Graham Pendlebury, Department for Transport

Following the launch of a new database listing the CO2 emissions of all new vans sold in Britain, Graham Pendlebury, the
Department for Transport’s (DfT) director of environment and international, warned van fleet managers to be prepared for “possible CO2 targets”.

“The EU is already working towards this,” he told the Fleet News Green Summit. “This is a policy that we support. We will see proposals in the coming months.”

From 2017, he warned that it will “get more challenging” to cut transport CO2 emissions. As a result, expect “key measures” to be introduced that are technological and regulatory.

These will include “new car and van standards” and other “complementary measures”.

What this means is that as the Government pushes to deliver on its low-carbon economy promise, the make-up of company fleets will have to change dramatically.

The Government’s target of an 80% reduction in CO2 emissions from transport within just over four decades will not only change the make-up of fleets, but also the way they operate.

And it is highly unlikely that a change of Government will mean a change of policy.

“No incoming Government is going to change this,” said Pendlebury. “We will effectively decarbonise road transport by 2050. But the aim is simple – to decarbonise transport, not stop it.”

Land transport – rail, lorries, cars and vans – accounts for 21.1% of the UK’s carbon emissions. Of that, 43% is produced by cars and 8.3% by light commercial vans.

The strategy of changing current behaviour when it comes to what mode of transport people take may get more focus following the appointment of Andrew Adonis as minister for transport – there may now be more focus on promoting rail over other forms of transport.However, the goal is the same.

“2050 will be a world of electrified road and rail, biofuelled aircraft, radically different information and traffic management technologies, and new public attitudes to walking, cycling, and car-sharing,” predicted Pendlebury.

“Economic instruments” will play a vital role in reaching this carbon-free utopia, including vehicle excise duty and fuel duty.

“Big cultural shifts will be needed,” he said. “But an 80% cut in road transport CO2 is feasible by 2050.” 

Gary Hull, PricewaterhouseCoopers

There has never been a better time for fleets to exploit the environmental agenda to save money, claims Gary Hull, director of employment solutions at PricewaterhouseCoopers.

Whether it’s providing more environmentally-friendly cars to cut fuel costs or National Insurance Contributions liability, understanding the financial opportunities available is vital to guaranteeing management support, Hull told delegates at the Fleet News Green Summit.

“The UK has probably led the field in terms of Europe at implementing significant changes to the tax system to support lower CO2 emission cars, initially around drivers and more recently around corporate tax,” explained Hull.

“Clearly, this is part of supporting the corporate and social responsibility agenda by encouraging businesses to supply lower CO2 emission cars for employees to drive.”

The changes to corporate tax relief, which came in from April 1, mean employers are taxed on the CO2 emissions of their cars.

“The changes that the Government has introduced do encourage employers to provide lower CO2 emission cars, particularly less than 160g/km,” added Hull.

“Employers should be looking at the post-tax implications of the cost of their fleet taking into account all these significant corporate tax changes.”

Meanwhile, Hull was scathing of those organisations which continued to provide free fuel to employees.

“It never ceases to amaze me how many employers still provide private fuel,” said Hull. “It is the most cost-ineffective benefit I am aware of.”

He added that unless an employee was driving a significant number of private miles, the employer should buy out the individual from that benefit and realise potential savings of £800 per car per annum.

“Overall, my message is continue to lower the level of CO2 on company cars; review the choice of cars available; focus employees towards lower CO2 emission cars; extend the availability of cars to a wider population – at least for the grey fleet driver and potentially to all employees; and look at as part of an overall green transport plan,” concluded Hull.

Edmund King, AA

The AA is embracing the environmental agenda and suggests fleets can reap the potential rewards.

Running a fleet of 4,500 vehicles, the AA has also taken on mountain bikes and electric scooters, as well as instigating an eco driving scheme called Drive Smart.

However, Edmund King, president of the AA, told the Fleet News Green Summit, an environmental approach was a ‘no-brainer’.

“Global warming is the biggest challenge we actually face and even if the cynical people don’t buy the green argument, they should care about cost,” explained King.

“Whatever the reason we do it for, there are enormous advantages for business.”

Eco driving was “essential for fleets”, said King. By making some simple changes to the way an employee drives, fuel consumption can be improved by around 15%, says the Energy Saving Trust.

King added: “We are talking big money on small percentages and will be talking even more when the price of fuel goes up.”

The AA’s Drive Smart scheme is aimed at new drivers and is focused on improving driver safety, as well as helping them to become more fuel-efficient.

But, King said fleets also needed to start thinking differently about how they operate their business.

“Do we need to drive all the time? Are our journeys absolutely necessary? It’s something that has to be managed,” he said.

David Watts, Energy Saving Trust

Fleet managers and their drivers need to put into practice just two basic principles to green their fleet.

To some it seems that greening a fleet is a daunting task, but it is not rocket science, according to David Watts, an Energy Saving Trust (EST) fleet consultant.

“You need to aim to reduce your mileage and, when you do travel, to improve the efficiency of your mileage,” he said.

“Do that and you will reduce the amount of fuel used.”

This approach can produce dramatic results in terms of cost savings in lower fuel bills and a reduced environmental impact.

There is a host of information sources aimed at helping fleets and their drivers to cut emissions – and, therefore, fuel use.

Advice and information on new low-emission vehicle technology is abundant, said Watts. Carmakers, the Government through its Act on CO2 campaign, the EST and media outlets such as Fleet News are all valuable sources on how to reduce fleet CO2 emissions.

For drivers who need training in eco techniques, there is a choice of private companies as well as semi-state bodies such as the EST and SAFED who will train drivers at subsidised rates.

Typically expect between a 10 and 20% instant improvement in fuel consumption.

For fleets of more than 50 vehicles, the EST will carry out a green fleet audit to help managers cut emissions. For those below that benchmark, there is a free telephone advice line.