Reducing transport carbon footprint and fuel costs

Karl AndersFleet Consultant

What does green fleet management mean?

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How much does a tonne of CO2 cost?

• Diesel

• 390.6 litres

• Jan 02 = £294.53• Jan 04 = £306.64• Jan 06 = £365.23• Jan 08 = £426.56• Jan 10 = £444.14• Jan 12 = £553.52• Jan 13 = £544.10

• Petrol

• 448.6 litres

• Jan 02 = £318.39• Jan 04 = £344.84• Jan 06 = £400.90• Jan 08 = £467.71• Jan 10 = £501.35• Jan 12 = £596.41• Jan 13 = £592.83

H1 Arial Bold 10/12ptH2 Arial Regular 10/12pt 4

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The cost of fuel efficiency

• 99g/km• 119g/km• 139g/km• 159g/km• 179g/km• 199g/km

Assuming 15,000 miles & Diesel @ £1.46

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The cost of fuel efficiency

• 99g/km (65.5mpg) = £1,520• 119g/km (54.5mpg) = £1,827• 139g/km (46.7mpg) = £2,132• 159g/km (40.8mpg) = £2,440• 179g/km (36.2mpg) = £2,750• 199g/km (32.6mpg) = £3,054

Assuming 15,000 miles & Diesel @ £1.46

Financial impact of fuel prices

• Average diesel price‒ 2002 = £0.76‒ 2013 = £1.46

• Mileage cost ‒2002 = £1,296‒2012 = £2,489(15,000 miles @ 40mpg)

‒2012 = £1,991 (@50mpg)

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Company car tax tablesCO2 Emissions 2016 - 17 2017-18

(g/km) Petrol Diesel Petrol Diesel Petrol Diesel P & D P & D0-50 0% 0% 0% 0% 5% 8% 7% 9%51-75 5% 8% 5% 8% 9% 12% 11% 12%76-94 10% 13% 11% 14% 13% 16% 15% 15%95-99 11% 14% 12% 15% 14% 17% 16% 16%

100-104 12% 15% 13% 16% 15% 18% 17% 17%105-109 13% 16% 14% 17% 16% 19% 18% 18%110-114 14% 17% 15% 18% 17% 20% 19% 19%115-119 15% 18% 16% 19% 18% 21% 20% 20%120-124 16% 19% 17% 20% 19% 22% 21% 21%125-129 17% 20% 18% 21% 20% 23% 22% 22%130-134 18% 21% 19% 22% 21% 24% 23% 23%135-139 19% 22% 20% 23% 22% 25% 24% 24%140-144 20% 23% 21% 24% 23% 26% 25% 25%145-149 21% 24% 22% 25% 24% 27% 26% 26%150-154 22% 25% 23% 26% 25% 28% 27% 27%155-159 23% 26% 24% 27% 26% 29% 28% 28%160-164 24% 27% 25% 28% 27% 30% 29% 29%165-169 25% 28% 26% 29% 28% 31% 30% 30%170-174 26% 29% 27% 30% 29% 32% 31% 31%175-179 27% 30% 28% 31% 30% 33% 32% 32%180-184 28% 31% 29% 32% 31% 34% 33% 33%185-189 29% 32% 30% 33% 32% 35% 34% 34%190-194 30% 33% 31% 34% 33% 36% 35% 35%195-199 31% 34% 32% 35% 34% 37% 36% 36%200-204 32% 35% 33% 35% 35% 37% 37% 37%205-209 33% 35% 34% 35% 36% 37% 37% 37%210-214 34% 35% 35% 35% 37% 37% 37% 37%215-219 35% 35% 35% 35% 37% 37% 37% 37%

220 and above 35% 35% 35% 35% 37% 37% 37% 37%

2013 - 14 2014 - 15 2015 - 16

Class 1A National Insurance

• Companies pay Class 1A NIC on taxable benefits

– Currently 13.8% of the BIK value

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Tax comparison – what difference does it make?

Focus 1.6 Edge Focus 1.6TDCi Edge ECOnetic

Focus 1.0 Edge EcoBoost

CO2 (g/km) 136 88 109

Personal car tax cost £619 / £1,239 £485 / £970 £430 / £860

Personal fuel tax cost £802 / £1,604 £549 / £1,097 £549 / £1,097

Total £1,421 / £2,842 £1,033 / £2,067 £979 / £1,958

Annual difference £388 / £776 £55 / £109Class 1A NIC

Company car £427 £334 £297

Fuel benefit £553 £379 £379

Total £981 £713 £675

Annual difference £268 £3812

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The cost of business miles (time)

• 20,000 miles @ 40 mph• Headcount cost = £15,000

• 30,000 miles @ 40 mph• Headcount cost = £22,500

• 40,000 miles @ 40 mph• Headcount cost = £30,000

Based on 8 hour days / 5 days a week & £30 p/h

An accurate carbon footprint reflects:

• The ability of an organisation to:– Report– Monitor– And manage core fleet costs

• The approach taken to address Duty of Care issues– What are the employees driving (cash / grey)?– Does their business mileage place them at greater risk?

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What is an accurate footprint?

1. Actual fuel used (litres)– By fuel type

2. Mileage + Car specific CO2

– +15% ‘real life driving’ factor3. Mileage + Average CO2

– Fuel type + Engine size▪ For cars pre March 2001

4. Mileage + Average CO2

– Fuel type5. Mileage + Average car CO2

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How can we reduce carbon and fuel costs?

What are other organisations doing?

• Mileage reduction where possible

• Most fuel efficient vehicles

• Efficient driving has a big impact

• Data capture / measurement

• Grey fleet management

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How can we help?

www.energysavingtrust.org.uk

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