Ryan FowlerMeeting environmental targets is now a major driver for workplace benefit decisions, as 52% of UK employers say that sustainability goals were a primary reason for introducing electric vehicle (EV) salary sacrifice schemes, according to a new report from Tusker.
The ‘Driving Loyalty Through Electric Cars’ report highlights the growing use of salary sacrifice car schemes as a strategic ESG initiative. Cheryl Clements, head of business development at Tusker, said: “Organisations are under mounting pressure to demonstrate measurable progress on their sustainability targets. The fact that over half of employers say sustainability goals are a major reason for adopting salary sacrifice schemes shows that environmental concerns are firmly embedded in business decision-making.”
Almost a quarter of employers (24%) surveyed said the schemes were introduced specifically to reduce Scope 3 emissions, such as those related to employee commuting. A further 68% said the availability of a CO₂ cap was either ‘somewhat’ or ‘extremely’ important when choosing a provider, reflecting the need to quantify environmental performance.
Tusker’s offering includes carbon offsetting for both tailpipe emissions and grid-based EV charging, exceeding typical industry standards to support customers in hitting net zero goals. The scheme is proving particularly effective in the public sector. University Hospital Southampton, which launched its scheme in 2015, has already offset more than 2,500 tonnes of carbon. Sophie Limb, HR project manager, said: “We believe in offering a wide array of options that can improve staff wellbeing in some meaningful way – whether that’s physical, emotional, financial or environmental.”
Employers also report positive results for employee engagement. Landsec, which launched an EV salary sacrifice scheme in 2024, recorded a 26-point increase in employees feeling their benefits met their needs, with 30% of eligible staff signing up within the first six months.
Clements added: “Sustainability is no longer just a corporate nice-to-have but a defining part of the employee experience. Our scheme empowers organisations to deliver on their environmental goals while offering a practical, tax-efficient benefit that employees genuinely value.”
