How benefit strategies can help employers meet their ESG goals
Businesses have a huge role to play in ensuring upcoming greenhouse gas emission targets are met.
Implementing a formal ESG framework – which is already mandatory for publicly-listed businesses with a turnover of more than £500m and have more than 500 employees - is one way to do this.
Employee benefits such as salary sacrifice car benefit schemes which offer hybrid or electric vehicles (EVs), can help companies meet their environmental responsibilities.
These schemes offer employees a sustainable choice, which not only reduces the carbon footprint of the company car fleet but brings financial advantages, too.
Employees on the scheme can save money on income tax via the low benefit-in-kind rates.
Reducing carbon footprints
Indeed, there’s been a significant increase recently in the number of companies focusing on reducing their carbon footprint.
And Tusker figures show that EV benefit schemes really do help companies reduce their footprint – and significantly.
As of December 2024, drivers on the salary sacrifice scheme have offset over 337,944 tonnes of carbon.
One of Tusker’s 2000+ customers, a leading law firm, say Tusker’s fully electric car salary sacrifice scheme is ‘much more’ than just a benefit – it’s a ‘statement of intent’ which integrates sustainability into their benefits strategy and demonstrates a commitment to both people and planet.
The firm’s existing ESG strategy is deeply ingrained across all its business operations, including an environment board, diversity and inclusion board and a governance committee.
High engagement
The decision to introduce Tusker’s electric car scheme was as much about showcasing benefits and lifestyle options which align with the firm’s sustainability goals as it was about providing value for money.
Employee engagement with the scheme has been high – with 42% of employees logging into the portal to understand the sustainable choices on offer.
Affinity Water too, a UK water supplier for London and the South-East and which already has a strong sustainability focus, adopted the EV benefit scheme earlier this year.
Part of its plan to transition their fleet of company cars and vans to electric and hybrid vehicles, the scheme has proved popular among its employees, with steady growth and high uptake in electric vehicle adoption.
As with the law firm, the scheme aligns with existing ESG goals such as taking steps to reduce carbon emissions and therefore, their environmental impact.
Genuine commitment
Of course, ESG is not just about the environment, although these are critical if the UK is to meet net zero targets by 2050.
In a corporate context, the social and governance aspects are equally important and address issues such as DEI, supply chain transparency, modern slavery policies and employee wellbeing, as well as everything encompassed under governance, from decision-making to transparency policies.
As such, companies who can demonstrate a genuine and proactive commitment to ESG principles not only benefit from an enhanced reputation as a forward-thinking employer but attract investors who are increasingly looking for socially and environmentallyresponsible businesses.
From an environmental, suitability perspective at least, salary sacrifice EV car schemes are a powerful tool in helping employers to meet the ESG goals, whether it’s transitioning an entire ICE car fleet to hybrid and/or EV options or providing more sustainable choices.
Either way, employers can radically reduce their carbon footprint.
Supplied by REBA Associate Member, Tusker
Market leaders in salary sacrifice car schemes with more than 15 years’ experience.
