Electric vehicles have become commonplace in recent years but there are competing claims about the environmental benefits they offer, and how practical they are for real-world businesses. This guide aims to sort the information from the disinformation, so that you can decide whether EVs are right for your business.
How this helps your business
EVs can reduce the cost of operating your fleet
Reduce emissions and other environmental impacts
Demonstrate your company’s green credentials
Attract and retain staff through tax efficient salary sacrifice EV schemes
Is this right for you?
This guide is relevant for all businesses that use vehicles in their operations, or whose employees use vehicles to get to work.
How to decide if EVs are right for you
Electric vehicles (EVs) are far better for the environment than old-fashioned internal combustion engine (ICE) vehicles.
✅Total lifecycle emissions of EVs are significantly lower than ICE vehicles. How much lower depends on where and how far you drive, but generally the lifetime climate impact of an EV is about a third that of an ICE vehicle
✅They are much more efficient. Around 80% of available fuel energy goes to moving an EV, compared to around 20% for an ICE vehicle.
✅Because they are much more efficient, the greenhouse gas emissions from generating electricity to charge EVs are much lower than the tailpipe emissions of an ICE vehicle, even in countries which still have high carbon grid electricity, and as electricity continues to decarbonise, EVs keep getting better.
✅They have no tailpipe emissions, so do not contribute to air pollution. Air pollution from vehicles is responsible for the death of 385,000 people every year, about a third as many as die in road traffic accidents, yet regulation of air pollution is far lighter than regulation of road safety.
✅For much more detail on fleet decarbonisation, the UK Energy Saving Trust has an excellent and comprehensive guide.
As with all travel, try to follow a travel hierarchy: if you can, use a video call, walk, cycle or use public transport. But if you can’t, then environmentally, EVs are a better, both for fleet operations and employee vehicles.
However, there are aspects of driving an EV that require consideration.
Cost. EVs are more expensive to buy than ICE vehicles, but depreciation, maintenance and running costs are all better. Total cost of ownership is typically significantly lower for EVs than ICE vehicles , . Leasing removes the burden of higher upfront costs.
Range anxiety. This is the most cited reason not to buy an EV, although it is rarely mentioned by EV owners. As vehicle ranges increase and charging infrastructure proliferates, it is becoming increasingly difficult to claim that it is a real issue, unless you are regularly doing very long trips. Most EVs come with mapping and planning software which alerts the driver and directs them to the nearest charging station, and if they don’t, there are numerous apps to help with EV journey planning.
Before committing to buying an EV, make a note of how far you travel in a day, and compare this with published range figures. Do bear in mind though, that real-world performance can be quite different from published performance, and that range can be worse in winter.
They take too long to charge. This used to be the case, with older (e.g. 22kW) chargers, but modern chargers and EVs typically charge at 150kW or more. At this rate, a normal 75kWh EV battery will charge from flat to ~90% in half an hour.
There aren’t enough chargers. This depends on where you are and when you drive. If you are able to install chargers at your premises, it is less likely to be a problem. As of early 2026, there were about 118,000 chargers in the UK; although of course it’s not strictly comparable, for reference that’s about twice as many as petrol/diesel pumps.
Have a look at the map of chargers on Zapmap. You can filter by power (kW) and see how many there are on the route you need to take. This won’t tell you how busy they are when you need them, but the app does show you when they are being used, so you can get an idea of how busy they are.
Charging can be expensive. In early 2026, a small diesel van had a slight edge over an EV alternative, if you could only charge at fast commercial charging points. But that is purely refuelling against charging, ignoring all other costs. Also, this edge disappeared when oil prices rose as a result of the attacks on Iran.
However, if you can charge at your own site, you pay commercial electricity rates which will be around half as much, or if you use a specialised EV tariff, which charges for a set period overnight, almost 90% lower.
If you can only charge commercially, and ignore lower maintenance costs, tax benefits and fewer, cheaper repairs, then a small diesel van can still hold its own against an electric alternative. But in the real world, the electric option is better, and if you can charge on your own premises, much better.
Range, load and terrain. Until recently, there was an argument that certain combinations of required range, load and off-road capability were not served by EV alternatives, e.g. for rural vets, agronomists etc. This is no longer the case, although the electric options can still be prohibitively expensive, at almost twice the price of the cheapest ICE models.
Environmental impact of batteries. EV batteries have been criticised for their use of cobalt, about 10% of which is mined in appalling conditions, and for their lack of recyclability. Newer battery chemistries use less, or even no cobalt, and the vast majority of valuable battery materials can be recycled.
Common Mistakes to Avoid
❌You don’t need to convert all at once. Work out how far you need to drive in a day, then try one EV to get a feel for it. Globally, only 1% of EV drivers consider going back to ICE vehicles (although the figure is higher in the US because of poor charging infrastructure). 92% say they will never drive an ICE vehicle again.
❌You don’t need to buy. EVs are developing so quickly that there is a strong argument for leasing, as they will have evolved so much in a few years that you will likely be better off getting a new model. And demand is so high that your old vehicle will be put to good use.
❌You don’t need to decide based on this guide. Or even the extensive guidance available online. Talk to others about their real-world experience.
Cost and Effort
Cost: Negative.
Total cost of ownership (TCO) of EVs is typically lower than ICE vehicles. Salary sacrifice lease schemes are a tax efficient way for employees to benefit from EV driving, and an easy perk for employers to offer. However, EVs are still considerably more expensive to buy than ICE vehicles, and e.g. lease setup deposits may be material. Benefits will depend on your specific circumstances.
Effort: Low.
Like-for-like replacements are widely available for most use cases. Salary sacrifice schemes are widely available for employee vehicles.
Conclusion
EVs have been subjected to a formidable disinformation campaign. Despite this, they are rapidly displacing ICE vehicles because they are greener and cheaper overall. Hopefully this guide has helped outline the facts on EVs, so you can make an informed decision.
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