23 March 2026
Using salary sacrifice to meet your business’s sustainability goals
Businesses around the world are feeling the pressure of sustainability goals and decarbonisation strategies are now business-critical, with some companies choosing one supplier over another simply due to sustainability credentials.
A company’s emissions can be defined by three groups, per the Greenhouse Gas (GHG) Protocol:
Scope 1 Emissions relate to carbon output directly controlled by the company, such as fuel used by delivery vehicles.
Scope 2 Emissions are indirect greenhouse gas emissions that result in products or services purchased from another supplier, such as generating the electricity used to keep your lights on.
Scope 3 Emissions covers emissions that are not produced by the company or its operation, but are produced by people and entities the company has any responsibility for – such as commuting.
Employees commuting to and from work play a vital role in Scope 3 emissions, and it’s also an area that can be incentivised by employers by offering a car scheme, such as salary sacrifice. Lower upfront costs, fixed financial commitments, and tax savings make salary sacrifice an attractive option – especially for EVs.
Bundled maintenance, insurance, tax, and breakdown cover also minimises your Grey Fleet liability too.
Salary Sacrifice benefits for employers
Salary sacrifice delivers clear financial and strategic benefits for employers. A key advantage is reduced National Insurance contributions, as lowering an employee’s gross salary in exchange for the vehicle benefit reduces the employer’s associated NI liability.
The scheme also enables decarbonisation without upfront capital investment. Employers can support access to electric, hybrid and lower-emission vehicles with minimal financial risk, while delivering measurable reductions in Scope 3 emissions as employees move away from older, higher-emitting grey fleet vehicles.
In addition, salary sacrifice strengthens employee retention by enhancing the overall reward package with a meaningful lifestyle benefit. It also reduces grey fleet exposure, helping protect organisations from compliance risks and potential liability linked to duty-of-care obligations.
How can Activa help
Activa understands the benefits of offering a salary sacrifice scheme, so it can provide a tailored solution to you and your business. To find out more, get in touch today.
