Reducing your Fleet s C02. Tips and advice. What is the current situation? Driver behaviour. Vehicle choice. Efficient maintenance.

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1 Reducing your Fleet s C02

2 Global warming is said to be the greatest challenge of the 21st century. With a quarter of UK carbon emissions emanating from road transport, fleets are at the forefront of efforts to drive down CO2. This message was underlined by the Budget in March Alongside new carbon-based tax measures designed to raise more than 2 billion from vehicle users, the Treasury published a major report on the future for low carbon cars the King Review. If formally adopted by the Government, the King Review is expected to become the roadmap for cutting CO2 emissions from passenger cars by an ambitious 30% in the next five to ten years. It urges the Government to create a framework in which low carbon vehicle technologies can go from shelf to showroom as quickly as possible and where fiscal incentives and public education create a ready market for new, low emission products. Currently, the Government s policy is to encourage the polluter to pay.' Drivers can expect rising BIK taxes on greenhouse gases and higher operating costs for environmentally inefficient vehicles, for example higher congestion charges and VED. For businesses that reduce their carbon footprint there will be opportunities to take advantage of tax breaks, as well as a lower fuel bill! For example, a fleet of 200 drivers, averaging 15,000 business miles per year produces over 700 tonnes of CO2 during a year. If the fleet reduced its annual emissions by 20%, through measures such as mileage reduction and buying lower-emission vehicles, it could save over 140 tonnes of CO2 (and around 60,000 in fuel purchases). How do I know what my fleet's current CO2 is? Wanting to reduce your fleet s carbon footprint is one thing, but knowing what it currently is, is essential. Fuel cards are a powerful tool in this respect, they enable fleet operators to capture and analyse data on CO2 emissions, worked out on the actual fuel consumption of every vehicle, and the fleet as a whole. This gives companies a starting point, and from this, plans and targets can be set and monitored over time. What can I do to reduce my fleet's carbon footprint? There are a number of ways to reduce carbon emissions, mainly surrounding vehicle choice, maintenance, driver behaviour and the journey taken. To find out more detail on how you can reduce C02 click on the links above. By looking at each area in detail it will allow you not only to reduce CO2 but to enjoy additional business benefits - such as a reduction in repairs, wear and tear costs, an improved driver risk rating and a lower fuel bill.

3 What can my drivers do to reduce their C02 footprint? Your drivers play a very large role in determining your fleets' CO2 emissions. They do this through the way they drive; their attitudes and expectations; and the cars they choose. Let drivers know that reducing CO2 is an important goal for your business, and that they are expected to drive efficiently and avoid making unnecessary journeys. Include statements to this effect in the fleet policy and driver handbook. Drivers must start to realise the link between fuel consumption and C02, it is therefore essential for them to understand and act on the following points: Check your revs Change up between rpm. Revving your vehicle s engine wastes fuel; Avoid fast getaways at the traffic lights accelerate slowly when the light turns green. The faster you accelerate the more fuel you will consume. Avoid revving your engine before you turn it off. Anticipate road conditions and drive smoothly Avoiding sharp acceleration and heavy braking. This saves fuel, tyre wear and reduces accident rates. Drive smoothly aggressive driving increases fuel consumption and produces more CO2. Avoid accelerating or braking too hard this can reduce fuel consumption by more than 10% in urban areas. Use air conditioning sparingly As it significantly increases fuel consumption. Drive away immediately when starting from cold Idling to heat the engine wastes fuel and causes rapid engine wear. Turn the engine off when you re in a queue for a long period of time, or waiting for someone. Restarting a modern engine uses effectively no extra fuel. Avoid short journeys A cold engine uses almost twice as much fuel and catalytic converters can take five miles to become effective. Avoid excess idling Idling gets you nowhere but still burns fuel. Turn the engine off when you re in a queue for a long period of time, or waiting for someone. Stick to speed limits and make your fuel go further Driving at 85 mph rather than 70 mph uses 25% more fuel. It may be tempting to drive fast over long, empty roads but fuel-efficiency drops significantly over 70 mph. Use cruise control if you have it on major roads this helps you maintain a constant speed and, in many cases, will improve fuel consumption. Plan your journeys To avoid congestion, road works and getting lost. Check your tyre pressure regularly Under-inflated tyres are dangerous and can increase fuel consumption by up to 3%. If you re stuck in a jam, switch off Cutting the engine will save fuel and stop emissions. Plus before you drive: Remove roof rack when not in use - they increase drag significantly. If fully loaded, a roof rack can push up emissions by 30%. Keep your boot or back seat clear of unnecessary items that add weight to your vehicle. These notes are available in a separate drivers handout which can be found under fuel on Arval also offers a range of initiatives to help minimise emissions from everyday fleet activities including smarter driving through our Eco Driver Training Model.

4 Choosing more C02 efficient vehicles? Every vehicle purchasing decision will have an effect on the fuel consumption and CO2 emissions for the lifetime of that vehicle. To help with vehicle choice green labelling has been introduced, similar to the energy efficiency rating we are used to seeing on electrical appliances. Lower CO2 vehicles usually cost less, CO 2 emission figure (g/km) over their lifetime <100 A Not only will emissions be lower, fuel consumption B and therefore cost will also be reduced as well as C company car tax. In addition, from April 2008, cars emitting less than 120g/km of CO2 qualify for a D 10% rate of BIK. They will also enjoy a 100% E discount on the London congestion charge from F October 27th G Changes to capital allowances for business cars are due to take effect from April They will favour cars that emit 160g/km or less of CO2. This should make it more tax efficient to own or lease cleaner vehicles. More low-emission cars and light vans are coming onto the market in response to such incentives. Hybrids or electric cars are not the only way to achieve very low levels of CO2, nearly all the leastpolluting cars on sale in the UK have conventional petrol or diesel engines. Petrol V Diesel Petrol and diesel engines have different effects on the environment. Every litre of diesel fuel, when burned, produces about 2.6kg of carbon dioxide. Petrol produces about 2.3kg of carbon dioxide per litre. If drivers spend more time driving on motorways or on long distance trips, they should consider a diesel engine for fuel efficiency and lower CO2 emissions. Petrol may be a better choice if vehicles will spend more time in town, where air quality is a greater consideration. As more high-efficiency petrol cars come on to the market, it is important to base acquisition decisions on whole life costs, not just fuel type. Initiate a low emission vehicle policy Approaches to reducing CO2 emissions through vehicle policy will differ according to company culture and the nature of existing employment contracts. Policies can be designed to limit maximum emissions, mainly through choice lists. Drivers can also be encouraged or incentivised to make greener choices.

5 Maintaining your fleet and reducing emissions Vehicle condition has a significant impact on CO2 emissions. These rise considerably if engines are allowed to go out of tune or if faulty tyres or steering add to cars' rolling resistance. Potential carbon costs of vehicle faults:f Fault Out of tune engine + 10% Clogged air filter + 10% Misaligned wheels + 6% Under-inflated tyres + 3% Source: Department for Transport Increase fuel consumption by up to Here's a checklist of carbon-friendly maintenance and vehicle awareness practices: Service your engine - A well-maintained engine can minimise CO2 emissions, so follow your manufacturer s recommendation on servicing. Information regarding service intervals can be found in your vehicle manual. Keep your tyres at the right pressure Correctly inflated tyres are safer and last longer, an under inflated tyre can increase CO2 by as much as 3%. An under or over inflated tyre will wear more quickly and is also more susceptible to failing. The best time to check your tyre pressure is when it's cool outside or in the morning after your car has not been driven. Faulty wheel alignment will also slow down the rolling resistance of your car increasing CO2 emissions and wearing tyres out more quickly. Use the correct oil - Always use the appropriate grade of motor oil, as the manufacturer's recommended lubricant can prevent unnecessary CO2 emissions. Higher quality oils can also help your engine operate more efficiently. However, take care not to over-fill the oil. Keep an eye on your fuel consumption - The more aware you are of the amount of fuel you use, the more you can do to try to reduce your CO2. If you notice your fuel efficiency is decreasing it could indicate a problem with your vehicle.

6 How do I shrink the carbon footprint of journeys? Tackling unnecessary mileage is an essential part of reducing CO2 emissions. You can also do a lot to minimise waste during the journeys that have to be made. Plan trips and driving routes to avoid traffic congestion - Getting stuck in heavy traffic dramatically increases CO2 emissions per mile travelled. Use route planning tools in advance and set radios to receive traffic alerts. It is also worth considering that the quickest route could also be the longer route and so CO2 emissions could be higher. Drive less Encourage drivers to think about the trips they make and to use alternatives to driving such as video conferencing or home working. Promote car sharing, especially where a number of employees have to go to the same meetings. Develop a corporate travel plan - Travel plans help businesses assess and simplify their travel needs. Smaller companies can pool resources with neighbours to share costs and increase their target audience The Department for Transport offers a comprehensive "Essential Guide to Travel Planning" at its web site at:

7 In response to the environmental impact vehicles have and Government legislation, technology and fuel types are being developed on a continuous basis. It is worth remembering that many of these developments require higher demand levels and infrastructure enhancements to be truly effective and offer a mainstream proposition Vehicle development Car manufacturers are constantly improving the efficiency of conventional engines using techniques such as advanced combustion control, automatic stop-start, regenerative braking and lightweight materials. This will significantly reduce emissions from diesel and petrol over the next few years without requiring radical new technologies to emerge. Alternative fuels Bio fuels emit less fossil-derived CO2 per mile, or are made from renewable sources. By 2010, all retail fuel sold in the UK will contain a 5% of renewable 'bio' fuel, which is mixed prior to distribution. This approach does not require any enhancement to engines and doesn t affect prices at the pump. It is possible to run vehicles on higher concentrations of biofuel. However, the vehicles may have to be modified to prevent engine damage. There are also warranty implications as well as the issue of whether there is a sufficient refuelling infrastructure. The chart on the next page shows the advantages and disadvantages of alternative fuels currently available.

8 Fuel Type Description Pros Cons Biodiesel (first generation) Alternative to diesel fuel that is produced from the oil of crops such as oil seed rape or from waste food fats. Renewable. Ordinary diesel from most refuelling sites already contains 5% biodiesel. This does not affect engines or warranties. Extremely limited refuelling infrastructure for higher blends. Most manufacturers will not support warranty when high blends are used. Destabilising effect on world agriculture and food pricing. Bioethanol (first generation) Liquid bio fuel made from starch plants such as sugar beet and corn. Renewable. E5 (5% blend) is currently already available at most petrol retailers mixed with petrol. Extremely limited refuelling infrastructure for higher blends. Most manufacturers will not support warranty when high blends are used. Destabilising effect on world agriculture and food pricing. Road Fuel Gases LPG, CNG and LNG Fossil fuel produced from gas present in oil wells. Slightly lower CO2 emissions compared with petrol. Car manufacturers have turned away from LPG. Residual values remain poor and the refuelling infrastructure will not grow. Pump price has risen due to loss of duty. Hydrogen Can be burned in internal combustion engine or used to generate electricity via an on-board fuel cell. Theoretically a zero emission fuel, if the hydrogen is produced using renewable electricity (e.g. wind power). Fuel cell technology still in its infancy. Hydrogen is difficult to store and distribute in bulk. Electricity All-electric (battery). Potentially zero emission if primary electrical source is renewable. Limited range, although this is being overcome. Environmental damage / concerns over battery production & disposal. Hybrids Liquid fuel-electric hybrid. Lower emissions compared Environmental damage / to an all liquid fuel engine. concerns over battery production & disposal.

9 How fuel cards can help your fleet reduce CO2 Although careful selection of vehicles and fuel types play a major role in reducing emissions, fleets can still miss out on CO2 reductions if they do not closely monitor the performance of drivers and vehicles. Fuel cards are a powerful tool when it comes to driving down CO2 emissions. They allow fleets to capture actual fuel consumption and so emissions, which enables them to plan and manage their CO2 reduction programmes. Arval provide a suite of reports for use by Fleet Managers. Using information obtained from Arval fuel cards high pence per mile figures and inefficient drivers can be pinpointed. This allows action to be taken quickly, before costs and unnecessary CO2 emissions mount up. There are many additional benefits of using a fuel card The cost of fuel has risen dramatically. Today, it can account for as much as 25% of your entire fleet expenditure. Our fuel card is a simple, effective way to control this cost and keep paperwork to a minimum. Arval offers the leading fuel management service in the UK and more than 1.2 million of our fuel cards are now used in the UK. These are just some of the benefits you will expereince from this service. The cost-saving alternative to pay and reclaim If you currently re-imburse your drivers on a fixed pence per mile rate, you may be paying them too much. Fuel card reporting gives you the actual fuel cost per mile. So, you could save substantially on business travel costs by paying staff the real cost of the fuel. Easy access across the UK Drivers can use fuel cards at 95% of the major UK filling stations where the AllStar logo is displayed. This includes all the leading fuel brands, motorway services and low-cost supermarket sites. With such a large network of fuel stations to choose from, your drivers won't waste time and fuel searching for somewhere to refuel, therefore reducing their carbon footprint.

10 Manage your fuel costs through management information You can quickly find out where your fuel spend is going at any time with secure access to reports over the web. Not only does this information enable you to set fleet policies and monitor compliance, you might even pinpoint potential savings too. Taking the hassle out of invoice processing All your fuel costs appear on a single consolidated VAT invoice. Breakdown by card and cost centre enable you to reallocate cost and produce reports with ease. What is more, the invoice is approved by the HMRC for tax records. So, there is no longer any need to process individual till receipts, saving you valuable time and resources. Secure and flexible Advanced security features, such as the ability to detect suspect patterns of transactions, make fuel cards safe as well as convenient. And, we can block the use of lost or stolen cards within moments of you reporting it to us. You can also control how the card is used, restricting transactions to fuel, oil and vehicle washes for example. You can even decide whether to allocate cards to drivers, vehicles or both, giving you flexibility as well as control.

11 Driver Training from Arval Eco driver training not just good for the environment Eco-driver Training provides specific on-road driver tuition to drivers improve fuel efficiency and so reduce their carbon emissions. Using techniques that are endorsed by the Driving Standards Agency (DSA) you could make fuel savings of between 10 and 15% if these driving techniques are adopted. Eco-driver Training is usually carried out in conjunction with our Practical Driver Assessment programme, but training can be provided in isolation if required. The Benefits of Eco-driver Training This training can benefit both your company and drivers by: Helping you meet your 'duty of care' obligations By assessing the driving standards of your drivers and so gauging the risk to your business Reduce your fuel costs Through a series of improved driving techniques Reduce accident rates and vehicle repairs Safer driving techniques are explained Reduce fleet operating costs More efficient driving reduces wear and tear on vehicles so lowers maintenance costs Identify drivers who need additional driver training and then work out individual driver development plans For further information please contact your Account Manager

12 Ten tips for safer, greener, stress-free driving 1. Check your revs Change up between rpm. 2. Anticipate road conditions and drive smoothly Avoiding sharp acceleration and heavy braking. This saves fuel, tyre wear and reduces accident rates. 3. Use air conditioning sparingly It significantly increases fuel consumption. 4. Drive away immediately when starting from cold Idling to heat the engine wastes fuel and causes rapid engine wear. 5. Remove roof rack when not in use They increase drag significantly. 6. Avoid short journeys A cold engine uses almost twice as much fuel and catalytic converters can take five miles to become effective. 7. Stick to speed limits and make your fuel go further Driving at 85 mph rather than 70 mph uses 25% more fuel. 8. Plan your journeys To avoid congestion, road works and getting lost. 9. Check your tyre pressure regularly Under-inflated tyres are dangerous and can increase fuel consumption by up to 3%. 10. If you re stuck in a jam, switch off Cutting the engine will save fuel and stop emissions.

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