CASE STUDY: AAH’s drive towards carbon neutral benefits from Arval Ignition
AAH Pharmaceuticals delivers medicine to millions of people across thousands of UK communities. The company has a longstanding relationship with Arval, which supplies all of its 2,400 vehicle fleet. This consists of vans, the majority of which are temperature-controlled and replaced on a 4-5 year cycle, and cars, with a mix of job-need and market-need provision that are operated for 3-4 years.
The Challenge
Ray Sandle, National Fleet and Planning Manager at AAH, explained:
"While some of our cars are allocated to nurses and are very much job-need, we also have a large number of prestige-badged, market-need cars and we were not sure that all of these were ultimately delivering value either for us or for drivers.”
“Also, there is a background issue looming in that we have a corporate ambition to be carbon neutral by 2030."
The Solution
Firstly, a whole life cost model was adopted across the car fleet that should allow AAH to generate savings and make environmental gains over time by promoting fuel and CO2 efficient models, including a range of hybrid options at each grade.
Secondly, a salary sacrifice scheme was introduced with a 75g/km ceiling that effectively excludes petrol and diesel models in favour of battery electric vehicles and hybrids.
Ray explained:
"A whole life cost approach automatically removed more inefficient and emission-heavy models from choice lists.
The salary sacrifice scheme is the real innovation however. Low taxation on zero emissions vehicles makes programmes of this type very attractive to drivers from a personal taxation point of view. What we are doing is offering existing company car drivers a way of making savings while creating environmental and cost wins for AAH."
A key element of the Arval Ignition salary sacrifice scheme is Arval Total Care, a package that provides users with not just vehicle and funding, but an insured company vehicle with maintenance, breakdown recovery, accident management, glass protection and more included.
Results
The salary sacrifice scheme was initially opened to existing company car drivers and cash takers at AAH. Ray commented: "We’ve already seen a dozen electrified cars ordered in the first week out of the initial pilot of 200 employees and significant interest right across the company. The plan is to now extend the salary sacrifice offer to all 15,000 employees.”
"Arval supported us with a suite of best practice strategies to help build the foundation of our internal message, in which we developed a targeted email communication to employees. They have also committed their help to the ongoing communication of the wider phase two audience.”
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For more information on Arval Ignition our salary sacrifice benefits scheme, please click here Salary Sacrifice Car Scheme - Ignition | Arval UK
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To find out more information about Arval Total Care, please visit Fully Insured Vehicle Fleet Leasing - Arval Total Care | Arval UK
