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Your fleet’s role in your organisation’s sustainability objectives

For your fleet

It’s inevitable.  There will come a time when you have to consider a fleet vehicle strategy that involves electric vehicles. This will involve a different approach to running your fleet.

With a number of European Union member countries setting targets for the eradication of combustion-powered engines – as well as countries in Asia and the Americasthe time to begin transitioning your fleet to electric is sooner than you may think.

Global sustainability – around the world and closer to home

The global trend towards sustainable business practices and reducing carbon emissions means companies are factoring in sustainability improvement targets as part of their organisational objectives.

Many have goals designed to demonstrate they share their customer and shareholder desire to see more action taken to mitigate the effects of climate change and improve sustainability for future generations.

This extends to organisations in Australia. As reported by the ABC’s Rachel Pupazzoni in September 2019, “Businesses will need to adapt and get ahead of the curve on climate change in order to survive. Experts and corporate leaders [warn] that those that stand still will be under threat.”

Pupazzoni quotes John O’Brien – a partner at Deloitte – as saying that most businesses need to start grappling with what to do about climate change, if they have not already.

“If you want to have a business that’s going to be running in 10 years then you need to be thinking about how you’re going to plan that strategy to be in business,” O’Brien admits.

According to business investment advisor Matt Drum in the same article, “Going green is not just a smart move to attract investment, it is also about gaining a competitive edge.”

He notes organisations he’s worked with that have saved significant amounts of money by embracing sustainability. As Drum states, “There’s definitely a reputational risk associated with being seen as not interested, or inactive [on climate change and sustainability].”

Pupazzoni’s report goes on to say, “In 2013, 93 ASX-listed companies in the renewable energy and storage space collated by Deloitte into its Clean Tech index were worth a combined $8.5 billion dollars. In 2019, that figure grew to $50.9 billion.”

LeasePlan – walking the walk

With road transport accounting for around 20 percent of global Co2 emissions, and growing fast, LeasePlan recently released a Sustainability Strategy designed to ensure it plays its part in creating a more sustainable and clean environment.

LeasePlan’s Global Sustainability Strategy responds to massive changes in the auto industry and the world.

We have established a series of guidelines that cover a number of areas in terms of sustainability. We have also set a target across our organisation to reduce average energy usage in LeasePlan buildings by 10 percent between 2019 and 2022 compared to the level we achieved in 2018 (46 kWh).

Sustainability will be an essential part of the decision-making criteria in the design of new LeasePlan buildings and office refurbishments. We are committed to recording our energy usage and then selecting renewable energy alternatives, and replacing all of our current lighting with LED or T5 tubes, as well as ensuring lights are only used when needed.

Many LeasePlan offices are already selecting more energy-efficient heating and air conditioning systems, reducing the use of disposable products, and recycling and reusing waste wherever possible.

All of these measures are our attempt not just to preach to our customers but also to provide a practical, functioning example of how the road transport industry needs to step up and assume responsibility when it comes to a sustainable future.

Fleets and your organisation’s sustainability objectives

As already mentioned, road transport accounts for around 20 percent of global Co2 emissions. As an organisation, we know that our fleet vehicles can make a contribution to our company sustainability targets. We’ve committed to achieving net zero tailpipe emissions from our total fleet by 2030, beginning with the goal of transitioning our own employee fleet to battery electric vehicles (BEVs) in every market that’s ready to support them. 

At the present time, it’s hard to argue against the high cost of purchasing a fleet of BEVs. In a report compiled by the RACV, it was found the average weekly cost to own and run a BEV is around $320 per week (less when the pricier Tesla models are taken out of the picture – $278.50).

In the report, Tim Nicholson writes that the cost-savings kick in, though, when you compare fuel prices (petrol and diesel) with the cost of charging an EV – $11.70 compared to $28.37 per week to run a SUV-sized combustion engine.

When you then take into account incentives in the form of discounts and tax subsidies on offer to encourage the take-up of BEVs, it becomes obvious there’s an important contribution that you, as a fleet manager, can make to your company’s bottom-line by looking into fuel alternatives.

The worldwide trend may be geared towards reducing emissions, slowing climate change and improving sustainability, but a switch to BEVs can also have significant financial benefits for your organisation. Can you afford not to make the change?

Find out how LeasePlan consults across your business to ensure a smooth transition to EVs. Start a conversation today.

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