Driving towards a more sustainable future

In order to tackle climate change and achieve its target of net zero carbon emissions by 2050, the UK Government has now brought forward the ban on selling new petrol and diesel-engine vehicles (including hybrids and plug-in hybrids) from 2040 to 2035, with many calling for this date to be brought forward to 2030.

While this ambitious target will clearly accelerate the switch to electric vehicles, recent research highlights that whilst fleet managers acknowledge the need to electrify their fleets, or plan to make the switch in the coming years, many are still struggling to get off the starting blocks, citing board buy-in, driver resistance and lack of EV understanding as some of the key challenges they are facing.

At KINTO we are supporting many organisations on their EV journey and recently we spoke with some of our customers to discuss the key challenges fleet managers are facing and find out their top tips to help overcome the barriers to EV adoption in order to reap the full benefits of electrification.

Lorna McAtear
Fleet Manager
National Grid

As a leading energy provider at the heart of Britain’s energy system, National Grid is fully committed to supporting the UK in realising its net zero ambitions.

Tasked with achieving the ambitious goal to transition National Grid UK’s entire fleet of approx. 4000 vehicles to zero emission by 2030 is their Fleet Manager Lorna McAtear, who joined the company last Summer, when there were only 7 electric vehicles on the fleet.

Since then Lorna has been able to draw on her previous experience of managing EV journeys for other large and complex fleets, to successfully guide National Grid along the road to zero.  By January this year there were already 24 electric vehicles on the fleet and by the end of August, this number had already increased to 206 with a further 125 electric vehicles now on order.

How did you prepare your organisation for the adoption of EV?

Preparation was key to making the transition as smooth as possible. Right at the beginning, we invested a significant amount of time upfront setting a clear goal which was both ambitious and achievable.

We then communicated the story to the business; highlighting the opportunity this forward-thinking project presented to the Company. Taking the time to fully explain the reasoning behind our vision really paid off by helping us gain buy-in on all levels; from our board of directors right through to our drivers and this level of engagement has been critical in preparing us all for the journey ahead.

Providing clear goals with tangible actions and key milestones has helped keep the project on track and has ensured everyone is clear about what is needed from them in order to get this project successfully over the line.

What key challenges have you experienced during the transition?

One of the key challenges we were determined to overcome was the misconception that an EV fleet would cost the business more than a fleet of petrol and diesel-powered vehicles.

By ensuring the business fully understood the Whole Life Cost of running a fleet of EVs, we were able to accurately calculate both the initial and ongoing costs to evaluate the true cost to the business over the lifetime of the fleet.

Working closely with our finance and taxation department, has enabled us to effectively manage the corporate savings and allocate driver contributions to the correct levels in order to achieve the best financial benefits possible.

Although we do not directly provide home charging points, we have set up a comprehensive support process to help our employees gain access to home charging points from reputable providers and benefit from the Government grants available.  This support includes hands-on practical help to complete the relevant order and grant application forms; easing the process and ensuring a successful outcome for our drivers.

An increasing number of workplace charge points are available for employees to charge their EVs during the workday and we have ongoing plans to expand this number.

Driver acceptance has turned out to be less of a challenge than expected.   As far as any range anxiety amongst our driver population is concerned, several members of staff who have already successfully transitioned to EVs, have been sharing the benefits they are experiencing and the satisfaction of these early adopters of our EV scheme is then providing real-life proof to other colleagues that the new electric vehicles are more than fit for purpose.

The only exemption to the suitability of electric vehicles for our fleet drivers has been for high mileage users, where EVs are not proving to be the best solution.  In order to offer them a sustainable alternative which better suits their driving patterns, we are currently investigating the use of hydrogen-powered vehicles.

What feedback has the business received from users since adoption?

Feedback since our EV adoption has been very positive.  For example, responses to our regular Net Promoter Score (NPS) surveys, have resulted in no negative scores.  This very positive result can mainly be attributed to how we have communicated with our drivers; keeping them well informed every step of the way to ensure that they have felt fully engaged along the entire journey.

What are your future plans to grow your EV offering?

As a leading energy company working towards a clean energy future, we strive to remain ahead of the curve.  In order to achieve this, we intend for 60% of the vehicles the business owns (660 commercial vehicles) to be electric by 2026. The following year we will stop procuring ICE cars, with the ultimate goal of our entire fleet of 1,756 cars, 740 panel vans, 306 4x4s, 54 HGVs, and approximately 1,000 items of plant being zero emission by 2030.

What tips would you give fleet managers who are just starting their EV journey?

 From my own experience, leading our fleet on its successful transition to EVs, my biggest tip for anyone who is planning to embark on a similar EV journey, would be to start off with a very clear story.

They then need to be able to communicate their story well to the whole business and via multiple channels to ensure the goals are fully understood.  It is vital that everyone is committed to the role they will be playing to ensure a successful transition and the best way to achieve this, is to keep everyone well informed throughout the whole journey.

Lastly, I would say definitely give it a go!

Daniel Hall
Senior Reward Manager
IncoraTM

As part of a leading global aerospace and defence supply chain service provider, Incora (previously Pattonair) launched their EV fleet back in January 2018.

After reviewing how future WLTP regulations would potentially impact the fleet list of their company car scheme, they decided to use the situation as an opportunity to go green and from January 2018 every new company fleet vehicle they have procured has been an electric or hybrid vehicle.

As a forward-thinking company, aspiring to revolutionise the aerospace industry, Incora was one of the early adopters of an EV fleet and we were keen to hear how their experience differed from companies who have made the change in more recent months.

Where did the idea to transition to a fleet of EVs come from? Who led the change?

The project to transition to EVs was initially led by myself and the Incora fleet team but our CEO already drove an electric vehicle himself so was very keen for us to push ahead with the green agenda.

We already had a few electric pool cars, so it was obvious across the business that EVs were going to be an integral part of our future.

On top of this, we already had a number of ‘green’ travel schemes running, such as staff incentives for bus use and car sharing schemes so we were then able to build upon the success of these initiatives when starting our EV project.

What were the key challenges to begin with?

One of the main issues we experienced when reviewing and relaunching our company car scheme is a common challenge, often experienced by early adopters of new technology.  Because the EV market was still in the early stages of development at that point in time, there was only a relatively small range of EVs and PHEVs available.  Obviously this meant that the fleet list and choice of models we were able to offer our drivers right at the beginning, was dramatically reduced.

Another noticeable challenge was how we were forced to look at the fleet costs from a different angle than usual, in order to realistically capture the costs to the business of owning and running an EV fleet over its whole lifetime.

For this project, our new approach meant using a Whole Life Cost model to calculate the costs, rather than the financial models previously used to calculate fleet expenditure.  By using this type of financial model, we were actually able to squeeze more vehicle models into the various bands to make it more attractive to our drivers, whilst still remaining cost neutral to the business.

By keeping our employees well informed we were able to convince them of the benefits of switching to electric vehicles and calm any fears they may have had re: range or costs.

Did they have any issues getting buy-in from your company (board)?

Getting buy-in from the Incora board (previously Pattonair) was pretty straight forward since our CEO was already driving an EV himself and was therefore well aware of the benefits EVs would bring to the business.

As with all great initiatives we then had to communicate the wider benefits of this change and ensure the investment was managed in line with the overall benefits.

Was there any resistance from employees / drivers?

There was minimal resistance from our employees because the EV options available were great cars.   But we did find there were several colleagues who were interested in switching but were slightly hesitant due to a lack of understanding about this new technology.  We quickly overcame this by sending out clear communications on a regularly basis to provide them with useful and helpful information.

During the launch of the project we also fully briefed all car drivers with relevant information covering topics such as: charging, the benefits for the company, for the environment, for them personally and provided real-life examples to ensure they were well equipped with helpful EV knowledge.

What are your future plans to grow the EV offering?

The last renewal phase which will complete the transition, involves hybrid vehicles and will happen in 2021.  For the next fleet renewal cycle we are looking to move to fully electric vehicles but obviously, we will need to keep an eye on both the evolving needs of our fleet as well as developments in the EV market.

What advice would you give to other fleet managers who are looking to begin their EV journey?

From my own experience leading the transition here at Incora, I would definitely encourage other fleet managers to go for it and give it a try.

In the planning stages, it’s important to look at a Whole Life Cost model rather than purely considering the lease prices.  It’s easy just to look at the lease price and then rule it out, saying it’s too expensive but this doesn’t reflect the true cost to the business over the lifetime of the fleet and by doing this, businesses will be missing out on a great opportunity.

I would also encourage other fleet decision makers to ensure that their drivers are set up well to make the switch easier for them.  For example, here at Incora we chose to support our EV drivers by funding home charging points.

When transitioning to a new technology, you will always get some people who doubt the outcome but by providing clear and concise communications, you will be able to educate them about the benefits and ultimately win them over.

With our attention now focused more keenly on our health and the health of those we love, clean air is more important to people than ever before.  Air that’s safe to breathe must be part of the “new normal” as we emerge from the pandemic and UK fleets have a vital role to play in the drive towards a more sustainable future.

Take a look at our EV Hub to learn more about how your fleet could benefit from switching to electric vehicles and contact our fleet experts today to find out how KINTO can help support your organisation on the road to zero.