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1 Executive Summary

Government has a large vehicle fleet of over 21,000 vehicles. There is substantial opportunity for government to deliver improved environmental and financial performance through the management of its vehicle fleet. Through considered vehicle procurement practices, government agencies can achieve greater financial performance over whole-of-life.

As fuel prices continue to rise, alternative technologies such as hybrids become more financially viable as well as environmentally sound. Some agencies are already considering buying smaller vehicles that are more fuel efficient, produce fewer emissions and also meet recommended safety standards.

The Govt3 programme, coordinated by the Ministry for the Environment, helps government agencies improve the environmental, social and economic sustainability of their activities.

Through the Govt3 programme, the Ministry for the Environment, the Ministry of Transport, and the Energy Efficiency and Conservation Authority (EECA) are working to reduce the environmental footprint of government vehicle use. The purpose of this report is to characterise the existing government fleet, review current vehicle procurement practices, and to suggest practical options for improving the sustainability of the fleet (in terms of energy efficiency, vehicle emissions, recyclability, eco-efficiency, full-life costings and vehicle safety factors).

Key findings

  1. The government fleet is currently just over 21,000 vehicles, around half of which have an engine size rating of 1,000-2,000 cc.
  2. Around 75 percent are petrol driven, 25 percent diesel and a small number of hybrid vehicles have recently entered the fleet.
  3. Approximately 80 percent of government vehicles are five years old or less and the most common vehicle make is Toyota.
  4. The average combined fuel consumption rating over all government organisation categories (excluding the Offices of Parliament) is 9.2 l/100 km for petrol vehicles and 9.6 l/100 km for diesel vehicles.
  5. Current information from the Ministry of Transport's LANDATA [LANDATA (Land Transport Database) is maintained by the Ministry of Transport for all vehicles registered in New Zealand. It includes the Motor Vehicle Register, Road User Charges Database, and Land Transport Information System (including WoF Online).] database shows the emissions levels of most vehicles are in the Euro II or equivalent category.
  6. Carbon emissions from the total government fleet are estimated at 112,000 tonnes of carbon per year, which is less than one percent of total emissions from vehicles in New Zealand.
  7. Vehicle safety is a key consideration in government fleets, with a number of surveyed organisations identifying this area as their top priority.

The survey and case studies show that government agencies are increasingly incorporating sustainability considerations into vehicle procurement decisions.

Practical measures

There are a number of innovative ways to improve the sustainability of a vehicle fleet. Practical ways to improve the sustainability level of the fleet fall into the following areas:

  • Reducing vehicle size across the fleet would help lower fuel consumption and reduce carbon dioxide emissions.
  • Vehicle maintenance will be a key factor in reducing the environmental impacts of emissions from the government fleet. Older vehicles are also high emitters and should be replaced.
  • To improve the overall safety performance of the government fleet, organisations should establish minimum safety criteria for the procurement process, such as a requirement for vehicles to achieve four stars or more in the Australian New Car Assessment Programme (ANCAP) vehicle safety guide.
  • More extensive use of whole-of-life costs for individual vehicles and closer analysis of fuel consumption data related to vehicles will better inform procurement decisions.
  • Opportunities exist to consolidate procurement and administration of vehicles and related fleet services between agencies - through Government Supply Brokerage (GSB) or similar.
  • Improve data collection and data entry in the LANDATA system to provide more comprehensive data upon which to calculate the government baseline.
  • Central government should consider how it could help make the practical tools and guidelines readily available to government organisations to support procurement managers and fleet managers in data collection and in incorporating sustainability criteria into procurement processes and contracts.
  • Senior management and change agents from individual agencies should take the lead to drive consideration of sustainability criteria in fleet procurement and align procurement practices with strategic commitments such as those associated with Govt3.
  • Procurement officers and/or fleet managers from individual agencies should consider a range of actions to incorporate sustainability considerations in fleet procurement and management practices.

Recommended indicators to enable tracking and reporting of sustainability performance improvement in the overall government fleet and fleets at an individual agency level have been developed along with recommended measures.

The study methodology

The study methodology comprised:

  • an analysis of government vehicle information held in LANDATA, supplemented by data from a number of fleet audits carried out by government agencies
  • a survey of fleet procurement and management practices across a range of government agencies
  • an examination of comparative vehicle full-life costing and fuel consumption data by a local fleet manager
  • the development of seven case studies focusing on various aspects of sustainable practices in fleet procurement.
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