How to use cycle-to-work benefits as part of your ESG strategy
Everyone has a part to play in reducing their carbon footprint. But it’s not just about ethics and the environment – there’s a strong case for focusing on environmental, social and governance (ESG) beyond caring for the planet.
Employees are seeking socially responsible businesses and employers, and the more your employees get cycling the lower your business emissions will be.
By 2025, 75% of the global workforce will be Millennials and they’re looking for socially responsible employers. Furthermore, 93% of employees believe companies must lead with purpose, and 90% of employees who work at companies with a strong sense of purpose say they’re more inspired, motivated, and loyal.
Cycling and the environment
In June 2022, a Sodexo Engage survey of 1,000 UK employees concluded that driving was the most popular method of commuting to work, with 33.12% driving fossil-fuel powered vehicles, 10.71% cycling, 13.74% walking and 42.43% using other methods, including public transport.
When considering commuting methods that are good for the environment and employee health, walking probably comes tops. Walking is a greener and healthier option than driving – but cycling is actually greener.
While cycling itself doesn’t emit any emissions, there is a carbon footprint of approximately 21g of CO2 per kilometre associated with cycling. According to bikeradar, people who cycle are more active and, therefore, need to eat more. About three-quarters of the greenhouse gas emissions attributed to cycling are linked to food production. The rest is related to the manufacturing process.
For this reason, electric bikes have lower emissions because the cyclist uses less energy and so, in theory, consumes less food – even when electricity use for charging the bike and manufacturing emissions are factored in.
Walking uses more energy than cycling: ergo, more food is consumed, meaning higher greenhouse gas emissions.
Business activities
It isn’t just a matter of encouraging employees to change how they travel to work. Businesses are adding bikes to their fleet to replace vehicles for shorter journeys, as discussed in a June podcast between Sodexo Engage and Halfords.
In January 2022, The Guardian reported that 450 independent businesses use bikes to deliver goods. Whether using a pedal or e-bike, cyclists can navigate busy roads more easily, making them 60% faster than vans.
Employee wellbeing
An ESG strategy goes beyond considering the environment and a business’ impact on it. Being an environmentally and socially conscious employer also requires a genuine approach to employee wellbeing, putting people at the heart of your business.
Cycle-to-work is an employee wellbeing benefit that supports and enhances financial, physical, and mental wellbeing.
- Physical: Cycling is an inclusive way to help employees adopt a healthier lifestyle, keep fit, and boost their immune systems, preventing illnesses like heart disease and cancer.
- Mental: Not only will employees benefit from the mood-boosting endorphins that come with exercise, cycling helps to reduce stress and improve sleep. And when people feel good about themselves, they’re more engaged at work and more productive.
- Financial: The cost-of-living crisis is being felt across the UK, and employees are struggling to stretch their salaries far enough. With a Cycle-to-work salary sacrifice scheme, your employees can save up to 42% in tax and NI contributions.
And when employees choose a cycle over their car for their daily and local commutes, they’ll save on fuel, parking, and public transport.
How people travel to work is part of your business emissions. By making cycling more affordable, you can reduce your environmental impact, make savings, and enhance the wellbeing of your staff.
In partnership with Pluxee UK
Pluxee UK, is a leading employee benefits and engagement partner that opens up a world of opportunities to help people enjoy more of what really matters in their lives.
