Fleet Assist launches automotive aftermarket’s first ESG audit programme for SMR garages

New initiative aims to help garages meet growing fleet sustainability requirements and protect future work opportunities

Fleet management specialist Fleet Assist has rolled out what it describes as the automotive industry’s first Environmental, Social and Governance (ESG) predictive audit programme covering its extensive UK service and maintenance network.

The initiative has already assessed Fleet Assist’s network of around 9,700 service points and more than 650 mobile garage operators, creating what the company says is a benchmark for future sustainability reporting across the fleet servicing, maintenance and repair (SMR) sector.

The move comes as major leasing, rental and corporate fleet operators face increasing pressure to reduce Scope 3 emissions, the indirect emissions generated across their wider supply chains.

According to the Carbon Trust, Scope 3 emissions can account for between 70% and 90% of an organisation’s total carbon footprint, making supplier networks an increasingly important focus area for large businesses reporting against ESG targets.

Fleet Assist believes the programme will help independent garages and SMR providers better understand their own environmental exposure while also safeguarding future fleet work opportunities as corporate customers place greater emphasis on sustainability performance.

Growing importance of ESG in the aftermarket

The introduction of ESG auditing reflects a wider shift across the automotive sector, where fleets, leasing companies and major service providers are being asked to demonstrate stronger environmental and social governance credentials.

For many garages, ESG has traditionally been viewed as something primarily affecting larger corporate businesses. However, with fleet operators now under pressure to monitor and report emissions and supply chain performance, independent workshops are increasingly being drawn into the process.

Fleet Assist says its framework has been designed to provide garages with a starting point for understanding ESG requirements and identifying areas where operational improvements can be made.

The audit process covers a wide range of business areas, including:

• Diversity and inclusion
• Product and service reviews
• Quality assurance procedures
• Health and safety policies
• Environmental policies
• Data governance and cyber security
• Financial stability
• Company structure and governance
• Carbon management
• Sustainability planning

Fleet Assist added that garages participating in the programme could use the findings to support more in-depth ESG reporting in future, helping demonstrate operational efficiency, resilience and investment attractiveness.

ESG scores could influence work allocation

One of the most significant developments for garages is Fleet Assist’s confirmation that ESG performance ratings could eventually become part of fleet work direction decisions.

The company said customers may in future be given the ability to incorporate ESG garage ratings into work allocation considerations.

That development could become increasingly important as large fleet operators look to align procurement decisions with their sustainability targets and reporting obligations.

For independent garages heavily reliant on fleet servicing, maintenance and MOT-related work, ESG performance may become another factor alongside pricing, location, service quality and compliance standards.

Fleet Assist also undergoes ESG assessment

Fleet Assist said it has also completed the same ESG assessment process internally across its own business operations.

The company stated that its own evaluation went further, with more in-depth analysis undertaken as part of its wider sustainability strategy.

According to Fleet Assist, the programme represents the first stage of an ongoing commitment to sustainable business practices, ethical governance and positive social impact across both its own operations and its external garage partner network.

The company says the benchmarking exercise will provide a platform for continuous improvement and greater transparency when engaging with customers, partners and stakeholders.

Fleet Assist comments

Nikos Kotrozos, supply chain director at Fleet Assist, said the assessment marked an important step for both the business and the wider automotive supply chain.

He said: “Our ESG assessment represents an important milestone in our journey to operate more responsibly and sustainably.

“We recognise the vital role we play in influencing environmental and social outcomes across the automotive supply chain, and we are committed to driving meaningful progress for our customers and partners.

“We plan to publish regular updates on our ESG progress to give all our stakeholders clear visibility of performance and ongoing improvements. Talking about the constituent elements of ESG adds credibility to companies and acting on them shows integrity.”

What it means for garages

Although ESG reporting is still relatively new territory for many independent workshops and MOT garages, the direction of travel across the fleet sector is becoming increasingly clear.

Large corporate customers are facing mounting pressure from investors, regulators and customers to improve sustainability reporting and reduce emissions across their supply chains.

As a result, garages working within fleet servicing networks may increasingly need to demonstrate:

• Clear environmental policies
• Waste reduction initiatives
• Energy efficiency improvements
• Responsible data handling
• Strong health and safety procedures
• Inclusive employment practices
• Robust governance and compliance processes

For garages already operating to recognised quality and compliance standards, many of these requirements may already be partly in place. However, formal ESG reporting could soon become another important requirement for securing and retaining fleet contracts.

Fleet Assist’s move is likely to be closely watched across the wider automotive aftermarket as ESG reporting becomes more embedded throughout the sector.

Industry observers suggest similar programmes could become increasingly common as fleet operators and service providers work to align themselves with evolving sustainability and governance expectations.