Earlier this year, more than 30 companies were fined as part of a regulated effort to reduce emissions. As such, there has never been a better time for your business to consider switching to a green vehicle fleet.
Firms that lease fleets, such as Select Car Leasing, are advocating for UK drivers to make the switch to electric vehicles, and companies that adopt a green vehicle fleet can play a huge part in making our roads more sustainable.
Not only will going green with your company’s vehicle fleet be beneficial for the environment, but it will also have a positive impact on your employees, as one expert explains.
Sarah Worthington, Fleet Specialist at Select Car Leasing says that growth in electric vehicles for the Corporate Fleet Team has been ‘record-setting’.
She reveals: “In the last year, the number of electric vehicle fleets leased has increased from 25.12% to 37.25%.
“Fleets are placing record-setting orders for electric vehicles (EVs), and all evidence suggests that these numbers will continue to rise.
“EVs work a little differently to petrol or diesel vehicles. Whereas those sorts of vehicles burn fuel to create heat that can be converted into movement, EVs directly convert electricity into movement.
“This means that EVs do not waste half as much energy as petrol or diesel vehicles do when they use fuel.
“EVs will also cost far less money to keep running in the long run. Thisismoney.co.uk estimates that an electric car can work out being 61% cheaper than its petrol equivalent.
“Therefore green car fleets come with the advantage of helping companies meet their Scope 1 (direct) emissions and Scope 2 (indirect) emissions targets.
“The UK is on target to reach net zero emissions by the year 2050, and climate change schemes are in place for UK-based companies to ensure that the nation reaches that target.
“Earlier this year, more than 30 companies were issued with fines by the Environment Agency as part of nationwide efforts to reduce emissions.
“As such UK companies are making a considerable effort to go green. Data from the Society of Motor Manufacturers and Traders (SMMT) recently revealed that 58.5% of EVs on UK roads are company registered.
“Furthermore, Reuters claims that as retail sales have fallen, leasing has become the more popular method for companies that use vehicle fleets.
“Another benefit that EV fleets present businesses is the potential for saving money through tax reductions.
“Tax benefits for electric vehicles introduced in April 2020 mean that businesses can claim up to 100% of the cost of an electric vehicle against the profits of the year of purchase.
“Plus, employees that use a private electric vehicle for business purposes may be entitled to claim an annual tax-free mileage allowance of 45p per mile for the first 10,000 miles driven and 25p per mile after that.
“Employees may also be eligible for grants under the Electric Vehicle Homecharge scheme, which contributes 75% towards the cost of a single charge point and its installation, up to a maximum of £350 per household with an electric vehicle.
“Despite this positive trajectory towards greener vehicle fleets in the UK, there are still barriers in place that are enough to put some companies off switching to EVs.
“One concern that some companies have regards infrastructure, in that they believe there is simply not enough accessible EV charging stations in the UK to support a fully green fleet.
“Another barrier that is affecting some companies switching to a green fleet is that the demand for EVs is, at times, outweighing the supply. This situation is not helped by a variety of global issues.
“However, we are seeing the supply of EVs getting better, as manufacturers are prioritising EV build slots since they too have their own production emissions targets that they need to achieve.
“Furthermore, the leasing industry can provide an answer for companies who may find themselves struggling to upgrade to an EV fleet.
“With our Select buying power and close manufacturer relationships, there is no better place for a customer to secure the best pricing and vehicle availability.
“Overall, it is worth remembering that the long-term environmental and financial benefits of switching to an EV fleet far outweigh the headache that any of these stumbling blocks might pose.
“EV fleets are an essential part of our collective fight against the climate crisis since there is already a significant impact on the environment caused by the fuel consumption of petrol or diesel vehicle fleets.
“Switching to a greener fleet is also a way of demonstrating both to your employees and the broader community that your company cares about their long-term health and well-being.
“With an EV fleet, you are making a statement that you are dedicated to delivering services in a sustainable way, which can only reflect well on the public opinion of your company.”
