Four Key Actions for Business Leaders Regarding Vehicles This Year

As we move towards a more sustainable future, it’s essential for business leaders to embrace change in their vehicle fleets. We are currently presented with a unique opportunity to make impactful decisions.

1. Embrace Sustainable Choices: Transitioning from traditional petrol and diesel fleets to electric or hybrid options is not just a trend; it’s a strategic move that reflects forward-thinking leadership.
2. Commit to Responsibility: New Zealand’s businesses play a vital role in reducing emissions and contributing to climate goals. It’s time to recognise the importance of sustainable practices and take proactive steps.
3. Engage with Change: The call for action on climate change is clearer than ever. By prioritising sustainability, organisations can align with global efforts and demonstrate their commitment to a greener future.
4. Lead by Example: Bold decisions today will set the standard for tomorrow. Leaders who make informed choices about their vehicle fleets will inspire others and help drive meaningful change in their industries.

By taking these steps, businesses can not only contribute to environmental goals but also enhance their reputation and resilience in an evolving market.

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Addressing Emissions and Urban Mobility: Key Considerations for Business Leaders

Our vehicle fleet represents a significant opportunity for reducing emissions, currently accounting for around 40% of a company’s carbon footprint. With businesses purchasing about 70% of new cars sold in New Zealand, the choices made this year will have lasting effects on our environment for the next two decades.

As we assess the current landscape, New Zealand’s fleet is expanding rapidly, with over 4.5 million vehicles on the roads, valued at more than $30 billion. In Auckland alone, there are over one million cars, with an annual increase of approximately 40,000.

Traffic congestion is a growing challenge, costing Aucklanders an estimated $1.3 billion each year in lost productivity. Additionally, air quality issues remain a concern, with significant health implications for our communities.

What Can Business Leaders Do?

1. Prioritise Sustainable Fleets: Transition to electric or hybrid vehicles, which can significantly reduce emissions and enhance corporate responsibility.
2. Promote Flexible Mobility Solutions: Encourage carpooling, public transport, and other innovative transportation options to ease congestion and support a more sustainable urban environment.
3. Invest in Infrastructure: Advocate for and support the development of charging stations to facilitate the transition to greener transportation options.
4. Engage Employees: Foster a culture of sustainability within organisations, encouraging employees to consider alternative commuting methods and supporting them in making greener choices.

By embracing these strategies, business leaders can play a pivotal role in shaping a more sustainable future for New Zealand while improving urban mobility and overall quality of life.

Key Strategies for Managing Your Vehicle Fleet

1. Elevate Fleet Management on Your Agenda
• It’s true: fleet management may not seem thrilling, and it can be complex. However, as a business leader, prioritising your fleet is essential for driving meaningful change.
• Even small changes, like shifting from one vehicle brand to another, can spark conversations from the break room to the boardroom. Transitioning from petrol to electric or rethinking salary packages related to vehicles can create a significant impact.
• Managing the fleet involves multiple stakeholders—from procurement and HR to marketing and finance. It requires strong leadership and collaboration with experienced partners to navigate these dynamics successfully.
2. Rethink Personally Assigned Cars and Parking
• The tradition of assigning cars and parking spaces has deep roots, symbolizing success and convenience. However, we have a unique opportunity to shift this mindset.
• With average car utilisation in New Zealand being less than 5%, it’s worth asking if this is the best use of resources. Imagine the potential if employees had more flexible options!
• Consider offering a mobility allowance instead. Encourage employees to explore various transportation methods—walking, public transport, ridesharing, car sharing, or even micro-mobility options like scooters and bikes.
• To be true sustainability champions, business leaders must move away from the legacy of personally assigned vehicles.
3. Rationalise Your Fleet Size
• This may not be what your leasing provider wants to hear, but now is the time to reassess your fleet size and optimise your resources.
• Review GPS utilisation reports and observe parking patterns. How many vehicles are sitting idle during the day?
• By reducing the number of vehicles and focusing on electric options, you can make the transition to EVs more cost-effective. Fewer cars on the road will benefit both your bottom line and the environment.
4. Optimise Your EV Fleet
• Introducing EVs is just the beginning. Many businesses overlook the importance of utilisation; EVs often sit unused.
• Support your team in transitioning to EVs with proper training and resources. It’s not just about the vehicles—charging infrastructure is equally important for maximising efficiency.
• Thankfully, new technologies and specialised providers are available to help you implement these strategies effectively.

By adopting these strategies, business leaders can enhance fleet efficiency, promote sustainability, and contribute to a greener future.