News - 2009 Archive

• Driver training
• Total cost of ownership
• Rise in Rentals
• European fleet risk management
• Green Debate
• Confused by LOLER regulations?
• Public Sector Growth
• Car jacking - beware
• Whole life costs
• Parlez vous TCO?
• State of the Industry
• WLC what fleets need to know
• Driver Licence Checking
• Diesel particulate filters

The Green Debate

The Green debate

Carbon offset schemes may help to alleviate some of the guilt associated with operating vehicle fleets, but most fail to tackle real environmental concerns, says Greg Taylor, business development director at ING Car Lease.

In a recent report exploring the fleet industry’s response to the ‘the green debate’*, 95 percent of decision-makers rated environmental concerns their top priority over other current transport and fleet issues. This result (up 30 percent on just two years ago) demonstrates an increasing awareness by the industry that its activities do have a detrimental effect on the environment, and that if current trends continue, the financial penalties for not addressing the issue will only increase.

There are several factors motivating fleet operators to clean up their environmental footprint, including genuine concerns about the planet, congestion charging, increased taxation on the biggest polluters and rising fuel prices. Whatever their reasons, companies operating vehicle fleets of all kinds are now taking the need to reduce their carbon footprint seriously, and environmental impact has become a major factor influencing the development of a fleet policy. 

Industry response

Unsurprisingly, and with competition among leasing and rental companies as hot as ever, fleet suppliers have been quick to respond to this new demand for all things green, offering specialist environmental consultation and in many cases introducing carbon offsetting schemes (a way of mediating environmental damage by contributing to carbon reduction programmes elsewhere in the world).

Dedicated consultancies have even been set up to service this now lucrative sector, as both fleet suppliers and operators are increasingly willing to pay for advice on carbon reduction.

But while any attempt to address this most important of issues should be welcomed, fleet operators who are serious about the environment should be wary of conscience-easing schemes such as offsetting, which undoubtedly bring much needed support to environmental projects overseas but which detract from the real job of carbon reduction on our own doorstep. Rather than handing over responsibility elsewhere, fleet operators – and their suppliers – should instead focus on ways to reduce carbon footprint first, and offset what they really can’t avoid after that. After all, once you’ve released CO2 into the atmosphere, there’s nothing offsetting can actually do to reduce its impact.

There are, however, plenty of things that fleet operators and their suppliers can be doing to really tackle carbon reduction. The real trick is not to hand money over to someone else, but instead to save money by developing a sustainable strategy for immediate and long term carbon reduction by looking at ways to reduce mileage and increase fuel economy. And any savings generated by such a strategy will certainly grow over time, as financial penalties on carbon emissions are sure to increase.

Real solutions

Car manufacturers are, in a sense, making it easier for fleet companies to do their bit and source cars with the very best environmental credentials. Average CO2 emissions on new cars have dropped twelve percent in the past 9 years and the rapid growth in popularity of low emission diesel cars is having a big impact on overall carbon levels. Investment in greener technologies such as hybrid engines and bio-fuels is beginning to have an impact on more mainstream vehicles. Direct petrol injection, stop-start systems, variable valve timing and exhaust gas recirculation all help towards greater fuel efficiency and cutting harmful emissions. 

At the very least, practical expertise should be available from fleet suppliers to enable companies to make greener choices when it comes to their vehicle selection. Many already offer basic advice and ING Car Lease is launching a complete online solution to enable fleet operators accurately to measure emissions and offer practical solutions to help reduce them. 

Fleet operators themselves can do a lot to improve their company’s carbon footprint, and many are already doing so. Motivating company drivers to choose more environmentally friendly vehicles and teaching economical driving techniques is a good way to demonstrate that everyone is expected to take some responsibility. Increasing opportunities for home working and teleconferencing can make a significant dent in a company’s overall mileage, as well as car share schemes and improved logistics management. Regular maintenance and servicing ensures vehicles are running at maximum fuel efficiency.

Benefits

The term ‘triple bottom line’ is often applied to the benefits of developing a more environmentally sustainable approach to business. While it would be nice to think that being good to the environment was enough of a driver for change, the real world obviously needs financial incentives too. So it’s perhaps useful to note that savings from greater efficiencies, reduced mileage, less fuel consumption and improved logistics actually translate into greater profits into the long term. 

By taking responsibility for carbon reduction within the company fleet, it is possible to make really significant improvements both to environmental impact and overall business performance. Instead of carbon offsetting – paying off the guilt of running an inefficient fleet – companies can demonstrate a real commitment to the environment, improve the quality of their fleet and create measurable business benefits. 

* APD Research & Development ‘The Green Debate’ September 2007