How car benefits schemes can help companies achieve ESG goals
The importance of corporate social responsibility (CSR) continues to grow and is moving further up the agenda for a lot of organisations.
It’s not just about what companies say they stand for, but how they show it. From employees to investors and the public, people are paying more attention than ever to how companies handle their environmental, social and governance (ESG) responsibilities.
And the latest generation of consumers and investors care deeply about what companies actually do to be ethical, responsible, and sustainable. It’s not just about corporate values and products anymore.
Introducing ESG principles at your company may seem daunting at first, but it’s easier than it sounds. With just a few simple steps, you can make a major impact. So, if your company is slightly behind with ESG goals, or looking to make them even better, there are simple steps you can take. The introduction of a salary sacrifice car benefit scheme is a good example.
This scheme offers employees access to safe, new, environmentally friendly and affordable cars. And the bonus is its not just good for the drivers, it’s also fantastic for your company’s ESG responsibilities, too.
For many employees, a vehicle is their biggest expense after housing, so offering them affordable transport is a game-changer for attracting and retaining top talent. With a salary sacrifice car scheme, not only can an employee get a new car, but they can also make substantial savings as it’s done via a salary sacrifice arrangement and they will also have access to manufacturer discounts.
These schemes tend to work best for electric vehicles (EVs) and ultra low emissions vehicles, which contribute to a cleaner environment. You can usually choose if you want your scheme to be a pure electric car scheme only, or include a wider range of vehicle fuel types. The best part is that providers who have a more environmental focus will even calculate and offset emissions for salary sacrifice cars put on the road.
The really great thing about a salary sacrifice car scheme is that it’s a benefit for all employees and not just a perk or job need for company car users. It helps with inclusivity, which can be important when offering new benefits, as well as ensuring that more employees can be rewarded and incentivised.
Research shows that many drivers on salary sacrifice schemes are upgrading from vehicles more than seven years old – swapping older, more polluting cars for new EVs or low-emission vehicles. It’s a win-win for drivers and the environment.
In the face of a cost-of-living crisis, ensuring the financial wellbeing of your staff is a crucial first step towards social responsibility and the duty of care to employees. With a salary sacrifice scheme, most employees can save money, as the deductions are made before tax and National Insurance are taken.
For EV drivers, there are also savings to be made in fuel costs. And some salary sacrifice companies provide an inclusive motoring package with no hefty down payment, making monthly budgeting simple.
Encouraging employees into environmentally friendly vehicles extends your duty of care into the often overlooked area of the grey fleet – where employees use non-company vehicles for commuting or occasional business. The best part is everything is included – insurance, tax, breakdown cover and even tyres – all in one monthly amount, with no surprise expenses.
If you’re thinking of boosting your company benefits and ESG credentials, Tusker’s independent, expert advisors are ready to chat with you.
In partnership with Tusker
Market leaders in salary sacrifice car schemes with more than 15 years’ experience.
