Managing an organization’s fleet – the green way

author

By: Midhun Menon A --

01 January, 2017

BLOG

Fleet managers are under intense pressure to reduce carbon footprint and implement green initiatives. Green fleet management focuses on reducing carbon emission and fuel consumption. Besides presenting an eco-friendly picture, it helps organizations to reduce costs, improve their bottom line, minimize accidents and implement a safe and secure fleet. Before acquiring a green fleet, organizations, however, should conduct a comprehensive study of current fleet size and benchmarking, maintenance and repair options, fuel usage patterns and ROI of new fleet.

There are several petrol-electric and diesel-electric variants available in the fleet market that helps reduce emissions. Popular auto majors such as BMW, Volkswagen, Audi and Ford have low emission models in their portfolio. Governments too offer support by providing reduced taxes for low emission vehicles and tax incentives for the purchase of alternative fuel vehicles. In the U.K., CO2 tax is £0 up to 130 g/km. It varies with slab and the tax is to £1,090 for cars emitting more than 255 g/km. In the U.S., CO2 is regulated at 250 g/miles (156g/km).

Key parameters to focus on while inducting a green fleet include:

Right size of vehicle and overall fleet size:

Fleet managers should focus on choosing vehicles with the lowest emission and should also ensure that the size of vehicle matches the intended usage.

Reduce petroleum usage:

Fuel constitutes 30-40% of the fleet operating cost. Therefore, alternatives to travel such as conference call or video conference can be adopted to reduce travel and save on fuel.

Use of alternate fuels:

CNG, LNG and hydrogen are few alternative fuels available in market today. An electric car is a better option as it needs only battery recharge to run the vehicle.




x

COVID-19: Assess impact on your suppliers and ensure business continuity with Beroe’s WIRE
(World Instant Risk Exposure)