Better Business Driving: How To Drive Gains or Losses
Picture a fleet of vehicles as a well-balanced, four-wheel drive machine.
Just as each wheel plays a crucial role in maintaining stability and control, businesses with a car or van fleet, face four key challenges that demand attention and strategic handling. Most of the time these four areas are important but not urgent. Now and then, they are both – and a crisis ensues.
In this article, we will explore why and how businesses can steer toward success, utilising best-practice guidance and success stories from a range of reputable sources. In particular, we willl show why each of these four challenges can be an opportunity for businesses who are proactive or a peril for those who procrastinate.
Reducing Carbon Emissions:
The Road to Sustainability
In a world increasingly concerned about climate change, reducing carbon emissions has emerged as a defining challenge for fleets. Irish businesses are actively seeking ways to align with sustainable practices and with eco-friendly solutions.
For a start, fleets can reduce their carbon footprint by adopting the well-established Avoid, Shift, Improve (ASI) transport energy management framework[1].
Other practical steps include reducing business mileage wherever possible, switching to electric and hybrid vehicles, exploring cleaner fuels such as hydrotreated vegetable oil (HVO) and promoting safer, eco driving which alone can reduce fuel use by 10% and save one tonne of CO2e a year for every five cars or vans[2].
Further opportunities include working with leasing companies that provide EV options, learning about Sustainable Energy Authority of Ireland (SEAI) guidance on grants[3], signing up for energy management reward schemes such as ECOfleet[4] and considering telematics – such as ALLY mobile telematics or Samsara video telematics - to measure and manage green driving activity.
On the flip-side, emerging risks include the penalties you face when tendering for new business with larger clients seeking Scope 3 emissions data for CSRD or other reporting purposes, if you cannot quantify the greenhouse gas (GHG) emissions for your vehicles.
[1] ASI - https://en.wikipedia.org/wiki/Avoid-Shift-Improve
[2] SAVE A TONNE - https://www.driverfocus.ie/resources-list/save-a-tonne
[3] SEAI - https://www.seai.ie/business-and-public-sector/ev-for-business/grants-and-supports/
[4] ECOfleet - https://www.driverfocus.ie/resources-list/ecofleet
Cutting Costs:
Driving Financial Efficiency
Operational costs are a constant concern for any business with vehicles. Not all businesses have experienced fleet managers. Many only have a partial view of the true cost and risks of business driving. By leveraging technology and data-driven insights, businesses can measure what matters and steer toward greater financial efficiency.
For example, the savings that any fleet can easily see by proactively measuring and addressing driver behaviour, is typically €1,000 per vehicle per annum[5] – which is roughly the same annual insurance premium for a typical car or van!
Sales Cosmetics Limited, an Irish marketing company with field-based account managers, implemented a mobile-telematics system that helped improve driver behaviour which directly led to a massive 90% reduction in motor claims[6].
Economically, businesses that combine telematics with a proven motor risk management plan, see significantly reduced fuel consumption, lower vehicle servicing, maintenance and repair (SMR) costs and of course, less business disruption and uninsured losses.
In another win, tech-savvy, progressive insurance underwriters now offer telematics-based, commercial motor policies, giving business motor clients the opportunity to reduce premiums by demonstrating responsible driving habits.
[5] €1,000 saving - https://www.driverfocus.ie/drivingcosts
Ensuring Compliance:
Navigating the Regulatory Landscape
Navigating the complex sea of internal and external compliance standards is a daunting challenge for any fleet operator.
While legal requirements such as Duty of Care and the Road Traffic Acts apply to all business with vehicles, be aware that additional rules apply in cases where there are say, larger vehicles or company cars.
Both the Health and Safety Authority (HSA) and the Road Safety Authority (RSA) provide essential guidelines[7] for promoting fleet safety in Ireland. Similarly, businesses with ISO certification or who follow standards such as the FTA Ireland’s TruckSafe and VanSafe[8], face regular checks that help ensure their processes are working as planned. Pro tip: search for international best-practice too from non-profits such as Driving for Better Business (UK), NSRPP (Australia), NETS (USA) and Worksafe BC (Canada).
Just as employers have joint responsibility and accountability with their drivers around road safety, another common vehicle-related compliance risk is business mileage reporting. Revenue Commissioners undertake PAYE audits and unless you can show robust records, such as a digital logbook of business-related trips for company car benefit-in-kind (BIK) purposes[9] or mileage reimbursement, you can expect a substantial penalty.
[7] HSA - https://www.hsa.ie/eng/vehicles_at_work/driving_for_work/employer_responsibilities_/
[8] VanSafe - https://www.ftai.ie/vansafe
Enhancing Care:
Prioritising Safety and Wellbeing
With a worrying increase in road fatalities on Irish roads in 2023, fleet safety and driver well-being are an increasing concern for fleet operators. Employers can - and legally should - significantly enhance care, by choosing to create a safer driving environment that reduces the frequency of crashes, losses and harm.
Perhaps surprisingly, the core reason for a poor motor crash history is “will not skill.” Responsible businesses can set achievable improvement goals, develop a simple plan[10] to achieve them and then measure what matters. Pro tip: challenging driver overconfidence and bad habits with objective data has a stunningly positive effect on outcomes!
Again, the UK-based initiative Driving for Better Business[11], exemplifies a holistic approach to driver well-being. All businesses can take inspiration from their resources, which include well-being toolkits and case studies.
[10] Fleet Safety Plan template - https://www.driverfocus.ie/resources-list/fleetsafetyplanner
[11] Driving for Better Business - https://www.drivingforbetterbusiness.com/
Conclusion: Navigating the Road Ahead
The business case for tackling “Carbon, Cost, Compliance and Care” is compelling.
While your business will feel the pain acutely in a crisis - such as losing an important tender, realising uninsured losses, failing a Revenue payroll audit or experiencing a life-changing injury to a colleague – the truth is that these events and other losses happen regularly and are preventable.
The alternative outcome is better business driving practices with myriad benefits including safer drivers, enhanced culture and ESG reputation, less downtime and a healthier bottom-line. With a near-zero risk to implement, it is hard to think of a better business opportunity.