Replacing a petrol vehicle with an electric vehicle can reduce fleet emissions. Not replacing the vehicle at all can reduce them even further.
That’s part of the thinking behind Allianz’s fleet transition as the insurer combines electrification with a detailed review of vehicle utilisation.
Speaking during the Fleet News Group Awards finalists panel at Everything Electric Sydney, Allianz’s Matthew Harvey explained that the organisation doesn’t treat electrification as a simple one-for-one replacement exercise.
Allianz is a finalist in the Fleet News Group Awards program, and its approach highlights the connection between fleet optimisation and sustainability.
Review the requirement first
Allianz is progressing through a multi-year electrification program, but before each cohort of vehicles is replaced the organisation reviews what the business will actually require.
Harvey said the process considers future organisational changes, fleet size and individual business requirements.
“We really want to make sure that we have an understanding of any mergers and acquisitions that are coming up, understanding the fleet size, understanding the business requirement,” he said.
The next layer is utilisation.
“We then overlay that with the actual utilisation at a per vehicle level,” Harvey said.
Different kilometres, different solution
Allianz uses utilisation bands to help determine the appropriate mobility solution.
Employees travelling relatively few kilometres may receive an out-of-pocket expense arrangement, while other utilisation levels can lead to a vehicle allowance or a tools-of-trade vehicle.
The objective is to match the mobility solution with the requirement rather than assume an existing fleet vehicle must always be replaced.
“For us, looking at that commercial lens over the utilisation does help with ongoing utilisation,” Harvey said.
No vehicle has zero tailpipe emissions
There’s also an obvious sustainability outcome.
“Having no vehicle helps with sustainability numbers as a general,” Harvey said.
That is an important distinction as organisations develop fleet decarbonisation strategies. Electrification can reduce emissions from vehicles that an organisation genuinely needs.
Fleet optimisation asks the question before that: how many vehicles does the organisation actually need?
The two strategies can work together.
Optimise, then electrify
The transition to EVs provides Fleet Managers with an opportunity to reconsider established vehicle allocations.
Historical fleet size doesn’t necessarily represent future fleet requirements. Roles change. Travel patterns change. Businesses expand and contract. Employees work differently.
Allianz is using the transition as an opportunity to consider those changes before committing to another four-year vehicle lease.
For Fleet Managers building an EV replacement plan, there’s a useful question to ask before comparing range, charging speed and whole-of-life cost.
Do we need to replace this vehicle at all?
