Better business driving - Director Magazine · A greener road ahead Once maligned as gas-guzzling eco-offenders, motorists are increasingly embracing greener ways of driving – both

BetterbusinessdrivingHow to maximisevehicle efficiencyand minimise yourenvironmentalimpact

BUSINESS WISDOM

In association with

1 Lex_cover_Feb15 rs cr COMBINED_BSI_Supplement 19/01/2015 12:22 Page 1

Business wisdom

With the roll-out of green legislation escalating asthe EU’s 2020 emissions targets draw closer,businesses of all sizes are being urged to takeenvironmental protection more seriously. Byimplementing environmentally focused policies tocut emissions, companies are not only ensuringregulatory compliance but significantly benefitingtheir bottom lines through improved efficiency, whileaddressing their ecological impact from a communityand social perspective.

In this supplement we explore how companiescan embrace this eco-revolution and take advantageof new technologies to achieve tangible businessbenefits. In the fight to minimise environmentaldamage, the automotive industry has come to thefore. Progression in engine technologies, coupledwith cost-effective options such as leasing, meanthat compromises are not required when selectingvehicles. We take a close look at the options theseadvances provide for increasing efficiencies throughlower petrol consumption, together with providingtips to reduce your motoring carbon footprint.

I hope you enjoy the supplement and look forwardto hearing your feedback.

Simon BarterHead of SME Direct, Lex Autolease

Driving green motoring forward

Group editor Lysanne CurrieWriter Christian KochChief sub-editor Robert SlyCreative director Chris RoweCommercial sales director Jo McGrawAdvertising manager Ben HammondMarketing director Tom Christie-MillerProduction manager Lisa Robertson

Published by Director Publications Ltd for the Institute of Directors, 116 Pall Mall, London, SW1Y 5ED. Opinions expressed do notnecessarily reflect IoD policy. The IoD accepts no responsibility for views expressed by contributors.

TREND REPORT: THE ENVIRONMENT MATTERS 4Why motoring is undergoing its own eco-revolution, plus a look at four of thebest green vehicles for business driving

MAKING YOUR EXECUTIVE CARPLANET-FRIENDLY 810 valuable tips on how to reduce theimpact of your transport on theenvironment

EVERYTHING YOU NEED TOKNOW ABOUT LEASING 1010 frequently asked questions aboutleasing, and how Lex Autolease can helpyou with eco-friendly transport solutions

Editorial 020 7766 8950 [email protected] 020 7766 8900 [email protected] 020 7766 8960 [email protected] of Directors 020 7839 1233 www.iod.com

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LESSTAXING

Get a quote today:CALL: 0800 012 1234 VISIT: LEASING4BUSINESS.CO.UK

Small businesses are discovering a more effi cient way to fi nance business vehicles with Lex Autolease.

Find out how leasing can be less taxing on your time,as well as your balance sheet.


Petrol-powered enginesare fighting back, thanks

to better and more fuel-efficient turbos“


Business wisdom

4 Director Business wisdom

hort of using tyresmade from hemp or converting your

combustion engine to algae(not as strange as it seems – read on), drivers can oftenfeel there is little more theycan do to minimise theecological impact of theirmotoring. Yes, there mightbe an ever-growing plethoraof fuel-efficient cars on themarket plus tax incentivesaplenty, but many motoristssuppose they need tosummon superhuman levelsof green halo-ness to reachforthcoming emissionstargets (see the EU’s 2020target of 95g of CO2 per kmfor a new car). Which isn’tgreat news for air qualitycampaigners – in the UK,transport accounts for nearlya quarter of greenhouse gasemissions, more than half of which comes from thehumble car.

Yet some great progresshas been made in recentyears. A 2014 report by theSMMT showed that CO2

emissions have fallen acrossevery strata of cars, andexecutive cars in particular.Emissions from companymotors in 2013 were lowerthan those from small citycars in 2010.

The increasing popularityof diesel over the last decadealso accounts for this CO2cutback. Diesel-fuelled carsburn less fuel, thereforeproducing fewer grammes ofCO2 per km than thosepowered by petrol. They’realso in demand. In 2010,sales of diesel cars overtookthose of petrol for the firsttime, possibly aided by eco-friendly governmentlegislation. Today, vehicleswith high CO2 emissions arepenalised by higher fuel dutytax, while diesels with thelowest CO2 emissions areexempt from road tax andcongestion charges. (Theyalso receive better insurancepremiums too.)

But petrol-poweredengines appear to be fightingback, thanks to better turbos

that make them more fuel-efficient. Four years ago,diesel-fuelled cars from Lexproduced 16 per cent fewerCO2 emissions per kilometrethan petrol-fuelled cars. By2013, this had dropped toseven per cent. Furthermore,a 2013 ministry reportshowed that diesel fumeswere more damaging tohealth than petrol engines.The findings, published bythe Department of Energyand Climate Change, foundthat diesel-related airpollution contributes to lungdisease, heart attacks andasthma, costing the NHSmore than 10 times as muchas those problems caused bypetrol fumes.

Environmental issues arealso being taken moreseriously by employers.Recent research by LexAutolease has shown that 45 per cent of managers haveintroduced environmentallyfocused policies in the lasttwo years. Meanwhile, 42 percent of fleet managers said

A greener road aheadOnce maligned as gas-guzzling eco-offenders, motorists are increasingly embracinggreener ways of driving – both for business and personally – as research by LexAutolease and the Society of Motor Manufacturers and Traders (SMMT) shows

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comes into force, while alllarge organisations need to complete their ESOS energy audit assessment byDecember – somethingwhich will no doubt pleasethose 44 per cent of fleetmanagers who would likestricter emission standards.

However, by 2020 (theEuropean Commission’s CO2emissions target year), greenautomotive technology mayhave radically changed theway we drive. Self-drivingcars are due to hit Britishroads in early 2015, withcities such as Bristol,London, Coventry andMilton Keynes all hostingtrials. A sports car (theQUANT e-Sportlimousine)that runs on saltwater wasrecently certified for use onEU roads. Then there’s theUS firm Sapphire Energy,which produces algae-basedcrude oil, meaning algae-powered cars could soon be a reality too. However, thereare already plenty ofenvironmentally friendlytransport options available,as our selection of greenfleet vehicles shows here...

By 2020, green automotive technology may have radically

changed the way we drive”

FOUR OF THE BEST

Mitsubishi OutlanderThis award-winning plug-in hybrid embracesnew technology for the price of a diesel.Offering generous space, it’s a popularchoice for an electric vehicle company car.

Nissan LeafWhy has this pure electric car satisfied somany of Lex Autolease’s customers? Well,there’s the running costs of 2p per mile,along with the fact that it heats up

instantaneously in winter (any ice on the glass dissolves in a matter ofseconds). Meanwhile, every full charge gives you a range of 124 miles andthere are zero emissions too.

BMW i3When it hit European showrooms in 2013,this funky four-seater was much lauded forits futuristic design, its onboard petrolgenerator (which increases vehicle range to

160 miles) and impressive CO2 emissions of 13g/km. Lex Autolease has twoBMW i3 models in its collection – a pure electric i3 and the Extended-RangeElectric Vehicle.

Renault ZoeYou’ve probably seen the TV advertssoundtracked by The Jam’s classic songThat’s Entertainment. This 100 per centelectric car is particularly good for short

journeys around town, such as shopping runs, with a range of 130 milesand no toxic tailpipe emissions.

Four of the most efficient eco-friendly cars in Lex Autolease’s collection



they welcome the idea ofrentals based on mileage,with 12 per cent saying theyliked the idea of employeecar clubs in city centres.

Despite this burgeoningeco-awareness, popularity ofelectric vehicles and hybridsremains fairly debatable.Only two per cent of vehiclesin Lex Autolease’s fleet (thecompany is responsible forone in every 33 new UKcar/van registrations) is an electric car, reflectingnational trends which showthey account for 2.3 per centof the market.

However, SMMT statisticsrecently revealed thatalternatively fuelled vehicles(AFVs) were up 59 per centin October 2014, whileelectric carmakers Tesladelivered a record 7,785sedans in the third quarter of last year. Incentivesabound for electric, hybrid orAFVs, including governmentgrants of up to £5,000 from the purchase price,exemption from London’spricey congestion charge andbenefit-in-kind taxation.

This taxation can also be

advantageous for companycars, although Lex Autoleasehas found that it triggersconfusion in many executivecar drivers. Company car taxwas reformed in 2002 to an emissions-based system,with the charge calculated byapplying a percentage figure(determined by fuel type and CO2 emissions) to thelist price of the car. If youown a cheap car and emitminimal CO2, you’re muchless likely to find the taxmanscary. Despite this, only 50 per cent of company car

drivers surveyed knew thatCO2 emissions were involvedin calculating their tax bill.Furthermore, 45 per centassumed their tax wasevaluated by engine size and almost a quarter (23 percent) believed it was affectedby the make of car. One inseven even thought their taxwas determined by family orfriends driving the car.

A slew of emissions-slashing policies will beushered in during 2015. ThisSeptember, the Euro 6emissions standards for cars

Business wisdom


CASE STUDY


ABANDON AIR CONAir conditioningincreases fuel use at

all speeds. If travelling at lowspeeds (less than 40mph),open the windows instead – it’ll save you more.

DON’T ‘IDLE’ THEENGINEIdling the engine

can increase emissions by 13 per cent. To prevent thisneedless fuel waste, wherepossible drive away as soonas the engine starts.

LIGHTEN YOURLOADExcessive weight

such as roof racks and boxesincrease both drag and fuelcosts. By removing them,motorists can save as muchas 20 per cent on fuel costs.

TAKE AN ECO-DRIVING COURSE At the Institute of

Advanced Motorists’ (IAM)Ecolution lessons, you’lllearn how to save fuelthrough some ‘defensive driving’ techniques.Visit www.iam.org.uk/eco

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SAVING FUEL (AND MONEY) THROUGH LEX AUTOLEASE

German industrial group Siemens is one of the world’s largestengineering and electronics firms. In the UK, it employs nearly 14,000people and has a fleet of 4,500 vehicles (of which 3,500 are cars and1,000 are commercial vehicles).

Siemens wanted to reduce the cost of running this fleet, plusimprove service delivery to consumers. But how could it achieve thiswhile adhering to its sustainability agenda?

Siemens asked Lex Autolease to look at how things could be donedifferently within its light commercial vehicle fleet. This wasn’t just amatter of looking at direct costs such as fuel and leasing, but alsoindirect factors such as productivity being affected by having the wrongvehicle visit remote sites in bad weather. Taking a holistic stance,Siemens consulted workers across the business.

The upshot was that the fleet now employs a narrower range ofvehicles. To accommodate changes in working practice, there was also a significant downsizing of vans too.

As a result, fuel consumption has been reduced, leasing costs havebeen lowered, while vehicle utilisation has improved, with Siemensmaking substantial savings over the lifetime of running the vehicle.

“Lex Autolease asked us some searching questions, which led us toquestion what we did and how we worked,” says Paul Tate, commoditymanager at Siemens. “Involving people from around the business, on a consensual basis, enabled us to ensure that these sometimes radicalchanges to vehicles and working practices were more readily acceptedby the business. I would advise people not to be afraid to ask foroutside help and to work with suppliers in partnership.”

How Lex Autolease helped one engineering giant save £1m a year byreducing its fuel consumption


Business wisdom


TAKE A NEWAPPROACHThe average new car

emits about 20 per centfewer emissions than othercars currently on UK roads.The reason for this? Carmanufacturers now considermeeting CO2 emissionstargets as a core factor whendetermining the design ofthe motor. This probablyaccounts for CO2 emissionsfor new British cars fallingfrom around 164.9g/km in2007 to 128.3g/km last year*. To calculate fuel emissions for used and older cars, visit http://carfueldata.direct.gov.uk

CONSIDER GOINGELECTRIC With government

incentives ranging from a 25per cent grant to exemptionfrom London’s congestioncharge, there’s arguablynever been a better time to purchase an electric car.Especially when cutting-edgevehicles such as Tesla’sModel S, the criticallyacclaimed Nissan Leaf, andBMW’s i3 battery electrichave entered the market too.

CAR-LEASE ORSHARE Drivers are

increasingly realising thatleasing cars is a greener (andmore economical) way ofdriving, as the optionprovides access to vehicleswith advanced greentechnology that may nothave been affordable ifbought outright. Asautomotive technologycontinues to reduce carbonemissions in new models,leasing provides drivers withaccess to the latesttechnology with new vehiclemodels available uponcontract renewal.

CONVERT TOVEGETABLE OIL As well as being

useful for breakfast fry-ups,making roast potatoes andbaking cakes, cooking oil can

also make you drive moreefficiently too, with zero netCO2 emissions (or so itssupporters claim). UK-basedenterprise Veg Oil Motoring(www.vegoilmotoring.com)can convert your vehicle torun on the biofuel fromaround £1,200.

EMPLOY‘HYPERMILING’ Hypermiling (aka

eco driving) is the practice ofdriving your car so it deliversbetter fuel economy. Bydriving a little more slowly(decreasing speeds from75mph to 65mph, say),avoiding sharp accelerationand limiting braking, it’sestimated that road userscan drastically reduce theirfuel emissions.See the RAC’s Easy on the Gas reportfor more (www.racfoundation.org)

GEAR UPDriving at lowerrevs automatically

slashes fuel consumption sochange up a gear at around2,500 revs in a petrol car or,alternatively, 2,000 revs in a diesel vehicle.

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10 tips for greener drivingHow to reduce your vehicles’ impact on the environment and your bottom line

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some money. As well as amore economical fuel bill androad tax, you’ll have less company car tax to pay too.This company car tax iscalculated by multiplying thecar price by five to 35 per cent (depending on the car’s CO2 emissions). Plus,cars with zero emissions

(such as electric cars) aren’ttaxed at all.

■ DOES LEX AUTOLEASEPROVIDE ANY OTHER ‘GREEN’SERVICES? A pioneer of ‘green’ fleetsolutions, Lex Autolease has a vast repository of hands-onexperience and expertise. It

even has a dedicated ‘green’team, which can give you anenvironmental analysis of your fleet, dispense practical advice on improving your eco performance, as well assuggesting how yourcompany’s cars can reducetheir mileage.

■ HOW DOES LEASING CARSWITH LEX AUTOLEASE WORK? Leasing a car from LexAutolease couldn’t be easier.All you need to do is check the prices and vehicles atleasing4business.co.uk, then select your vehicle,mileage and contract period(which lasts from two to fiveyears). Afterwards, LexAutolease will supply a quote.After credit approval, thecompany will order yourvehicle before delivering it to your door.

■ WHERE CAN I FIND OUTMORE ABOUT LEASING? Discover more atleasing4business.co.uk or call0800 012 1234.

You can savemoney by leasinglower-emissionvehicles”


Business wisdom

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■ WHO IS LEX AUTOLEASE? The UK’s largest vehicle-leasing business, responsiblefor one in every 33 new carand van registrations madenationwide. Having bolsteredBritish business since 1958 by leasing company cars, LexAutolease manages over280,000 vehicles, assistingover 6,000 home-grownenterprises in the process.

■ HOW CAN SMES BENEFITFROM LEASING? Leasing gives you bettercontrol of your finances. Youcan budget around fixedmonthly costs with no hidden surprises or risk ofdepreciation. Drive a brandnew car or van of your choice with optional servicing andmaintenance, road tax,breakdown cover and tyres included.

■ WHAT FINANCIAL SAVINGSARE THERE? Monthly lease payments aretypically cheaper than

repaying car loans, so yourcashflow is likely to beboosted as a result. Indeed,it’s estimated that the averageSME-owned vehicledepreciated by more than£10,000 over eight years, theaverage age of LCVs in theUK. SMEs are missing out ongrowth opportunities becausethey have almost £6.7bn tiedup in commercial vehiclessitting on their balance sheetsas a depreciating asset.

■ WHAT ARE THE CO2EMISSIONS OF LEX AUTOLEASECUSTOMERS' VEHICLES? The average CO2 of LexAutolease’s car fleet is123.8g/km – an improvementon 2012, when it was140g/km.

■ DOES LEX AUTOLEASEOFFER ECO-FRIENDLY CARS?It has 4,391 hybrid vehicles,which includes a plug-in fleetof more than 700 vehicles.These span plug-in hybrids,extended-range electric

All you need to knowWant to find out more about cashflow-friendly leasing?Lex Autolease has the answers

vehicles, plus Renault Zoe andKangoo ZE electric vehicles,both on contract hire.

■ AREN’T LOWER-EMISSIONCARS GENERALLY MOREEXPENSIVE? Not at all. By leasing loweremission vehicles, you can actually save yourself


BUSINESS ISLOOKING GOOD

Talk to Lex Autolease about how your business can benefi t from better vehicles for less than you may think.

Get a quote today:CALL: 0800 012 1234 VISIT: LEASING4BUSINESS.CO.UK


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Better business driving - Director Magazine · A greener road ahead Once maligned as gas-guzzling eco-offenders, motorists are increasingly embracing greener ways of driving – both