RESEARCH carried out by YouGov on behalf of Edinburgh leasing broker Gofor show that 21 per cent of companies have no fixed plans for fleet decarbonisation.
The survey was conducted among 1,000 senior HR decision makers representing a cross-section of companies. They were questioned on plans for tackling the reduction of carbon emissions on their vehicle fleet as part of an environmental, social and governance (ESG) agenda.
Across all surveyed businesses that used vehicles, YouGov found that 21% either had no plans to reduce their fleet carbon output at any point or were unsure. A further 11% expect to look at fleet decarbonisation in more than 12 months.
Plans may need to accelerate as the ZEV mandate, which legislates towards 100% zero emission vehicle production, requires 80 per cent of new cars and 70% of new vans to be zero emission by 2030. Meanwhile the new Labour Government has pledged to reintroduce the 2030 ban on the sale of new petrol and diesel-engined cars overturned by the previous Conservative administration.
Mind you, it seems that the message on decarbonisation is gaining significant traction: 49% of respondents were actively reducing their fleet carbon emissions; a further 19% had plans to do so within the next year.
Only 20% of respondents offering salary sacrifice
YouGov also questioned respondents on electric vehicle salary sacrifice. Just one in five businesses is currently using EV salary sacrifice, with an additional one in five having plans to implement it. The remainder had mixed awareness of the scheme or were simply unsure.
“We’re hearing that a lot of companies want to reduce their fleet carbon emissions but are unsure where to start. We undertook the YouGov research to better understand where UK businesses are on their decarbonisation journey. We’ve been surprised by just how many companies still need to formalise a fleet electrification plan and are yet to take up EV salary sacrifice. These findings will help organisations focus on the environmental opportunity presented by their company fleets and we can help them to realise this opportunity as part of a more advanced ESG plan.”
The YouGov findings form a core part of Gofor’s environmental, social and governance white paper entitled ‘ESG Matters: How fleet electrification can kick-start your ESG strategy’ (right).
Gofor says it has produced the guide to support SMEs implement an ESG plan and is available via the Gofor website here. The paper highlights that one of the biggest impacts on a business’s carbon footprint is likely to be its vehicle fleet. It includes:
- Business benefits of an ESG strategy
- ESG implementation and the importance of a credible environmental approach
- Tackling fleet emissions with EV salary sacrifice
- How to introduce EV salary sacrifice in 4 steps
- Integrating company vehicle decarbonisation into your ESG strategy
Salary sacrifice remains a highly tax efficient funding method for electric vehicles and continues to see strong growth. The latest figures from the BVRLA show 47 per cent year on year growth for the funding method as brokers report an uplift in BCH contracts.
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Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.
