Updated: Monitoring mileage could save £1bn

23rd August 2012


Newscars

Related Topics

Related tags

  • Transport ,
  • Business & Industry ,
  • Procurement ,
  • Employee engagement ,
  • EMS

Author

IEMA

Accurately tracking the distance travelled by fleets could save businesses £1 billion in fuel costs and 2.4 million tonnes of carbon, reveals the Energy Savings Trust

Using software to calculate the number of miles being driven in fleet vehicles can help firms to cut business travel by 10% by encouraging staff to drive more economically, it claims.

The trust has been working with baked bean manufacturer Heinz which has seen mileage claims from its employees fall by 28% since adopting a mileage management system. Employees log details of their journeys into the system which automatically calculates the distance travelled.

The data collected by such systems can help firms to identify wasted or unnecessary journeys and provide a way of incentivising employees to cut their business travel, saving thousands on fuel bills and mileage allowances confirms the trust with Heinz able to reduce its pence-per-mile rate by 10%.

With UK companies expected to spend £10.9 billion on fuel for their fleets this year, the Energy Saving Trust has calculated that such systems could save £1 billion as well as cutting firms’ carbon emissions by 10%, equating to 2.4 million tonnes of CO2.

“Mileage management systems offer a win-win scenario for companies and their staff,” said David Nicholas, fleet partnership manager at the Energy Saving Trust.

At the same time, researchers in the US have found that electric vehicles (EVs) can be cheaper over their lifetime than conventional fleet cars.

In an assessment of the total costs of ownership of alternatively fuelled vehicles, including hybrid and fuel-cell-powered cars, the researchers concluded that the low costs of charging small and medium-sized EVs and hybrids brought their lifetime costs below that of petrol equivalents.

According to the report, battery electric vehicles, such as the Nissan Leaf, offered the lowest total costs of the 17 vehicles compared.

The news came as the government announced it was co-funding a new £13 million research unit at Warwick University to help the development of batteries for electric vehicles, to support the UK’s burgeoning EV sector, and that it was providing an additional £11 million of support to UK companies trialing low-carbon heavy goods vehicles (HGVs).

Firms including the John Lewis Partnership, Tesco and Robert Wiseman Dairies will receive a portion of the funding as a part of a Technology Strategy Board and Department for Transport competition aimed at demonstrating the business and environmental benefits of running fleets of alternative and dual-fuel haulage vehicles.

“These trials will reduce CO2 emissions from freight and provide important information from a range of real-life situations that will increase industry confidence in low carbon trucks in the long term,” said freight minister Mike Penning.

“Operators often cite lack of gas refuelling infrastructure as a barrier to the take up of alternatives to diesel. These trials include £2.4 million funding for publicly accessible gas stations which will encourage investment in low carbon trucks, and other vehicles, delivering long term benefits for the environment and reduced costs for operators.”

Thirteen two-year projects have been awarded funding under the competition including Robert Wiseman Dairies’ trial of 40 new 40-tonne articulated lorries powered by natural gas and a John Lewis scheme to cut carbon emissions from its HGVs by 70% through improved aerodynamics and substituting diesel with bio-methane.

As well as helping firms to meet the additional costs of buying low-carbon HGVs, the fund will also ensure 11 new refuelling stations are built in the UK, which will be available for use by other operators.

Subscribe

Subscribe to IEMA's newsletters to receive timely articles, expert opinions, event announcements, and much more, directly in your inbox.


Transform articles

Four in five shoppers willing to pay ‘sustainability premium’

Despite cost-of-living concerns, four-fifths of shoppers are willing to pay more for sustainably produced or sourced goods, a global survey has found.

16th May 2024

Read more

One in five UK food businesses are not prepared for EU Deforestation Regulation (EUDR) coming into force in December, a new survey has uncovered.

16th May 2024

Read more

Each person in the UK throws a shocking 35 items of unwanted clothes and textiles into general waste every year on average, according to a new report from WRAP.

2nd May 2024

Read more

The largest-ever research initiative of its kind has been launched this week to establish a benchmark for the private sector’s contribution to the UK’s 2050 net-zero target.

2nd May 2024

Read more

Weather-related damage to homes and businesses saw insurance claims hit a record high in the UK last year following a succession of storms.

18th April 2024

Read more

The Science Based Targets initiative (SBTi) has issued a statement clarifying that no changes have been made to its stance on offsetting scope 3 emissions following a backlash.

16th April 2024

Read more

One of the world’s most influential management thinkers, Andrew Winston sees many reasons for hope as pessimism looms large in sustainability. Huw Morris reports

4th April 2024

Read more

Vanessa Champion reveals how biophilic design can help you meet your environmental, social and governance goals

4th April 2024

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert

IEMA Cookie Notice

Clicking the ‘Accept all’ button means you are accepting analytics and third-party cookies. Our website uses necessary cookies which are required in order to make our website work. In addition to these, we use analytics and third-party cookies to optimise site functionality and give you the best possible experience. To control which cookies are set, click ‘Settings’. To learn more about cookies, how we use them on our website and how to change your cookie settings please view our cookie policy.

Manage cookie settings

Our use of cookies

You can learn more detailed information in our cookie policy.

Some cookies are essential, but non-essential cookies help us to improve the experience on our site by providing insights into how the site is being used. To maintain privacy management, this relies on cookie identifiers. Resetting or deleting your browser cookies will reset these preferences.

Essential cookies

These are cookies that are required for the operation of our website. They include, for example, cookies that enable you to log into secure areas of our website.

Analytics cookies

These cookies allow us to recognise and count the number of visitors to our website and to see how visitors move around our website when they are using it. This helps us to improve the way our website works.

Advertising cookies

These cookies allow us to tailor advertising to you based on your interests. If you do not accept these cookies, you will still see adverts, but these will be more generic.

Save and close