Dawsongroup | finance

The Breakdown of Net Zero – Part 2

The Breakdown of Net Zero Part 2: Are we on the right track?

Reaching the net zero goals set out by the government has proven to be a rather tricky feat. Despite the support and options available for small businesses, some are still refraining from making the move because of a variety of challenges, outlined in part 1 of our blog, here

What has taken us off route? 

With financial pressures, infrastructure challenges and having to adjust to an entirely new type of vehicle, there are a number of things holding businesses back from making this decision.  

This has only gotten worse with the delay announcements on matters such as the ban of new diesel cars being produced and the uncertainty surrounding the new Zero Emissions Mandate, which was supposed to be implemented at the start of 2024. 

With this lack of consistency from the government, businesses have been left to fend for themselves, dealing with their own worries on top of the concern that the government will no longer be backing their own goals. 

So, are we going to make it? 

There is no clear answer as to whether or not the UK would be able to reach the net zero goals, especially since things have taken such a sharp U-turn. However, if there is one thing that industry professionals can agree on, it’s that we are so far behind the goals set that it is incredibly unlikely we will reach them on time. 

But, there is always the possibility of change. Especially with the considerable push towards going green and being environmentally friendly as of late – a trend that is not just popular with business assets, but the general population too. 

The Society of Motor Manufacturing and Traders (SMMT) has recently revealed promising statistics showing that a new EV was registered every 60 seconds in summer 2023,  meaning the demand for EVs is still there. 

Dawsongroup’s Smarter Asset Strategy can help

By utilising the asset finance industry and using what has been known to work for many businesses over the years, we can potentially start to catch up with the government’s net zero goal – even if we miss the deadline.  

Matthew Bull, our Commercial Manager, says:  

“Based on conversations with our clients and watching EV buying trends, particularly electric HGVS, the likelihood we will reach the net zero goal is very slim. 

“Many businesses have gone into survival mode and are trying to find any way to preserve cash flow which does not include trialing a new fleet type. Although people are buying electric cars, funding something as expensive as an electric fleet is not a top priority for businesses right now, but, with our Smarter Asset Strategy, we may be able to provide an alternative…”    

Through our expertise as a group, we have learned that adjustments need to be made especially when it comes to leasing and finance – which is why we have introduced this flexible leasing approach, alongside our sister company Dawsongroup PLC. 

The Smarter Asset Strategy allows you to lease a vehicle for a timeframe that works for your needs. From 13 weeks, or longer, you can take the chance on the EV route and find out whether or not it works for your businesses without the high financial risk.   

If you want to find out more, then get in touch with our expert team and let us navigate your fleet to the right road.