Energy Saving Trust identifies green credibility gap
22 March 2010
The Energy Savings Trust (EST) has identified a green credibility gap between companies’ intentions to implement a green fleet policy and the actual measures they have put in place to make it happen.
The EST, the Government agency charged with helping companies introduce green initiatives to conserve energy consumption, carried out a survey of organisations, including companies, charities and public sector bodies.
It found that the public sector was making the most ground to implement a green fleet, with 56% of public sector fleets reporting that green issues are central to their fleet policies.
However, although some 60% of fleet managers surveyed said that reducing the environmental impact of their fleet was very important, only 27% had policies in place to do something about it – creating a ‘green gap’ of 33%.
In addition, 57% of those companies surveyed said it was very important that their employees drove the most fuel-efficient vehicles, but just 24% of these actually ensured that they did.
Philip Sellwood, chief executive of the EST said businesses could save substantial sums in going green.
“It really is time for businesses to bridge the green gap, cut carbon emissions and save cash. Per car per year companies can save £1,000. Imagine what that could be for a whole fleet.”
Fleet Alliance has in place a free Green Fleet Review initiative, in conjunction with the EST, which demonstrates to businesses how they can cut their carbon footprint and save money by adopting a green fleet approach.
It shows there are real cost savings to be made. Following changes to tax legislation, companies that buy their cars outright can offset 20% of their cost against taxable profits or, if they lease them, can deduct the full cost of their monthly lease rentals from taxable profits, provided the cars emit less than 160g/km.
The review process looks at the financial implications of increasing the percentage of cars on the fleet below the critical 160g/km barrier, not just for the company but at the tax position for individual drivers, too.
The Green Fleet Review also examines the ‘grey fleet’ position by looking at those employee-owned vehicles regularly used on company business and identifying the worst polluters, as non-company owned vehicles are typically four times more polluting than those that are company owned.
“We are seeing increasing number of companies take up the free green fleet review offer, but as the EST survey indicates far more could be done.
“The two objectives of reducing fleet operating costs and improving green credentials are very much linked, as the less polluting cars are inevitably the cheapest ones to operate” said Fleet Alliance managing director, Martin Brown.
For fleets of less than 50 vehicles in England and Wales and those with less than 20 vehicles in Scotland, the initial Green Fleet Review can be carried out over the phone. For larger fleets, however, the review process normally requires face to face meetings to set the appropriate benchmarks and targets.
Martin Brown added: “Since we first introduced our free initiative, we have seen a steady stream of companies take it up as they seek to reduce their carbon footprint at the same time as cutting operating costs.
“We firmly believe that the review process can really help a company measure the impact of its current carbon footprint, and come up with a realistic target for lowered carbon emissions that will have both positive financial and environmental benefits,” he said.
22 March 2010
The Energy Savings Trust (EST) has identified a green credibility gap between companies’ intentions to implement a green fleet policy and the actual measures they have put in place to make it happen.
The EST, the Government agency charged with helping companies introduce green initiatives to conserve energy consumption, carried out a survey of organisations, including companies, charities and public sector bodies.
It found that the public sector was making the most ground to implement a green fleet, with 56% of public sector fleets reporting that green issues are central to their fleet policies.
However, although some 60% of fleet managers surveyed said that reducing the environmental impact of their fleet was very important, only 27% had policies in place to do something about it – creating a ‘green gap’ of 33%.
In addition, 57% of those companies surveyed said it was very important that their employees drove the most fuel-efficient vehicles, but just 24% of these actually ensured that they did.
Philip Sellwood, chief executive of the EST said businesses could save substantial sums in going green.
“It really is time for businesses to bridge the green gap, cut carbon emissions and save cash. Per car per year companies can save £1,000. Imagine what that could be for a whole fleet.”
Fleet Alliance has in place a free Green Fleet Review initiative, in conjunction with the EST, which demonstrates to businesses how they can cut their carbon footprint and save money by adopting a green fleet approach.
It shows there are real cost savings to be made. Following changes to tax legislation, companies that buy their cars outright can offset 20% of their cost against taxable profits or, if they lease them, can deduct the full cost of their monthly lease rentals from taxable profits, provided the cars emit less than 160g/km.
The review process looks at the financial implications of increasing the percentage of cars on the fleet below the critical 160g/km barrier, not just for the company but at the tax position for individual drivers, too.
The Green Fleet Review also examines the ‘grey fleet’ position by looking at those employee-owned vehicles regularly used on company business and identifying the worst polluters, as non-company owned vehicles are typically four times more polluting than those that are company owned.
“We are seeing increasing number of companies take up the free green fleet review offer, but as the EST survey indicates far more could be done.
“The two objectives of reducing fleet operating costs and improving green credentials are very much linked, as the less polluting cars are inevitably the cheapest ones to operate” said Fleet Alliance managing director, Martin Brown.
For fleets of less than 50 vehicles in England and Wales and those with less than 20 vehicles in Scotland, the initial Green Fleet Review can be carried out over the phone. For larger fleets, however, the review process normally requires face to face meetings to set the appropriate benchmarks and targets.
Martin Brown added: “Since we first introduced our free initiative, we have seen a steady stream of companies take it up as they seek to reduce their carbon footprint at the same time as cutting operating costs.
“We firmly believe that the review process can really help a company measure the impact of its current carbon footprint, and come up with a realistic target for lowered carbon emissions that will have both positive financial and environmental benefits,” he said.
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