Over half of a public sector's business travel conducted in grey fleet cars
19 December 2014
Author: Daniel Puddicombe
Over half of all public sector organisations' business travel is undertaken by drivers in grey fleet vehicles, according to top-three BC50 company Alphabet.
However, the leasing company said public sector companies are re-examining their grey fleet vehicles and are investigating other transport avenues.
According to research by iGov for Alphabet, concerns around mileage (39%), administration (36%), environmental impact (34%) and health and safety are encouraging public sector companies to look at other methods of transport.
Just under a fifth of organisations (18%) are using electric vehicles for business travel and 30% of these businesses are planning on expanding the number of EVs on their fleet within the next 12 to 18 months.
Over a third (35%) of the 348 respondents said environmental factors are now part of their business travel targets.
"While the grey fleet remains significant within public sector organisations, the hidden financial and environmental costs, combined with concerns around duty of care, are causing more organisations to re-examine how to reduce their grey fleets and focus on vehicles that are appropriate and fit for purpose," said Dean Hedger, head of public sector at Alphabet.
NHS England is implementing a new charter in the next 12 months to cut emissions from business mileage, almost all of which is conducted in grey fleet vehicles.
The top-three BC50 company recently announced it has taken 738 electric vehicle orders, exceeding its 2014 by 24%.
The leasing company launched an EV consultancy arm - AlphaElectric - in November and said it has seen an interest in companies looking to add electric vehicles to their fleets.
BMW-owned Alphabet said over 240 of its customers have at least one electric vehicle on their fleet.