Credit: muk woothimanop/ShutterstockA third of UK organisations which intend to review their company car programme in the next 12 months plan to introduce more environmentally friendly vehicles into the schemes, according to research by Willis Towers Watson (WTW).Its Company car benefits survey report, which surveyed 1,610 UK organisations across a broad range of industries about their company car benefit policies and practices, also found that the incentive for more sustainable cars is likely influenced by the more favourable tax band regime on low CO2 vehicles and the immediate tax write-down that can be claimed against electric vehicles.The report highlighted that many employers are looking to introduce more environmentally-friendly policies and behaviours, while keeping in line with best market practices and reducing costs.Almost half (49%) of respondents have introduced a ceiling on CO2 emissions, and 67% allow sales professionals and managers to select an electric or hybrid car as part of their schemes.Other measures taken include paying for electricity if the employee charges their electric vehicle at home (44%), financing the installation of a charging point at an employee’s home (38%), paying for electricity if an employee charges their car while on the road (57%) and supplying specific car charging points on-site at the workplace (64%).A commitment to environmental sustainability is also reflected in benefit offerings that encourage eco-friendly behaviours among employees. A fifth (19%) of UK organisations offer cars as a benefit under a salary sacrifice agreement, while 63% offer a bikes-for-work scheme according to WTW’s 2024 Benefits design practices report.Lori Stokes, rewards data intelligence lead at WTW, said: “Many [organisations] are aligning with more environmentally friendly behaviours and coupled with government tax relief schemes that help keep down costs, the shift towards electric, hybrid and low emission vehicles is a greener step towards achieving multiple company objectives.”
