A study by the Belgian Institute for Road Safety (VIAS) establishes the link between working remotely and road safety. The study estimates that if the number of remote workers were to double, there would be 25 fewer fatalities and 221 fewer accidents on our roads each year.
The Belgian commute
In its study, the Belgian Institute for Road Safety VIAS starts by pinpointing the commuter culture. A typically Belgian custom, given that we drive on average 6% more kilometres each year than our Dutch neighbours, and 9% more than the French. But we are in a much smaller country. That means, among other things, that the trips between home and work represent nearly 25% of the total kilometres driven, but mainly it means that two-thirds of this distance is driven during rush hour... It is obvious that the traffic jams in Brussels and Antwerp perfectly illustrate this.
Remote working: a growing alternative...
Between 2006 and 2016, the percentage of Belgians working from home, most of the time or occasionally, went from 6 to 12.9%, according to the numbers from the Minister of Employment, Kris Peeters. According to VIAS, on average, only 8% of workers work remotely for at least one day per week in our country. The level is just 4% in SMEs... We should also note that of businesses with over 100 employees, only 18% offer their employees the option of working from home. Nevertheless, nearly 3 employees in 10 are in a job that would allow working from home...
A link with road safety
10 people working from home means on average 5 fewer vehicles travelling to work and back. In practice, right now, working from home already yields a reduction of 2% of this type of travel in Belgium, and up to 4% in Brussels alone. One of the most striking conclusions of this study was the following extrapolation: by doubling the number of remote workers, because this reduces the distances travelled, we could avoid around 221 accidents with injuries, 25 fatalities and serious injuries on our roads. By multiplying this number by 10, to reduce the number of trips by 20%, there would be 3,200 fewer injuries and 320 fewer people killed or seriously injured... A correlation which highlights the major role that working from home could play in improving road safety.
The study by the Belgian Institute for Road Safety goes even further, because it identifies the benefits of remote working from the point of view of employers (attractiveness, cost savings, reduced building costs, lower absenteeism, lower social costs, etc.), but also from that of employees (less stress, savings on transport or childcare costs, increased creativity, personal/professional life balance, opening up the job market, etc.). Moreover, the publication also identifies a certain number of factors that are slowing down the adoption of working from home, as well as around ten suggestions or detailed recommendations aiming to encourage remote working in Belgium. These include, and we must stress the size of the cultural shift required, the creation of a positive attitude, and support from employers, especially small businesses.
New mobility: the benefits of technology
Is technology the key to moving towards more sustainable business travel? Here’s what Philippe Kahn, Mobility Solutions Expert, thinks.
Now more than ever, businesses need to rethink mobility so that it forms part of the sustainable transition that needs to take place in our societies. Since 1 July 2023, the regulation meaning that company vehicles with combustion engines will no longer be longer tax-deductible by 2026 has started to have an impact. At the same time, Belgium’s Federal Mobility Budget and its recent developments are making this (r)evolution much more concrete and practical. And one thing is for sure: technology – and especially apps – have a key role to play. Philippe Kahn, Mobility Solutions Expert at Arval BNP Paribas Group, explains why.
1 July 2023: a key date
“In the few weeks that have passed since the pivotal date of 1 July 2023, we have already seen a change in the needs expressed by our corporate customers,” says Kahn. "Some of them had already taken practical steps towards sustainable transition. But nowadays, more and more of them also have to address the specific questions and concerns of their employees. How will I be able to use an electric car when I live in a city and have no charging stations available? Do I want to search for a reliable place to charge every day? And am I ready to fundamentally rethink how I get around? Providing a satisfactory answer to these questions is inevitably a priority for employers. As well as the end-to-end management of company electric vehicles – including the question of charging them – more and more companies are starting to rethink their overall mobility policy, analysing all existing alternatives, particularly multimodal solutions. And that’s great news, because it’s essential for their future. So I think the demand for such solutions is only going to grow. Technology, and apps in particular, are key tools for a smooth transition".
Anticipating change to serve companies better
Whereas this issue is only just emerging for many companies, it has been a priority for Arval BNP Paribas Fortis and Philippe Kahn for years. "For more than five years now, we have been anticipating the changes that are now taking place, ensuring that our vision of mobility and expertise go far beyond leasing. We now have an entire department that deals with these matters exclusively. This enables us to meet and even anticipate the needs of companies that have no experience of these issues, and who sometimes feel a little lost when it comes to this revolution in travel.”
A simpler, smoother experience thanks to technology
But why and how is technology playing an important role in this transition to more sustainable business travel? "It’s making the experience of new mobility easier and smoother for its users. And that's where the latest developments in the market are heading," says Kahn. "In fact, that's also what our new Mobility Arval App now offers our corporate customers. It makes it easier for employers to manage the mobility budget established by the federal authorities. This budget, its three pillars and recent developments are crucial factors when a company is rethinking its mobility. But at the same time, it involves some regulatory complexity. That’s why, five years ago, we started developing a whole range of technological tools to help companies deal with these matters. For example, we make it simple for our customers to manage the combination of an electric car and bicycle within this mobility budget. In this spirit of innovation, and aiming to improve the user experience, our app integrates all facets of new business mobility, which are all accessible from a smartphone. Use of public transport, shared mobility, taxis, and even parking – even though this is not one of the pillars of the mobility budget – everything is in one place. The app also makes it easier to manage transactions: low-value mobility transactions, such as buying a bus ticket, are automatically captured and validated, so manual checks are no longer needed. Similarly, there is no longer any need to advance money to employees or reimburse them for anything, and no need for them to keep and present tickets or any other proof of purchase. In short, our app translates the entire mobility budget, which can be pretty complex, into a user-friendly tool where all the important components are taken into account: car, bicycle, scooter, multimodal solutions, public transport, shared mobility, etc."
Technology as a strategy accelerator
Arval Belgium’s innovations perfectly illustrate why technology is an important accelerator when implementing new mobility strategies. And it goes without saying that what exists today will evolve very quickly, leading to an ever-richer user experience. As Philippe Kahn says, "there are a lot of innovative tools out there already. But one of the challenges, linked to the complexity of the situation in Belgium, is to bring together all the players involved under the same umbrella, so that the result of this collaborative work can be found in a single 'magic' app. The solutions that exist today in Belgium are often local in scope. This is a limitation that doesn’t exist in the Netherlands, for example, thanks to their OV card. Belgium’s urban planning realities are also a challenge: outside the major urban centres, it’s less easy to set up mobility hubs in which all modes of travel are accessible."
One thing is certain: for companies, the transition to new forms of mobility is well underway. And the new Arval Belgium app is a valuable tool for those companies. “This technological innovation now makes it possible to mitigate the regulatory complexity for employers, and to make multimodal transport a very fluid experience for employees,” concludes Kahn.
Arval Belgium SA, Ikaroslaan 99, 1930 Zaventem – Registered with the Brussels trade register – Belgian VAT number 0436.781.102. Company with an ancillary insurance brokage business, registered with the Belgian Financial Services and Markets Authority (FSMA) under number 047238 A. Subject to acceptance of your request.
Arval Belgium SA is a subsidiary of BNP Paribas Fortis S.A.
How are we doing when it comes to sustainable mobility?
A recently commissioned survey by BNP Paribas Fortis on mobility found that this remains a major challenge for the coming years. The bank is determined to play its part.
A survey among 2,000 people, and representative of the Belgian population, on mobility shows that the switch to electric driving is slowing. Almost 80% of those surveyed still drive a diesel or petrol vehicle, and more than a third of them have no intention of trading in their cars for a more environmentally friendly model any time soon. And yet almost 50% want to be driving electric by 2029. But before that switch, some hurdles first need to be cleared. According to two-thirds of respondents, the bank needs to take a proactive role in the transition to sustainable mobility.
- Only 10% of cars on the streets today are electric, hybrid or run on hydrogen. Users of these vehicles confirm they are very satisfied. Though most have their own charging station, public charging stations are a bottleneck.
- While fighting climate change remains the main argument for switching, changing mobility habits isn’t so easy. The switch to electric is slow, and more incentives are needed, such as new tax measures, and above all, a commitment from the government. Prices also need to come down. It is clear that the practical issues of driving and charging times mean people hesitate to make the switch.
- As a result, enthusiasm about new mobility initiatives is rather muted. Although, especially in big cities, an app that combines mobility options has good chances of success.
- Mobility and work are strongly linked. One in three people spend at least an hour a day travelling to/from work. It turns out that teleworking is a solution for only 50% of the people, and that the other half of the population don’t have the opportunity to work from home.
- More awareness needs to be created around new mobility. Not everyone is familiar with shared cars, bikes and charging stations yet.
BNP Paribas Fortis is determined to contribute to more sustainable mobility and be a mobility partner for both professional and private customers. We are doing this by informing audiences of all the advantages of an environmentally friendly switch. And also by offering support through financing, insurance and leasing. Our goal is to provide a global response to tomorrow's mobility needs through innovative services.
Travelling to work: the rise of cycling!
More and more people are cycling to work. Mobility solutions expert Philippe Kahn explains how and why.
People are changing the way they travel to limit their environmental impact: behaviours are starting to shift, and the use of bicycles is rising, including and especially for travelling to and from work. We spoke to Philippe Kahn, Mobility Solutions Expert at Arval BNP Paribas Group, about these developments.
Two out of three Belgians use soft mobility, mainly bicycles
According to Profacts’ “Mobility Tomorrow & Beyond” survey, two out of three Belgians have adopted soft mobility. "But the biggest change is the increasing use of bicycles for business travel and commuting. People are also using bicycles more on the school or nursery run, facilitated by the arrival of electric cargo bikes on the market," says Kahn.
A favourable regulatory framework
But what are the reasons for the increased use of bicycles for business travel? “Let’s first take a look at how the regulatory framework has changed," says Kahn. "In Belgium, the creation of the federal mobility budget has made alternative ways of travelling attractive for all employees. The budget makes it possible to choose a comfortable company bicycle as part of a tax-friendly salary package. Moreover, this mobility budget can even be used to cover housing costs if you work from home more than half the time or if you live within 10 km of your place of work. So instead of having a company car, people can choose to have a combination of an electric bicycle and a contribution to their housing costs. Furthermore, two measures effective from 1 May 2023 should reinforce this trend: the bicycle allowance for commuting is increasing to €0.27 net per km travelled, and all Belgian employees will be entitled to this allowance. In practical terms, this means that those who choose to cycle for these journeys will be substantially rewarded.”
Investment in public infrastructure is paying off
Another important factor in the increased use of bicycles is the development of road infrastructure.
Philippe Kahn: "One factor that can convince people to cycle to work is the certainty of a safe journey. A few years ago, cycling to work in Brussels, for example, could be dangerous. But today, cycling infrastructure is making these journeys increasingly safe, in particular thanks to the cycle motorways on which only bicycles can travel. Infrastructure investments are now also happening in the rest of Belgium, not just Flanders and its major cities. In recent years, Brussels has undergone significant changes, and things are also starting to move in Wallonia.”
Half of all Belgians live within 15 km of their place of work
Distance from the workplace is also crucial in determining how attractive cycling is. "One in two Belgians lives within 15 km of their workplace, a distance that you can easily cycle," adds Kahn. "Along with the Improved infrastructure, this means that cycling to work is a realistic option for many Belgians. And the €0.27 per kilometre allowance will be an added incentive for them to make the change.”
What is the federal mobility budget?
This scheme allows the budget initially allocated to an employee’s company car to be divided into three pillars within a salary package. These three pillars are:
- a car with no or low CO2 emissions (less than 95 g/km), such as an electric vehicle;
- sustainable means of transport, including cycling, but also in some cases this pillar can also cover housing costs, such as rent or mortgage repayments;
- the balance of the mobility budget, which is paid in cash.
The mobility budget makes it possible, for example, to replace a combustion-powered company car with an electric car and a bicycle, with the same tax-friendly terms for both the employer and the employee.
78% of leased company bicycles are electric
To meet the needs of companies and their staff, Arval is now offering bicycle leasing. This full-service lease covers maintenance, breakdown assistance, insurance and repairs, as is traditionally the case for a car. Philippe Kahn points out some very significant trends in this area: "60% e-bikes and 18% speed pedelecs: in total, 78% of our leased company bikes are electric.
High-end bicycles costing several thousand euros, such as electric cargo bikes, are also highly successful, which is probably due to opportunity: the mobility budget or employer “cafeteria plan” benefits packages are making it possible for people to acquire these bikes. But it may also be a consequence of Belgium’s specific tax regulations: the more expensive the bicycle, the more significant the tax incentive. Another interesting observation is that when a bicycle replaces a car, it’s usually the family’s second car. So we’re not yet seeing any radical replacement of cars by bicycles, but the emergence of the company bicycle is definitely reducing the total number of kilometres travelled by car.”
Digital applications: shifting up a gear
Lastly, Kahn points to another factor that could encourage more people to take up cycling to work. "I think that technology, and in particular digital applications, can make a big difference. We can expect strong growth in the market for apps dedicated to commuting by bike. The business model for on-the-go electric bike rental is already based on a smartphone app. So imagine the success of an application that gives you a safe and bicycle-friendly route for travelling to and from work, and the boost that this could give to this type of travel," concludes Kahn.
Electric cars are fast becoming the norm
As of 2026, a favourable tax scheme will only apply to electric company cars. This is an important step towards – and extra reason to go all out for an emission-free fleet. 1 July 2023 will be a turning point.
The evolution towards more sustainable company cars has now also been laid down by law. Thanks to a number of tax changes, electric company cars or e-cars will be the most interesting choice from now on. The perfect time to start electrifying your fleet already today.
"1 July 2023 is an important turning point for making the transition to electrification," says Philippe Kahn, Mobility Solutions Expert at Arval, the specialist in operational leasing of commercial vehicles. "An employer can deduct significantly less costs for fossil-fuel-powered cars from that date. Hybrid vehicles can still enjoy more favourable tax scheme for a while. Nevertheless, companies should take into account that, as of 1 January 2023, they will only be allowed to deduct 50% of the fuel costs for their hybrid cars."
Electric driving isn’t just more tax-efficient
Electric cars are already 100% tax deductible. "Meanwhile, of the cars leased today, 40% are electric. This upward trend is clear. Until recently, the sensitively higher purchase price of an electric or hybrid car versus that of a comparable car with a combustion engine was a brake. Meanwhile, besides the effect of the shift in taxation, the market mechanism is bringing prices closer together," says Kahn.
But tax deductibility and purchase price aren’t the only factors to consider. In making this choice, it’s actually better to look at the TCO (Total Cost of Ownership). This includes all expected costs. In addition to the tax aspect, consider consumption, maintenance and CO2 contribution. And these four elements are all more favourable for electric cars. If you use the TCO rather than purchase price as a yardstick, you’ll see that a green fleet of e-cars will be the most advantageous choice for your company in the future.
Electric driving gaining momentum
The tax regime for cars running on fossil fuels is gradually changing. Yet the changes in 2023 will remarkably accelerate the move to electric driving. More than ever, it is clearly time for a new mobility.
- Until 30 June 2023
For company cars ordered before 1 July 2023, the current conditions regarding tax deductibility will continue to apply. For company cars that are leased or rented operationally and for which the beneficial ownership is not transferred, the closing date of the lease or rental contract is considered. The costs of a diesel, petrol or hybrid car remain 50 to 100% deductible, while the costs of electric cars remain 100% deductible.
- Between 1 July 2023 and 31 December 2025
For non-emission-free vehicles ordered as of 1 July 2023 until 31 December 2025, a transition period will apply, and the deductibility is gradually phased out. From a maximum of 75% in 2025, to 50% in 2026, to 25% in 2027, and ultimately 0% deductibility in 2028. As of 2025 the minimal deductibility of 50% is abolished. The CO2 contribution for these cars will also increase significantly each year. Emission-free cars will remain 100% deductible.
- As of 1 January 2026 onwards
Non-emission-free vehicles ordered as of 1 January 2026 will no longer be deductible. Only emission-free vehicles such as electric cars will then be 100% deductible. But this favourable scheme will also be gradually phased out over the next few years, to 95% for vehicles ordered in 2027, to 90% in 2028, to 82.5% in 2029, 75% in 2030 and eventually to 67.5% in 2031.
- Plug-in hybrids (PHEV)
For plug-in hybrids (PHEVs) ordered as of 1 January 2023, the tax deductibility of petrol and diesel costs will be limited to 50%. Electricity and other costs are not covered by this restriction. This measure is designed to encourage the use of electric motors and PHEV. Otherwise, PHEVs will continue to follow the non-emission-free vehicle rules.
And for your employees?
The status of the company car as an alternative remuneration will remain in place until after 2030. “If you allocate a company car that your employee can also use privately, this benefit will be taxed as a fixed benefit in kind. That depends on the list price, fuel type and the CO2 emissions. Although electric vehicles generally have a higher list price, zero emissions can make up the difference and in many cases, turn out favourably for your employee.”
What about charging?
To help your employees make the most of an electric car, you can have a charging station installed at their home if possible. Both the device and the installation at your employee's home are 100% tax deductible and there is no additional tax benefit for them.
“As a company, you can, under certain conditions, benefit from an increased cost deduction for the installation of charging stations on your company premises. This amounts to 200% for investments made in the period from 1 September 2021 to 31 December 2022 and 150% for depreciations relating to investments made in the period from 1 January 2023 to 31 August 2024. A condition is that the charging station is depreciated linearly over at least five taxable periods and at the earliest as of the fiscal year that is linked to the taxable period during which the charging station is operational and publicly accessible”, Kahn concludes.
Switch to an electric fleet
In addition to favourable tax conditions, there are many other excellent reasons to opt for electric cars today.
- It is an environmentally friendly solution that leads to 17-30% less CO2 emissions than the emissions from ICE (Internal Combustion Engine) vehicles throughout the entire life cycle of the vehicle.
- A wide range of new models is already on the market today and will only increase in the coming years.
- Most new models already have a driving range of 300 to 600 km.
- Advantageous Total Cost of Ownership (TCO).
- Electric driving is pleasant and causes much less street noise.
- The public charging infrastructure is expanding rapidly.
- Access to low-emission zones and cities that ban diesel and petrol-vehicles.
Nowadays, responsible fleet management is built around sustainability. Don't wait any longer to electrify your fleet and reduce your company’s ecological footprint. Our mobility partner Arval will help you to make your fleet more sustainable and support you in your transition to electric vehicles.
Discover all our solutions or discuss them with your relationship manager.
Lessor: ARVAL Belgium NV/SA Ikaroslaan 99, B-1930 Zaventem - RPR Brussels - VAT BE 0436.781.102.