Craig Allan, director of specialised sales at Abax, discusses why grey fleet matters to your green goals.

Craig Allan, director of specialised sales at Abax

Grey fleet is one of the biggest blind spots in business transportation. With 14 million privately owned vehicles used for work, grey fleet makes up 40% of all cars on UK roads. Yet, many businesses lack visibility into its compliance challenges and environmental impact. As sustainability reporting and fleet efficiency become top priorities, companies must take control of their grey fleet strategy.

“Grey fleet vehicles often contribute to a company’s carbon footprint, particularly if they consist of older, less fuel-efficient cars. Without accurate reporting, businesses may be underestimating their environmental impact,” says Niall Curran, senior business development manager, 5Y Technology.

Compliance risks: Is your business exposed to penalties?

Grey fleet drivers use personal vehicles for business travel but, without a structured approach, businesses could be failing in their duty of care and tax compliance responsibilities. According to industry research, organisations that do not track grey fleet mileage correctly risk fines of up to £34,000 a vehicle from HMRC. Misreporting business and private mileage is a common issue and manual tracking methods increase the likelihood of errors.

“Ensuring compliance with sustainability regulations is just as important as tax reporting,” says Curran. “Many businesses are facing increasing requirements to disclose emissions from all business travel, including grey fleet.”

Drivers love a digital solution

At first glance, grey fleet seems cost-effective, largely because businesses avoid upfront vehicle costs and maintenance expenses.

However, the financial benefits diminish as travel needs increase. For example, unchecked mileage reimbursements, fuel inefficiencies and vehicle wear-and-tear can contribute to rising costs.

A well-managed grey fleet policy should include mileage tracking, cost analysis and alternative transport options for frequent travellers

A well-managed grey fleet policy should include mileage tracking, cost analysis and alternative transport options for frequent travellers.

Without proper oversight, businesses may be overpaying on reimbursements or missing opportunities for cost savings.

The environmental impact of an ageing fleet

A study by the British Vehicle Rental and Leasing Association (BVRLA) found that the average grey fleet car emits 19% more CO₂ than a company-owned vehicle. Older, less fuel-efficient vehicles make up a large proportion of grey fleet, increasing an organisation’s carbon footprint.

“Companies are under increasing pressure to report on their entire carbon footprint, yet many fail to account for grey fleet emissions,” says Curran. “By integrating Abax data into sustainability reporting platforms, businesses can ensure they are tracking and reducing emissions across both company-owned and employee-owned vehicles.”

At 5Y Technology, Abax mileage data is used to streamline fleet emissions reporting. “We have successfully accessed journey distance data from Abax,” explains Curran. “Utilising the company’s APIs, we can calculate emissions for each journey across a company’s entire fleet, including grey fleet, eliminating this time-consuming task for sustainability teams.”

Safety and risk management

The lack of control over grey fleet means that businesses have no oversight on driver behaviour, vehicle condition, or safety risks. According to a report by Marsh, grey fleet vehicles contribute to higher accident rates due to inconsistent maintenance, lack of vehicle safety monitoring and driver fatigue. Businesses that fail to implement risk management strategies may face increased insurance costs and potential liability.

Taking control of the invisible fleet

Grey fleet is a growing influence in business mobility, yet many organisations remain unaware of its financial and environmental impact. With Abax’s advanced tracking and integration capabilities, businesses can take full control of their grey fleet – improving compliance, cutting costs, and driving sustainability.

Is your grey fleet compliant, cost-effective, and sustainable? Find out by exploring all areas of your business, including compliance and legal responsibilities, sustainability reporting and safety and risk management in the Abax-developed assessment. Find out more here.

Visit Abax at the Great British Fleet Event to discover how we can help your business turn grey fleet challenges into opportunities.