Making grey fleet operations low-carbon will prove a major challenge over the next few years as operators look to go zero-emission, requiring a range of action from businesses.

While many major fleets will have something like a 30-50% rate of EV penetration by the end of this year, according to the AFP, the rate of change for grey fleet is much, much slower

The contrast in emissions between rapidly electrifying company car schemes and employee’s own vehicles is becoming increasingly marked, according to the Association of Fleet Professionals (AFP), and will become a genuine issue for sustainable fleets.

While many major fleets will have something like a 30-50% rate of EV penetration by the end of this year, according to the AFP, the rate of change for grey fleet is much, much slower.

Chair Paul Hollick explained: “Among private motorists using their car for work purposes, those opting for PHEVS and EVs are still very much the outliers and that situation may well persist for a while.”

While Hollick said this was a major challenge for organisations that are determined to work towards low-carbon and net zero futures, he stated that there were actions that fleets could take and make part of their fleet policies in order to attempt to accelerate change.

“Probably the most obvious solution is a EV-based salary sacrifice scheme. These are currently very attractive while electric car taxation remains low and represent an attractive potential benefit to many employees. Also, because they are operated by third parties, they require little additional resource from the fleet department.”

Hollick also said it was essential to ensure that infrastructure and reimbursement to support grey fleet EVs is being properly managed.

“That might mean helping grey fleet drivers who are keen on PHEV or EV adoption to install charging at home or, if they don’t have a driveway, to access charging elsewhere. It also means ensuring that reimbursement for charging is being carried out correctly, something that current AER rates don’t always cover.”

Ultimately, fleets might need to take greater control over grey fleet vehicles that are being used for company business in order to achieve their environmental aims, according to the AFP.

“It may be that, over time, you have to set standards so that only vehicles that meet ever more stringent emissions targets are used as part of your grey fleet operations. However, it is difficult to know what will happen to petrol and diesel vehicle prices and residual values as we head towards 2030, and the financial impact on employees will very much need to become part of your calculations over time. They may not be able to afford to make the transition.

“It may well be it is inevitable, towards the end of the decade, that fleets have to use more rental and pool cars as a substitute for grey fleet in order to ensure that only low- and zero-emission vehicles are used on company business.”