Commuting is responsible for approximately 24% of the UK’s overall transport emissions and costs London-based employees 22% of their salaries. With such a profound environmental and financial impact, it’s no wonder businesses are facing increased pressure to improve employee commuting, reduce emissions and improve staff wellbeing.
The challenges faced by employers today
Single-car commutes
One of the main challenges faced by employers today is the reliance on single-car commutes, on average, 66% of commuters travel by car in the UK. There are numerous factors that contribute to the high statistics of drivers, including public transport gaps, especially in rural or shift-work settings. Commuting by car creates parking pressures and increased costs for both employers and employees, with parking costs for UK employees sitting well over £2,000 per year.
Net-zero commitments
Growing ESG and net-zero commitments from businesses also add to the pressure of reducing emissions. On average, Scope 3 emissions (which include employee commuting) contribute to 70% of corporate carbon footprints.
Knowledge and awareness
Commuting also contributes heavily to staff recruitment and retention. When surveyed, 76% of Londoners said they’d quit their job because of a bad commute. A survey prepared for the Department of Transport showed that one of the barriers to sustainable workplace travel was a lack of knowledge of available travel initiatives, despite there being increasing awareness and appetite amongst employees for sustainable commuting.
Sustainable commuting options
With so much mounting pressure, it can feel overwhelming for employers to consider the best way to reduce emissions and improve employee satisfaction. So, what are the options?
Walking, cycling and public transport
Where possible, the most sustainable modes of transport will always be walking and cycling. As well as the environmental and financial benefits, walking and cycling to work also have significant health benefits. According to the Mental Health Foundation, regular physical activity can reduce your risk of depression by up to 30%. In areas well served by public transport, trains, trams and buses provide a more environmentally-friendly alternative to driving.
Employer-organised shuttle services
Shuttle buses provide an affordable, reliable and sustainable option for staff transport. When compared with travelling by car, commuting by bus can reduce individuals’ emissions by 74%. RideTandem is the only certified B Corp provider of shuttle bus services, which means we’re committed to going the extra mile when it comes to social and environmental performance, transparency and accountability. In short, we do what we do because we care about businesses, communities and the environment.
Subsidies for public transport or shared services
Offered in some European countries, mobility budgets are a corporate initiative that provides employees with a flexible employee transport allowance to cover their travel expenses. Unlike traditionally offered company cars, mobility budgets give employees the freedom to choose from a wide range of travel options, including public transport, cycle hire, or ride-sharing services.
In the UK, the government has introduced a number of public transport subsidies including the Bus Recovery Grant between 2023 - 2024, the local bus service improvement plan (BSIP) funding launched in 2022 and the £2 fare cap from 2024 - 2025, now replaced by the £3 fare cap which is due to be in place until the end of 2025.
Electric vehicles
Many businesses offer electric vehicles (EVs) as company cars for the shared benefits of both the employer and the employee. Employees gain from reduced benefit-in-kind tax rates, lower fuel costs and extra perks like parking or congestion charge exemptions. Employers can claim capital allowance for 100% of the cost of EVs; the HMRC guidance is as follows:
Companies can claim ‘enhanced capital allowances’ (a type of 100% first-year allowance) for the following equipment, which must be new and unused:
- electric cars and cars with zero CO2 emissions
- plant and machinery for gas refuelling stations, for example, storage tanks, pumps and refuelling equipment for gas, biogas and hydrogen
- zero-emission goods vehicles
- equipment for electric vehicle charging points
- plant and machinery for use in a special tax site in UK Freeports or Investment Zones, if you’re a company
How do staff bus services work?
Staff bus services are shuttles arranged by employers to help employees get to work. They can be paid, subsidised or free for passengers depending on the service arranged by the employer. RideTandem provides shuttle services across the UK and Europe and always works with local transport providers to reduce empty miles and offer the most environmentally friendly service possible.
RideTandem services are run using bespoke technology and an app-based ticketing system. RideTandem uses employee postcode data to design the bus routes around employees. Passengers buy tickets through the app and scan to board, and employees are given access to a Hub of data analytics to monitor route performance, staff attendance and CO2 savings. Find out more about how staff shuttles work here.
Find out how much CO2 you could save
Reporting Scope 1 and 2 emissions is mandatory for all companies that fall under the SECR (Streamlined Energy and Carbon Reporting) guidelines. Although reporting Scope 3 emissions (which include employee commuting emissions) remains voluntary, it’s highly encouraged.
With many businesses making net-zero commitments and implementing comprehensive ESG strategies, the need to closely monitor and significantly reduce corporate carbon emissions is ever-increasing.
Find out how much CO2 you could avoid by introducing a RideTandem staff shuttle service here.
