Fleet electrification could see business sustainability jeopardised by the rush to environmental sustainability – unless fleets put operational and financial strategies in place. 

Jo Ewen, director of client relations at Holman, says the goals of any business should dictate its plans for EVs

The warning comes from Jo Ewen, director of client relations at Holman, who says that fleets should not try to “fit EVs in” when they are not suitable but instead migrate to electric in tandem with the goals of the business.  

Discussions with Holman clients has revealed that some fleet managers are feeling pressured into switching to EVs by their business for a good CSR score, when the vehicles may not be suitable for purpose.

“There is real pressure and benefits to become greener and make the EV switch, which is understandable from a CSR and environmental perspective, but unless a comprehensive strategy is in place around transition, it could result in making their fleet, and their people, less effective,” she outlined.

“Fleets have to get a clear understanding of whether the transition is operationally sustainable and will enable them to support their own business and their customers into the future.” 

Ewen added that the problem was particularly acute for business-critical fleets with commercial vehicles or job-need cars – a perk driver might find an EV an excellent choice, whereas a high-mileage engineer in a van could struggle to fulfil their role. 

And this means that a thorough consultative approach is required to ensure that the switch to electrification isn’t being rushed. 

“Getting it wrong will result in fleets spending a lot of time trying to rectify the situation through reallocation, retooling or early termination, which actually slows making electric an operationally sustainable solution.”    

Holman’s Portfolio Management team support customers in the transition, looking at each vehicle individually with the customer every quarter and helping to ensure informed decisions about every one of them – not just for electrification but overall optimisation too.  

Ewen added that fleets would also need to become increasingly agile and flexible, so they are able to respond to change when market conditions and products are right.    

“Holman has substantially increased its number of leased vehicles in the past two or three years through its finance funding model, and it is ideally suited to sustainable agility and diversity.     

“Analysis shows that for certain commercial vehicles, diesel or petrol may still be the right choice. But because finance lease allows our customers to retain full control of, and have transparency over, those vehicles, as and when the case is proven for electrification, they can defleet at their choosing.” 

And this means they can retain profits to re-invest in new electric vehicles and make that change at the optimum time for them and the business. 

“Ultimately the answer to the question ‘is our fleet sustainable?’ has two differing, yet interconnected responses, on both operational and environmental levels, and at this time businesses have some incredibly tough choices to make,” she stressed.    

“They need to be crystal clear on priorities. Ultimately, for nearly every business it is being able to provide goods or services in the most effective way possible.”    

Checklist for a sustainable transition to EVs:    

• Set goals for the business, and plan how vehicles support these    
• Get buy-in from senior management for the plan    
• Choose partners and suppliers who can support you in the long term    
• Get employees trained, with the right tools and goals