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How Cost Management Can Keep Your Fleet Green

By 26th November 2014April 7th, 2022No Comments

 

Paul Millican

Posted by: Paul Millican

If you’re a regular reader of my blogs, you’ll notice I’ve spoken before about the environment and cost management, when discussing making savings on recycling. Personally, I feel that businesses need to do more to help the environment whilst managing costs – which is an opinion I’ve found to be shared by many. Indeed, it’s positive to see that the inclusion of environmental protection into cost reduction strategies has become a much-talked about point of discussion.

But what else could we be doing to help the planet, whilst still making incredible savings? As I said before, we’ve talked about recycling costs – now it’s time to turn towards company car fleets and ask how we can reduce costs, all the while increasing our responsibility to the environment.

As with personal cars, there is encouragement coming from different quarters to include electric and hybrid cars amongst company fleets. This strategy in itself can help reduce costs, but it isn’t as simple as swapping the whole fleet for a new model. The real question is what steps do we take to achieve the marked reduction in CO2 emissions from more efficient company cars? How do we factor in being green with helping the bottom line?

The answer lies in moving towards a Whole Life Cost company car policy. The benefits for the business (and the drivers) include manageable costs, often a better choice of cars and greater savings on the fleet overall. But the WLC policy also benefits the environment in, perhaps, an unexpected way.

Following work on a recent fleet-based project with a client, we discovered that implementing a Whole Life Cost policy saw drivers naturally choose more efficient cars. The project showed CO2 emissions for all cars being ordered have dropped to below 120g/km and average fuel economy has risen from to 45mpg to almost 60mpg, whilst savings were boosted by a further £25,000 per annum. I’d like to think both my client and the environment were pleased with the outcome!

Since we hear increasingly about the damage our society is doing to the environment, as well as the words ‘corporate responsibility’ more often, it’s important that we take note of ways in which we can help keep the planet healthy, as well as looking out for our bottom lines. After all: it shouldn’t cost the Earth to help protect it.

Do you need help reducing your fleet or recycling costs in an environmentally friendly manner? Simply get in touch for a health check and consultation.