Fleet managers: Thinking green

Any discussion about making a company car fleet more environmentally friendly should start by asking whether some or all of the cars in the fleet are necessary at all, writes Nick Bell of the GoodCorporation.

We have already seen changes in UK tax to make use of private cars for business use more attractive. In this year's Budget, Chancellor Gordon Brown made no significant changes to the tax rules. Instead he confirmed the existing environmental agenda; a minor increase was made in vehicle excise duty for the two most polluting categories, but the base figures on which individuals are taxed for company cars were frozen.

At last year's Fleet News Industry Conference, Transport Minister David Jamieson cited a study suggesting that when people opt out of a company car scheme, they often end up driving cars with higher emissions. Opting out allows them to use their salary alternative to finance a vehicle of their choice rather than one selected to meet the objectives of a structured car scheme.

That being said, a company car policy with no salary alternative may create a two-car household where one would be enough, in which case the costs of manufacturing that additional car needs also to be taken into consideration when looking at the overall effect of company car policies.

Environmental impacts
The choice of car, whether in a company scheme or private, determines the most obvious impacts. Over the same number of business miles, a bigger engine results in more pollution. But higher specification cars also impose costs.

The weight of all the extras adds up not only in terms of fuel consumed to make them go, but brake and tyre wear to make them stop.

Furthermore, they require more energy to manufacture. Extra electronic gadgetry usually involves hazardous chemicals both in construction and in disposal at end-of-life.

Fuel technology
New fuel alternatives are slowly coming onto the scene, but the main shift in the UK over recent years has been toward diesel cars as they shed their clattery, taxi image and enter the economical performance car league.

The best option is rarely clear-cut, however; while diesel cars generally produce lower CO2 emissions they throw out more sooty particulates (albeit very fine ones under EURO IV regulations). Even though petrol may no longer contain lead, it contains other chemical additives. There are public health concerns linked to both types of fuel so neither has a distinct advantage over the other.

Other options like LPG or LNG burn more cleanly, but currently represent only a fraction of overall fuel supply and in any case they are still fossil fuels. Biodiesel could be a solution but has yet to be produced or distributed in any significant volume.

Electric and hybrid vehicles may produce virtually no air pollution while being driven but they do not get a completely clean bill of health because their battery technology is not especially green, and hydrocarbons are being burned to charge them up.

Fuel cells, the much talked-about solution, are still many years off commercial-scale use. However, without early adoption of these new technologies there will be no continued investment in them so support for such leaders remains vital to pushing the agenda.

Economy
For the time being, though, we need to focus on using less fuel, whatever type we choose. As Stewart Whyte, a director of the Association of Car Fleet Operators, says, fuel monitoring in the UK is "low", to put it politely.

Only a small percentage of fleet operators, he says, demonstrates best practice by setting strict criteria for vehicle selection, by monitoring fuel consumption of each vehicle in the fleet (which spots either bad driving style or a maintenance issue), and perhaps most crucially of all by challenging whether each journey is necessary in the first place.

Driving style also has considerable impact on fuel consumption. Just keeping to speed limits would make a significant difference. The US Department of Energy estimates that for each 5mph driven over 65mph, 7% more petrol is burned.

And of course aggressive driving, commonplace in our congested towns and cities where frustration can get the better of even mild-mannered drivers, constitutes a pointless waste of fuel.

Furthermore, businesses need to recognise that they can create stressed drivers by demanding unrealistic schedules and unnecessary journeys that add to consumption / pollution and potentially compromise road safety. And switching on the air conditioning to cool things down a bit penalises the driver by as much as 2 or 3 miles per gallon.

It is a reality that parts wear out and need to be disposed of and their replacements manufactured. Routine maintenance intervals are thankfully getting longer; some cars won't see an oily rag for as long as two years, though one year is more normal.

Drivers should nevertheless be reminded about things that cannot wait that long, such as keeping tyres at the recommended pressure, which aids fuel economy not to mention safety.

Some drivers have habits that needlessly accelerate wear, even simple things like holding a car stationary in gear using the clutch instead of the brake. Failing to read the road ahead means drivers often continue to speed up, only to brake more sharply when they finally spot a hazard or red light.

Education
So is the employer's role also to be some sort of driving coach? The temptation is to say "no." But the oft-quoted reason for poor environmental performance is that we need more information and education.

Surely, getting employees to think about their driving behaviour and the effects of driving style on the environment provides exactly that? There is no shortage of advice from organisations like the RAC, but it requires somebody to bring this in-house to drivers, and to monitor on-going performance so further improvements can be identified.

Incorporating green principles into the company car scheme can be achieved by taking some quite straightforward, though not necessarily easy steps. The benefits are real and measurable in terms of lower fleet operating costs and insurance premiums, so it should not be seen as some philanthropic exercise.

The greenest choice of all, though, is to leave the car behind where walking, cycling or another mode of transport is available, or car sharing for commuting or business trips. Companies should not be shy to promote these options.

The long-term gains lie in protecting as best we can the environment that allows us the lifestyle that we have come to enjoy. You know, the one in the car advertisements!

The GoodCorporation Standard promotes active environmental management along with responsible employee, customer, supplier and shareholder practices.

NICK BELL

An earlier version of this article appeared in HRZone.

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