Which stakeholders might you encounter when electrifying your fleet and how can you meet their needs?
When switching to electric vehicles, there are many stakeholders that you will need to engage with.
You will encounter existing stakeholders with new requirements, but also new ones, who you may not have had experience with before. Regardless, having visibility of and understanding the needs of each group is key to a smooth transition.
The importance of aligning with all stakeholders when planning your electrification was a topic we touched on in our last Electrifying Progress article.
This time, we explore the subject in detail, identifying possible stakeholders, how they differ from those you may already deal with and how you can gain their buy-in.
As the fleet decision-maker, you will be used to managing multiple stakeholders already – be it drivers, the Human Resources (HR) or Finance departments. You may even sit within one of these groups yourself.
However, when it comes to electrification, while many stakeholders remain the same, their requirements can change.
First of all, you should consider the impact of electrification on your drivers.
Electric vehicles can unlock many benefits for drivers, but in some instances, you may need to articulate these benefits clearly to support their switch.
For example, the attractive Benefit-in-Kind (BiK) rate of zero-tailpipe emission vehicles is a compelling reason to drive an electric vehicle. It means employees pay significantly less company car tax compared to those driving Internal Combustion Engine (ICE) vehicles.
Fully electric vehicles are subject to 2% BiK for the 2024/25 tax year. Meanwhile, an average ICE vehicle producing between 115- 119g/km of CO2 could be liable for fourteen times this amount, with a BiK of 28%.
BiK is based on the CO2 emissions of a vehicle and has a significant impact on how much tax drivers pay. You can calculate company car tax for all Audi models and derivatives here.
Charging is another key factor. For those able to charge at home – and depending on the driver’s energy tariff – electric vehicles can provide significant cost savings when measured against an ICE vehicle.
With this in mind, providing drivers with a home charger can be a compelling way to incentivise their switch to electric vehicles, not only helping make charging cost-effective but also more convenient. To accelerate your electrification and encourage drivers to embrace electric vehicles, Audi is offering a complimentary home charger with the purchase of every new e-tron vehicle, via our partnership with Ohme[1].
“Providing drivers with a home charger can be a compelling way to incentivise their switch to electric vehicles.”
For drivers without access to off-street parking, kerbside charging solutions may provide the answer. There are a growing number of businesses aiming to make charging more accessible for those without off-street parking.
While this is progress, what about drivers who need to rely on the public charging network?
There are ways you can support your employees who do not have access to home chargers. For example, offering free or subsidised workplace charging, charging cards or allowances are ways you can overcome this challenge.
Additionally, alongside the purchase of a new e-tron vehicle, a driver can claim £500 worth of charging credit instead of a home charger. This credit can be claimed via the Audi charging card, which offers access to approximately 500,000 public charging points across the UK and Europe.
To learn more about claiming a complimentary home charger or £500 worth of charging credit for drivers, please click here.
While electric vehicles can cost more upfront, running costs – including fuel and tax – can be lower than ICE equivalents.
As a result, your finance and procurement stakeholders may make decisions regarding electric vehicles through the lens of a Total Cost of Ownership (TCO) model.
In this instance, rather than focusing on the cost of the vehicle alone, a TCO model accounts for ongoing expenses associated with the lifecycle of the vehicle, including; tax, fuel and SMR costs.
To compare the running costs and key features of any Audi vehicle with another brand, please see our TCO calculator by clicking here.
This could prove important in demonstrating the long-term cost benefit of switching to electric vehicles to this set of stakeholders.
The personal tax saving opportunities that electric vehicles can offer employees make them a popular employment benefit – regardless of whether the vehicle is provided as a company car or offered via a salary sacrifice scheme.
If you are considering making electric vehicles available via a salary sacrifice scheme – which has the potential to create savings for employees and businesses – your leasing provider will be able to support you.
The tax rates on electric vehicles mean they can be a useful talent and attraction tool, contributing to your HR department’s objectives.
However, HR stakeholders may need to factor in changes to their policies to accommodate electric vehicles.
This could include:
Electrification can benefit businesses in many ways, each of which is likely to be of interest to your SMT.
In addition to creating cost-saving opportunities for employees and the business itself, switching to electric vehicles can support your recruitment strategy and contribute to Environmental, Social, and Governance (ESG) and Corporate Social Responsibility (CSR) objectives.
Linking electrification to the wider business objectives could help this group buy into your plans.
Electrification is changing the role of the fleet manager, who is now expected to understand an even wider range of topics. As a result, the network of stakeholders you will need to align with has increased.
These stakeholders could include:
You might already work with your colleagues responsible for sustainability when making decisions regarding your ICE fleet.
This stakeholder group may use the Greenhouse Gas (GHG) Protocol to measure and manage emissions produced by your business. The GHG Protocol is the world’s most widely used greenhouse gas accounting standard, which divides emissions into three ‘Scopes’.
Electric vehicles can help reduce ‘Scope 1’ and ‘Scope 3’ emissions[2].
Scope 1 emissions: produced by sources owned or controlled by a business, such as employees travelling for work. Fully electric vehicles do not produce tailpipe emissions, meaning they could potentially reduce Scope 1 emissions.
Scope 3 emissions: produced from a business’s wider supply chain and not owned or controlled by the organisation, such as employees commuting or the production of a vehicle. When within your control, choosing a manufacturer that produces net-carbon-neutral vehicles and encouraging drivers to recharge with renewable energy could help reduce Scope 3 emissions.
Again, you may already interact with the facilities team to discuss parking and vehicle storage. However, where electric vehicles are concerned, engaging this group becomes even more important, for new reasons.
When developing your workplace charging strategy, their expertise could be invaluable. With the input of your facilities team, you will be able to balance the number of chargers required, their speed and location with what is feasible at your site.
Finally, the support of this department could prove important if you plan to apply for government grants, such as the Workplace Charging Grant or EV Infrastructure Scheme.
In addition to collaborating with internal stakeholders, external stakeholders should be factored into your plan.
Your energy supplier is one such example. When devising your charging strategy, you will need to assess your workplace power supply, power consumption and available capacity.
If your site needs extra capacity to accommodate workplace chargers, you can request additional power supply from your energy supplier and regional Distribution Network Operators (DNOs). They will provide you with options for increasing capacity from your local sub-station to your site.
There are alternative options, such as local generation (solar panels) and storage solutions, which we plan to cover in an upcoming article.
As you can see, there are many stakeholders to consider when mapping out and progressing your electrification strategy.
Some you will likely have experience managing, such as drivers and potentially your organisation’s HR department. Others, including those responsible for sustainability, may be less familiar to you.
Regardless, collaborating with this diverse set of stakeholders from the beginning and maintaining an open dialogue with these groups as you advance your electrification strategy could hold the key to a transition that truly works for everyone.
If you have any questions about any of the points covered in this article or want to hear how Audi can support your electrification requirements, our fleet experts would be delighted to help. You can contact the Audi Fleet team here.
“Maintaining an open dialogue with these groups as you advance your electrification strategy could hold the key to a transition that truly works for everyone.”
1 Terms and conditions for this offer can be found here: https://audi-fleet.audi.co.uk/ohme-offer/terms-and-conditions
2 Information on this website regarding measures such as the Greenhouse Gas (GHG) Protocol and Scope emissions, is intended for general informational purposes only. Please ensure you conduct your own research and consult with experts as necessary before making any decisions.
We would be delighted to hear your feedback on this article and welcome any suggestions you have for topics that you would like Audi to explore in future.