More workers in today’s labor market want to take action on climate change in some way as part of their jobs, yet many face a major hurdle: when it comes to their employer’s own commitment. If so, there is a lack of understanding of the problem. So-called green perks, also known as climate change benefits, can help bridge the gap. A growing, though still modest, trend in the labor market, employee motivation and compensation packages tied to climate change can help make these abstractions clearer and more actionable in the workplace.

Big companies’ environmental commitments have focused on major operational efficiency goals, such as Google’s carbon-free data centers, and from the supply chain to the consumer end market, such as Apple’s carbon-neutral smartwatch. Some companies, as a brand, are there to fight climate change, such as Patagonia. And at the C-suite level, it’s already the norm toward equity compensation, with executive bonuses at companies like Apple tied to ESG performance metrics.

But for most rank-and-file employees, benefit packages in recent decades have mainly consisted of two main categories – health and retirement. There are now signs that green benefit packages may become more common. One potential advance for emerging mobility is commuter benefits, particularly benefits that healthy, environmentally friendly modes of transportation provide, allowing employers to facilitate and promote such lifestyles. Permits that appeal to an environmentally conscious workforce, while reducing the company’s net carbon footprint.

WalmartThe nation’s largest employer is factoring the environmental impact of employees’ daily commutes into a company’s carbon footprint as an example of changing corporate culture, while the retailer has been promoting alternative forms of travel in recent years. which were essential to the design. It is headquartered in Bentonville, Arkansas.

With Walmart saying that “multimodal and alternative transportation is a big part of the future of travel,” it has provided employees with bikes, e-bikes and e-scooters as a green lifestyle perk. , has invested in bike racks and chargers for showers. For cyclists commuting to work, while it has deliberately reduced the allocated parking space.

Walmart has a stated goal of having 10% of its workforce work in Bentonville — but that goal has been difficult to reach, and has been pushed back from 2023 to 2025 when the corporate headquarters is scheduled for completion. Is. Still, like the challenges of widespread adoption of electric vehicles, infrastructure plays an important role in getting employees on bikes, and Walmart has nailed it in Bentonville.

Among the 500 employers representing more than 8 million workers who responded to the management consultant’s annual survey WTWThe green benefits theme is starting to register, says Caroline Mangiardi, associate director of health and benefits at the firm. Although her annual best practices survey focuses on health care benefits, she began adding a section on climate-related benefits in 2022, and she says employer attitudes are changing. According to the survey, increasing climate benefits is to be prioritized in the coming years. Half of employers rated the concept as a low priority in the past three years, but now only a third see climate benefits as a low priority.

Employer-financed home upgrades, EV purchase incentives

The commuting trend isn’t just limited to bikes. “What’s interesting are innovative benefits such as reimbursements for particularly sustainable home upgrades, providing time off for weather-related events, and bike programs,” Mangiardi said.

Bank of America It pledged to double the availability of EV charging stations at its financial centers. As part of the plan, it provided eligible employees with up to $4,000 toward the purchase or $2,000 toward the lease of a qualifying new all-electric passenger car or truck.

Young workers in the Gen Z demographic may be front and center when it comes to incorporating social and environmental awareness into corporate benefit programs, but Mangiardi said, “It’s important to note that employees of all generations support sustainability. are.”

Some specialty benefits firms are incorporating the concept of green perks into their business model. Lauren Schneider, spokeswoman for Compt, an employee expense management provider that replaces or reinforces existing incentives with stipends designed around employee lifestyle expenses, says these incentives can be focused on. Although he also said that it is still early days for the idea. “There is a nascent but growing interest in the benefits of climate change,” Schneider said, noting, for example, that Google searches for traveler benefits are trending up.

Early adopters among employers can benefit. “From our direct experience in the benefits space, the lack of widespread implementation represents a significant opportunity for companies to innovate and lead in this space,” Schneider said. “By aligning employee benefits with environmental sustainability, companies not only meet the demand for talent (more people want CSR-focused and environmentally conscious employers),” he said. Also support this talent more comprehensively.”

Recent data from benefits consultant Mercer indicates that facilitating green and healthy travel continues to grow as a benefits priority. According to its 2023 Mercer Transportation Trends report, nearly one-third of companies aim to promote and facilitate environmentally friendly modes of travel for their employees.

‘Carbon Savings Account’ for Work

Lizzie Kolar, co-founder and CEO of Scope Zero, which offers a Carbon Savings Account (CSA) as a way to distribute green perks to employees, likened it to a health savings account. “But for home technology and personal transportation upgrades that drive corporate ESG efforts,” he said. Stipends for commuter benefits, biking, and EV discounts, as well as work-from-home expenses, are key components of the program.

Kolar said employer financial contributions to each employee’s CSA and discounts from its vendor marketplace significantly reduce the initial costs of home tech and personal transportation upgrades. Providing a platform designed for this type of perk also allows for customized upgrade recommendations, employee orientation to top products and vendors, and identification of relevant utilities and government rebates.

With green perks, the headlines are smaller than the operational and supply chain commitments of major corporations, and the impacts have not yet been sufficiently studied. But as the back-to-work mandate continues to gain momentum, there is an opportunity to incorporate this concept into a new work-life balance. Green perks are a benefits arena where demand outstrips supply, and green passenger benefits may be the first sign of a wave of wider adoption.

This is Kolar’s condition. “This demand stems from growing individual interest in sustainability and priorities within the 70% of Fortune 500s that have already made formal climate commitments,” he said. “Our prediction is that standard benefits in the next few years will include not only health care and retirement, but also sustainability,” he said.