London, July 18, 2024 – A third of UK companies (32%) who intend to review their company car programme in the next 12 months plan to introduce more environmentally friendly vehicles into the schemes. That’s according to the latest Company Car Benefits Survey Report by WTW, a leading global advisory, broking and solutions company.
The incentive to go green may be influenced by a more favourable tax band regime on low CO2 vehicles and an immediate tax write down that can be claimed against electric vehicles.
In addition, many companies 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 organisations have a ceiling on CO2 emissions, and two thirds (67%) allow sales professionals and managers to select an electric or hybrid vehicle as part of the plan.
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. 19% of UK organisations offer cars as a benefit under a salary sacrifice agreement, while 63% offer a bikes-for-work scheme*.
Lori Stokes, Rewards Data Intelligence Lead at WTW says “Many companies 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.
WTW surveyed 1,610 UK organisations across a broad range of industries about their company car benefit policies and practices between April 2023 and January 2024 for its 2024 Company Car Benefits Survey Report.
*This figure is from WTW’s 2024 Benefits Design Practices report.
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