There is little more daunting than staring at a blank sheet of paper which you have to fill with words. Any fleet manager trying to create a policy will know the feeling, especially when it comes to environmental initiatives.

In addition to the challenges of ensuring decisions don’t damage the company’s finances or harm its ability to do business, there is an added political dimension.
Senior managers will need persuading that they should support any schemes, directors will need to understand the financial benefits to the business and drivers will need to feel they have been involved in making the right decision.

Behind all the hard work are some very basic questions. What does a green fleet policy look like? How tough should it be and what underlying principles should it use – saving money, improving productivity, saving the planet, or something else?
According to the Energy Saving Trust, a few relatively simple themes can be fleshed out to create a policy that is unique to an individual business.

 

Low emissions commitment

For example, a simple commitment to promoting low polluting cars isn’t particularly restrictive, as it could be interpreted as anything from running Smart cars to the managing director downsizing from a limousine into an executive express.

But once this basic principle has been defined, you can then drill down to what the business wants and needs.
In most cases, everyone will support initiatives that aim to reduce cost for employers and employees. For company vehicles, this means reducing CO2 emissions, which can immediately reduce taxation and fuel bills.

But how far should you go when reducing CO2 emissions? Since changes to the capital allowance regime, many fleets have introduced a cap of 160g/km on most of their fleet. This benchmark maximises the capital allowances available for vehicles. 

For the same reason – and also to combat rising fuel costs – many have also opted for diesels.

Marie Jarrold, fleet manager at BCA, introduced an efficiency drive this year which capped cars at 160g/km of CO2 and set a minimum combined fuel consumption of 40mpg.

Carbon savings

Lowering the average emissions on its 340-vehicle fleet by 10% a year over the next four years will save BCA up to £39,000 on road fund licences, depending on vehicle choice. It will also shave £18,000 off the annual fuel bill.

Setting a 40mpg limit will lop another £20,000-£36,000 off its fuel bill every year. Its average fleet efficiency has already risen from 44mpg to 46mpg on purchases made since January.
As BCA’s experience has shown, emissions limits are just the start of a process to drive down emissions.

Some employers provide cash incentives to encourage employees to choose the cleanest models, although the tax benefits of choosing a low emission vehicle alone could be enough to sway their decision.

To maximise efficiency savings, the type of vehicles run by the fleet will need to be examined. Diesels are currently the low-emission standard for most fleets, but a growing number are considering alternative fuels.

Alternative fuels can mean anything from gas-powered cars to hybrids. Each choice depends on the type of vehicle and the job it needs to do, but for most fleet operators, hybrids are likely to be a first option.

Choice is limited at the moment to a handful of models from Toyota, Lexus and Honda but other mainstream manufacturers will be launching hybrid products in the next few years, including diesel hybrids capable of more than 100mpg.

Last year, British Airways ordered more than 100 hybrid vehicles in an effort to reduce CO2 emissions from its car fleet by a third. The deal for 100 Honda Civic hybrids is expected to reduce emissions per car from three to two tonnes of CO2 per year.

But even without changing vehicles or fuels, a business can make itself more efficient with a fleet policy that ensures vehicles are used efficiently.

A policy could simply state that all drivers will undergo training to improve their understanding of green driving techniques.
Fuel economy improvements could hit 15%. 

Alternatively, a more direct approach might be needed, stating that journeys over a certain distance have to be taken via public transport or using a zero emission alternative, such as video conferencing.

Tele conferencing, online webinar software and video conferences can be used instead of attending a meeting that is a substantial distance away, saving on travel time and fuel costs. 

At Britain’s biggest leasing company, Lex Autolease, a video conferencing initiative across the business saved an estimated £150,000 per year in fuel, lost time and expense claims.

When company car drivers do take to the road, there is the thorny issue of mileage reimbursement. 

Companies have to implement sensible reimbursement policies and avoid rates that encourage people to drive more miles. 

One key area where companies might have great success is in tackling the grey fleet – the army of drivers who cover business miles in a private car.

Mileage reduction policies

The same mileage reduction policy rules that apply to company car drivers could also be used here.

Last year, the Department for Work and Pensions (DWP) revealed it had achieved a significant financial and environmental impact by tackling grey fleet.

In 2006/07, it travelled almost 70 million business miles, including mileage in official vehicles, lease, hire and private vehicles used for business journeys. 

Of this total, 45 million business miles were covered annually in employee-owned vehicles.

The DWP created a new travel policy, with a clear journey planning hierarchy that prioritised transport methods.
Audio or video conferencing came first, followed by walking or cycling, public transport (excluding flying), official pool or lease car, hire car and finally own car.

Furthermore, a total daily limit for journeys in grey fleet vehicles was set at 100 miles, and an annual limit at 1,000 miles, to emphasise the expectation that employee-owned vehicles should be used as a last resort and for short journeys only.

DWP achieved a 20% reduction in grey fleet mileage last year, cutting nine million miles from its mileage, with just half a million transferred to hire cars. The rest was simply not driven. The environmental impact was a CO2 reduction of 3,000 tonnes on 2001/02 levels.

As these examples show, a green fleet policy doesn’t need ambitious aims – even relatively small steps can have a big impact in the long term.

Stating the aims of any initiative clearly and creating a clear, understandable green fleet policy is the first part of a journey that can reduce emissions and costs for any business.

Green policy ideas

Promote low polluters
Encourage the use of vehicles with low CO2 emissions and reduce employee BIK tax costs.

Evaluate alternative fuels.
They’re better for the environment.

Make maintenance of vehicles according to manufacturers’
specifications a key policy issue
Poorly-maintained vehicles use more fuel and emit more CO2.

Analyse mileage patterns 
Analysis enables better travel management by identifying opportunities to reduce mileage.

Analyse fuel consumption
To identify those employees who are driving efficiently and those less so.

Consider driver training 
To promote more economical and safer driving.

Implement sensible reimbursement policies
Avoid rates that encourage people to drive more miles.

Advise on journey planning 
Internet sites have street maps and route planners and you could suggest (or provide) alternatives to using the car.

Consider satellite navigation
It can help avoid congestion and optimise routes.

Make use of teleconferencing or video-conferencing
These, and other ways of remote working, encourage fewer trips.