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29 Nov 2022

Firms tighten company car benefits as part of climate change target

Fewer workers will get company cars due to working from home, while more will be given electric vehicles

Firms tighten car benefits as part of climate change target.jpg 1


One-fifth (20%) of UK organisations that are planning changes to their company car benefits policy intend to reduce the number of employees who travel by car, through their working from home policies. That’s according to WTW’s 2022 Company Car Benefits Survey report.

In addition, one-fifth (20%) of UK companies resolve to increasingly introduce CO2 emission ceilings on their vehicles. Since last year, the number of global organisations announcing such ceilings has grown by from 7% to 17%. This is seen to be in response to tightening environmental standards and organisations’ increasing interest in action to help curb climate change.

Changing attitudes and electric cars

Samantha Rogers, WTW international survey consultant, says: “Climate change is a continually pressing concern for both companies and employees, which is reflected through the changes being made to car benefit policies not only in the UK, but across the globe.

“The uptake of electric vehicles aligns with the push towards the UK 2030 electric car mandate and signals the change in attitude from companies and colleagues towards vehicles and their impact on the environment. But it’s also interesting to see how the shift to mass working from home has affected the need for company vehicles.”

In the next 12 months, almost three-quarters (73%) of UK companies intend to review their company car benefit policies, with the main focuses being on aligning with market best practice and competitiveness (71%) and introducing more environmentally friendly policies and behaviours (50%).

To this end, more than half of UK companies (51%) will continue to review the car makes and models they offer, and one-third (32%) are introducing more environmentally friendly vehicles to their fleets.

EVs are a growing priority

The number of car benefit policies offering electric vehicles has increased since 2021 by one-third (32%) as this becomes a growing priority for companies.

For UK organisations that already offer electric vehicles as part of their car benefit scheme:

  • 53% have a ceiling on CO2 emissions (median 130g/km)
  • 32% cover the home installation and charging cost of plug-in vehicles
  • 42% pay for electricity if the employee charges the car at home
  • 62% pay for electricity if the employee charges the car on the road, excluding on site at the work location
  • 64% provide specific charging points at the work location.

In partnership with WTW

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