1 Larger businesses are leading on Net Zero
Although the Government has pushed back on some of its Net Zero carbon policies, businesses are not changing course. Almost three-quarters of respondents (73.2%) said they already have a decarbonisation strategy in place or under development.
However, the results highlight a divide between large (over 250 employees) and small (1-50 employee) business. Small businesses were almost four times more likely to have no electric vehicles on fleet (48.1%) than large ones (12.8%) and less than half as likely to have a Net Zero strategy.
"The results highlight a divide between large and small business"
2 Electrifying cars is easier than vans
Vehicle manufacturers will face the first Zero-Emission Vehicle (ZEV) mandate in 2024, and adjusted each year, requiring a progressively higher share of new registrations to be electric. Next year, the targets are 22% for cars and 10% for vans, with large fines for non-compliance.
Fleets operate the newest vehicles on the road, so they will be at the forefront of that transition. For cars, latest BVRLA data shows 48% of new business contract hire car deliveries, 59% of finance lease and 91% of salary sacrifice volume is already electric. Vans have stagnated – year-to-date, only 5.5% of registrations are battery-powered, according to the SMMT.
3 Company cars are getting a green revival
the need to reduce CO2 emissions. This was the most common motivating factor, at 79.7% of all responses – significantly higher than fuel costs (49.2%) and corporate image (43.8%) in second and third place.
Again, demands differ among the smallest organisations, who are more likely to be focused on reducing their tax and fuel costs than larger businesses.
