Episode 114: Liz Allan and Stephen Fitter- Navigating Fleet Decarbonisation: Solutions for Evolving Energy Needs

Episode 114: Liz Allan and Stephen Fitter- Navigating Fleet Decarbonisation: Solutions for Evolving Energy Needs.

Liz Allan speaks to Stephen Fitter, a Fleet Decarbonisation Consultant and the founder of Focus Net Zero. With a logistics and project management background, Stephen has extensive experience in fleet management and business transformation. He shares insights on how organisations can take carbon out of their fleet operations, the importance of initiatives like the Energy Savings Opportunity Scheme (ESOS), and the challenges and opportunities of fleet decarbonisation. Liz and Stephen dive into the strategies businesses can adopt to meet compliance and make financial and environmental sense in the transition to a greener future.

Stephen Fitter Bio:
Stephen Fitter is the founder of Focus Net Zero, a consultancy dedicated to helping organisations decarbonise their fleets. With over two decades of experience in logistics, fleet management, and business transformation, Stephen has worked with various companies, from small to large organisations, to implement sustainable practices and reduce carbon emissions. His work spans direct consultancy and auditing for compliance schemes like ESOS, where he offers expert advice on energy efficiency, fleet optimisation, and the future of electric vehicles. Stephen is passionate about creating practical, sustainable solutions for the transport sector as the UK moves towards a net-zero future.

Steven Fitter Links:
Website: https://www.focusnetzero.co.uk
LinkedIn: https://www.linkedin.com/in/stephenfitter

Episode Keywords:
Fleet decarbonisation, energy transition, fleet operators, electric vehicles, fleet management, ESG standards, fleet logistics, vehicle emissions, air pollution, sustainable transport, ESOS audits, driver training, telematics, fleet procurement, vehicle choice, compliance, energy efficiency, environmental compliance, decarbonisation strategy, energy management, diesel transition, EV adoption.

Episod

Transcript

Liz Allan [00:00:31]
On today’s episode, I have with me Stephen Fitter. I’ve known Stephen for a while. We met a few months ago, and we had a long chat a few months ago, didn’t we, Stephen? He is a fleet decarbonisation consultant, and his business is called Focus Net Zero. Thank you for joining me.

Liz Allan [00:00:51]:
It’s great to have you on here, and I’m so glad we had a good chat before we started recording because there’s lots to talk about.

Stephen Fitter [00:00:58]:
Thank you very much for having me on, Liz.

Liz Allan [00:01:01]:
Let’s start. I’m not going to jump straight into the fleet decarb stuff. I always say this at the beginning—let’s get some of your background and how you got to where you are now. What did you do prior to running your own business? Tell me a little about how you got to where you are now.

Stephen Fitter [00:01:25]:
Okay. My background is in logistics. I worked for DHL for a long time. I started in 1999, and I worked with them until 2012. I was a fleet manager, operating a couple of fleets. Halfway through my career with them, I switched into the project world and got involved in new initiatives like project startups, tender startups, efficiencies, and governance.

Stephen Fitter [00:02:01]:
After I left DHL in 2012, I wanted to go it alone and become a programme manager for myself, which I did. I started working across different sectors and functions, so it wasn’t always logistics. As these projects got bigger and better, I started doing full business transformations and worked on some fascinating contracts. Around COVID time, I started thinking I’d like to do something a bit different. In my own life, I’d become much more sustainable in how I wanted to live.

Stephen Fitter [00:02:52]:
I thought about combining my time as a fleet operator with my experience in programme management and business transformation. I realised there are many fleets and companies with fleets facing significant business transformations. Operating models will likely be turned on their heads for some, and things will look very different in the future. That’s how Focus Net 0 started, and that’s where I am today. I help organisations think about taking carbon out of their fleet operations through consultancy or auditing schemes like ESOS, the Energy Savings Opportunity Scheme.

Liz Allan [00:03:51]:
I think there’ll be quite a lot of people who might not know what ESOS is, so it’s good to get that in at the beginning, Stephen. I hadn’t realised how it worked, what it was, and who it impacts. Can you explain that to everyone?

Stephen Fitter [00:04:16]:
Sure. ESOS has been around for a while now, though it’s not that well-known. More people need to start caring about it, especially with legislative changes this year that mean more organisations will be impacted. ESOS is the Energy Savings Opportunity Scheme, a mandatory compliance scheme for large organisations. If you have over 250 employees or a revenue turnover above £44 million and £38 million on the balance sheet, you must do an audit every four years. We’ve just finished Phase 3 compliance, which ended on 6th August this year.

Stephen Fitter [00:05:06]:
However, some people missed it, so I’m doing a couple more audits for those cases. The Environment Agency administers ESOS. It involves auditing large energy users—buildings, processes, and transport. The audit identifies things companies can do to reduce energy usage. Over the last 18 months, I’ve done 45 audits, which have been fascinating. One client had nearly 4,000 vehicles; another had none but a significant grey fleet. Many companies don’t even realise they’re considered fleet operators under ESOS.

Liz Allan [00:06:19]:
Could you explain grey fleets and why they matter in ESOS? Also, it’s good to bring in an external auditor because otherwise, it’s like marking your own homework, isn’t it?

Stephen Fitter [00:06:32]:
Absolutely. A grey fleet involves employees using their vehicles for business purposes—either claiming mileage or taking a cash allowance to buy a car. These are covered under ESOS. When companies are asked for total energy consumption, they often forget to include grey fleets. Once you examine expenses, it quickly becomes clear how much energy is being used in these cases.

Stephen Fitter [00:07:34]:
ESOS audits focus on identifying recommendations that offer a good return on investment. However, grey fleet recommendations often involve policy changes, as it’s difficult to beat 45p per mile financially. Companies might consider alternatives like salary sacrifice schemes or car-share programmes to gain more control over the types of vehicles being used.

Liz Allan [00:08:45]:
What vehicles are typically part of these audits, and what areas are you examining? I imagine most fleets are still primarily diesel.

Stephen Fitter [00:09:09]:
Yes, the majority are diesel. The number one recommendation I make in audits is about data. To measure is to manage, but so many companies don’t have the right data in place to properly evaluate their energy usage. When I request data, it can take weeks for them to compile it, which shows it’s not being actively managed. Once they do get the data, they’re often surprised to realise how much financial sense it makes to optimise fuel usage alongside reducing emissions.

Stephen Fitter [00:10:22]:
The second biggest recommendation is driver training, especially for heavy goods vehicles (HGVs). Even improving fuel efficiency by half a mile per gallon on a 44-tonne vehicle can result in significant savings. Some companies really excel here—they incentivise their drivers, conduct regular assessments, and maintain low turnover. This shows how valuable proper training can be.

Liz Allan [00:11:51]:
I imagine training is equally important for drivers of electric vehicles (EVs), though the savings might not be as dramatic as for HGVs.

Stephen Fitter [00:12:28]:
Exactly. While EV savings may be smaller, the impact of driving inefficiently is much greater for EVs than for petrol or diesel vehicles. The temptation to overuse the instant torque of an EV can lead to inefficient driving, so training is crucial here too.

Liz Allan [00:13:01]:
Do all companies have telematics systems to collect data, or is it optional?

Stephen Fitter [00:13:37]:
Surprisingly, many companies don’t use telematics, often citing privacy concerns, which are usually unfounded. Telematics is essential for understanding vehicle usage and optimising operations, especially during the transition to electric. Without it, companies miss opportunities to save energy and money.

Liz Allan [00:14:19]:
We discussed earlier how some companies don’t recognise the cost savings that come from training or telematics. There seems to be a mix of approaches to fleet decarbonisation—some are proactive, and others less so.

Stephen Fitter [00:15:24]:
Absolutely. Some companies are fantastic—they make sustainability a unique selling point. Others want to do something but lack the right advice or research, leading to ineffective efforts. Then there are those who are ambivalent or even resistant to change, often because it doesn’t align with personal goals or company priorities.

Liz Allan [00:16:43]:
You mentioned earlier that some companies try to integrate EVs without fully understanding how to adapt their operations. Can you give an example?

Stephen Fitter [00:17:34]:
Yes, one company complained their EVs weren’t working, but it turned out they weren’t using proper EV chargers—just extension leads plugged into three-pin sockets. Another company misunderstood the capabilities of plug-in hybrids, using them for long sales trips of 200–300 miles. These vehicles weren’t fit for purpose, leading to poor efficiency and frustration.

Liz Allan [00:19:06]:
It seems there’s little guidance for companies attempting to decarbonise their fleets. How can they pull everything together without someone like you to help?

Stephen Fitter [00:19:31]:
There’s guidance for specific decisions, like choosing a particular vehicle, but not much for overall business impact. Successful decarbonisation requires addressing purpose, processes, power, people, and procurement. Without clear strategies, companies risk creating a disjointed mess. My role often involves asking the right questions and ensuring these elements come together cohesively.

Liz Allan [00:22:49]:
You seem like a one-stop shop for decarbonisation!

Stephen Fitter [00:22:52]:
That’s what I aim to be. My goal is to act as a shortcut for fleet managers, leveraging my expertise and network to save them time and effort. Even for diesel fleets, improving efficiency by selecting the best vehicles or optimising routes makes financial and environmental sense.

Liz Allan [00:23:50]:
You mentioned earlier how some companies make the wrong vehicle choices, leading to financial and operational issues. Can you elaborate?

Stephen Fitter [00:24:18]:
Absolutely. I’ve seen companies over-spec vehicles, buying large EVs when smaller ones would have been sufficient. For example, they could have opted for an L7E category vehicle, which would have been much cheaper and better suited to their needs. People often start with a solution rather than focusing on their actual requirements, leading to inefficiencies.

Liz Allan [00:25:30]:
It’s about getting to the root of what they need. What’s the point of assuming their needs without asking the right questions?

Stephen Fitter [00:25:49]:
Exactly. Sometimes they just need an external perspective to ask those questions. When I conduct ESOS audits, I often start by asking, “Why do you have vehicles?” It’s about understanding their purpose and aligning their fleet to meet business goals efficiently.

Liz Allan [00:27:30]:
In cases where employees take vehicles home, what challenges arise with EV adoption?

Stephen Fitter [00:27:55]:
The challenges include installing home chargers for each employee and addressing fairness issues among workers. Not everyone has a driveway or wants a work van parked at home. These logistical and operational complexities require careful planning.

Liz Allan [00:28:41]:
Earlier, you mentioned companies claiming EVs don’t work when they’re actually using unsuitable setups. Can you explain?

Stephen Fitter [00:29:08]:
One company complained their EVs were ineffective, but they were using plug-in hybrids, not fully electric vehicles. The hybrids were being driven inefficiently, resulting in poor MPG. This misunderstanding created negative perceptions about EVs within the company.

Liz Allan [00:30:20]:
That’s the problem—poor vehicle choices can lead to misinformation and scepticism about EVs. How do you address this?

Stephen Fitter [00:31:01]:
You approach it with empathy. Many companies have good intentions but lack the right advice. Helping them understand the correct solutions and providing guidance ensures they avoid similar mistakes in the future.

Liz Allan [00:32:39]:
You also mentioned that some companies skimp on infrastructure, like using extension cables instead of proper chargers.

Stephen Fitter [00:33:22]:
Yes, and that’s where the latest ESOS changes come in. Companies are now required to submit action plans by March 2024 and report on progress annually. This prevents them from treating ESOS as a box-ticking exercise. It pushes them to take meaningful actions, with board-level accountability.

Liz Allan [00:34:53]:
Is ESOS mandated at the high level you described?

Stephen Fitter [00:35:04]:
Yes, the Environment Agency administers it, with devolved administrators for specific regions. Non-compliance can result in fines of up to £50,000. While action plans themselves don’t currently carry fines, the reputational risk is significant.

Liz Allan [00:37:03]:
Bringing smaller organisations into ESOS could help hold them accountable and align with environmental, social, and governance (ESG) goals.

Stephen Fitter [00:37:58]:
I agree. Lowering the thresholds would bring more organisations into compliance. ESOS audits aren’t expensive, and the potential savings make them well worth it. Simple measures can lead to significant returns.

Liz Allan [00:39:03]:
This is all part of the evolution away from diesel. Transport contributes a large percentage of UK emissions, doesn’t it?

Stephen Fitter [00:39:54]:
Yes, it’s around 28%. While power generation emissions have decreased, transport remains the largest contributor. Even small efficiency improvements can make a big difference, especially with HGVs.

Liz Allan [00:40:39]:
Air pollution from diesel vehicles is a serious issue. It reminds me of the visibility of factory smoke in the past. We need a similar societal push, like the one against smoking.

Stephen Fitter [00:41:40]:
You’re absolutely right. Decarbonisation is necessary for businesses to survive and thrive. Consumers are making more informed choices, so companies unwilling to adapt risk falling behind.

Liz Allan [00:42:43]:
It’s great to see companies looking forward. You mentioned seeing an electric hearse and limousine recently—what impact do you think this will have?

Stephen Fitter [00:43:36]:
Yes, I saw them in my local area and thought it was fantastic. The funeral industry is steeped in tradition, so seeing them embrace EVs shows a shift in mindset. While these vehicles are costly now, they’ll reap long-term benefits as consumers increasingly make decisions based on sustainability.

Liz Allan [00:43:52]:
What would you like to see change in the fleet sector over the next few years?

Stephen Fitter [00:44:19]:
I’d like to see more people take fleet decarbonisation seriously and recognise the urgency. For example, if you’ve got a fleet of vans, you can’t wait until 2035 to start transitioning—it takes time. We need greater discussion about the operational and cultural changes required, especially for HGVs.

Liz Allan [00:45:40]:
On that note, I’ll wrap up by shouting out your website: focusnetzero.co.uk. I’ll include all your contact details in the show notes. What you’re doing is so important, and I hope more companies work with you to recognise the importance of this shift. Thank you so much for joining me today—it’s been brilliant.

Stephen Fitter [00:46:24]:
Thanks very much for having me. It’s been great chatting with you, Liz.

Liz Allan [00:46:28]:
To everyone listening and watching, the best way to spread the word about this podcast is through you. When this episode goes live, please comment, like, share, and subscribe. We’re on all the major audio platforms, Apple, Spotify, and on YouTube. Your support helps more people hear from experts like Stephen. Also, if you’re inspired, you can support the podcast through Patreon or buy us a coffee to help keep these conversations going.

Liz Allan [00:48:41]:
If you’re curious about our work at Full Circle CI, visit fullcircleci.co.uk or email me at liz@fullcircleci.co.uk. Please share this podcast if it resonates with you or leave a review. it helps spread the word about the topics we cover. Until next time, see you soon.

Stephen Fitter [00:48:17]:
Thanks again, Liz, and to anyone listening, do check out Liz’s back catalogue. There’s a wealth of expertise in these episodes.

Liz Allan [00:49:36]:
Thank you, Stephen, and thanks to everyone for watching and listening. See you next time. Bye-bye.