April 12, 2017

How To Implement a Green Fleet Management Strategy

How To Implement a Green Fleet Management Strategy

Creating and refining a green fleet strategy for your business that balances the various stakeholders can be a challenge. However, the benefits of a solid green fleet management plan can certainly outweigh the minimal spend required to reduce your current fuel consumption, and minimise your carbon footprint, potentially saving you more in the long run. Here’s how to implement a green fleet policy that works for your organisation:

Finding The Right Vehicles For Your Fleet

Make sure that you’re fully informed of the Euro Standard, fuel efficiency and the CO2 emissions emitted from the vehicles that you have already selected for your fleet. Once fully informed on the current status of your fleet, you will be able to make an informed decision on sourcing new vehicles that are greener when required.

The environmental performance of your fleet can have a significant impact on your bottom line, especially where the fuel economy of long-haul vehicles is considered to be below the required standard. A healthier fuel economy will help you save not only on the cost of fuel guzzling vehicles, but also on VED, insurance contributions, corporation tax, and benefit-in-kind tax. Re-assessing your current vehicle selection process in line with your revised green fleet strategy will help you to save, and work towards a greener reputation.

Tip: Use www.gov.uk/co2-and-vehicle-tax-tools to help you research the emissions data and fuel consumption figures for your current fleet.

Vigilant Fleet Fuel Management

It’s only through careful monitoring of your fleet that you will be able to identify vehicles that may be performing poorly, and drivers that may not be driving economically. Consider implementing an incentive for drivers to limit their speed to 60mph, reducing fuel consumption and ensuring drivers are complying with your green fleet policy.

In order to accurately monitor fuel consumption rates throughout your fleet, you should also consider employing a revised fuel tracking system. To do so as accurately as possible, you will need to record the distance each of your vehicles covers and the amount of fuel consumed. With this data recorded across your entire fleet, you will be able to determine inconsistencies between vehicles and drivers, and you will also be able to monitor potential maintenance and repair costs more vigilantly.

If your company uses a small fleet of vehicles, your own manual recording system will help you to glean the data you need. For larger fleets, you may want to consider the use of a carded fuel tracking system. This will feed you all the data required to successfully monitor your fleets’ current fuel consumption.

Want to learn more about using fuel cards? Read our blog on how fuel cards could benefit your business.

Accurate Mileage Management

How generous is your current mileage allowance for all fleet drivers? Do you account for personal mileage accurately? And how carefully do you monitor high-mileage vehicles? These are the kinds of considerations needed to form an accurate picture of how to improve your current mileage management systems.

To best implement green fleet management, start by taking a look at your current mileage allowance rates and whether your drivers are using the entire allowance. If they’re not using it in its entirety, consider tightening up your allowance. Even if a percentage of your drivers are using their allowance, it may be that over-generous allowances have incentivised drivers to use the extra miles simply because the allowance is there to use.

Mileage management and route planning should also be closely monitored to establish if the most efficient routes are being taken, reducing mileage and therefore fuel consumption. Lastly, it may also be worth considering alternative means of travel. If your staff are required to travel, can some of the journeys be made on public transport to reduce your carbon footprint? Working remotely should also be considered to reduce the cost of travel to meetings where appropriate.

A Responsible Grey Fleet

Many companies will have a number of employees who use their own vehicles for business use. However, this means that the grey fleet in question may have higher CO2 emissions and less economical fuel consumption than your organisation would like. This will significantly impact your ability to meet corporate environmental responsibility targets and to successfully implement a complete green fleet management strategy.

It also means that you are not privy to the vehicle’s current insurance status, its last service, or any maintenance that may be needed to keep the vehicle in good working order. In order to take control of your grey fleet, you may want to specify who is responsible for its management. Working alongside HR, you can then put together a comprehensive grey fleet policy for your employees outlining rules, health and safety implications and sustainability requirements. As a final step, make sure that you motivate colleagues to accurately record their business mileage, which will in turn help you to more accurately record grey fleet data.

Struggling to implement a green fleet policy that work for your business? Contact CLM for more information on how our fleet management services and fleet lease vehicles could help you enhance your current green fleet strategy and dramatically improve CSR targets.