Fleet managers embrace the environment

Companies are embracing environmental issues with one in four companies having a green transport plan and one in five having a formal emissions target.  These are the results from the annual guide to company car policies by the PricewaterhouseCoopers LLP reward survey business, Monks.

‘Company Car UK’collected data from 197 companies who collectively manage over 80,000 cars.  The report covers car availability, car allocation policy, flexibility, cash allowances, fuel provision, mileage allowance, fleet policy, health and safety and the environment as well as taxation.

Rupert Hutton, head of the rewardand share plan practice at PricewaterhouseCoopers LLP in the Midlands, said:

“This years Budget saw big changes to how company cars are taxed, with greater linkage to CO2 emissions. The 2008 company car UK report looks at how companies have been preparing for these changes and shows how seriously an increasing number of companies are taking their environmental impact.

Corporate manslaughter legislation that became effective in April 2008 has forced many companies to take another look at their car policies with 46% stating that they had reviewed their policies in light of the legislative changes. It will be interesting to see how this percentage changes over the next year as more employers realise that it is now, more than ever, their responsibility and liability to ensure their fleet is roadworthy.”

Key findings of the report include:

The environment

• 1 in 4 companies have a green transport plan
• Average fleet emissions are at a median of 164g/km
• 1 in 5 companies have a formal emissions target, a further 36% are considering setting a target
• 1 in 4 companies place a CO2 emissions limit on choice of car.

Taxation

From April 2008, tax liabilities for the expenditure on cars are now closer linked to CO2 emissions, as well as new vehicle excise duty bands being introduced over the next few years.

While currently 44% of companies define the cost of the car by purchase cost or list price, with an increase in emission related tax liability, companies may consider that whole life cost and lease cost are more effective measures.

Cash allowances

The availability of cash allowances has risen steadily in the past decade after a surge in 1995. However, as more emphasis is placed on an employer’s responsibility for their ‘grey’ fleet, and lower emission cars become a more attractive benefit, some companies may be considering rolling back the provision of cash allowances. This is supported by the findings that 85% of companies offer cash allowances; the lowest amount since 2003.

Purchasing the report

Companies willing to submit data may purchase the publication for £650 – a significant discount on the non-participant’s rate of £1300. For further details please contact: Sebastian Scott on +44 (0) 207 804 5145 or sebastian.scott@uk.pwc.com.

Contact details
Email: Rupert Hutton
Tel: +44 (0)121 265 5520