Looking to boost team morale: How are your employee benefits?
In a world increasingly conscious of environmental concerns, green initiatives and Environmental, Social, and Governance (ESG) have become a buzzword in business circles. Green initiatives encompass a wide range of practices aimed at reducing a company's carbon footprint while promoting sustainability.
In recent years, UK businesses began taking steps to reduce their carbon footprint to help achieve a greener future.
Here’s what you need to know about ESG
What is ESG?
ESG stands for Environmental, Social, and Governance. These three pillars form the basis for companies' reporting obligations. ESG aims to encompass all the non-financial risks and opportunities inherent in a company's day-to-day activities.
The environmental aspect focuses on climate change, pollution, waste, and how companies manage their environmental impact on the planet.
The social pillar encompasses various aspects within the company, including employment equality and privacy issues.
Finally, governance relates to fraud, accounting standards, transparency, ethics, and anti-corruption.
Measuring ESG
This involves both quantitative and qualitative indicators. These indicators include metrics such as carbon emissions, water usage, employee turnover rates, board diversity, executive compensation, and more.
Why do companies need ESG reporting?
Companies require ESG reporting for regulatory compliance and risk management. ESG reports allow companies to proactively disclose their activities and identify potential areas of risk. Such reporting also helps companies address global challenges like climate change and social unrest.
Why is ESG reporting important?
According to KnowESG, "Companies and investors are placing greater importance on ESG performance." A strong ESG performance enhances a company's reputation as responsible and sustainable, attracting more investors and customers. Tracking carbon emissions and conducting energy audits are two examples of how companies can monitor ESG.
Improving your ESG
To enhance your ESG, establish clear goals and policies, invest in sustainable technologies and practices, and foster a diverse and inclusive workforce. Transparency and accountability for ESG performance are essential.
Now we've covered what ESG is and why it's crucial, let's explore the significance of implementing green initiatives in your company and how they can enhance your ESG efforts. We'll also discuss different approaches for companies of varying sizes, with a focus on the transformative impact of electric cars as an employee benefit that positively influences ESG.
There has also been a shift from job seekers, who now look for greater employee benefits, as well as the usual competitive salary and progression pathway. Over 50% of employees say they wouldn’t work for a company whose benefits lack strong environmental and/or social causes. Introducing such a benefit can also enhance brand reputation within the jobs market, and satisfy current employees who are looking to make a greener choice.
A recent study by Glassdoor showed that almost four in five employees would rather have a new or additional benefit than a salary increase.
Need we say more?
Enhancing ESG reporting with green initiatives
Green initiatives involve strategic actions and policies aimed at minimising a company's environmental impact and promoting sustainability. These initiatives can take various forms, including energy efficiency programs, sustainable supply chain management, waste reduction efforts, and the adoption of green technologies like electric vehicles.
Green initiatives are vital because they contribute to a healthier planet by reducing greenhouse gas emissions and decreasing reliance on fossil fuels. They offer numerous benefits, such as cost savings through reduced energy consumption, improved brand image, and a competitive edge in an environmentally conscious market. Being environmentally responsible is particularly important in the face of increasingly frequent climate-related events in the UK, such as floods, storms, and extreme heat.
Does company size impact ESG efforts?
The successful implementation of green initiatives depends on decision-makers within a company and the internal review process. In small businesses, decisions may be made by the owner or a small team. In larger companies, it may involve multiple stakeholders, departments, and rigorous internal processes, leading to a longer approval timeline. Engaging key decision-makers and ensuring they understand the value of ESG and green initiatives is vital for success.
The scale of green initiatives can vary based on a company's size. Smaller companies, often perceived as lacking resources and time for ESG efforts, are increasingly recognizing the need to compete for talent by demonstrating their commitment to sustainability. Medium-sized businesses can benefit from sustainability reporting to track and improve their environmental performance. Large corporations can address global supply chain management and ensure sustainability across their entire network, from sourcing to distribution.
Examples of green initiatives that can boost ESG
Promoting sustainable behaviour through employee benefits is an effective way to incorporate ESG into your business. This can include initiatives like tree planting and environmentally friendly travel options.
To make a substantial impact, explore innovative green employee initiatives:
Recycling in the workplace: Efforts to maximise workplace recycling can significantly reduce carbon emissions and demonstrate commitment to environmental protection.
Going paperless: Implementing a paperless workflow helps save trees, cut costs, and reduce energy consumption from printing equipment.
Hybrid working schemes for staff: Implementing hybrid working can improve work-life balance and reduce the carbon footprint by reducing commuting.
One impactful initiative gaining traction is offering electric cars as an employee benefit through salary sacrifice. This not only provides financial incentives for employees but also benefits companies by promoting EV adoption and reducing their carbon footprint.
Green employee benefits that benefit the planet
Remote working
Since the Covid-19 pandemic, businesses have introduced hybrid working where possible.
Allowing employees to work from home reduces carbon emissions as commuters are not driving to work every day - may we add that if they were driving an electric car this would not be an issue anyway.
Flexible working also makes a happy employee. They are given the opportunity to lead a better work-life balance and save on commuting costs.
Green budgets
We understand that everyone has different priorities when it comes to making their homes greener. A green budget supports employees to make the change in their own way.
For example - some people may choose to build a greenhouse enabling them to grow their own produce with access to a green budget others would be able to purchase locally from a sustainable supplier.
Electric car salary sacrifice
As an employer, you can also sign up to a salary sacrifice scheme to allow your employees to access particular benefits - these schemes range from cycle-to-work to child care vouchers to electric cars.
Whilst salary sacrifice is not a new concept to many, the fact you can now lease a brand new electric car through your gross salary is.
Electric car salary sacrifice schemes were introduced by the government to encourage the adoption of electric cars. Making the switch to electric will enable the UK to reach its goal of being net zero by 2050. Salary sacrifice offers a way for companies to provide employees with a benefit without risk or cost to the employer.
EV Salary Sacrifice with The Electric Car Scheme
Introducing electric car salary sacrifice as an employee benefit can enhance employee satisfaction and reduce a company's carbon emissions. The Electric Car Scheme offers the best prices, comprehensive protection, and a trusted 5-star service for you and your team, ensuring a win-win scenario for all.
Key benefits:
Make your team feel rewarded.
Save your team 30-60% on car costs through salary sacrifice.
No cost to the company.
Access the best prices in the EV market.
Complete risk protection for employers.
How does salary sacrifice work for employees?
The process begins with the employer renting an electric car. Instead of receiving a portion of their salary, the employee receives the car as a perk. In return, the employee takes on the responsibility of caring for the car and agrees to use part of their gross salary to cover its cost. The money deducted from the salary in this way is not subject to taxation, resulting in significant savings. Through the Electric Car Scheme, the employer adjusts the payroll to recover the car's cost from the employee's salary. This arrangement enables the employee to save 30-60% on the cost of any electric car by making payments from their salary before taxes are applied.
Sustainability reporting at The Electric Car Scheme
Implementing electric car salary sacrifice can be complemented with impact reporting, which tracks total committed mileage, cars ordered and delivered, and carbon dioxide equivalent savings. These reports demonstrate your company's commitment to sustainability and can be shared internally with stakeholders.
Successfully implementing green initiatives is an ESG responsibility and an opportunity for businesses to enhance their reputation while playing a vital role in preserving the planet. When such initiatives positively impact employees, it's a win-win for all parties involved.
Take a step in the right direction with The Electric Car Scheme. You can learn more about how the electric car salary scheme works on our website.
Last updated: 10/11/2023
Next update: 01/06/2023
