Despite requirements, 8% of fleet managers don't calculate emissions

A new white paper from Alphabet, a leasing and fleet management company, has found that a large number of businesses in the UK are not able to calculate, capture and report their fleet emissions.

Compliance with the Streamlined Energy and Carbon Reporting (SECR) legislation means that all UK publicly quoted companies must now report their global energy use, as well as their greenhouse gas (GHG) emissions in their annual report.

Large unquoted companies and limited liability partnerships must also disclose their annual energy use and GHG emissions, plus related informations.

Measuring, tracking, and reporting these figures require specialist knowledge and correct tools, and this white paper found that more almost two in five (38 per cent) fleet managers use simple spreadsheets like Microsoft Excel or paper, to record their fleet’s emissions. 

Eight per cent said that they don’t calculate emissions at all.

Only 18 per cent of fleet managers said their believed their businesses have the tool to properly calculate and report its fleet emissions, while 12 per cent said they have no plans to invest in new technology or software to help.

Apart from tools, knowledge also seems to be an issue among fleet mangers in the UK. Alphabet’s research found that more than a quarter of (26 per cent) of fleet managers don’t know the difference between scope 1,2 and 3 emissions, with 23 per cent not knowing the penalties for not reporting their fleet emissions.

Only 60 per cent of survey respondents working in the public sector knew the difference between the three scopes of emissions.

11 per cent said that they are confused or not confident about reporting their fleet emissions, while 12 per cent said they see the requirement as simply as ‘a tick-box exercise.’

Alphabet is therefore urging the government to better support fleet managers to improve their understanding and competency in calculating and recording their emissions.

Ian Turner, chief sales officer at Alphabet GB, said: “Our study reveals that a large number of UK business are either ill-prepared or ill-equipped when it comes to calculating, recording and reporting their vehicle emissions. A significant number have acknowledged their uncertainty about what actions they need to take, and when, and what carbon manager tools are available to ensure they remain compliant with new legislation.

“The UK’s Streamlined Energy and Carbon Reporting (SECR) framework already mandates large companies to report on their annual energy use, carbon emissions and energy efficiency actions within their directors’ report. However, fleet managers of smaller organisations cannot rest on their laurels, as the reporting requirement will almost certainly be extended to include most SMEs in the future.

“Our study is ‘a wake-up call’ for the whole fleet sector, so businesses should start planning now to identify what tools and processes they need.”

Caroline Sandall-Mansergh, consultancy and channel development manager at Alphabet (GB) said: “Our study shows that there is a significant knowledge gap when it comes to fleet emissions reporting. Fleet managers and business owners need other take the support available to better understand the complexities of emissions calculating, recording and reporting to ensure compliance and avoid the risk of costly penalties.

“By prioritising education and creating accessible resources, we help fleet mangers to meet their obligations, while contributing to the UK’s broader sustainability goals.”