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Home > Feature Articles > Logistics and Vehicle Fleet Management

How Green are the Savings for a Company Car Fleet?

Fleet management can save up to 15% on fuel bills, plus savings on maintenance costs and employee safety.

Find green business solutions
"GREEN FLEET MANAGEMENT & COMPANY TRANSPORTATION" seminar/expo is available to Los Angeles businesses JULY 31, 2007. We help you connect with solutions to
  • Green transportation options
  • Reduce your fleet costs
  • Cut your vehicle emissions
  • Improve your social and environmental reputation
Fleet management covers a wide range of topics, including:
  • Vehicle choice
  • Fuel economy
  • Methods of reimbursement
  • Driver education
  • Mileage reduction
  • Health and safety
  • Low carbon fuels

    REGISTER HERE

Green fleet management is in the news around the world. Prevailing perceptions are that environmentally friendly fleet management practices will cost the company more money than it saves. The reality, however is the opposite.

Company car fleets are frequently the second largest overhead a company incurs. When it comes to company car fleets, the business case is the environmental case. Yet we frequently find that fleets are not being discussed at the right level in companies. Very few organizations discuss their company car fleet as a boardroom agenda item.

Research from the Energy Saving Trust reveals that implementing green fleet management strategies could save UK businesses 2.6 billion pounds a year at no additional cost.

The Energy Saving Trust's "Behind the Wheel" report examines business leaders' attitudes to their company car fleets and their impact on the environment. The report reveals a worrying lack of interest from many companies over their vehicles' impact on the environment and their bottom line.

  • Running a green fleet can impact greatly on an organization's carbon footprint and contribute towards greater awareness among staff and customers of a company's commitment to reducing its impact on the environment.

    For a fleet of 100 vehicles the Energy Saving Trust has calculated that the average company will save £90,000 per year by implementing green fleet management policies.

    In addition, Energy Saving Trust research shows that consumers are becoming more insistent on a company demonstrating its environmental credentials.

  • Over half (58%) of consumers say they still want to see more evidence of what companies are doing about climate change. Yet, in the Behind the Wheel report, fewer than half of the companies surveyed (48%) have CSR or environmental policy and of those only 42 per cent of companies take into consideration the impact of their vehicles on the environment in these policies.

    Other key findings in the report show:

  • Only half of UK businesses believe that running a greener fleet will save them money.
  • Only a quarter of companies offer incentives to employees to choose a lower CO2 car. Meaning that the majority of UK businesses promote the choice of cars with higher running costs that also increase the companies' carbon footprint.
  • A fifth of companies (21%) still insist that eligible employees drive a car commensurate with their grade, meaning the higher the earner, the higher the CO2 emissions - despite the range of low CO2 executive cars now available.
  • Just eleven per cent of UK companies that offer company cars have reviewed their fleets' carbon footprint.
An impartial "Green Fleet Review" service has been used for both onsite and a free in depth telephone consultancy.

The green fleet review service enables companies and organisations to comprehensively assess the environmental impact of their fleets and save up to 15 per cent on their fuel bills each year.

Fleet management can help improve your business by:

  • Reducing your fleet costs
  • Cutting your vehicle emissions
  • Improving your social and environmental reputation
Fleet management covers a wide range of topics, including:
  • Vehicle choice
  • Fuel economy
  • Methods of reimbursement
  • Driver education
  • Mileage reduction
  • Health and safety
  • Low carbon fuels
Further information on the green fleet review service and Motorvate can be found on the Energy Saving Trust's website, visit www.energysavingtrust.org.uk/fleet

For further information:

The "Behind the Wheel" report is available to download from: Energy Savings Trust "Behind the Wheel" Research Report. Continental research interviewed a representative sample of 231 companies between November 2006 and February 2007, with a turnover ranging from GBP1m to GBP20m.

The Energy Saving Trust is an independent, non-profit making organisation and acts as a bridge between government, consumers, trade, businesses, local authorities and the energy market. It provides impartial information and advice and has a network of advice centres in the UK specifically designed to help consumers take action to save energy.



Edited by Carolyn Allen, owner/editor of California Green Solutions
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