A recent applied research project conducted by MBA students from Warwick Business School, in collaboration with sustainability consultancy BIP.Verco and global consultancy BIP UK, explores practical approaches for businesses to accelerate the decarbonisation of their vehicle fleets. The project, delivered as part of LeadershipPlus, Warwick’s practical application module, focused on identifying actionable strategies that combine emissions reduction with long-term operational and cost benefits.

Guided by consultants from Verco and BIP, the student team analysed market trends, emissions data, and cost modelling to support the development of a prototype Total Cost of Ownership (TCO) tool. The tool aims to help organisations compare different fleet transition options and assess where and when EV adoption offers the greatest value.

One scenario explored by the team showed that a typical mid-sized logistics fleet in the UK (42 vans, 21 trucks, 7 HGVs) could reduce its annual CO₂ emissions from 2,416.4 tonnes to 829.1 tonnes, a 65.7% reduction by transitioning to electric vehicles.

The modelling aligned with broader market signals, suggesting that TCO parity between EVs and diesel vehicles is likely to be reached by 2026 for many vehicle classes, even before factoring in government subsidies. Operational savings between 30% and 50% in day-to-day running costs were also observed, driven by lower fuel and maintenance expenses.

The project reinforced known barriers to adoption most notably, the slow rollout of charging infrastructure. Half of UK fleet operators report delays of 12 months or more in securing the required grid capacity, highlighting the importance of early planning, energy strategy alignment, and engagement with local networks.

The team proposed a four-phase roadmap to guide organisations through their transition:

• 2025 - 2026: Prioritise the electrification of light commercial vehicles, where TCO parity is expected first. 
• 2026 - 2028: Expand electrification across medium and larger fleet assets, supported by improving battery technology and maturing infrastructure
• 2028 - 2030: Prepare for the transition of heavy-duty vehicles, aligned with expanding grid capacity and further EV technology advances.
• 2030 onwards: Achieve full fleet decarbonisation, integrated with site-level energy systems and advanced fleet management platforms.

“This has been a great example of how academic partnerships can generate practical tools and insights,” said Sebastian Varela Garcia, Head of Sustainability at BIP UK. “The findings help ground the conversation with clients and support better-informed decisions about decarbonisation timelines and investment.”

The work also supports BIP and Verco’s broader development of client offerings in transport emissions reduction, combining TCO modelling with consulting support to help businesses understand their options, align with regulation, and make progress on net zero goals.

About the Project:

This project was conducted as part of the LeadershipPlus module at Warwick Business School, in partnership with Verco and BIP UK. The student team delivered a strategic analysis of fleet decarbonisation challenges and opportunities and developed a prototype TCO-based decision-making tool. The findings are now being used to inform client-facing propositions currently in development by BIP and Verco.