Building a business case for sustainable cars

By Cheryl Clement, head of business development, Tusker

Corporate sustainability actions are increasingly transforming from desirable to non-negotiable. Not only have corporate sustainability laws, net-zero targets, and climate regulations surged, but talent – particularly younger generations – expect employers to create and encourage sustainable cultures. This has made more sustainable strategies essential for organisational success. One critical way this has been executed is through the adoption of Ultra-Low Emission Vehicles (ULEVs).

Switching to sustainable fleets not only reduces your organisation’s carbon footprint, contributing positively to CSR initiatives, but also offers significant financial, reputational, and employee engagement benefits. Here’s why embracing sustainable fleets is a necessity for modern businesses.

Sustainable branding drives competitive advantage

From rising global temperatures to a surge in climate protesting, the urgency around climate action is not something governments, talent, and consequently the boardroom, can sweep under the carpet. Consumers, employees and stakeholders are holding brands to higher standards – and businesses failing to align to these expectations lose critical competitive advantages.

Key trends driving sustainable business strategies include:

• More companies are reporting their sustainability action, with 90% of S&P 500 companies releasing ESG reports.
• 83% of consumers believe companies should actively shape ESG best practices.
• 88% of consumers demonstrate increased loyalty to businesses that advocate for social and environmental issues.
• ESG is considered by 89% of investors when making investment decisions.
• Sustainability is becoming a major factor in how people decide where to work. In fact, 52% of employees say they would stay longer at a company with strong ESG credentials. Among Gen Z, 54% are willing to take a pay cut to work for an organisation they believe is more ethical, and 31% would even turn down a job offer if they weren’t comfortable with the organisation’s ESG stance.

A sustainable fleet is critical to employer branding, demonstrating a commitment to reducing carbon output to talent, consumers, and stakeholders. Unlike emissions data buried in CSR reports, electric vehicles are visible, and demonstrate environmental commitment every day. On top of this, they provide great recognition for talent who receive the opportunity to drive more sustainably at a more affordable price.

Cleaner cars deliver immediate and long-term savings

While the environmental benefits of ULEVs are clear (mass reduction of greenhouse gas emissions improves air quality and mitigates against climate change), the financial case is just as compelling:

• According to YESSS Electrical, the average UK EV owner saves £582.65 per year on fuel compared to petrol car owners.
• Maintenance savings are extensive – fewer moving parts means lower service, repair and downtime costs. When employers offer their employees a salary sacrifice vehicle, it often comes with comprehensive motor insurance, breakdown cover, routine servicing, and replacement tyres. By securing better deals and simplifying the process, companies help employees save money and avoid the hassle of managing multiple contracts.
• Salary-sacrifice electric car schemes allow employees to exchange a fixed monthly pre-tax amount for access to a new low-emission vehicle. This can lead to significant savings on income tax, and reduced National Insurance contributions for both employees and employers.

While there may be some upfront investments involved – for example charging infrastructure – the long-term ROI is significant, from petrol and upkeep savings, salary-sacrifice employer’s NI savings, as well as improved employer branding.

Engage employees with Sustainable Car benefits

Today’s employees want to see sustainability in action. Fleet policies are a critical strategy to improving an organisation’s sustainable credentials.

Providing access to ULEVs through company car schemes or salary sacrifice programmes can:

• Enhance employer branding and appeal to talent motivated by ethics – especially younger, more eco-conscious generations.
• Support the financial health of your workforce amid the cost of living crisis through lower fuel and tax bills.
• Contribute to broader environmental, social, and governance (ESG) goals.

You can take this lead by capping CO2 emissions from company vehicles, or transitioning to ULEV fleets. The more accessible you make sustainable driving, the faster adoption and overall engagement will follow.

Act now

By 2030 no new petrol or diesel cars will be legally sold in the UK, with all cars and vans required to be 100% emission free by 2035. In the near future your fleet will legally be required to be fully sustainable. Make the change early, and gain all of the employer branding and savings advantages before it’s a requirement – not a well-respected choice.

At Tusker, we offer access to in-stock vehicles, exclusive manufacturer build slots, and flexible schemes to help you deploy electric cars quickly and cost-effectively.

Ready to take the next step? We can help you calculate potential savings, review policy options, and help create a fleet strategy made for your organisation’s needs.

Let’s drive change – for the planet, your people, and your profit.