European campaign group Transport & Environment (T&E) has called on leasing companies to cease renting out fossil fuel vehicles by 2028. T&E pointed out that the top rental firms, collectively owning 9.3 million vehicles, were trailing in the transition to electric cars.
Delay in Phasing Out Fossil Fuel Vehicles
T&E reported that none of Europe’s leading seven rental firms, which significantly influence new and used car sales, had committed to phasing out fossil fuel cars. A T&E report titled “Stuck in the Fossil Age” highlighted this gap.
The only companies setting medium-term electric vehicle (EV) targets were ALD Automotive, a unit of Societe Generale, and Arval, a unit of BNP Paribas. ALD aims for plug-in hybrids and fully-electric vehicles to account for 50% of its sales by 2026.
In contrast, several automakers, including Ford, Nissan, and Stellantis, have pledged to sell only electric vehicles by 2030.
Green Credentials Questioned
The T&E report argued that companies like Arval, Stellantis, and Leasys, a joint venture between Credit Agricole and Renault, claim to have strong green credentials and switch to electric cars faster than the market. However, according to T&E’s analysis of car registration data, except for ALD, these claims are unsubstantiated.
T&E stated in its report, “Our investigation clearly shows that all leasing companies… are making green leadership claims that are not backed up by evidence.” The report further accuses these firms of “greenwashing.”
Leasing Firms Lag in EV Adoption
T&E examined data from 11 European Union countries for the first half of 2023. The findings indicated that most leasing firms in these countries were slower than the broader market in purchasing fully-electric vehicles.
T&E’s analysis revealed that, on average across the EU, EVs constituted slightly over 10% of car purchases made by leasing firms, a figure matching the rest of the market.
The report concludes, “The steps towards real green leadership are clear. What remains unclear is whether the major leasing companies will take these steps or remain rooted in the fossil age.” T&E’s call to action aims to push the leasing industry toward more sustainable practices in alignment with the broader shift towards electric vehicles in the automotive sector.