Building a business case for green cars

06 July, 2019

For years, businesses have talked about corporate social responsibility and lowering their emissions. This has resulted in an upwards trend in the number of Ultra-Low Emission Vehicles (ULEVs) being sold in the UK. Beyond lowering your organisation’s CO2 emissions, there are lots of other advantages of operating a greener fleet. Benefits that will help you make a solid business case for change and prepare your organisation to adopt planet-saving technology that’s also better for business.

 

Sustainable branding creates competitive advantage

Between torrential downpours, hurricanes and flood warnings, something else has been in the air: a greater sense of urgency around climate change. And now we’re on the cusp of enormous societal and industrial changes as the data reveals:

  • Ethical spending in the UK has doubled from £20bn to £40bn in the past decade.
  • Over a quarter of people responding to a YouGov survey stated that in the past year they had avoided buying a product or using a service due to its negative environmental impact.
  • The average UK household has increased its spending on ethical transport from £63 to £305 per year.
  • 66% of consumers would spend more on a product if it came from a sustainable brand - this rises to 73% amongst millennials.

Figures like these explain why 90% of CEOs say sustainability is fundamental for business success. And 88% of business school students think environmental and social issues are business priorities.

With consumers prepared to opt for the company with the best eco-credentials, sustainable branding has never been higher on organisation’s strategic priority lists. Which makes emissions a major factor when it comes to your company’s bottom line.

For businesses in the service sector, it’s likely that transport accounts for a significant proportion of your emissions. But regardless of industry, cars are a major contributor to global CO2 levels.

They’re also a highly prominent symbol of your organisation’s approach to sustainability. It’s unlikely that your customers will come across your company’s CO2 emissions in your annual report. What they will see is the cars your people are in when they turn up to and drive away from meetings. And green cars are a much better demonstration of your eco-credentials.

 

Cleaner cars offer cost savings from day one

Talking about money, there are several good financial reasons to operate a green fleet:

  1. Big fuel savings - hybrid cars make a single tank of fuel go much further so drivers could achieve fuel efficiency of up to 155mpg. And electric vehicles cost over 75% less than petrol or diesel-fuelled cars to drive 100 miles. These kind of reductions multiplied across your direct and grey company car fleets will generate significant savings for your business.
  2. Save on time - pure electric cars need a lot less maintenance than fossil-fuelled vehicles so your drivers will spend more time on the road and less time in the garage.
  3. Tax savings - HMRC’s new car benefit-in-kind tax regime is set to reward penalise organisations and drivers who turn to greener ULEVs. From April 2020, BIK rates will be reduced from a maximum of 37% to 0% for those adopting the greenest cars.

Yes, electric cars mean investing in electric charging points at your company’s sites. But government grants are still available to reduce the cost and what you save in petrol and diesel expenses can be used to offset the price. Plus, depending on how you decide to charge for the electricity, you could even make money on the energy you provide. See our article on this topic for more detail.

 

Provide green car choices to ensure employee engagement

Consumers are the same people as your employees and where consumer trends lead, employee benefits follow. Which means offering your staff green company cars and car benefit options is critical to engaging them with your organisation’s total reward package.

There are a couple of ways to introduce cleaner vehicles:

  1. Like 41% of UK companies, you could decide to place a ceiling on company cars’ CO2 emissions.
  2. Go one step further and restrict car choice to ULEVs only.

Both options will reduce your company’s emissions. But the second will best position your organisation and staff to make the most of the upcoming tax band changes and capitalise on fuel savings.

 

Act now to make the most of the green driving revolution

With the sustainability mega-trend in full swing and green driving reaching a tipping point, ULEVs are in high demand. At Tusker, we have stock ready to go and preferential build slots with manufacturers, making it quick and easy for your people to get their hands on the green car of their choice.

With cleaner, greener cars reaching an inevitable tipping point, it’s time to get your organisation’s decision makers on board.

Identifying every opportunity to make ethical choices within your organisation isn’t just a nice-to-have but critical for business. So don’t put off your green travel business case - we can provide you with a whole host of information to help too!

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Tuskerdirect Limited is an appointed representative of Howden UK Group Limited (FRN 309639) for insurance mediation activities and Product Partnerships Limited (FRN 626349) for consumer credit activities, which companies are authorised and regulated by the Financial Conduct Authority.


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