24th July 2008
Almost Three-Quarters Say Environmental Fleets Important But Less Than Half Allocating Green Spend
A Lombard Vehicle Management survey of SMEs with fleets of up to 100 vehicles has found that although a high proportion say that running a green fleet is important to them, the majority are not allocating the budget to do so, and that better support and information is badly needed.
Although only 18% said it is 'very important' to have a green fleet, that figure is boosted to over 70% when added to those rating it as merely 'important'. However, this is qualified by a worrying lack of spend, with 56% currently not prepared to allocate any budget.
The discrepancy between desire and actual commitment is reflected in the fact that although 65% profess to be 'likely' or 'very likely' to choose more environmentally sensitive vehicles, only 26% are equally likely to restrict user-choosers to greener cars. In addition only 36% are prepared to consider hybrid cars, and just 17% in the case of electric commercial vehicles.
It was also found that carbon offsetting is perceived as being considerably more expensive than it really is. The monthly cost of offsetting a standard panel van over 20,000 miles a year is around £7 a month, but the majority of respondents cited a cost in excess of that, with 40% citing more than £10 per month. Encouragingly, however, three-quarters of businesses would be prepared to pay up to £4 a month, and many say they would want public recognition of the fact, such as through signwritten vehicles, indicating that corporate image and not just cost is a key driver.
"In many ways the overall findings are not surprising, but they are still concerning," says Head of Lombard Vehicle Management, Rob Bailey. "The majority of respondents have fleets of less than 50 vehicles, and these companies may be feeling the effects of the tougher economic conditions more than larger businesses.
"Nevertheless, for a small business cost is always paramount and it is perhaps unrealistic to expect them to adopt green fleet policies on a widespread basis. It is clear that, going forward, it will be necessary to both educate the business community about the true cost of going green and the financial advantages of doing so, and perhaps for them to be incentivised, if they are to make the environmental fleet commitment."
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For further information please contact Mark Carbery, The Longshore Consultancy:
T: 01832 272197
M: 07968 317962
E: mark.carbery@longshoreconsultancy.com
EDITORIAL NOTES
Lombard Background:
- Lombard is the UK's largest asset finance company and part of The Royal Bank of Scotland Group. Its specialised vehicle management business is one of the largest in the UK, managing a fleet of over 115,000 cars and light commercial vehicles of virtually every make and model
- Based in Birmingham, Lombard Vehicle Management has a specialist team of over 420 people supporting a 5,000-strong customer base including major businesses such as The AA, British Gas and IKEA
- The company was ranked fourth in the 2007 FN50 league table of fleet leasing providers
- Awards: Fleet Management Service Award, Van Fleet World Honours 2008
Best Business Motor Finance Provider, Business Moneyfacts
Awards 2008
Best Motor Vehicle Finance Provider, NACFB Awards 2007 - Visit Lombard Vehicle Management's website
