Greening corporate fleets

As the European Union (EU) intensifies its efforts to combat climate change and promote sustainable development, the transportation sector, which accounts for a significant portion of greenhouse gas emissions, is under increasing scrutiny. Corporate fleets, in particular, represent a substantial opportunity for reducing emissions and advancing the EU’s green agenda.

Fully supporting the European Commission’s commitment to accelerate the adoption of low and zero-emission vehicles in line with the Green Deal objectives, Leaseurope – the federation representing the leasing and automotive rental industries in Europe – has released a comprehensive position paper in response to the EU’s consultation on greening corporate fleets.

This document sheds light on the critical aspects of transitioning corporate fleets towards sustainability and highlights the challenges and opportunities within this endeavour.

Key findings of Leaseurope’s position paper

Economic and environmental benefits: Leaseurope’s position paper underscores the dual benefits of greening corporate fleets. Economically, companies can achieve significant cost savings through reduced fuel expenses and lower maintenance costs associated with electric vehicles (EVs). Environmentally, transitioning to EVs and other low-emission vehicles can drastically reduce carbon footprints, contributing to the EU’s goal of achieving climate neutrality by 2050.

Barriers to adoption: Despite the clear benefits, several barriers hinder the widespread adoption of green technologies in corporate fleets. The position paper identifies high initial costs of EVs, limited charging infrastructure, and the current range limitations of electric vehicles as significant challenges. These barriers are particularly pronounced for small and medium-sized enterprises (SMEs), which may lack the financial resources to invest in new technologies.

Policy recommendations: To address these challenges, Leaseurope advocates for a range of policy measures. These include:

• Incentives and subsidies: Financial incentives, such as subsidies for EV purchases and tax breaks, can help offset the higher upfront costs and make green vehicles more accessible to businesses.
• Investment in infrastructure: Expanding the charging infrastructure is crucial. The paper calls for coordinated efforts between the public and private sectors to increase the availability of charging points across Europe.
• Technology neutrality: While promoting EVs, Leaseurope emphasizes the importance of maintaining technology neutrality, allowing for the inclusion of other low-emission technologies such as hydrogen fuel cells and biofuels.
• Standardisation and regulations: Harmonising standards and regulations across the EU can simplify the adoption process for businesses operating in multiple countries.

Role of leasing and rental companies: Leasing and rental companies play a pivotal role in the transition to greener fleets. They can act as intermediaries, facilitating access to the latest green technologies without the need for significant upfront investments by businesses.

Approximately 54% of all vehicles registered in the European Union are purchased by Leaseurope members, which equates to almost €300bn of investment every year. The European fleet leasing industry is outperforming the rest of the new vehicle market in purchasing LEV/ZEVs.

Leaseurope suggests that leasing companies can help accelerate the turnover of corporate fleets, ensuring that older, higher-emission vehicles are replaced with newer, greener models more quickly.

Data and reporting: The position paper also highlights the importance of robust data collection and reporting mechanisms. Accurate data on vehicle emissions and usage patterns can inform policy decisions and help track progress towards sustainability goals. Leaseurope advocates for standardised reporting requirements to ensure consistency and transparency across the EU.

Conclusion

Leaseurope’s position paper provides a comprehensive roadmap for greening corporate fleets in Europe. By addressing economic, infrastructural, and regulatory barriers, and by leveraging the role of leasing and rental companies, the EU can make significant strides towards a sustainable transportation future.

The recommendations laid out by Leaseurope not only align with the EU’s broader climate objectives but also present a pragmatic approach to overcoming the current challenges. As businesses and policymakers collaborate to implement these strategies, the vision of a greener, more sustainable corporate fleet across Europe becomes increasingly attainable.