Transport & Environment aims to decarbonize the transport sector, with rapid electrification being one of the most effective approaches. However, achieving this goal requires the active participation of all stakeholders in the automotive industry.
The Role of Leasing Companies in Electrification
Leasing firms have a significant impact on the cars people drive and the pace at which we transition to electric vehicles. Despite claims by leasing giants that they are accelerating electrification, a closer look at their climate plans reveals a lack of commitment and weak electrification targets.
Unlike many carmakers and fleets that have set a target of going fully electric by 2030, leasing companies have not established an end date for leasing fossil fuel cars. When confronted about this issue, they tend to shift the blame onto the consumer demand and carmaker production.
The Call for Responsibility and Acceleration
To become true green leaders, leasing companies must demonstrate ambition and commitment to electrification. They should set electrification targets that surpass market expectations and commit to ceasing the leasing of fossil fuel cars by 2028. With carmakers’ production plans and the projected price parity of electric vehicles by 2027, leasing companies will have sufficient supply and reduced cost barriers to facilitate the transition.
However, setting higher targets alone is not enough. Leasing companies need to implement corporate policies that align with their ambitions and actively support government actions that stimulate demand for electric cars. Public and explicit endorsement of policy reforms will ensure the credibility of their electrification commitments.
The Opportunity for CEOs to Lead
CEOs of Europe’s top leasing companies can take this opportunity to be recognized as green pioneers. By committing to a phase-out of fossil fuel vehicles in the leasing sector, they can generate positive publicity and implement a sensible business strategy. The longer they wait, the more they stand to lose, as demonstrated by the automotive industry. Being proactive rather than playing catch-up is a more favorable position to be in.
