilise vehicle telematics
To efficiently implement a green fleet strategy, it’s crucial to understand how vehicles are being used, and where improvements could be made. A simple way of doing this is to utilise vehicle telematics or fleet management software.
Not only do these solutions give you insights and information on your fleet, but they also:
- Provide vehicle mileage and roadworthiness checks for leased fleet and grey fleet, so fleet managers can be aware of vehicle mileage records aiding service requirements and duty of care.
- Provide insurance and end of contract alerts so your business can reduce the cost of premiums and additional charges
- Analyse driver behaviour, which can help you implement additional training for those that need it
- Monitor routes to help fleet managers and drivers analyse how to make journeys more effective
- Compile fleet reports so you can shape the future of your overall fleet policy
Go completely “green”
If a business wants to fully overhaul its fleet strategy, then it’s time to consider going completely “green”. Electric vehicles (EVs) and Plug-in Hybrid Electric Vehicles (PHEVs) are a popular choice for businesses looking to improve their environmental reputation and potentially reduce their fleet costs.
With grants available to help cover the installation and implementation of workplace charging, adding EVs into a fleet is one of the best ways to implement a green fleet strategy. This is especially true when it comes to leasing the vehicles. Although recent Government changes mean EV’s are far more favourable than PHEV’s in terms of Grants available.
By leasing an EV or PHEV, your business will benefit from:
- A fixed, monthly payment to help monitor and maintain cash flow
- Savings made from lower initial investments
- Reduced fuel costs
- Maintenance and servicing included in one fixed, monthly payment
- Not having to worry about depreciation values
- The option to upgrade vehicles at the end of the lease
- A dedicated consultant for the duration of the lease
Further reading
- Everything you need to know about electric vans
- How you could benefit from leasing an electric vehicle
- How your business could benefit from a greener fleet
In summary, implementing a green fleet strategy takes careful planning, as well as an understanding of the data on existing fleet vehicles. Some vehicles may need to be replaced to improve fuel efficiency and reduce operational costs, but there is always help available.
If you would like any more information on the points raised in this article, or would like to understand how green vehicle leasing could benefit your business, then get in touch with a member of our team today.
They have decades of combined experience advising and guiding businesses on the most cost-effective vehicles, so call today on 01844 852252 or email us here.
