GreenFleet 134 - SME Special

SME

Special

Advice and support for smaller businesses looking to transition to a sustainable fleet Brought to you by

GreenFleet 2 Carbon Targets Recognising the importance and impact that small businesses can have on environmental goals, the government has launched a new drive to encourage small and microbusinesses to commit to cutting their emissions in half by 2030 and to net zero by 2050

5 Rental & Leasing Andrea McMahon from the BVRLA discusses how the rental and leasing sector can help small businesses by giving them more flexibility and less risk when adopting a sustainable fleet

9 Panel of Experts While many small businesses may want to make the switch to electric vehicles, lack of time and expertise is causing some to shy away from the task. Our expert panelists explain how SMEs can be supported in their journey towards a zero-emission fleet

15 Electric Vehicles As the UK moves closer to switching to electric vehicle fleets, how can we ensure smaller businesses have the information and support they need to confidently make the switch?

16 Electric Vehicles Microbusinesses want help with weighing up the costs, savings and practical implications of making the change to electric vehicles. Florentine Roy from UK Power Networks explains how smaller businesses can confidently make the switch

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CARBON TARGETS

Small businesses commit to cutting emissions Recognising the importance and impact that small businesses can have on environmental goals, the government has launched the Together for our Planet ‘Business Climate Leaders’ campaign, a new drive to encourage small and micro businesses to commit to cutting their emissions in half by 2030 and to net zero by 2050 As the UK’s 6 million small businesses make up 99 per cent of the UK’s enterprises, employ 60 per cent of the UK workforce and generate £2.2 trillion of revenue to the economy, it is crucial these enterprises take action and reduce their carbon footprint.

Recognising the importance and impact that small businesses can have on environmental goals, the government has launched the Together for our Planet ‘Business Climate Leaders’ campaign, a new drive to encourage small and micro businesses to commit to cutting their emissions in half by 2030 and to net zero by 2050.

Those who make a net zero commitment on the UK Business Climate Hub will be recognised by the United Nations Race to Zero campaign and will become ‘climate leaders’ - role-modelling and inspiring others in the community to find meaningful ways to take positive environmental action as we approach the global climate summit COP26 hosted in Glasgow this year.

Small businesses can use the hub to find practical tools, resources and advice to understand their emissions and develop a plan to tackle them, as well as providing ideas for steps they can take.

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Steps could include switching to electric vehicles and other cleaner forms of transport to reduce their carbon footprint, or introducing cycle to work schemes for employees, as well as other non-transport related measures.

The campaign will also provide small businesses with access to some of the UK’s biggest businesses – including NatWest, Google, Scottish Power and BT – and leading climate experts to support them in taking the simple and practical steps to protect the planet, and the benefits of future-proofing and growing a low carbon business. Partner support will include hosting a range of collaborative events throughout summer, creating a small business training programme on taking green actions, and using their high-profile digital channels to drive small business audiences to the climate hub.

Access to big company expertise The campaign will provide small businesses with access to some of the UK’s biggest businesses – including NatWest, Google, Scottish Power and BT – and leading climate experts to support them in taking the simple and practical t o net zero steps to protect the planet, could include and the benefits of futureproofing and growing a low EVs and switching to o carbon business. Partner t h e r cleaner forms o support will include hosting f a range of collaborative introdu transport or cing cy events throughout summer, cle work sc creating a small business hemes to for training programme on employ ees taking green actions, and using their high-profile digital channels to drive small business audiences to the climate hub.

Philip Jansen, Chief Executive of BT Group, said: “BT has been taking action against climate change for nearly 30 years and we’ve pledged to be a net zero emissions business by 2045. All businesses, large and small, have an important role to play in reducing worldwide carbon emissions, so we’re urging our small business suppliers and customers to join us on the journey to net zero by signing up to the UK Business Climate Hub. “A survey we recently carried out with Small Business Britain found that although

Meeting small businesses To mark the launch of the campaign, the Prime Minister and the Business and Energy Secretary met small and micro companies from across the UK and its economy who have already made a Steps net zero commitment.

DRIVING THE SWITCH TO CLEANER FLEETS | www.greenfleet.net

Business & Energy Secretary Kwasi Kwarteng said: “Small businesses are the backbone of our economy and as we transition to a green future, they will also the backbone of the UK tackling climate change.

“There are huge opportunities for a small business to go green – not only playing their part in saving the planet from climate change but helping grow their business and ensuring it is fit for the future.

“Simple changes could differentiate a business from the competition, attract new customers and investment and save them money on their running costs. That is why I am urging the nation’s small businesses to sign up to become business climate leaders and lead the charge in protecting the future of our planet.”

COP26 President-Designate, Alok Sharma, said: “We are at a critical point for our planet, and to safeguard its future we must act now to limit global temperature rise to 1.5C. To do this, we need action from all of society including those small businesses that play such a vital role in our daily lives. The world is moving to a greener, brighter future, so please: do not get left behind. Ahead of COP26 in November, join the hundreds that have already done so and become a business climate leader.”

The UK’s Net Zero Business Champion Andrew Griffith said: “The UK business community has a unique opportunity to come together to tackle climate change. We all need to play our part, and as small businesses make up the majority of the UK’s business community it is critical that they get involved.

“There is a need for practical guidance on the simple steps businesses can take reduce their carbon footprint and the Together for our Planet climate leaders campaign will help provide just that.”

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SPONSOR’S COMMENT 99 per cent of small firms recognise the importance of sustainability, three quarters of them (77 per cent) don’t know how to measure their carbon emissions and need support. The new UK Business Climate Hub, together with free webinars we’re offering through BT’s Skills for Tomorrow programme, will help more small firms take their first steps towards taking climate action that can make a difference.”

Chief executive Officer of NatWest Group Alison Rose said: “As the leading bank in the UK for businesses, we want to encourage, enable and lead the way in helping small businesses transition to a net zero carbon economy. From our recent SME Recovery Report, we know SMEs have the opportunity to help the UK meet its net zero targets by reducing their carbon footprint by 80 MtCO2e by 2030 through more sustainable business operating models.

“As COP26 principal banking partner, we’re proud to support the Together for our Planet Business Climate Leaders campaign and partner with the government on this important initiative, especially in the run up to November’s UN Climate Summit. We will be encouraging as many of our customers to sign up as possible.”

Ronan Harris, managing director & VP, Google UK and Ireland said: “Every email you send through gmail, every question you ask Google Search and every YouTube video you watch is already carbon neutral.

But we know our impact is far greater when we are also helping others transition to a carbon-free world. That’s why we’re excited to be part of this important campaign and, as part of that, to offer small businesses across the UK new training that can help them increase their competitive advantage while protecting the planet.”

SMEs already going green The are plenty of small businesses that are already making the leap to go green include. One such company is family-owned energy efficiency specialists SURE Solutions in Birkenhead on the Wirral. The company offers solutions to businesses using industrial refrigeration and has pledged to become net zero by 2025. The company has installed 70 solar panels on the roof of its offices and this year plans to install a hot water heat pump and electric vehicle charge points. This is on top of making sure it is recycling waste and replacing its vehicles with either electric or hybrid equivalents. The business also has plans to be carbon neutral through carbon offsetting by the end of the year through tree planting or similar.

Family-run wedding venue Hayne House, Hythe, Kent offers a sustainable option for weddings and receptions and has committed to cutting carbon emissions to zero by 2030, with the business believing it will have reduced emissions by 50 per cent by the end of next year. The business has already removed all single-use plastic, started replacing windows with ones that are more energy efficient and switched to a renewable energy supplier, installing a rainwater harvesting system to water the garden and reviewing procurement to include local and sustainable suppliers among others. The company plans to go further including installing a heat pump and electric charge points for vehicles, as well as increasing its solar energy production to power the whole site.

Founder of Small Business Britain Michelle Ovens CBE said: “The UK’s small business community can and will play a significant role in combatting climate change. Although individually small, collectively they have a huge impact on the economy, society and local communities. Working together, we can start the journey towards net zero, and Small Business Britain is committed to helping the nation’s businesses get there.

National Chairman of the Federation of Small Businesses Mike Cherry said: “Small business owners care passionately about the environment, and are keen to do the right thing to help our transition to Net Zero. The small firms and sole traders who make up the UK’s 6 million SMEs are now seeking help and guidance on what they can do. From those that have already started on this journey, we know that sustainability makes good business sense, too.

“This campaign marks the opportunity for small businesses to take the lead. As we emerge from the worst of COVID and look to secure our long-term future, now is the time for small businesses to take their first steps. At FSB we will be building on this campaign to share ideas and small-business-friendly guidance, that will reach small firms in local communities right across the UK.” L FURTHER INFORMATION www.together-for-our-planet.ukcop26.org

Helping SMEs make the smooth transition to electrified vehicles

By Lee Brown, head of 0Zone, The Grosvenor Group

According the FSB (Federation of Small Businesses), there were 5.94 million businesses with between one and 49 employees in the UK at the start of 2020, catering for 99.3 per cent of total business.

SMEs also account for 99.9 per cent of the business population, three fifths of the UK’s employment and around half of turnover in the UK private sector.

At the Grosvenor Group, we are committed to giving SMEs the same very high levels of advice, service and support that we do for our larger customers and through our 0Zone team we’re offering market-leading support to help SMEs make the smooth transition to electric vehicles.

0Zone is Grosvenor’s innovative and multi-award winning solution to help companies navigate their way smoothly towards ultra-low emission (ULEV) and electric vehicles (EV).

Since its launch in 2017, many companies have benefited from the 0Zone team’s guidance and advice to help significantly drive down emissions, with 0Zone being made up of three key areas: ‘Environmental’ – how to drive down CO2 levels as part of a zeroemission goal; ‘Operational’ – how ULEVs and EVs fit into your operational requirements and business needs; and ‘Financial’ – the financial implications of moving to alternative fuels, including whole life costs, taxation, NI and other key considerations.

Companies looking to go green also benefit from an assessment of their environmental impact with a clear pathway to convert their fleet, over time, towards ultra-low emission and electric vehicles.

Importantly for SMEs, although Grosvenor is the UK’s largest privately-owned contract hire and fleet management specialist, we still operate with no call centres or voice mail queues which means you can talk to members of our friendly and experienced teams with ease, and enjoy advice on first name terms from our industry experts.

FURTHER INFORMATION www.thegrosvenorgroup.co.uk supported by

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0Zone is The Grosvenor Group’s innovative and multi-award winning solution to help companies navigate their way smoothly towards ultra-low emission (ULEV) and electric vehicles (EV).

Our team of experts will help you drive down your CO2 levels and move towards a Zero emission future through a well-structured ultra low emission and electric vehicle fleet policy.

Through our operational review, we will look at the current suitability of ULEVs and EVs for your business, and the measures that need to be in place for alternative fuels to become an effective part of your fleet strategy.

What are the real financial implications of moving to alternative fuels?

Our 0Zone team will provide a clear and transparent analysis based on whole life costs, taxation, NI and other key considerations

For an initial, no obligation and free consultation with a member of our award winning 0Zone team, we would be delighted to hear from you.

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RENTAL & LEASING

Written by Andrea McMahon, BVRLA

Giving businesses access to affordable, zero-emission vehicles Choosing a vehicle is a complex business. There has always been a lot to consider, particularly around affordability, flexibility, suitability, and maintenance costs. Now, environmental credentials are an important consideration, especially for those businesses who need to take vehicles into one or more of the Clean Air Zones that are emerging across UK cities There is no doubt that the pandemic has put good health and wellbeing at the top of people’s agenda. We are united by a collective desire to see the UK return to being a healthy, safe, and prosperous place to live, work, visit and do business – and having a cleaner road transport system forms part of that ambition.

As Local Authorities start to resume to some form of post-pandemic ‘business-as-usual’, plans for introducing measures to improve local air quality are getting back on track.

Bath was the first city outside of London to go live with a CAZ-C Clean Air Zone on 15 March this year, and on 1 June Birmingham followed suit introducing a CAZ-D charging zone for non-compliant vehicles.

Bristol, Bradford, Portsmouth, Greater Manchester, Newcastle, Gateshead, North Tyneside, and Oxford are all set to follow, with London extending its more stringent The Ultra-Low Emission Zone to an area rental a 18-times larger than the original Low leasing nd Emission Zone, by 25 October 2021. sector provide The increasing emergence s a of Clean Air Zones is set to flexible ffordable, further increase demand for busines vehicles to cleaner vehicles and the green credentials of rental and lease to switcses looking h vehicles makes the sector perfectly complia to CAZplaced to provide affordable, nt flexible vehicles to individuals and van cars and businesses looking to switch s to CAZ-compliant cars and vans.

Although the government has been instrumental in encouraging local authorities to introduce air quality improvement measures - publishing its Clean Air Zone Framework in February 2020 when “poor air quality [was] the largest environmental risk to public health in the UK” – the government has fallen short when it comes to ensuring that there is adequate communications to increase CAZ-awareness.

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From car-club to full mobility solution phasing out petrol cars in favour of petrol electric hybrids and are migrating even more of our fleet over to full EVs. We are also innovating with new ways of delivering EVs – such as in Dundee where EVs do not need a full time charger and fixed bay but operate in a geofenced zone using top ups from rapid chargers.

There are exciting times ahead for Co Wheels, as we announce new offers and innovations for our business customer we will be announcing them on our LinkedIn page – so why not follow us.

For further information check out our new website below.

Co Wheels is changing – you may have noticed our new branding on our vehicles, our website and social media – but it is an even bigger change for us.

Our rebranding marks the start of us moving on from just being a car club to a full featured mobility solution provider.

Initially you will notice our fresh new branding and our totally new website. But over the coming year you will see more improvements to our booking system and mobile app as we make improvements in response to customer requests.

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We will also be expanding our fleet offer to businesses who want to cut their CO2 output on business mileage as well as still providing competitive on street PAYG solutions for smaller businesses and private users looking to replace owning a car.

It is our intention to offer a broader range of mobility services and collaborations to make it even easier to give up owning a car and using different forms of mobility instead.

And even though we already have one of the greenest mixed fuel car share fleets in the UK, we are already

DRIVING THE SWITCH TO CLEANER FLEETS | www.greenfleet.net

FURTHER INFORMATION www.co-wheels.org.uk/corporate info@co-wheels.org.uk tel 0191 375 1050

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The BVRLA’s Clean Air Zone Guide The BVRLA has published a useful guide providing a onestop-shop for all you need to know about Clean Air Zones.

Visit www.cleanairzones. co.uk to find the latest news on which local authorities are implementing or considering Clean Air Zones, the rules, restrictions, penalty charges and any financial support available to help with upgrading to cleaner vehicles. There is also a link to the Government’s CAZ payment portal.

Not only does rental and leasing provide flexibility, it also enables you to keep your cash in the bank and removes risks associated with fluctuating residual values when the vehicle is sold approach given that vehicles are driven across and through regional boundaries. Drivers across the UK need to be aware of the various charging zones.

The BVRLA has stepped in to support members and their customers by publishing all the essential information relating to Clean Air Zones on its website.

With their fast fleet cycles and vast purchasing power, BVRLA members continue to lead the way in driving the transition to road transport decarbonisation, putting cleaner vehicles on UK roads through rental, leasing, and by being the largest supplier of nearly new vehicles to the used car market at de-fleet.

Of the four million vehicles on the collective BVRLA member fleet, one-fifth have some form of electrification, and this is continuing to grow as the fleet mix reduces its proportion of ICE vehicles.

Leasing and rental companies remain at the forefront of road transport decarbonisation, adapting business models to provide more individuals and businesses with access to affordable low- and zero-emission vehicles.

Q4-2020 leasing figures showed average CO2 emissions were 98g/km across the BVRLA lease car fleet, compared to the average UK car fleet of 114.2g/km, and 100 per cent of the BVRLA rental fleet is CAZcompliant, highlighting the green credentials of the vehicle rental and leasing industry.

Usership over ownership At a time when cash is King, a growing number are choosing to keep hold of their money and are opting for ‘usership’ over ‘ownership’ when choosing a vehicle upgrade.

Not only does rental and leasing provide flexibility, it also enables you to keep your cash in the bank and removes risks associated with fluctuating residual values when the vehicle is sold. Who knows what impact the UK’s departure from the EU will have on medium- and longer-term vehicle values? And what about residual values for electric vehicles? These uncertainties are all contributing factors driving the shift towards the less risky option of rental and leasing.

The overall sentiment across the industry is one of cautious optimism, reflected in the BVRLA’s recent Business Impact Survey which found that 70 per cent of respondents to the survey had seen ‘increased demand for more flexible access to vehicles’.

The leasing sector has ‘ridden the Covid storm’ well, with demand for Personal Contract Hire continuing to rise. The number of BVRLA vehicles on PCH is expected to reach record levels in 2021, accounting for four times more vehicles than four years ago, according to the BVRLA’s latest Leasing Outlook report.

A van plan With increased demand from the home delivery and essential services sectors adding to the many industries and small businesses

who rely on vans to carry out their day-to-day business, the van market has also grown, but this sector has some way to go to catch up with cars when it comes to electrification.

Whilst it is encouraging to see positive movement towards EVs within the new car market, the picture isn’t as rosy for electric vans. The lack of available supply of suitable electric vans has been a real concern and the variety of available models continues to significantly lag behind the electric car market. Further hampering things is the recent cut in the plug-in grant. Although much of the coverage has focused on cars, it is small vans which will feel the worst sting.

The BVRLA continues to urge the government to pay special attention to the needs of van users if it wants to see this portion of the fleet market hit the 2030 phase-out target, and on 28 June the association launched a Van Plan setting out some clear, practical measures that the government should consider if it wants to get van fleet decarbonisation on track.

Without the right fiscal support, the association is concerned that millions of van drivers and fleet operators could see business recovery stifled and government could see zero-emission targets not met if steps are not taken now to support fleets and the 3.4 million people who rely on vans every day to do their job. L FURTHER INFORMATION www.bvrla.co.uk supported by

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PANEL OF EXPERTS

EXPERT PANEL SME FLEETS While many small businesses may want to make the switch to electric vehicles, lack of time and expertise is causing some to shy away from the task. Our expert panelists explain how SMEs can be supported in their journey towards a zero-emission fleet

Johan Hanekom, director of electric vehicle strategy, The Phoenix Works

Johan is a globally recognised expert on strategy, innovation, and growth with an emphasis on corporate entrepreneurship.

Johan’s background blends consulting, management and business development across private and public companies. He was the global account director for electric vehicles at Enel X before joining The Phoenix Works as director of electric vehicle strategy.

Richard Parker, corporate sales manager, Webfleet Solutions

Webfleet Solutions’ EV expert Richard Parker has over 20 years’ experience in the fleet industry and specialises in improving fleet performance through data and digital solutions. In his role as corporate sales manager, he helps fleets to successfully navigate the transition to more sustainable transport solutions. He is also a contributor to the popular webinar series the EV Café.

Gavin Franks, director of business services, the AA

A graduate of City University, Gavin holds a degree in Aeronautical Engineering and is a qualified accountant. He has presented and written on subjects as diverse as the blurring of HR and IT, the role of the CIO, customer service and the digital journey, driverless cars and technology deployment.

Lee Brown, head of 0Zone, The Grosvenor Group Lee Brown is head of 0Zone, the Grosvenor Group’s innovative and market leading solution to help companies navigate their way smoothly towards ultra-low emission and electric vehicles.

Lee is also managing director of Interactive Fleet Management, the Grosvenor Group’s specialist fleet management business, which means he brings a perfect balance between how fleets can drive down their emissions and the implications of policy setting.

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Changes in staff Lee Brown, head of 0Zone at The Grosvenor Group highlights another issue that could be putting smaller businesses off electric vehicles: “The challenge smaller businesses face with any company vehicle is that if the driver leaves there is a much smaller pool of company car drivers to re-allocate the vehicle to. As a result, SMEs tend to prefer drivers to opt for cars that are widely popular, or ones that fit the role perfectly (e.g. an estate car for someone carrying equipment).

“With electric vehicles, therefore, there is a degree of anxiety that if a member of staff chooses, lets say, a pure EV but then leaves their role will someone else within the business, or the new person joining, want to take that EV on – especially if it doesn’t suit their lifestyle?”

Parking, as well as a lack of formal policies can also stand in the way. Lee Brown says: “Many SMEs also don’t always have the office parking space that larger companies have. This can cause problems with installing charging points at work – and some SMEs will be reliant on their office space providers, which can often be shared with other small companies. Without at-work charging it can become more of a challenge to persuade drivers to choose EVs. “SMEs also don’t tend to have such formal car policies and choice lists and so the decision as to what car an employee receives can be down to what is negotiated with the owner or directors.”

“The appetite for electric vehicles can, therefore, be driven by the personal attitude of that director rather than being down to a formalised fleet strategy,” Lee Brown adds.

Finance is another big factor in making EV purchasing decisions. Costing more than traditional ICE vehicles, fleets really do need to understand the total cost of ownership (TCO) of EVs. Johan Hanekom, director of electric vehicle strategy at The Phoenix Works, says:

“Understanding the total cost of ownership can be a mental hurdle. We help SMEs better understand that in the majority of cases, the TCO of an EV is favourable compared to the TCO of an ICE. Companies also need to do their homework to ensure they get a fit-forpurpose charging infrastructure, as there are a lot of vendors claiming to be best in class.”

Richard Parker, corporate sales manager at Webfleet Solutions echoes the importance of fleets understanding the total cost of ownership for EVs. He says: “With the eye firmly on the bottom-line, cost is a key consideration – and hurdle – when it comes to EV transition for SMEs. “Though investment in EV R&D and deployment has been exponential in recent years, the technology which powers electric vehicles and the materials and components used are still relatively expensive. As a consequence, many electric vehicles remain more expensive than their petrol or diesel-powered counterparts.

“Initial purchase or rental costs can cause resistance or hesitance, however, fleet decision-makers should consider the significant savings that can be made in everyday running costs.

“Not only do fleets benefits from a lower cost per mile with an electric powertrain, EVs also help fleets realise savings on maintenance costs. Conversely, this means that the TCO (total cost of ownership) is generally lower for EVs than for their diesel equivalents.”

SME Guide

The UK’s six million small businesses make up 99 per cent of the UK’s enterprises, employ 60 per cent of the UK workforce and generate £2.2 trillion of revenue to the economy, according to the government. They can therefore have a significant impact on the environment if they take measures to reduce their carbon footprint. Acknowledging this, the government has recently launched a campaign encouraging small businesses to commit to cutting their emissions in half by 2030 and to net zero by 2050.

However, while many small and mircobusinesses may want to make the switch to electric vehicles, lack of time and expertise is causing many to shy away from the task. We ask our panelists what they hear as the main reservations from SMEs about making the switch to zero emission vehicles, and how they address them.

Gavin Franks, director business services at the AA, believes that, although concerns exist, the picture is a pretty positive one when it comes to smaller businesses and zero emission vehicles. He explains: “We know that 84 per cent are more likely to consider adding EVs to their fleet, compared to 12 months ago. We know this as we recently undertook research with 100 SME fleet managers for our ‘New Horizons: technology customer service and the evolving automotive landscape’ report. The research showed that 23 per cent already use EVs in their fleet and 50 per cent expect to have EVs in their fleets in five years’ time.”

Pointing out the barriers, however, Gavin says that the lack of EV charging infrastructure is one of the main reservations for SMEs, but the landscape is changing daily. Gavin says: “According to ZapMap data, at the start of July there had been 723 new charging devices installed in the UK in the previous 30 days, with the overall figure for the number of chargers nationwide changing daily.”

Making EV drivers feel supported should something go wrong is important to reassuring smaller businesses that are considering electric vehicles. Gavin says that the AA provides customer support for over

Time and resource Another issue SMEs may find is that they lack the resource to manage fleets. Richard Parker says: “In the absence of a fleet manager or external solution, the task of fleet decision maker often falls to the business owner or other personnel. With limited resources, lack of industry knowledge, and a tendency to be risk adverse, it is understandable that there is a reticence from SMEs to make the EV switch.”

Range anxiety and charging limitations can also be an issue. Richard Parker says: “Though these concerns are legitimate, range capabilities are constantly being improved, thanks to tech innovations, and extensive EV fleet roll-out is being made more feasible, thanks to significant infrastructure investment from the government. For example, the government recently committed to installing 1,800 new ultra-rapid charging points at motorway service areas as part of Ofgem’s £300 million investment in over 200 low carbon projects.”

Small businesses may also be put off by the limited vehicle choice, but with manufacturers committing to being exclusively zeroemission by the end of the decade, this will change. “These developments are helping to accelerate fleets’ readiness for the EV switch, says Richard Parker. “In fact, Webfleet Solutions research revealed that almost two-thirds (65 per cent) of LCVs used commercially in the UK could be replaced by electric models (based on those vehicles that drove less than 300km a day over a 12-month period).” E Issue 134 | GREENFLEET MAGAZINE

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AN IMPORTANT MOMENT IN TIME: WHY SALARY SACRIFICE IS SO RELEVANT NOW FOR BUSINESSES OPERATING VEHICLE FLEETS Companies looking to save money, improve staff remuneration and reduce emissions have entered into a unique bubble of time.

For the next 4 years or so, the financial benefits of Salary Sacrifice are very appealing – all thanks to the Government’s hugely attractive benefit in kind (BIK) rates on ultra-low emission and electric vehicles.

If employees opt to sacrifice a part of their salary and, instead, have an ultra low emission or electric car, the numbers, for both employee and employer, are particularly strong. This could be the moment businesses have been waiting for to encourage employees into greener vehicles, while saving money.

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Why not get in touch and book in some time with one of our experts?

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Reducing ICE vehicle emissions For fleets with ICE vehicles, opportunities to improve fuel economy are still plentiful, points out Richard Parker. He explains: “More intelligent and intuitive routing and scheduling can help bring companies closer to their green ambitions. Live traffic information, combined with other telematics data, can enable smarter navigation, helping drivers to avoid congested roads and prevent idling, as well as navigate drivers to their destination via the quickest, most fuel-efficient route.

Improved visibility of the fleet’s realtime movements can also improve daily workflow and minimise wasted mileage.”

Telematics also gives you an insight into how staff drive. Richard Parker says: “The complete oversight of driver behaviour offered by telematics can also assist in forging a more sustainable fleet. Information on driver performance, such as incidents of harsh steering, braking, speeding and idling, helps to identify opportunities to improve fuel efficiency – and cut emissions.

“Drivers can receive predictive advice and alerts via their sat nav devices, such as when to take their foot off the accelerator on the approach to roundabouts or junctions, to help them achieve a

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Wider green plans Aside from choosing greener vehicles, there are other ways smaller businesses can reduce their environmental impact.

Reducing travel is one of the easiest measures, believes Lee Brown. He explains: “We all saw during the lockdowns how simple it was to shift from travelling to meetings to having them online, and the environmental benefits of less travel were witnessed across the world.

“The reality is, now that we are seeing lockdown measures easing SMEs (like all businesses) are perfectly placed to re-evaluate their business travel to achieve a far greener model.

“By using Zoom and Teams meetings for the functional day-to-day catch ups, but travelling for face-to-face meetings when its required, means companies will see their annual mileages fall – and this opens the door for the adoption of electric vehicles without concerns about range anxiety and whether they are suited to covering very high mileages.”

Focusing on the issue of grey fleet, Lee Brown says that companies can support their drivers with a personal contract hire offering. He says: “At Grosvenor, we find when drivers opt out of the company car scheme and choose cash, that’s the perfect moment to entice them with a really competitive range of PCH deals so that they move seamlessly from a company car to a brand new, low emission PCH car.

“Just by doing this solves the problem of cash drivers using their allowance to buy an unsuitable gas guzzler for business use, or older vehicles that can be unreliable, high in emission and a grey fleet headache.

It’s for this reason why Grosvenor’s personal contract hire solution is growing at such pace in the corporate sector.”

more sustainable style of driving.

“It is important that driver coaching is seen as a positive, empowering and collaborative exercise that benefits both driver and business. We have seen some powerful results from driver training trials, with one client projected to save 14,000 lbs of CO2 per annum, from just three of its fleet vehicles.”

The energy efficiency of tyres should also be a factor in reducing ICE fleet emissions.

Richard Parker explains: “Researching and selecting more energy efficient tyres can also help. For example, Bridgestone’s Duravis range for vans and Ecopia for trucks both use their NanoPro-Tech compound to lower the internal friction between the different tyre compound elements, which in turn reduces top compound energy loss.”

Other ways to travel Another way to reduce companies’ environmental impact is to consider all travel options through Mobility-as-a-Service.

Richard Parker explains: “Technologies are emerging that offer integrated journey planner capabilities, with real time information about the availability of ‘greener’ modes of transport for any one journey.

Restrictions can be put on high emissionemitting transport options and employees can be encouraged and incentivised to make more eco-friendly choices for individual journeys.

“Green incentives and employee benefits are becoming more popular, as employees become more environmentallyaware. Schemes such as Cycle to Work benefits, can encourage company-wide, collective responsibility and help cement companies’ commitment to being a sustainable and conscientious employer.”

Getting the driver engaged is key to getting SMEs to reduce their environmental impact, says the AA’s Gavin Franks. “This may be to help increase the take-up of electric and other alternatively-fuelled vehicles in the fleet, or drive more efficiently when behind the wheel. Whatever the power source of the vehicle, it’s possible to conserve energy to make the fuel or charge last longer and therefore have minimum impact on the

environment – plus, save costs along the way! Drivers can be educated on the most efficient driving techniques through expert driver training, such as through the AA’s training arm, DriveTech,” says Gavin Another way for SME fleets to go greener is to look at renewable energy, according to Johan Hanekom: “SME fleets could install other Smart Energy assets, such as solar panels and heat pumps, which as well as the environmental credentials, produce financial savings. Employees should also be encouraged to adopt eco-friendly behaviour, such as using their own mug rather than a paper or plastic container.”

Service, maintenance and repair Service, maintenance and repair (SMR) can take up a lot of time for SMEs, time that should be used on more business critical matters. And fleet downtime can be a drain on SMEs, as Richard Parker explains: “Fleet downtime is costly for SMEs and can be a significant drain on the business’ finances and productivity levels.

“Smaller operations already have limited resources and managing vehicles, from organising services, maintenance, and fuel management, to tax, insurance and compliance, can be extremely time-consuming.”

Telematics is one way that can help manage the administrative side of fleet management.

Richard Parker says: “The relationship between telematics data and robust service, maintenance and repair (SMR) offers high value, helping free up time of fleet decision makers to spend on driving business growth and improving the bottom line, rather than dealing with the varied needs of the fleet.

“WEBFLEET’s vehicle maintenance planning tools, for example, enable fleet decision makers to make use of real measured mileage reported by the odometer, directly from their vehicles, to plan maintenance intervals. Ata-glance reports can be generated offering maintenance overviews. These enable fleet decision makers to keep tabs on everything from service intervals to MOTs. Users can also create maintenance tasks for each vehicle, E Issue 134 | GREENFLEET MAGAZINE

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SME Guide

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copy maintenance tasks to vehicle groups, monitor their status and plan accordingly.

“Although EVs have fewer moving parts, contributing to lower maintenance costs than their ICE equivalents, such solutions for effective SMR management remain paramount to minimise costly downtime.

On-board diagnostics, malfunction alerts and connected EV health data, including battery status, will become increasingly important elements of this, ensuring preventative maintenance work is carried out in a timely manner.

“The impact of harsh driving styles on fleet maintenance costs – which may include aggressive cornering, braking or speeding – cannot be underestimated and drivers should be encouraged more smooth and considerate driving can help reduce wear and tear.

“Telematics can provide the individual scores and profiles of drivers needed to set performance benchmarks and help drive down incidents that could increase the possibility of costly vehicle repairs.”

Another way to manage SMR is to outsource, believes Gavin Franks from the AA. He explains: “Outsourcing service, maintenance and repair (SMR) is a really effective way to not only save your business time but to take a proactive approach to meeting all obligations to ensure the smooth and safe running of your fleet.

“At the AA, our Prestige division can handle every aspect of SMR and provide enhanced tracking and reporting on your fleet through the Unity platform.

Through taking a proactive approach to SMR, fleets will also benefit from reduced downtime, by getting vehicles back on the road quicker and avoiding potential delays to MoTs and services.

“Prestige has a network of over 560 approved garages to carry out SMR work and this can reap savings of up to 30% on standard dealership prices for parts and labour. And, of course, all work is covered by a full warranty process. SMR is definitely an area for SMEs to look into to see if they can save time and costs.”

SMR can be included for contract hire vehicles, and Lee Brown believes this is good option for SMEs: “For companies that contract hire their vehicles, we still advocate choosing a full maintenance solution so that SMEs can pass the worry and risk over to us regarding their SMR. “Some might argue that you can save by choosing a non maintenance contract, but in the long run the fully maintained option means company directors can budget with confidence and not have to worry about the constant barrage of repair bills.

“If an SME owns its cars and vans, we would firmly recommend a maintenance management solution where our maintenance technicians manage, monitor, authorise and pay for all of the repairs on your behalf, with one consolidated invoice at the end of the month.

“Very few SMEs have a dedicated fleet manager, and even less have someone who is a fully qualified mechanic to oversee each vehicle repair. Our advice

is to simply outsource it so that you can save money and focus your attention on your core business activity.”

When it comes to the maintenance of EV charge points, Johan Hanekom advises fleets to introduce a EVSP model, where all the hassles of installing to maintaining and financing charge points will not impact their core business. “We can offer tailored endto-end solution and 100 per cent up-time guarantee,” adds Johan.

SMEs and the support they need While there are ample examples of large companies adopting EVs and making pledges to electrify their entire fleet, smaller businesses may be daunted by the journey to electrification. So what support would benefit them, from both government and industry?

“SMEs must be listened to and their views taken into account,” says Gavin Franks from the AA. “Just as we have recently done with our research among SMEs to inform our ‘New Horizons’ report, it’s important everyone involved in the journey to 2030 and electrification understands the specific needs and challenges of SMEs. I urge SMEs to speak out and ask the tough questions of suppliers, as well as government. I appreciate this isn’t always easy but I’m always happy to listen – as is the wider AA team – and support how best we can. We liaise closely with government on a range of motoring subjects and seek to give drivers a voice through the information we collate.”

Lee Brown from Grosvenor believes that the amount of information to digest can be daunting. He comments: “The difficulty for SMEs is that there is so much information to consume making it really hard to disseminate and stay on top of it. From the latest EVs being launched by the manufacturers, through to EV charging , grants, taxation etc, SMEs don’t have the internal resource to allocate time for this.

“Also, many agencies, partners or suppliers have a very limited remit which means if you rely on them you’ll probably only hear one aspect of the bigger picture.

“In our opinion, its very much the contract hire or fleet management company’s role to pull all

DRIVING THE SWITCH TO CLEANER FLEETS | www.greenfleet.net

of the information together, interpret it and put it out in a digestible format. This is something we have been doing for years as part of our 0Zone solution and our focus is across all of our customers – from large PLCs to SMEs.” Richard Parker from Webfleet points out that some local authorities are allowing for the trialling of electric vehicles to help small business with EV uptake. He says: “Highways England has teamed up with certain councils, including Leeds, Coventry, and Nottingham, to allow businesses to trial electric vehicles. This is commendable and more councils should consider applying for the £936m fund.”

Regarding support for electric vehicle charge points, Richard Parker points out that the government’s Workplace Charging Scheme can be a powerful incentive and source of support for SMEs planning to transition. He says: “The voucher-based scheme provides support towards the upfront costs of the purchase and installation of EV chargepoints.

The contribution is limited to 75 per cent of purchase and installation costs.

“The government have made changes to encourage use of the scheme, including increasing the number of sockets a company could claim for from 20 to 40 and an extension of voucher validity from 120 to 180 days.

“Furthermore, where a company allows employees to charge their own electric vehicles at the workplace, there is no taxable benefit for the provision of that free electricity. Combined with the ability to claim a 100 per cent FYA of any financial investment towards Vehicle Charging (until 31 March 2023), it is a good time for SME businesses to be looking at investing.”

Johan Hanekom believes that continued subsidies and cost parity with ICE vehicles will help smaller businesses make the switch to electric. He says: “All parties in the value chain have a duty of care towards all their customers to ensure they are given the requisite support to transition to zero emissions. Continued subsidy support from the government will be critical in the very short term. In the medium to long term cost parity needs to be such that adopting an all-electric future makes complete financial sense.” L

Ensuring SMEs are not overlooked in the switch to EVs

Drivers are positive about electric vehicles, which is another reason why businesses should consider alternatively fulled vehicles.

In fact, the AA’s 19/20 Operational Fleet Report indicated employees favour EVs for work purposes rather than personal use, while 73 per cent of the fleet managers surveyed felt the use of EVs could actually be better for driver health.

SMEs should also be reassured that if they breakdown in an electric vehicle, they have support. Most of the AA’s Patrols are now trained to the equivalent of IMI Level 2 and a third of its Prestige Network of over 500 As the UK moves closer to switching to electric vehicle fleets, garages are already EV capable. The addition how can we ensure smaller businesses have the information of the AA’s Freewheeling Hub allows us to recover EVs from the roadside, extending and support they need to confidently make the switch? our operational capability. The AA has also invested in a hybrid training rig and concept hydrogen refuelling van, so they have all bases covered, giving drivers peace of mind.

The AA yellow paper also points out the ‘Last mile’ savings of The alternatively fuelled vehicles. The AA’s use of ‘micromobility’ vehicles, busines such as smaller vans, bikes s services and scooters, for local and division has lau ‘last mile’ delivery makes the n use of alternatively fuelled “yellow ched a new ” pape vehicles more suitable r called than Keepin those run on petrol or gt diesel, particularly as more SMEs o he UK’s n th clean air zones are activated Road e in UK cities. Not only does this benefit fleets economically, but environmentally too.

The UK’s almost six million SMEs have had partners, ask the difficult questions

There is also the tax relief to a challenging 12 months, with preparations and make sure their voices are heard. consider – pure EVs will not receive any for Brexit and the impact of COVID-19.

“Indeed, we recently celebrated a 98th Benefit-in-Kind tax for 2020/21 – irrespective Although refreshing the SME fleet mix anniversary with one of our SME customers, of the date the vehicle was registered. In may not have seemed business critical, the which is a fantastic testament to our heritage 2021/22 they will attract a BiK rate of just journey to zero emission road transport of working with smaller businesses. We’re 1 per cent, and just 2 per cent in 2022/23. for new cars and vans in 2030 is picking ready to listen, support and guide now, just up pace. Backed up by calls from the likes as we have been for more than 100 years.”

No one-size-fits-all approach of the British Chambers of Commerce, AA President Edmund King OBE, said: “As the right support will help SMEs embrace Investigating alternative fuels is expected, but often overlooked, SMEs opportunities and get ahead of the EV curve.

The government’s current goal is for zero net represent a wide range of organisations from In response to this, the AA’s business services emissions by 2050. It has brought forward an single person operations through to multi-site division has launched a new “yellow” paper end to the sale of new petrol, diesel and most offices. These businesses also span a huge ‘Keeping the UK’s SMEs on the Road’, which hybrid cars and vans by 2030, which means variation of sectors ranging from retail through gives advice to smaller businesses and this milestone is now less than a decade away. to construction and finance so they all have explains the AA’s commitment to ensuring While this seems like a long way off, and very different needs. Therefore, there’s no onethey are not overlooked as they navigate electric vehicles may not appear right for every size-fits all approach to supporting SMEs. What the journey to a zero emission fleet. current business need, it is an exciting time is clear, is that for our economy and innovation Luke Flinders, head of affinity partnerships, for the industry and the AA has pledged to to thrive, SMEs must also succeed and it’s vital British Chambers of Commerce, said: “We support drivers in their next steps into EV. these businesses get the right support, tailored warmly welcome this pledge of support for Van usage has increased over the last to their specific needs. Managing a fleet, be it SMEs from the AA. Businesses have been 25 years, with 55.5 billion miles driven by one vehicle or over 50, is no exception to this. busy adapting since the events of 2020 and vans in 2019. Yet, while the use of ultra low “We understand that every SME will be early 2021 but it is hugely important smaller emission vans is increasing, it’s relatively using, procuring and managing its business organisations aren’t overlooked. SMEs need low at just 10,400 licensed vans at the vehicles differently. While we work with clear advice and trusted partners in order to end of 2019 (Department for Transport, each organisation to offer bespoke advice, be able maximise the opportunities ahead.”

September 2020). So, there are opportunities there are core principles that underpin fleet Marc Samuel, head of SME and B2B telesales for SMEs, whatever the make-up of their management, be it for breakdown and at the AA, added: “2020 was a year we will vehicles, looking to refresh their fleet and set accidents or regular service, maintenance never forget and one that many businesses themselves up for the next stage of growth. and repair. We’ve created this paper to are still working hard to navigate. Now, more The AA’s yellow paper explains why SMEs collate all of that advice and insight into one than ever, we want to ensure SMEs are front should consider alternatively fuelled vehicles. place, to support our SME customers.” L of mind and getting the support they need.

It says there’s a range of cars and vans “We’re at a really exciting point in on the market, so it is all about deciding automotive history and, looking ahead, there which fuel or power source is right based FURTHER INFORMATION are many options for businesses to embrace on the business’s needs. It recommends Download the AA’s Yellow Paper low emission vehicles and the benefits for fleets take the time to analyse how their from www.theaa.com their operations. I urge SMEs to lean on their vehicles are used and to get expert advice.

SME Guide

ELECTRIC VEHICLES

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SME Guide Written by Florentine Roy, project lead from the Innovation team at UK Power Networks

ELECTRIC VEHICLES

Showing small businesses the way to decarbonise Small and micro businesses want help with weighing up the costs, savings and practical implications of making the change to electric vehicles. Florentine Roy, project lead from the innovation team at UK Power Networks, explains how small businesses can confidently make the switch Small businesses are at the heart of the UK’s economic recovery from Covid-19, and UK Power Networks is doing all it can to help make the sector bounces back better.

We estimate there are more than two million Small to Medium-sized Enterprises (SMEs) across the areas we serve, and over the past year we’ve really focused on finding new ways to help them overcome some common challenges of transitioning their fleet to electric - which have intensified during the pandemic.

Transport accounts for 28 per cent of greenhouse gas emissions in the UK, which is a stark statistic and it’s one of the largest contributors to the climate crisis. EV uptake is accelerating with around 4.5 million EVs forecast to connect to the grid in London, the East and South East network by 2030.

Transitioning to electric UK Power Networks distributes electricity to 8.2 million homes and businesses across London, the South East and East of England and is a key part of helping the UK transition to low carbon electric transport and heating.

We recognise we have a role to play to make it as easy as possible for businesses to make the transition, and we’re supporting fast, affordable and inclusive roll-out of EV infrastructure as part of a smart, flexible energy system.

From our point of view, our role is to be an enabler of the transition to electric vehicles.

We cannot be an obstacle to it happening, in fact we need to drive it. I think that in many

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respects SMEs have the same worries and concerns as the wider public when buying EVs; the first being cost, the second a lack of information and the third being infrastucture.

As part of our work with the Federation of Small Businesses (FSB) and the Mayor of London’s EV Taskforce to support the wider move towards Net Zero, we have talked to 1,200 SMEs and 88 representative bodies about electric vehicles. Many want to make the switch to EVs but we heard they lacked the time and expertise to prepare – making them the most likely group to get left behind in the transition to low carbon.

An action plan The one thing most business owners wanted, was a central, trusted source of real-life EV examples, to help them weigh up the costs, savings and practical implications. So in the run-up to the COP26 global climate conference, we are collaborating in the

Zero Carbon Business Partnership with the FSB, to develop a central online advice service, packed with case studies, showing small businesses the way to decarbonise.

After business representatives told us of their concerns and based on our learnings, we segmented SMEs into groups with similar needs and developed an action plan for each of these.

We launched the White Van Plan project to segment the SME market, investigate specific needs and tailor support in the transition to a low carbon economy. The objective of this research was to develop a comprehensive understanding of SMEs, understand how SMEs use vehicles, what barriers they may face in transitioning to electric mobility and how UK Power Networks could help them on this journey.

We developed the first segmentation of SMEs based on vehicle usage, and prioritised key actions to support SMEs in their EV transition.

Microbusinesses Microbusinesses, who make up 96 per cent of SMEs, are currently the least likely to switch to EVs, so we prioritised supporting this group first. These microbusinesses want help with weighing up the costs, savings and practical implications of making the change. We are now collaborating in the Zero Carbon Business partnership to develop a central online advice service for small businesses wishing to decarbonise.

This acts as a hub, with tailored content designed to address head-on the key barriers being raised by each SME segment.

We are striving to provide tailored and relevant guidance to support the EV transition of about 800,000 SMEs who operate a vehicle for business purposes and to do that we are among those who have put in place a

Microbusinesses want help with weighing up the costs, savings and practical implications of making the change. UK Power Networks is now collaborating in the Zero Carbon Business partnership to develop a central online advice service for small businesses wishing to decarbonise

DRIVING THE SWITCH TO CLEANER FLEETS | www.greenfleet.net

SME Guide

David Savage, managing director of Savage & Sons Electrical Ltd

Microb central information and working hard to make point with clear, sure we are ready for our who m usinesses, a k accessible customers to charge them. e u p per cen 96 information We are innovating to t of SME are curr that SMEs know meet what is a significant s , e they can trust. technical challenge. likely tontly the least Through s w i t ch t electric our Extra Care Small businesses vehicles o Register and wider One business owner we engagement we have contacted was David Savage, also worked closely managing director of Savage & with SMEs through online Sons Electrical Ltd in Bedfordshire, surveys and discussions to who said: “I’ve been thinking about better understand what difficulties they face switching to electric transport for years. I in the event of a power cut and how we can firmly believe it’s an important step and best tailor our support to meet their needs it’s only going to become more necessary and deliver for them. This is about action in the future. For small companies to based on their feedback, not just talking. be interested in EVs, it is vital they We are already seeing a substantial rise understand the potential financial benefits in the number of EVs in our network areas and get extra support, especially during

the challenges we are facing right now.

It’s great to hear about projects like this aimed at helping companies like ours.”

FSB national chairman Mike Cherry said: “Small businesses are committed to sustainability, and a gradual, affordable move to electric vehicles will be an important step along this journey. It is very welcome that UK Power Networks gained a detailed understanding of their needs and the support which will be necessary both to help as many as possible transition to electric vehicles in the future where the available technology allows, and to make sure the infrastructure they will need alongside that will be provided.” L FURTHER INFORMATION www.ukpowernetworks.co.uk/innovation

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Important information, Business users only: Based on a 22MY I-PACE EV400 SE standard specification, non-maintained. Excess mileage charged at 20.8p per mile + VAT. Must be returned in good condition to avoid further charges. Contract Hire subject to status. 18+ only. This promotion cannot be used together with other manufacturer’s promotions and is subject to availability at participating Retailers only for new vehicles registered by 30 September 2021. Contract Hire is provided by Jaguar Contract Hire, a trading style of Lex Autolease Limited, Heathside Park, Heathside Park Road, Stockport SK3 0RB. Model shown may not reflect 22MY specifications. Consult your local Retailer for 22MY specifications. ^Benefit In Kind Tax rates for 2021-22 financial year.