A new basic for operational leasing? - BNP Paribas CIB
 
Thursday 03 March 2016

Mobility optimisation will be a key factor in the future developments of the industry.


According to the International Energy Agency, the transport sector accounted for 23% of CO2 emissions worldwide in 2013, making it the second biggest emitter after the Electricity and Heat Generation sector. Road vehicle emissions represented 75% of these emissions.

According to the Association for Safe International Road Travel, nearly 1.3 million people die in road crashes each year. Given this data, it is clear that actors from the transportation sector and the automotive industry in particular have great responsibility towards the environment and society. Arval, as a leader of the full-service leasing industry, with a fleet of 949,000 vehicles, does not escape this statement.

Vehicle leasing companies, because of the nature of their business, can have a very particular role to play. Corporates that benefit from vehicle leasing services can rely on a close and trustful relationship developed along the whole lifetime of their contracts with their supplier, as well as its expertise on mobility.

This particular relationship allows them to develop proactive solutions to face their environmental and social issues linked to the mobility of their employees. The beneficiaries are not only the institutions that pay for the leasing services, they are also the individuals who manage the fleet and the drivers who use the vehicles on a daily basis. That is why Arval proposes a complete offer of mobility optimisation solutions which give evidence every day of their effectiveness in all areas of Sustainable Development.

Optimisation starts by the choice of vehicles adapted to the need of the company and what use drivers will do with these vehicles. Receiving advice from experts on the latest innovations in engine efficiency and alternative fuel, Corporates can choose the vehicles that best suit their needs. Electric car development will be a major factor of transport sector de-carbonisation but improvements are still to be made for electric to become the main source of cars energy.
 


Due to the technological and infrastructure limits, electric vehicles currently represent only a small share of the market. However, they already are a competitive solution for some specific needs. For instance, when drivers travel for short distances within urban territories, electric cars already represent a perfectly rational economic choice as well as an environmentally respectful one.

Besides the choice of vehicles, developing an efficient Company Mobility Plan is another activity in which the leaser can help. The idea is once again to optimise the mobility of the people by taking into account all possible modes of transportation, including public transports, and new solutions such as car sharing. Thanks to this approach, Corporates can rationalise their travel costs, reduce their carbon footprint while bringing to their people efficient mobility solutions and thus, making their life easier.
 
"The transportation sector and the automotive industry in particular have great responsibility towards the environment and society."

Managing a fleet is a complex task and providing tools to understand it all is part of the leaser mission. Thanks to a consultative approach, the leaser supports Corporates in further reducing their CO2 emissions and costs. The first step of this approach is to calculate the fuel expenses over a year as well as the equivalent amount of CO2 emitted.

Development of digital tools such as telematics eases the production of detailed analysis of overall fleet costs and carbon emissions but also of individual drivers' behaviors. Following on from this analysis, companies and Arval, jointly, are able to establish quantitative reductions targets. The second step is to provide Corporates with solutions to reach these objectives. Among them, specific attention is given towards the drivers whose behavior has great impact. Raising awareness through dedicated campaigns within the customers' organization and providing drivers with environmentally respectful driving training has shown positive results in both reducing the cost associated to fuel consumption and carbon emissions. The third and final step is to produce regular reports to ensure that performance maintains over time.

Road Safety is another issue directly related to the leaser activity. Road accidents cost money and above all, they can have dramatic consequences on individuals. That is why many efforts have to be made to reduce the risk of accident and once again the leaser can support Corporates in this task. A similar consultative approach than the one used for carbon emissions has proven to be an effective strategy. Raising awareness and train drivers to safer driving behavior are key factors to avoid accidents. From repeated experiences with different customers, Arval has observed that several years after the program was implemented, the number of drivers without any incidents tend to double. The fewer incidents that happen, the fewer chances for accidents to be very serious and lethal.

"Raising awareness through dedicated campaigns within the customers' organisation and providing drivers with environmentally respectful driving training has shown positive results in both reducing the cost associated to fuel consumption and carbon emissions."

Accompany its customers in implementing effective mobility solutions, respectful of the environment, careful for its people while reducing cost associated to mobility is at the heart of Arval's mission. Sustainable Development is incorporated at every level of Arval's business.


Aurelie Bruneau
Aurélie Bruneau has been CSR Manager at Arval since December 2014 and external communication manager for its French entity for 7 years now. Before her missions at Arval, she was in charge of external communications at Cardif BNP Paribas Group and previously for manufacturers. Her functions are in phase with topics that she is particularly fond of: Human, cars, environment and wellbeing in society.
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