Introduction

A clearly defined Green Transport Plan represents an important part of the Carillion business strategy. Robust implementation and effective monitoring and measurement of ongoing compliance will lead to significant environmental and financial gains Group wide.

The plan covers two strategic areas.

1. Employee business travel.
2. Commercial vehicle usage.

The key theme that will underpin the whole transport plan dynamic will be twofold:-

1. Reduce the need to travel.
2. Travel at optimum efficiency.

Company Cars

Company cars for the foreseeable future will be the predominant method of employee business travel. Use of private cars on company business represents increasing company liabilities in terms of ‘duty of care’ and must be discouraged. The exception being an approved PCP scheme whereby critical factors such as adequate maintenance and insurance levels can be made obligatory.

The environmental profile of the Carillion car fleet as at 24^th September 2001:-

	Fleet size 2298
	Average annual unit business miles 11,000

	7,550 tonnes of CO2 emissions annually.
	£2.1M in fuel costs.

1. 675,000 kg CO2
2. £300K in costs.

There is a strong case for managing business miles downward as far as possible.

New car related BIK rules effective from 1^st April 2001 ignore business miles completely. It may be that that this will have a reducing effect on overall business miles carried out.

Commercial vehicle usage

The key factors here will be led by CFM.

	Avoidance of ‘over specifying’ this is an ongoing CFM strategy in ‘taming’ internal, historical demands.
	Engine/fuel types, ensure optimum overall cost/environmental efficient solutions.
;	Utilisation monitoring, better use of casual rather than long term hires where appropriate.
	Logistics, work with operational management to optimise usage.
	Identify unit concentrations and deliver scale economies e.g. LPG fuel and local fuel bunkering of LPG are options that can be considered.

The proposed policy addresses all of the foregoing and has been set out in narrative that will enable it’s dissemination throughout the workforce for effective implementation and ongoing compliance.

Lacltransp/1201

Green Transport Plan

Employment of Vehicles within the Businesses

Contents

Foreword

1. Employee business travel

• Managing the need to travel
• Company cars
• Use of private cars
• Public transport

2. Commercial vehicles

• Specifications
• Fuels
• Load carrying
• Maintenance
• Logistics
• Driver awareness

Foreword

The use of both car and commercial vehicles within the Group form a key part of the company’s strategy for environmental responsibility toward downward management of our overall emission profile. Our impact on society as a whole is also at stake.

All employees are thus stakeholders in the effective downward management of work related travel in that it should be strictly confined to that considered to be essential to the business. This is a twofold strategy:

Reduce the need to travel : Travel at optimum efficiency.

 1. Employee Business Travel

Employee business travel impacts substantially on our overall emission profile

and thus must represent a substantial element of our overall focus.

Managing the need to travel

April 2002 will see changes in company car tax laws whereby business mileage can no longer be used

to offset employee tax liabilities. Vehicle CO2 emission ratings will be the only influencing factor over the qualifying list price. There are therefore no tangible obstacles to any of us in reducing our business travel to the absolute minimum.

Every use must be made of available alternatives such as:-

	Fax/Faxination
	Email
	Video conferencing
	Telephones

Each business must be responsible for identifying it’s business miles profile, measuring both their financial and environmental (CO2 emission) impact. These profiles must subsequently be integrated as part of business budgeting in terms of planned reductions.

Clear means of ongoing measurement is essential and use should be made of Carillion Fleet Management (CFM) intelligence in this respect.

CFM will be working closely with all businesses in establishing and advising on all aspects of reduction planning.

Company cars

For the foreseeable future, company cars will be the predominant method of employee business travel.

A number of related company policies are in place to encourage emission reductions in company cars:-

	Introduction of fuel efficient cars in all car grades
	Display of CO2 emission and MPG ratings against all cars within the company car choice lists.
	Option to trade down to smaller, more fuel efficient cars with cash incentives.
	Ongoing development and roll out of up to date I.T. facilities.
	Company car replacement policy geared to time only, ignoring mileage.
	Continuing appraisal and introduction of alternative fuel vehicles.
	Comprehensive vehicle maintenance regime to ensure optimum performance.
	Driver training initiatives both in terms of safety and fuel efficient driving habits.
	Up to date green transport and environmental issues maintained on CFM Intran

Use of private cars

Companies have ever increasing legal responsibilities toward all machinery employed within their businesses under ‘duty of care’, and ‘fit for purpose’ legislation and cars have become a major focus in this respect. Mechanical condition and appropriate insurance cover form part of much wider criteria.

In recognition of its duty of care responsibilities, the company does not encourage the use of private cars on company business. This is primarily due to the difficulty in ensuring such cars are fit for use and adequate insurance cover is in place, however it is aware that this occurs from time to time.

Use of colleague’s company cars should be explored, alternatively CFM’s short term spot hire provision can be utilised - subject to proper approval processes within the businesses - where casual use is required for essential business travel.

The only foreseen exception to this would be with the introduction of a company supported Personal Contract Purchase (PCP) scheme whereby approved maintenance and insurance cover levels would form an integral part of the scheme. In the event of such a scheme being introduced, policy relating to business use will be introduced at that time.

Public Transport

The financial and environmental impact of public transport for business travel as an alternative to a company provided vehicle is difficult to quantify. This must be a local management decision based on practicalities and employee welfare dependant on individual circumstances. However, as with all aspects of business travel, management and employees alike must consider the company’s official approach of:-

	Reducing the need to travel
	Travelling at optimum efficiency

In all practical circumstances when using public transport, the company’s official travel agents must be used:-

Carlson Wagonlit Travel - Tel: 01902 316553 (7009 6553 internal short code) Fax: 01902 316661 Email: Eryan@cwt.co.uk.

  2. Commercial Vehicles

All requirements for commercial vehicles must be channelled through CFM whether the requirement is for long or short term hire or outright purchase including HGV’s.

Specifications

	Businesses must discuss specifications with CFM to ensure vehicles are not over specified either in size, carrying capacity or trim levels.
	In the case of HGV’s, low emission engines must be investigated in view of their environmental impact and vehicle excise duty (VED) differentials.

Fuels

	Any deviation from diesel engine vehicles must have prior approval from CFM.
	Low sulphur diesel must be used wherever practical
	Consideration must be given to LPG fuel vehicles where we have concentrations of vehicles within a single location together with local fuel bunkering. Again there are significant environmental and financial gains here.
	Use of fuel cards for commercial vehicles to be introduced Group wide to enable fuel type and mileage profiles monitoring.

Load carrying

	All commercial vehicles must clearly display legal gross weights and these weights must be strictly adhered to. Under no circumstances must such weights be exceeded.
	Use of public weighbridges must be used whenever there is any doubt over load weights.

Maintenance

All vehicles must be serviced fully in accordance with manufacturer’s instructions to ensure optimum efficiency.

Full compliance to statuary inspections must be carried out within the required time scales.

Use of CFM’s expertise relating to ‘O’ license regulations should be used whenever in doubt.

Logistics

	All journeys must be properly planned to ensure most effective use of vehicles.
	Annual mileage of normal road going vehicles must be closely monitored to ensure economic usage takes place.
	Less than 10k per annum may suggest that short term hires may be more efficient. – exceptions to this will be vehicles such as Gritters and Road Sweepers in view of use profiles.
	Greater than 40K in anything other than HGV’s should be restricted to three years maximum usage.
	Where both low and high mileage vehicle usage exists across similar vehicles such vehicles must be rotated to even out usage and thus wear, maintaining environmental efficiencies.

Driver awareness

Before being allowed to drive any commercial vehicle on behalf of the company, all drivers must be given instructions in safe and efficient use of commercial vehicles by a nominated Carillion employee. The driver must be given a copy of the Carillion ‘Light Commercial Vehicle Drivers Guide‘. Drivers must read the booklet and sign a declaration – a sample of which is contained within the drivers guide - acknowledging receipt and that he/she fully understands the contents.

Version 1 December 2001.