Vodafone has revamped its fleet to cut CO2 emissions and encourage staff to drive more environmentally-friendly vehicles. Drivers with company car allowances who buy a car that emits 120g of carbon per km or less will receive a discount. They will also pocket any money left over from their car allowance resulting from the savings made from buying a green vehicle.

Moves have also been made to increase the cost of selecting vehicles that emit higher levels of CO2 through the company car allowance scheme. All 2,000 drivers at Vodafone have company car allowances.

Fedra Nicholls, benefits manager, said: "We wanted to ensure that our scheme is not only market competitive, but meets our corporate responsibility agenda and hits all legislative requirements."

The company worked with the Energy Savings Trust to structure its scheme so as to encourage environmentally-friendly behaviour.