European car leasing firms have made ‘little to no meaningful climate commitments’, a study by Reclaim Finance and Transport & Environment (T&E) has claimed, despite the growing importance of this sector in the automotive market.
The study notes that leasing is now responsible for over 50% of new car registrations in Europe, a share expected to reach 70% by 2030, with leasing companies, which include subsidiaries of carmakers (e.g. Mobilize for Renault) and banking groups (e.g. Ayvens for Société Générale, Arval for BNP Paribas) having ‘significant power’ in shaping the EV transition.
However, as the study claims, these firms face no binding climate regulations, and provide little transparency on their fleet emissions, or their targets for phasing out internal combustion engine (ICE) vehicles.
Climate regulations
“Unlike carmakers, leasing companies are not subject to any specific climate regulations,” commented Lucie Pinson, executive director at Reclaim Finance. “There is currently no requirement for emissions transparency, no binding targets, and no phase-out timeline for internal combustion engine (ICE) vehicles.
“It’s hardly surprising, then, that the warning lights are flashing red when it comes to decarbonisation – and that no leasing company has committed to moving away from fossil fuels.”
As the study found, some 12 of the twenty leasing companies analysed – including firms like Mercedes-Benz Financial Services and Toyota Financial Services – do not publicly disclose data specific to their leasing activities, while for the eight that do, the information provided is vague or incomplete.
Some nine leasing companies have climate targets, but these are ‘fragmented, short-term, [and] poorly detailed’, according to the study.
EU Fleets Regulation
With the upcoming EU Fleets Regulation expected by the end of 2025, Reclaim Finance and T&E are urging the European Commission and EU legislators to mandate transparent information on the part of vehicle leasing companies.
“This report is a wake-up call for policymakers,” commented Stef Cornelis, fleets and freight director at T&E. “Without regulation, leasing companies will continue to dodge their responsibilities in the climate transition—even though they hold many of the levers.” Read more here.
