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Gearing up for green fleets

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Consider switching to diesel

Everyone has good intentions when it comes to being more environmentally friendly, and cars are an obvious target for reducing pollution. But Louise Druce asks whether the solutions out there for greener fleets are as down to earth as they sound.


The car has become the eco-warrior’s nemesis, blamed for clogging our roads and spewing tons of noxious gases into the atmosphere every year, but showing no signs of being abandoned altogether.

Many alternatives have been touted for the company car but have hardly proved an all-encompassing practical solution, so could the metal monster’s reputation be saved with a little fine-tuning instead?

Why should you think green?

  • Reduced carbon footprint
  • Reduced costs
  • Lead by example
  • Safety of partners and staff
  • Reduced mileage
  • Greater efficiency
  • Reduced tax costs
  • First of all, we need to put its role in harming the environment into perspective. According to Roddy Graham, chairman of the Institute of Car Fleet Management, road transport accounts for around 20 per cent of CO2 emissions, with cars responsible for 11 per cent of this. In contrast, energy production accounts for over 35 per cent, with domestic use accountable for 15 per cent.

    That’s not to point the finger elsewhere and ignore the fact cars have been helping to turn the dial up on global warming, but further figures from the Society of Motor Manufacturers and Traders show that the average new car emissions have reduced by 12 per cent since 1997 (despite vehicles being heavier due to safety equipment and air conditioning etc), and manufacturers are embracing more fuel-efficient technologies.

    The problem for most companies with an older car fleet, however, is that they may not have the funds to restock with brand new hybrids. Or if the choice is up to the employee, will they really want to give up the luxury Porsche for a more fuel-efficient run-around?

    Graham says they may not have to. There are other smaller initiatives that can help tackle the heftier problem of global warming. “I have a high-performance sports car,” he admits, “but it’s 20 months-old and I have done 9000 miles in total. Five years ago, I probably would have done 29,000 miles.”

    Instead, he supplements some time in his pride and joy to drive his son’s 1-litre Toyota Yaris, takes the train a lot more than he used to, and travels with other people if he does have to attend long-distance meetings.

    Graham’s argument is that if you restrict peoples’ choice of car, you could be pushing them into the ‘grey fleet’, where they take the cash allowance and do their own thing anyway.

    “If they can’t do something, they’ll find their way around it, which exacerbates the problem as you will have no control over what they do,” he adds. Instead, he advocates simple measures such as reducing mileage. If you cut the Porsche’s annual clock up from 20,000 to 15,000 miles, not only does it save money on fuel but reduces the carbon footprint by 25 per cent.

    Companies might also want to consider switching from petrol to cleaner diesel engines, which also offers more choice by way of higher performance makes and models.

    Combined power

    Steps to manage fuel usage:

  • Fuel cards – make analysing fuel usage and setting targets easier because of the data that can be extracted.
  • Mileage recording – knowing how many miles your fleet are undertaking can help reduce environmental impact.
  • Changing driver behaviour – closer monitoring of fuel and business mileage will lead drivers to be more open and honest.
  • Hybrid vehicles have taken off to some extent, backed by perks in London such as discounted parking, no congestion charge and reduced vehicle excise duty. Manufacturers are also branching out into executive hybrid cars that are attractive for CEOs who want luxury but also want to be seen to be doing the right thing when it comes to green issues.

    However, hybrids are still very much in the niche market, especially for non-city dwellers. “You need to look at the circumstances and your location to see if they work,” says Mark Chessman, deputy manager of fleet management company Lloyds TSB Autolease.

    “Buying hybrids, LPG or biofuel vehicles may be influenced by whether the company has central facilities where drivers can come back to refuel the vehicles themselves. That gives them greater choice than if they have cars all over the country. For example, an energy company might want to choose electric cars that they can keep on site. It depends on the nature of the fleet and what it’s used for.”

    Graham agrees it is “horses for courses”. He adds: “Hybrids are catching on. The difficult point from a manufacturer’s point of view is the astronomical costs of research and development. It is pretty much accepted that the fuel of the future for cars is hydrogen and a lot of the manufacturers have got pretty advanced technology. The problem is, the government hasn’t got any ideas on the infrastructure and how you’re going to refuel hydrogen, or even whether to use liquid or frozen hydrogen.”

    BP’s only hydrogen station in Hornchurch was demolished last year, although the company argued it was only supposed to be temporary. Graham also points out the health and safety issues. “Joe Bloggs sticking hydrogen tubes into cars is quite dangerous!” he says.

    Chessman is adamant that green issues are not “faddy”, though, and schemes are constantly gaining momentum. As well as looking at mileage, he recommends companies monitor fuel consumption through fuel cards and make sure vehicles are properly maintained – for example, under-inflated tyres can increase fuel consumption by 15 per cent.

    Firms should also set a base line for their carbon footprint and look to improve this over time, as well as educating staff on the benefits of being greener and looking at whether any allowances for older gas guzzlers in the fleet should be adjusted to take this into account.

    The car, either as a business tool or a perk in UK plc, is here to stay whether we like it or not,” says Graham. “It’s not about people not having cars; it’s about fine tuning their behaviour in how they use their cars and really changing their lifestyles.

    “To solve big problems you have to start chipping away at smaller solutions. There is no sweeping change. Don’t use a sledgehammer to crack a nut!”


    Case study: Whitbread accelerates green policies

    Leisure giant Whitbread reduced its fleet of nearly 3,000 vehicles in 1999 to around 950 vehicles – 900 cars and 50 light commercial (mostly minibuses) – by 2004.

    The company believes it made cost savings of around £200,000 by adopting more greener fleet practices, including influencing drivers to choose more environmentally-friendly cars; taking control of mileage reimbursement rates and managing them in tandem with the fuel efficiency of the fleet to reduce costs and influence driver behaviour; publicising the work it was doing among drivers; and embarking on a process to move around 500 managers and staff to field-based working to reduce mileage.

    As well as significant cost savings, Whitbread believes its fleet produced 1,600 tonnes of CO2 less than it would have done if the fleet had been the same size in 1999. Its top tips include: collecting data on fuel use and mileage to ascertain accurate baseline figures; monitoring this data and identifying poor performing vehicles and drivers; using incentives/disincentives to influence vehicle choice; and investigating alternatives to business travel, such as video conferencing and car sharing.

    Source: Energy Saving Trust


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