The Future is Green

Why businesses need to consider sustainable benefits for employees

The Intergovernmental Panel on Climate Change (IPCC) recently warned that rising greenhouse gas emissions are pushing the world to the brink of disaster.

Climate change is already devastating populations, driving natural disasters, and damaging economies across the world. According to the IPCC, the world is on track to surpass a critical temperature by the early 2030s beyond which climate disasters are likely to become so extreme, many people will not be able to adapt.

Against this backdrop, it’s vital that businesses of all sizes play their part in lowering their carbon footprint. Not only is it the right thing to do from a humanitarian stand, but it makes good business sense too. Businesses that take ESG seriously not only enjoy better brand reputation and profitability but have a greater chance of attracting and retaining talent.

Research has shown that more than half (58%) of employees consider a company’s social and environmental commitments when deciding where to work and 55% would choose to work for a socially responsible company, even if the salary was lower. Going forward, this is only going to increase as younger, more eco-conscious generations enter the workplace.

It’s clear that businesses cannot simply sit back and do nothing. Adopting a robust sustainability policy and implementing sustainable benefits and incentives will ensure business success well into the future.

Understand your carbon footprint

Reducing our carbon footprint can make a huge difference to the environment, reduce health risks and improve local economies but it can be a daunting prospect knowing where to start.

There are three different areas businesses should consider; emissions directly produced by the organisation; emissions from purchased energy; and indirect emissions the business is responsible for such as staff travel. As a first step, employers should look at their average footprint and use that figure to set targets.

Importantly, employers should engage their employees in an open dialogue around sustainability, understanding their concerns and worries and finding out what they would like the company to achieve. Employees are much more likely to embrace sustainable benefits if they are engaged and understand the importance of those benefits.

Green pensions

Arguably the biggest, but often overlooked, impact an employer can make when it comes to sustainability is its pension scheme. It’s estimated that making a pension ‘green’ is 21 times more effective at cutting our carbon footprint than other behavioural changes, including giving up flying or changing energy supplier.

Research conducted by Scottish Widows found that the pension schemes of the UK’s largest companies could be responsible for seven times more emissions than those caused through their own operations in the UK. And while some employees may know the ins and outs of how their pension is invested, they are very much the minority. In fact, a whopping 99.5% of employees are oblivious to their pension emissions.

Despite this, 72% of employees believe it is important that their employer invests their pension sustainably and green pensions are a priority for as many as one in four employees.

Businesses need to grasp the opportunity to demonstrate true leadership and offer their employees the option to invest in sustainable funds. Doing so will send out a clear signal that they’re serious about making a positive impact on the world and share their employees’ environmental concerns.

Sustainable perks

Aside from pensions, there are lots of other ways employers can help boost their employees’ green credentials. Cycle to work schemes can be a great way to improve employee health, fitness and energy while reducing carbon footprint. Similarly, for employees with an electric vehicle and off street parking, Octopus will install a free off-street charger, with the first 4,000 miles free.

Rewarding sustainable travel can also be a good way to get employees to think about their carbon footprint. Travelling by train or boat can emit around 85-95% less carbon emissions than flying, with a single trip to Berlin clocking up the same amount of carbon as eight return trips by train.

Employers should also highlight the different environmentally-focused apps available, such as the Better Points app which offers reward points for different activities that can be exchanged for vouchers or donated to charity.

Remote working

Flexible working arrangements have become increasingly common in the wake of the pandemic, as employees pursue a better work-life balance. But on top of giving employees a break from the humdrum of the daily commute, hybrid working can also make a huge difference to a company’s carbon footprint.

A survey by IWG found that a mix of office and remote working can reduce carbon emissions by up to 80% in cities across the UK.

With more employees working from home, there are also lots of green initiatives that employers can offer, such as discounts on green energy tariffs, solar insulations, and sustainable waste management.

Tackle eco-anxiety

With constant headlines warning of the dangers of climate change, it’s not surprising that a large number of people are now suffering from ‘eco-anxiety’.

As natural disasters increase in intensity and frequency, more people will become exposed to the risks of climate-related illness, with research suggesting that more than 12 million people in the UK are vulnerable to adverse health due to climate related events. But it’s also having a huge impact on those left to stand and watch, with the uncertainty of what the future holds and constant negative coverage of the climate crisis having an impact on their mental wellbeing. A study published by the Lancet found 60% of people aged 16 to 25 felt “very worried” or “extremely worried” about climate change and 45% said their feelings about climate change impacted their daily lives.

As a first step, employers should make sure they’re opening the dialogue around eco-anxiety, helping people to understand what they’re feeling is normal and providing a safe space for them to voice their concerns and fears. Lost productivity can have a big impact on businesses, with figures from the Centre for Mental Health calculating that presenteeism from mental ill health alone costs the UK economy £15.1 billion per annum so it’s important that employers take steps to address their employees’ worries.

One way to help combat this is outdoor working, encouraging people to step away from Zoom and take part in walking meetings instead. There is a direct link between working outside and productivity, with exposure to nature strengthening people’s memory.

Providing employees with paid time to volunteer on environmental projects can also be a great way to help them feel they’re making a difference. It’s also likely to have a domino effect across the business, with employees feeling encouraged by other’s actions.

Businesses should also be holding awareness days, where staff can share their concerns and experts on environmental topics can provide education and support.

With July 3rd 2023 officially the hottest day on record globally, it’s clear we’re in a race against the clock. Employers need to start the conversation around sustainability and implement green benefits before it’s too late.

If you’re looking for advice on how to get started, JourneyHR can help. We’ve been working with our clients to explore sustainable benefits and pension providers and can help you shape a sustainability strategy that works for you.

“Research has shown that more than half (58%) of employees consider a company’s social and environmental commitments when deciding where to work and 55% would choose to work for a socially responsible company, even if the salary was lower. ”