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Are Green Employee Benefits The Way Forward?

As awareness regarding climate change increases, the willingness to take action and fight climate change is greater than ever. This can be translated into all aspects of life, be it in the office or at home.

Various studies have found that especially millennials and Gen Zs are concerned about environmental issues and would like businesses to take action to fight climate change. More than 70% of millennials are more likely to work at a company with a strong sustainability strategy.

In a study done by TEAM LEWIS with UN Women’s HeForShe, Gen Zs were found to prioritise climate change as the third most important social issue, following economic opportunities and LGBTQ+ rights. And with millennials and Gen Zs set to make up the majority of the workforce in coming years, it is high time that companies start looking at a sustainability agenda.

Many companies are well aware of the benefits of having a strong ESG roadmap and are committed to achieving their goals. Other than the environmental impact, benefits could include attracting investors and more motivated employees. 88% of millennials find their job more fulfilling when they get to contribute positively to social and environmental issues.

But how can we get employees on board and engaged in sustainability initiatives? Enter green employee benefits.

What are green employee benefits?

Green employee benefits are perks that reward employees for their action against climate change. Green employee benefits are a great way to establish a company’s commitment to sustainability while motivating employees to take action. They may also help to improve employee retention rates and attract new hires.

The 5 most common green employee benefits

1. Car-free initiatives

Some benefits that companies can consider include incentives for taking public transportation or cycling to work. This can help encourage employees to choose an alternative, more environmentally-friendly mode of transportation.

2. Electric vehicle charging stations

Companies can also consider offering electric vehicle charging stations at workplaces as the lack of charging stations may deter employees from making the switch to electric vehicles. Alternatively, organising car pooling groups for employees who stay in the same area is another viable option. Not only will this help to reduce scope 3 emissions, employees can save on parking costs as well.

3. Recycling program

Having a recycling program that rewards employees for their recycling efforts is another potential green employee benefit. For example, companies can set up recycling corners for different departments and reward the department that recycles the most at the end of every quarter.

4. Partner with environmental organisations

Another possible benefit is to partner with environmental organisations to organise volunteering trips. Employees can participate in initiatives such as tree planting or beach clean ups. Conversely, the company can donate to the organisation to help with a good cause.

5. Tying bonuses to ESG efforts

Lastly, companies can consider tying a part of employees’ bonuses to their ESG efforts. This could look like rewarding employees for their recycling efforts and hours of voluntary activities. Mastercard is already implementing this for executives to ensure their sustainability goals are met.

Green employee benefits are a great way to keep employees engaged in a firm’s sustainability initiatives, while making a positive impact on the climate. Not only does it help with employee retention and securing new talent, it can help to attract capital investments.


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