Going Green Won't Cost The Earth
Social and environmental issues have been big news for fleets in recent years. The government's commitment to reduce CO2 emissions under the Kyoto Protocol has lead to changes in taxation, with the aim of encouraging fleets to operate greener vehicles. Efforts to reduce road traffic have led to congestion charging in London and the increasing likelihood of national road pricing. The threat of corporate manslaughter legislation has forced companies to think more carefully about the safety of their employees and the public at large. Moreover, with Corporate Social Responsibility - or CSR - becoming an ever hotter topic at board level, the need for companies to take voluntary measures that exceed the minimum legislative requirements is growing.
Given this background, what can fleet operators do? In the case of the environment, fleet operators can actually use this as an agent for cost reduction. By using CO2 emissions as a basis for determining car policy and choice lists, drivers can be encouraged to choose vehicles with lower emissions. This can reduce their tax liability, thus enhancing the overall value of the company car benefit.
Importantly, this doesn't mean that drivers will be necessarily forced into smaller or unsuitable vehicles. Vehicle technology is rapidly improving and engines such as the Mercedes-Benz CGI and the VW/Audi FSI allow a leaner air-fuel mix which reduces fuel consumption significantly. The smoother performance of modern diesel engines, combined with the development of particulate filters that minimise local pollutants, means that well chosen diesel vehicles can also represent a good green choice.
Of course, getting the right advice when determining policy and choosing vehicles is critical, especially as in many cases there are further measures that can be taken. For instance, with a number of clients VELO has implemented the use of whole life costs to determine driver allowances, rather than using a monthly rental figure. In doing so, elements such as fuel consumption are included, providing further incentive for drivers to choose greener vehicles, delivering savings to themselves and their employers.
Perhaps the most contentious issue for fleets is that of reducing overall car usage. The government's vision of a seamless integrated transport system is some way off and public transport is still not a viable option for many businesses. However, simple behavioural changes can make a difference. How many times do we see two or three employees travel to the same meeting in separate cars? Travelling in one car would reduce company fuel costs and possibly road tolls. In practice, companies could even go as far as influencing drivers to adopt this behaviour through changes to business expense policies.
When it comes to commercial vehicles, if businesses do not need to use the roads during peak hours, savings in time, fuel and congestion charges can be made by changing delivery times or shift patterns. This will require some planning, but could perhaps bring additional benefits by combining multiple deliveries and collections.
It is also important to consider business travel for employees who are ineligible for a company vehicle or have opted out. Using a fuel efficient, environmentally friendly pool or hire car can be a better option than using their own vehicle. Moreover, when it comes to managing driver safety and corporate liability, use of such vehicles will ensure that the driver is using a well maintained vehicle that is adequately insured for business use.
Another way to deliver environmental and safety benefits is by examining driver habits and educating employees. Even something as simple as turning off the air conditioning on cooler days can reduce fuel usage by 20%. Travelling at speed can be very expensive with fuel consumption increasing by 25% between 50mph and 70mph. By taming aggressive driving habits, fleets will usually see a reduction in emissions, improved fuel economy and lower accident rates. In fact, working with our partner Drive Diagnostics, VELO has recently helped one client reduce costs by 25% through a programme of driver assessment and education.
Finally, the importance of excellent fleet management and vehicle maintenance should not be forgotten. Well maintained and regularly serviced vehicles will run more efficiently and be safer to drive. Just checking tyre pressures regularly can make a big difference as under inflated tyres increase fuel consumption and compromise driver safety.
The most important thing is not to assume that the social and environmental pressures brought about by government legislation and CSR are incompatible with business cost objectives. In its simplest form, good environmental practice is all about the efficient use of resources. Similarly, managing the safety of staff and the general public is all about protecting the valuable company assets of human resource and brand reputation. With the right planning and guidance, fleet operators can produce social and environmental benefits and save money.
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Leasedrive Velo is the largest independent privately-owned vehicle management group in the UK and comprises two main operating divisions.
Leasedrive Velo Vehicle Management
Working in partnership with fleet managers, or delivering a complete outsourced service, Leasedrive Velo offers blue chip clients a range of bespoke fleet management services. Major investments in the finest asset management system and pioneering, flexible, web-based customer service technology have resulted in Leasedrive Velo offering customers a truly world class fleet management service capability.
Leasedrive Velo Rental Management
One of the largest short-term vehicle rental management companies in the UK, with access to an almost unlimited choice of vehicles and locations throughout the country, Leasedrive Velo Rental Management offers a simple and transparent pricing policy with no hidden surcharges. For rentals of 28 days or more, it offers the Stopgap mid-term vehicle rental solution. Rates are substantially reduced compared to daily rental.
The headquarters for Leasedrive Velo is at hi-tech offices at TRL in Wokingham. Leasedrive Velo is the winner of the 2006 Fleet News Award for 'Best Contract Hire/Fleet Management Company', the 2006 GreenFleet Award for 'Leasing/Rental Company of the Year', The 2006, 2007 and 2008 Thames Valley Business Awards for 'Business Management Team of the Year', the 2007 ITM Award for 'Independent Vehicle Management Company' and the 2008 ITM Award for 'Fleet Management Company'.
For further press information on Leasedrive Velo, contact:
Mr Jeremy Snook
JSPR Ltd
Telephone: 01488 670002
Mobile: 07957 867139
Facsimile: 01488 670008
E-mail: jeremy.snook@jspr.co.uk
Website: www.jspr.co.uk
