In this report when we talk about EVs we are usually including PHEVs, unless the context makes it clear that isn’t the case.

A NZI study confirms the importance of sustainability as a driver for change. From the fleet drivers we interviewed, 87% said sustainability was important to them, and 85% said it was important to the business. Further, 7 out of 10 fleet drivers felt more positive towards employers with EVs and/or hybrids as all or part of their fleet.

Opting for sustainability is one thing. The challenge is deciding the most effective actions to fulfil on that commitment. Moving to EVs is one of the more obvious choices, says Jessica Rodger, NZI’s Senior Climate Reporting Lead.

“Financially, EVs make a lot of sense,” she says. “They are cheap to maintain. They’re mechanically simple. And when the cost of fuel is high, it makes EVs even cheaper to run.”

Second, says Jessica, businesses are aware that transport is an important lever in reducing New Zealand’s overall CO₂ levels. “About 20% of our greenhouse gas emissions come from transport. Because around 85% of New Zealand’s electricity is from renewable sources, going electric makes a massive difference.”

IAG, NZI’s parent company is moving its fleet towards EVs and hybrids. So far it has seen an approximate 86% reduction in CO₂ emissions from the portion of its fleet that is now electric. Another, less obvious, advantage is the wide range of Advanced Driver-Assistance System, or ADAS, features that are built into new EV and hybrid vehicles. “Most car accidents are caused by human error,” says NZI National Motor Manager, Oliver Jepson. “ADAS have been proven to reduce accidents and make driving safer.”

Another, less obvious, advantage is the wide range of Advanced Driver-Assistance System, or ADAS, features that are built into new EV and hybrid vehicles. “Most car accidents are caused by human error,” says NZI National Motor Manager, Oliver Jepson. “ADAS have been proven to reduce accidents and make driving safer.”

For all of that, however, concerns still exist around EVs.

NZI’s research reveals that the main concerns for fleet drivers is around charging and range. Going hand-in-hand, these are expected concerns as technology moves away from the familiarity and ease of refuelling ICE vehicles. But this needn’t be a major concern for most. Many modern EVs can travel over 400km on a single charge and technology is improving rapidly. For those long trips where an on-the-road charge is required, websites like ChargeNet can support planning, revealing charging sites across the length of the country.

A final question is what happens to batteries at the end of their useful life. By 2030, New Zealand is predicted to be dealing with 30,000 used EV batteries – a number that will certainly rise in later years. Many will be repurposed for a time as house solar storage units or electricity substation back-up. When they no longer fulfil that purpose, though, they will need to be dismantled and recycled.

Launched in 2019, New Zealand’s Battery Industry Group is working to develop an accredited scheme to ensure the sustainable recycling of these batteries. While there is good reason to believe viable solutions await – Tesla, for example, has already announced its next generation of batteries will not use cobalt – much work still needs to be done, but technology is developing rapidly.

“One of the issues,” says Jessica, “is that while battery recycling companies exist, they don’t have much business yet because EV batteries are lasting longer than expected.”

For most businesses, the case for EVs is stronger than the case for ICE vehicles. With the price of EVs falling as adoption rates increase and more brands become available in the NZ market, the pendulum will only move even further towards electric.

Initially, IAG ran a successful Electric Vehicle Early Adopter Programme. When it launched, six NZI volunteers took possession of EVs – three in Christchurch, one in Wellington and two in Auckland. “We kept our initial trial small to enable rapid insight,” explains Jessica. 

We also created a partnership with LeasePlan, our vehicle lease supplier, for help with vehicle choices and home charging infrastructure. We had four big questions to resolve:

• Range and range anxiety
• Charging infrastructure
• Ongoing support and costs
• What carbon savings we would achieve

We installed home chargers for four of our Early Adopters, while the other two relied on office chargers and public charging stations.

“Chargers require careful planning. Safety must be the first priority”, says Oliver Jepson, NZI National Motor Manager. “This means being aware of current regulations and training people on the right ways to use them, whether at home or office-based chargers.” With office chargers, it’s also critical to ensure your available electricity supply will meet the power demand of your EV fleet, both now and as it grows.

For example, we currently have over 280 vehicles in our fleet. A major question for us is how to provide enough charging stations to support our vehicles as they transition to EVs. We are researching different options for this.

“Charging multiple vehicles on site is one of the key challenges of transitioning to EVs,” says Jessica. “Insufficient charging infrastructure can put an EV transition programme at risk. To add to the complexity, most businesses lease their premises, which makes installing that infrastructure more complex. It involves multiple stakeholders, and questions about long-term ownership and return on investment.”

Home charging is also an option to consider, but it won’t suit everyone. “Renters, for example, may not have permission to install the necessary equipment, and others may not have suitable off-street parking. That said, our users with home chargers love it,” explains Jessica. “It’s simple, convenient, and means your fleet can be recharging during downtime, not when the vehicles need to be on the road. You need to put together a suitable remuneration structure to ensure your staff aren’t paying for the company’s energy use, but that’s a minor challenge.”

Range anxiety is a key barrier to widespread acceptance of EVs. Almost 50% of fleet drivers NZI surveyed confirmed this, however we found that it was different for urban and provincial users once drivers were familiar with the vehicles.

“Our urban Early Adopters started out with some range anxiety, but it quickly evaporated as they discovered their cars’ range easily met their day-to-day needs,” says Jessica.

But users who needed to travel longer distances needed to plan their travel carefully, to allow for recharging along the way. They found that apps like Chargenet and PlugShare were useful, giving them a map of nearby charging stations.

We’ve been delighted with our results. Our EVs have reduced carbon emissions by approximately 86% per driver. The remaining 14% is from the portion of New Zealand’s electricity still generated by non-renewable sources.

Canstar Blue, the independent customer satisfaction research and ratings business, compared the energy costs of six similarly-sized vehicles: three EVs, and three petrol-powered vehicles. They found that driving an EV cost an average of 77% less per 100km, and that has been our experience too confirms Jessica. “It’s too early yet to report on our own experience regarding maintenance. But because EVs have fewer moving parts, we’re confident that servicing costs will be much lower too.”

Of fleet drivers we surveyed, 87% say sustainability is important to them, and more than 7 out of 10 feel more positive towards employers with EVs and/or hybrids as part or all of their fleet. Little wonder, then, that so many businesses are seriously considering – or have begun – transitioning into EVs or hybrids.

That said, one of the biggest things we’ve learned in our transition to EVs and hybrids is the importance of solid research and objective analysis.

NZI Fleet Risk Manager Mike Radford says before making any decisions, ensure you have a robust process to decide what vehicles and infrastructure options are best for the tasks at hand.

“There’s often a disconnect between what a business thinks its staff need and what staff actually need,” he says. “Lots of businesses are keen to jump into EVs, and choose vehicles based on anecdotal information. The better approach is to think through your needs, and then do a little research on the options that tick your boxes. That way you choose the right vehicles for both your business and your drivers.”

Mike recommends thorough research and analysis before deciding on the models and number of vehicles to be bought or leased. The place to start? Understanding current usage, such as:

• Which vehicles travel the greatest distance
• Which vehicles have low usage that could be better utilised as a pool vehicle or removed from the fleet
• Which travel on unsealed roads or even go off road

One of the best tools for such analysis is GPS data. In its early days, GPS was used to simply track vehicles’ whereabouts. Today, however, it is a powerful means of understanding driver behaviour and how vehicles across a fleet are being used. It is also used to streamline fleet operations and reduce costs. Some GPS services even provide a pool booking system.

A company leasing its vehicles may already have GPS installed, and those who don’t should seriously consider it.

“Using data is much more reliable than anecdotal decision making and also gives the business time to share its thinking with staff, hear their feedback, and ensure their support for whatever decisions are made,” says Mike.

For businesses insuring their fleet with NZI, NZI’s Fleet Fit Partner, CCS Logistics, may be able to support you with that analysis. CCS Logistics’ Fleetscore programme can shed light on vehicle use as well as a range of other metrics that can help improve fleet performance.

Time spent analysing fleet data can provide savings by understanding vehicle utilisation. “When businesses fully understand their vehicle usage, they can see opportunities to reduce fleet numbers without sacrificing efficiency or staff satisfaction.”

In addition, he says, a careful, considered approach allows time for staff training and forums where people can get answers to questions around range, charging and other unfamiliar aspects of non-ICE vehicles.

“Don’t leave anyone behind is a powerful mantra,” he says. “When you bring your people with you, they’ll be the ones who make the transition succeed.”

Finally, one of the most easily overlooked considerations is vehicle charging. Will they be charged at work, at employees’ homes, with publicly-available chargers, or with some combination of these? If so, what will the exact mix be? What will installation and any associated works cost? “These questions are best answered with a lot of thought and number crunching,” says Mike.

If vehicles are charged at work, you need to consider the number of chargers needed, their cost, their load on electrical infrastructure, the time each charge takes on average, and the availability of chargers at peak times. In addition, new installs can create questions about who pays for any shared infrastructure. Costs can quickly accumulate before the first charger is even installed.

If a business needs multiple EV chargers, electrical switchboards may need upgrading and sub-circuits may need to be added, says NZI Electrical Inspector Zak Dean who works with businesses to identify electrical hazards. It’s also easy to underestimate demand: A single-phase wall mounted unit can draw up to 7.4kW, or the rough equivalent of an oven or heat pump. A charger this size would effectively take ten hours to charge a 74kW battery from completely empty to full. Given many manufacturers recommend not charging batteries above 80% frequently and not discharging below 20% a more typical charge time may be around 6 hours, a significant load, especially when multiplied out across an entire fleet.

This is an area where Andrew’s team can help ensure a business makes good decisions to support the success of their fleet over the long term.

One important aspect of planning is fire safety. EV charging fires are very unlikely, but businesses should still take precautions to help prevent them, and to contain the spread as much as possible.

For any premise, that means early detection systems as well as ready access for the fire department. It is also critical to place charging facilities well away from combustible material, says Zak, and in some premises, sprinkler systems and other containment measures may need upgrading. Another potential fire risk is overloaded electrical circuits. “One of the first things to do in considering EVs is have a qualified electrician test your infrastructure to see that it’s up to the job. If it’s not, you might have to upgrade it to make sure it can cope safely with the extra load.”

In addition, he says, it’s important to keep pace with WorkSafe guidelines. For example, all chargers must be protected with a Residual Current Device (RCD), but the type of device required is subject to review. The easiest way to stay up to date is via the WorkSafe website.

Once charging facilities are in place, a qualified person should routinely check them on an established schedule, and in line with WorkSafe requirements. “Train your people in what to do if they notice a potential issue, too,” says Andrew. “What kind of things could be an issue worth reporting? Who should they report it to?”

If vehicles are charged at public stations it will usually be during the workday, so the time that takes must be considered. For many people, a few extra minutes to recharge versus refuelling is of little consequence. For busy sales teams, however, time spent charging can equate to lost sales opportunities.

Either way, you can help your staff by providing them with good advice on finding facilities, and providing robust reimbursement policies (or charging cards), as you would if they were buying fuel.

In addition, train your staff on how to use public facilities, which will likely differ from those they use at work or home. Remember, EVs don’t need to “fill up” every time they charge. A 50kW fast charger at a charging station can provide up to 66km of range in 15 minutes.

“With so many employees keeping their work vehicles at home, home charging and its implications must be considered too,” says Andrew.

Because home chargers are still uncommon, employers may need to manage installation of the charger. “There is a duty of care to do this safely,” says Zak, “and that goes beyond engaging a qualified electrician. It also includes ongoing maintenance – you need to be up to date with WorkSafe requirements here – and training in safe charging practices for the employee.”

In many situations however, home charging may not be entirely straightforward. For example, where an employee is renting or lives in an apartment or does not have off-street parking. Or if they live in an older house where the wiring is not up to standard for EV charging. In these situations you need to assess the costs and challenges on an individual basis to consider if each property is suitable for a charger to be installed and safely operated. “The question of what happens to a home charger if the employee resigns or moves house must also be thought through,” says Andrew.

Training staff on charger use is another good idea, as is a clear and workable policy for reimbursing staff for the cost of home charging. “Ensuring charging facilities are well maintained and correctly operated is one of the best ways to reduce the risk of something going wrong. It helps give your staff peace of mind and supports your duty of care,” says Andrew.

One issue that can evoke concern is the potential of an EV’s battery catching fire during charging; Our own research shows that about a quarter of fleet drivers think about this. In reality EVs appear to be at much lower risk than other vehicles, suggesting that driver education to dispel these myths may be helpful in providing employees with greater levels of comfort.

In addition, Andrew recommends installing an early detection device close by where possible. “Traditionally, people have avoided placing them in garages because of the potential for other, benign events, to trigger an alarm. However, that inconvenience may be worth putting up with for a bit a bit more assurance,” he says.

“The only way to get a definitive answer around charging is to do a complete needs analysis for your business – and do it before committing, not after.”

One NZI client who has taken planning seriously is a leading retirement living provider looking to install communal EV chargers for residents. “We were impressed with their proactivity, seeking good advice from NZI and using that advice to minimise risk,” says Andrew.

“For most businesses, the case for transitioning away from an all-ICE fleet is compelling,” he says. “The challenges of that transition shouldn’t deter businesses from embracing EVs, but it should sound a warning to do the thinking and planning up front so that any transition has the best possible chance of success.”

There are a few common barriers to acceptance, but the biggest are questions about charging and the phenomenon dubbed “range anxiety”.

NZI research shows that more than half of those who drive a business fleet vehicle have questions about charging infrastructure at the business, who pays for charging done at home, and the availability of public charging stations.

Similarly, just over half of those surveyed expressed concerns about the range of EVs, with a number reporting hearing negative stories about early EV models.

Without engaging staff early, it’s impossible to know to what extent concerns like this could affect uptake. Having the conversations early allows concerns to be aired and, often, alleviated.

For example, many people are unaware that newer EV models often have ranges of over 400km, which is easily enough to handle all but the heaviest of daily travel requirements.

“Familiarising staff with the new technology and giving them the opportunity to get comfortable with it is a critical step to good adoption,” says Sean. “When people don’t know the facts, they tend to assume the worst. Providing them with information they can trust often changes their perception dramatically.

“Once that happens, knowledge and driver skills then complete the training circle.”

Many large organisations switching to EVs or hybrids are turning to formal training to ensure their people can use the vehicles confidently and safely.

That trend is not universal, however. NZI’s research reveals that just under half of fleet EV drivers receive training yet all who received training reported it as beneficial.  While the vast majority of those still driving ICE vehicles report that if their employer were to switch to EVs or hybrids, they would want training.

Some organisations assume that people will happily – and safely – learn by trial and error, says Oliver Jepson, NZI National Motor Manager. The flaw in this thinking was highlighted in a 2021 report from Waka Kotahi on Advanced Driver Assistance Systems (ADAS) – such as blind spot monitoring and lane keep assist – that partially automate key driving tasks3.

“Trust in ADAS technologies is a key determinant of their use,” said the report, adding that trust is greatest for drivers already using the technology. In other words, “if someone is unfamiliar with the technology, they are less likely to be willing to simply give it a go,” says Oliver.

This is not surprising. The same research found that nearly three quarters (72%) of drivers had not received any driver training as part of their employment, and 57% of fleet drivers said they received no training from the dealership when taking on a new vehicle.

“Without proper training, people are likely to resist new technology, no matter how good it is,” says Oliver. “Businesses must include training in their planning if they hope to succeed.”

NZI has partnered with AutoSense to help ensure businesses wanting to take their employees on the journey have options to do it effectively. The training consists of an interactive session designed to familiarise the trainee with the features and safety considerations specific to their vehicle.

In addition to this training, Oliver and Sean recommend:

Workplace charging: For many EV drivers, the workplace will be the main place they charge their vehicle. It also gives staff the confidence of “a full tank” whenever they leave the premises.

Identify “innovation champions” among your team: Every workplace has people who are good at explaining technology to others and encouraging them to use it. Sean, says “without champions, any great idea is unlikely to flourish.”

Adopt an “any question is a good question” policy: As with any new technology, it can be difficult at first for people to separate fact from fiction or rumour. That can lead to many questions that to an expert may seem naïve. All questions are valid, however, and should receive an accurate and respectful answer.

Because most businesses will likely include EVs among their fleet in future, any move to new premises should plan for the infrastructure that will be needed, even if you have no immediate plans to move away from ICE vehicles.

That starts with asking a few key questions.

The first is, how many EVs do you see yourself having in your fleet? An educated estimate at the higher end is safest, with allowance for future expansion as well.

The next question is whether the electrical infrastructure can support your anticipated fleet. As a rule of thumb, the typical wall mounted EV charger draws 7.4kW. “Some premises will be fine with only a little bit of work,” says NZI Electrical Inspector Zak Dean. “Others will need their switchboards updated, and some will need a lot of work before they can support a fleet of EVs.”

NZI’s Electrical Inspectors work with customers to identify electrical hazards with the goal of reducing the risk of electrical fires. When considering a new premise, Zak and Toby recommend having a registered electrician conduct a thorough analysis of the site’s electrical infrastructure. “Reviewing the switchboard and running a Periodic Verification (PV) test can be an effective way to get a gauge whether the premises could support your ambitions,” says Zak.

Helping to support your requirements is the ability to charge off site, either at public charging stations or at your employees’ homes. NZI research shows that about a third of fleet drivers charge their EVs at home which may provide enough range for most. However, even those who charge at home also use the work charging station at least some of the time – in fact, 9 out of 10 EV drivers charge at the business.

Home charging is both good and bad news for employers. It means potentially fewer chargers are needed at the business premises where home charging is sufficient for the day, but installing chargers in employees’ homes comes with its own challenges (see Part 4: Charging an EV: A little planning goes a long way). “You’ve got to do the thinking up front,” advises Zak.

Besides electrical infrastructure, other considerations include parking spaces, appropriate distance between charging bays, safe distance from combustibles and waste materials, and adequate fire prevention.

“The hardest part of owning an EV is charging it,” says Zak. “If you’ve thought about how to manage that, you’re halfway there.”

Just as it is critical to plan how you’ll charge the EVs in your fleet, it is equally important to ensure EV charging facilities are properly maintained over time, regardless of whether they’re located at work or at an employee’s home.

Toby and his colleague Zak Dean say the number one rule with charging is to follow the manufacturer’s instructions.

“The adherence to guidelines varies among companies,” says Zak. “I’ve seen some that are outstanding and others that are creating risk to their business and staff through poor processes.”

Critical elements include:

• Ensuring a clear space around chargers for maintenance work
• An emergency plan that everyone is familiar with
• Having one person responsible for maintaining equipment (whether they carry out or commission the work).

A key challenge is maintaining standards over time, says Zak. “When people install something new, they’re excited. Six months later, a forklift runs over the cable because it wasn’t properly put back, and now there’s a risk.”

They recommend appointing one person in the business to oversee and be responsible for maintenance, thus reducing the likelihood of damage being ignored or overlooked. That person should also be aware of, and implement, manufacturers’ recommendations regarding frequency of periodic verification.

They also recommend staying up to date with Standards New Zealand recommendations for EVs, which differ for residential versus commercial premises. While much of the material is aimed at technicians, it’s written in a clear style that provides excellent guidance for a non-specialist needing to oversee maintenance.

For both on-site and home-based charging, staff training is critical. There are a number of unsafe practices that can do harm, such as using an extension lead or portable socket outlet, or using a single socket to charge more than one vehicle at a time.

“Most unsafe practices can be avoided through common sense,” says Zak, “but not all. It only takes one mistake from one person to create unnecessary and potentially costly risk. In any case, it’s a mistake to assume people will figure out how to use equipment. More likely, they’ll be put off.”

For anyone charging at home, a quick visual inspection before each charge is smart. “Look for damage to the cable and, if there is any, get it repaired or replaced before using it.”

Above all, says Toby, plan, plan, plan. “We’ve seen entire companies buy EVs without thinking about charging them,” he says. “That means they also haven’t thought about charger maintenance.

“New Zealand doesn’t yet have a lot of EV specialist mechanics or electricians,” adds Zak. “I’d like to see the numbers grow and with it more support for businesses wanting to set up their charging correctly.”

“Installing EV charging equipment can be a good time to review your liability insurance to make sure you are properly covered,” says David. “If your charging equipment did cause  damage to another person’s property then defending a possible legal action could be expensive regardless of the outcome. Broadform liability insurance (also known as General liability) is designed to cover your legal liability for injury or damage as well as defence costs, so it’s a good protection against that possibility.”

“WorkSafe considers an employee's garage as a workplace for the purpose of charging a business owned EV, so employers should consider the risks of harm it may pose and their health and safety responsibilities,” advises David. “As part of their review of these risks, they may need to consider insurance protection. Statutory liability policies protect businesses against defence costs and reparations if there is a prosecution under the Health and Safety at Work Act.”

From our own experience, transitioning NZI’s fleet to EVs and working through these challenges was the right decision. The EV portion of our fleet is providing approximately an 86% reduction in CO₂ emissions compared with ICE vehicles. It is worth bearing in mind that a complete transition can be a long process, with factors such as upfront costs and driver resistance important to work through.

For businesses to manage the change effectively they need to understand their current and likely future vehicle usage patterns if they are to make wise choices. Likewise, an understanding of the infrastructure needed to support charging needs is required, as well as sound safety practices that are clearly communicated to everyone (not just fleet drivers).

NZI’s team of Property Risk Consultants, Fleet Risk Managers and Electrical Inspectors already provide support to customers on identifying hazards and managing risk. That work is beginning to include more and more conversations around EV charging, and we welcome the opportunity to help our customers make the transition with confidence.

Helping you incorporate hybrid and EVs into your fleet. Yes/No/N/A

Define your needs.

Identify how vehicles will be used to inform decision making.

1. Have you confirmed how new vehicles will be used? Define how far they will travel, how often they will be used, whether four-wheel drive is required, etc.
   
2. Based off how vehicles will be used, do you know what type of vehicles are required (EV/hybrid)?
   
3. Will the vehicles be pool cars, shared between specific employees, or dedicated to one staff member?
   
4. Will vehicles be charged at business premises?
   
5. Are any staff members requiring an EV charger installed in their home?
   
6. Is there a plan or training in place to support employees to use the new vehicles?

Charging at the business premises.

Charging EVs at a business premise provides a lot of certainty around installation, maintenance and cost. However, charging multiple vehicles can create a significant stress on electrical systems and needs to be managed carefully.

1. Do you own the business premises and are aware of any legal obligations?
2. Do you have any subtenants that could be impacted by the additional electrical load required by EV chargers? And have you discussed your plans with them?
3. If you are leasing the property, has the owner/property manager been advised of your intention to install chargers?
4. If there are other associated tenants, have they been advised of your intentions?
5. Has a registered and licensed electrician assessed your infrastructure and deemed it suitable for the number and type of chargers required?
6. As part of the assessment, have any required upgrades been identified and actioned?
7. Has a licensed installer provided a quote to install the number of chargers required?
8. Has a regular maintenance plan and annual Periodic Verification (PV) testing been discussed with a licensed professional?

Minimising risk at the business premises.

EVs are unlikely to cause a fire while charging, however steps should still be taken to manage risk.

1. Are vehicles able to be charged outside? NZI recommends assessing the risk of fire spread if charging internally. 
2. If charging underground or in a building, is there a sprinkler system or type 3 automatic fire alarm installed? NZI recommends assessing how firefighting is likely to happen if a fire were to develop in an underground carpark. Install sprinkler protection where possible.
3. Will charging facilities be appropriately distanced from combustible items?
4. Is the nearest fire hydrant located within 70 metres of the chargers?

EV charger at a staff member’s home.

1. Is the employee’s property suitable for installation of an EV charger? WorkSafe has guidelines to consider.
2. Does the staff member own their home and will allow you to install and own the charging facilities?
3. If the property is rented, has the landlord approved an install of the charger and agreed what will happen to it if the employee no longer requires it or leaves the property?
4. Has a registered and licensed electrician conducted an electrical assessment of the property and whether the facilities can handle the additional load of an EV charger?
5. As part of the assessment, have any required upgrades been identified and quotes provided/actioned?
6. Has a regular maintenance plan been set up?
7. Has staff training been considered? NZI recommend training staff on correct charging practises and how to identify damaged/malfunctioning equipment.
8. Has a reimbursement policy been considered for staff members to ensure the business is covering the cost of the charging?

The information in this article is intended as a general guide only and must not be used as a substitute for professional advice. It is not intended to be comprehensive nor relied on to ensure your premises and vehicles are safe or that you comply with your obligations. IAG New Zealand Limited and its related companies do not accept any responsibility or liability in connection with your use of or reliance on this check list. You should consider your own circumstances and any regulatory obligations or other obligations you may have and seek professional advice.