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How can EV salary exchange help SMEs with the road to net zero

There are two pain points that small businesses are facing right now in the UK:

  1. Recruit and retain talented employees
  2. Reduce emissions and be more ‘sustainable’

In this article we will discuss how by introducing an electric vehicle salary exchange scheme for employees, it can successfully ease these challenges for SME’s.

What does “net zero” actually stand for?

Unfortunately, completely removing all greenhouse gas emissions from our atmosphere is virtually impossible. This is why we use the term “net zero” instead of “absolute zero”. The term “net zero” means to eliminate enough emissions from the atmosphere to balance what we produce. This way, we can reach a point where the emissions created by our activity are completely balanced by the emissions our activity removes from the environment.

Now we have an understanding of the much-used term, let’s look deeper into the decarbonisation of small businesses.

How can electric cars reduce my carbon footprint?

A carbon footprint is the amount of greenhouse gasses produced by a company, individual or organisation.

Greenhouse gasses are split into categories called scopes which have been identified by Greenhouse gas (GHG) Protocol. GHG protocol, defined an internationally recognised model which businesses all around the world use to manage and measure their emissions.

Scope 1: Direct emissions from facilities or equipment your business owns and controls

Scope 2: Indirect emissions from energy you buy from suppliers

Scope 3: Indirect emissions from your company’s supply chain

The illustration below shows the scopes in detail:

Although scope one covers the fuel burned by company vehicles, as vehicles on a salary exchange scheme are not owned by the business but by the employee, it means you would be reducing your scope three emissions: ‘business travel’ and ‘employee commuting’. According to the British Chamber of Commerce, ‘scope 3 emissions make up the vast majority of your carbon footprint’.

By incentivising your staff to drive ultra-low emission vehicles with an EV salary exchange scheme, you will instantly be reducing your own business emissions and at no extra cost. Your employees who travel for work purposes, otherwise known as grey fleet drivers will be driving and commuting in vehicles producing next to no emissions. This doesn’t only develop your business, but it attracts and retains staff…

Who wouldn’t want to be driving around in an electric vehicle?

For more information on the benefits of introducing a salary exchange scheme for your employees, contact our team!

t: 01925 824901
e: enquiries@e-ve.co.uk
w: www.e-ve.co.uk

Sources:

What is Net Zero? – Net Zero Climate

Net zero and SMEs: how you can act now (britishchambers.org.uk)

About Us | Greenhouse Gas Protocol (ghgprotocol.org)

The journey to Net Zero for SMEs guide.pdf (windows.net)