Implementing an Environmental Management System to ISO 14001 Standard Workshop 1

1. WYG Environment Opportunities for reducing transport costs Implementing an Environmental Management System to ISO 14001 Standard Workshop 1 Presenters: Heather Gallagher, Principal Consultant Paul Burr, Associate Director www.wyg.com creative minds safe hands

2. Agenda • Costs – hidden or accepted? • Fleet Management • Driver vehicle policy • Other policies • Route/travel planning • Smarter Driving - top tips • Driver training • Green travel plans • Performance monitoring • Staff engagement • Using technology • Useful links and free resources

3. Why? • Commuter and business travel making up nearly 40% of miles driven by car in the UK • Road transport is a major source of greenhouse gas emissions such as carbon dioxideand pollutants that affect human health • approx 17% of energy related CO2 emissions • Reducing unnecessary vehicle use / fuel consumption is vital for businesses looking to make their operations more sustainable and efficient

4. Fixed Costs Vehicle Excise Duty Insurance Vehicle finance Depreciation Overheads Running Costs Fuel Oil Tyres Maintenance Driver Costs Road Charges / Tolls Costs

5. Transport costs – hidden or given? Do we accept rising transport costs or do we challenge them? • Norfolk food processing company • Issues: Rising packaging and transport costs • Solution: Changed packaging from wooden pallet plus shrink wrap • to cardboard boxes, more flexible transport method • Results: Annual transport reduced by half

6. Fleet Management • Is your fleet company owned, leased or driver owned (grey-fleet)? • Vehicle specification • Fit for purpose • Hybrid – Electric, LPG • CO2 emissions • Aerodynamics As a general rule, the faster and further a vehicle travels, the greater the potential savings from aerodynamics.

7. Driver vehicle policy • Company car entitlement or car allowance • Safety requirement • NCAP (The European New Car Assessment Programme) 4 star rating for adult occupant safety • CO2 Emissions • <140 gCO2/km or less • Company car tax (“Benefit in Kind” tax) is based on a car’s CO2 emissions and its list price when new • Lower CO2 emissions = less tax for employee and lower national insurance payments for the company

8. Driver vehicle policy continued… • What requirements are set for • grey fleet - driver owned • vehicle hire • FuelReimbursement • Expenses or fuel card • Paid per mile or for number of litres • Other criteria • Vehicle meets both the company’s and your own general requirements, e.g. for carrying other passengers and/or carrying or towing equipment. • Exclude two-seater, soft top and four wheel drive vehicles

9. Do’s Driving Hours & Fatigue Driver Training Competence, safety, fuel efficiency Health checks Vehicle Checks Don’ts Mobile Phones Smoking Eating & Drinking Alcohol, Recreational Drugs & Medication Other vehicle policies

10. Smarter driving – Top tips part 1 • Change gears at low revs • When accelerating change up through the gears before 2000 rpm for diesel cars or 2500 rpm for a petrol car • Anticipate to minimise braking and accelerating • Avoid excessive speeds • At 85mph a car uses approximately 25% more fuel than at 70mph • Use air conditioning sparingly • At full blast a/c adds around 25% to fuel consumption • Switch off • As a general rule, turn your engine off if stationary for more than a minute

11. Smarter driving – Top tips part 2 • Remove roof racks, bike racks etc • When not in use to avoid drag • Drive off from cold • Warming up the engine just wastes fuel • Decelerating • Vehicle maintenance and accident/damage reporting • Avoid short journeys • Vehicle checks • Check tyre wear and pressure regularly • Tyres under-inflated by 25% will add about 2% to fuel consumption

12. Driver training Helps to identify bad driving habits and encourage more efficient driving techniques • Drivers • Reduced stress and enhanced satisfaction • Increased confidence in driving performance • Increased own-vehicle MPG • Organisations • Development of a health and safety culture • Effective risk management • Reduction of harmful emissions • Reduction of accidents and incidents • Fleet manager /owner-driver • Reduced fuel spend (up to 10-15%)and running costs • Improved resale value of fleet • Potential reductions in insurance premiums • Increased productivity and vehicle utilisation

13. Driver training packages • Energy Saving Trust offers ‘Smarter Driver’ Training • £15 per driver for 50 minutes • Subsided by the Department for Transport • Free for electric car drivers • www.energysavingtrust.org.uk/business/Business/Transport-in-business/Smarter-Driving • AA Drive Tech provide training for HGVs and LGVs • www.drivetech.co.uk

14. Green travel plans • Strategy for managing the travel generated by your organisation, with the aim of reducing its environmental impact. • Advantages: • Company • Taking responsibility • Improve image • Cost saving – car parking spaces, fleet • Employees and visitors • Improved flexibility • Reduced travel time and costs • Local community • Reduced congestion and pollution

15. Case study: Essex County Council Staff Travel Plan • Encouraged sustainable travel by offering options for commuting and • business travel, including: • Teleconferencing facilities • Bike pool made available for use for off-site visits • A course of 5 free lessons run by Cycle Training East • Cycle parking is available at most Essex County Council offices • Public transport season ticket loans • Bus travel  - 10% discount on all season tickets • Train travel - 10% discount on all season tickets

16. Greener travel initiatives • “No drive to work” day • Encourage staff to find alternatives routes to work • Flexible working • including home working • Video and teleconferencing • Encourage use of public transport • Advertise local/regional services • Promote walking for short journeys • Promote car sharing or car clubs • Cycle to work schemes

17. Performance monitoring If you’re not measuring it you’re not managing it • Vehicle miles or kilometres travelled • Empty miles travelled • Total time vehicle has worked • Litres of fuel • Family-owned logistics business, Grimsby • Initiative: regular and accurate data collection process • Results: • Quick identification of vehicle performance issues • Increases focus across business towards MPG – improving performance • Data used for benchmarking purposes has encouraged competition • Reduced idling time • Reduction in CO2 emissions and safer, less stressful driving

18. Staff engagement • Fuel Champion • Focal-point for fuel-saving programme • Monitor performance • Communications and change management • Incentive schemes • Borrow a brolley scheme – short term umbrella loan to encourage walking • Free car sharing parking spaces available • 5p/mile compensation for car share on business miles

19. Telematics- remote device fitted into vehicles Traffic information Systems Satellite Navigation Systems Vehicle and driver monitoring Communications systems Vehicle and trailer tracking IT systems Computerised vehicle routing & scheduling system Journey Planning Tools Low cost option Calculate time, distance and cost for individual journeys Using Technology • Armitage Shanks, the sanitary-ware manufacturer • Initiative: switched from manual planning to computer-assisted load planning and vehicle routing for its truck fleet • Results: cutting mileage by no less than 25%

20. Other fuel saving techniques • Back-loading and online freight exchanges • Back-loading (also known as backhaul) is the practice of making use of spare capacity on the return leg of a delivery journey. • Travis Perkins and Monsoon • Speed limiters • Set the speed limiters on your vehicles to the speed that yields the best fuel consumption for each one. • Reducing the speed limiter from 56 to 54 mph can improve fuel usage by 2%.

21. Useful links and free resources • Useful links www.freightbestpractice.org.uk www.dft.gov.uk www.greengrantsmachine.co.uk • Car sharing scheme www.carplus.org.uk • Smarter driving training www.energysavingtrust.org.uk • Cycle to work scheme www.cyclescheme.co.uk