Cost of Sustainability - What Do the Coming Changes Mean for the Vehicle Hire Industry?

By Emma Cheesman, Head of Development

Sustainability is no longer a future ambition for the waste sector and is already shaping decisions and operational planning. While the direction is clear, the practical cost of sustainability is discussed a lot less openly.

There is an agreement across the industry that reducing emissions and improving environmental performance is necessary and welcome. However, alongside that commitment sit important questions about affordability and operational resilience. For vehicle hire businesses and their customers, the challenge is not whether change is coming, but how it can be delivered responsibly without compromising essential services.

Why Sustainability Matters in Vehicle Hire

Vehicle hire sits at the centre of a complex ecosystem involving manufacturers, operators and end users. Hire providers are increasingly expected to do more than simply supply vehicles. They are being asked to support customers’ net zero ambitions and provide access to low-emission technology, as well as absorb some of the risk associated with emerging vehicle platforms.

Sustainability is therefore not only an environmental issue, but a commercial one. Investment decisions made by hire companies have implications for cost and service reliability. At the same time, customers expect predictable pricing and vehicles that are fit for purpose in demanding environments.

The pressure on hire providers is to make meaningful progress while maintaining affordability and resilience. 

Where Fiveways Is Positioned Today

For us at Fiveways, reliability has always been non-negotiable. Waste collection, recycling and municipal services are essential operations, and any transition must protect service delivery first and foremost.

Saying that, we do offer electric refuse collection vehicles on our fleet, but conventional diesel vehicles is still the more popular choice for customers.

We believe in realistic planning, open conversations and supporting customers at different stages of readiness. Sustainability should be practical and aligned with how fleets actually operate.

Investing in Vehicles: Diesel vs Electric

For many municipal applications, diesel vehicles remain dominant. They are well known with established maintenance processes and proven performance across a wide range of cycles. However, scrutiny around emissions and viability continues to increase.

Electric vehicles offer clear environmental advantages and will play an important role in future fleets. That said, they also bring higher upfront capital costs, uncertainty around values, a strong dependency on charging, and battery range that may not be sufficient for rural routes.

The reality is that sustainability is not a straightforward diesel vs electric decision. For most operators and hire providers, progress will be phased and driven by evidence.

Electric Vehicles Are Here for the Long Term, But Not Without Challenges

Electric refuse collection vehicles are on the roads, but significant challenges remain. Charging infrastructure availability, grid capacity, depot constraints and specialist maintenance requirements all have influence. Vehicle availability and the operational impact of charging downtime must also be considered.

“The move to electric refuse collection vehicles is undoubtedly a positive change, but readiness is about more than intent. Without sufficient capital availability to support fleet replacement and training, the transition risks moving faster than budgets allow.”

Preparation is therefore essential. Early infrastructure planning, data analysis, trial programmes and close collaboration between hire providers and operators all play a role in reducing risk. Electric vehicles can deliver value, but only when introduced in the right context.

What This Means for the Vehicle Hire Industry

For vehicle hire providers, sustainability brings structural change. At the same time, customers require flexibility, particularly when service specifications and policy requirements are continuing to evolve.

The challenge is balancing sustainability commitments with affordability, managing mixed fleets, and supporting customers without forcing change. Here, this means careful planning and tailoring solutions to individual operational needs rather than a one size fits all approach.

What This Means for Local Authorities and Vehicle Operators

Local authorities and operators face their own pressures. Sustainability targets influence procurement decisions, while scrutiny of fleet emissions continues to grow. Demonstrating progress is important, but so is ensuring that vehicles remain safe, reliable and operationally effective.

The Hidden Cost of Sustainability

The cost of sustainability for vehicle hire companies involves significant upfront investments in electric vehicles and charging infrastructure, balanced against long-term savings on fuel and maintenance.

However, the greatest cost of sustainability is often not the technology itself or upfront investments, but the transition. Training, planning, data management, infrastructure investment and organisational change all require time and resources. Businesses like us at Fiveways play a critical role in absorbing risk, enabling gradual change and supporting customers through complex transitions.

Conclusion

The industry is committed to reducing emissions and improving environmental performance, but it must also be honest about the challenges ahead. Progress will not be simple, and it will not be uniform.

Collaboration, realism and phased change will be key to making it work. We have already started our transition into incorporating electric vehicles and are committed to supporting customers through the challenge of balancing environmental responsibility with reliable operations.