Staff Scope 3 emissions

Employee travel significantly contributes to your organisations’ carbon footprint. This includes commuting and business travel in personal vehicles, known as ‘grey fleet’ emissions, which fall under Scope 3. In contrast, business travel in vehicles owned or leased by the employer, including those under salary sacrifice schemes, contribute to Scopes 1 and 2 emissions (Scope 1 are your direct emissions, Scope 2 are indirect emissions, generally from purchased energy, Scope 3 are indirect emissions within the value chain).

Although commuting and grey fleet travel are distinct types of travel, there is crossover between the two. The vehicle an employee uses for the commute and grey fleet mileage will be the same. For example, if an employee needs to use their car for business mileage, they will also drive to work, whilst they may be able to take the bus if the employee didn’t need their car. Efforts to decarbonise one area of travel will also impact the other. Effectively managing Scope 3 emissions requires clear communication and leadership to engage employees and reduce resistance to change. As an employer, you have more control over staff business travel, so this note focuses more on changes you can make to business travel practices, however these changes will also influence employees’ commuting habits, reducing emissions from both areas.

Implementing a travel hierarchy is key to tackling staff travel emissions, both in commuting and business travel. The travel hierarchy needs to be robustly enforced through a system which requires employees to firstly question the need for travel, then follow a process through to the most cost-effective and lowest impact solution. 

A travel hierarchy process should start with the option of using telecommunication, if that is not possible or feasible, can the travel be done by active means, and if that is not possible can it be done by public transport. If a vehicle is required for the journey, the organisation should then provide options for the employee as detailed in the following section. With sufficient options provided by the employer, including zero-emission vehicles, use of the employee’s own vehicle should ideally be the last option on the travel hierarchy process, unless they have a zero-emission vehicle. 

Successfully implementing a travel hierarchy does involve behaviour change from employees, and this needs to be modelled at all levels within the business, especially within senior management. There are a number of things your organisation can introduce to encourage employees to take ownership of their travel emissions, and communication is key to achieving this. You could for example introduce competitions or benefits for employees using active travel and/or public transport, introduce lunch groups or ‘employee champions’ to help their peers be more confident walking or cycling, or giving employees enough time to walk to meetings. The organisation can also help employees with public transport costs, introduce car parking fees and preferential rates for car sharing, provide onsite live timetables for local buses and trains, install adequate lighting and paths where possible. 

It is important for the organisation to listen to staff as to why they cannot use active or public transport, and try and overcome these barriers where feasible. It is also important to not advocate an ‘all or nothing’ approach, if every employee moved just one day of travel up one rung in the hierarchy, over the whole business this may add up to a significant amount of saved emissions.

Business travel necessitates diverse vehicle options for employees. Organisations can manage a fleet of pool vehicles or arrange for external hire or car club services. The requirement for advanced planning fosters efficient vehicle usage, thereby minimising both emissions and expenses. An array of business travel options enables the imposition of emission limits on personal 'grey fleet' vehicles, discouraging their use for work purposes.

Pool Vehicles

Pool vehicles represent a cost-effective solution for frequent travel needs, provided the annual mileage per vehicle is within the 10,000 to 12,000 range. Essential characteristics include suitability for the intended use, safety, comfort, cleanliness, and an easy booking system. The adoption of an entirely zero-emission pool fleet, such as BEVs, is recommended. Training for employees on driving and charging these vehicles is crucial, along with incentivising the use of pool cars over personal vehicles.

Hire Vehicles

For sporadic or long-distance travel where a pool car is impractical, hire vehicles can be a better fit. They are particularly advantageous for journeys exceeding a certain mileage, where they become more cost-effective than using a personal vehicle.

Car Clubs

Suited for short, local trips, car clubs offer flexible access to vehicles. While dependent on regional availability, organisations can foster car clubs by endorsing and utilising their services, which may also yield community benefits.

By strategically using pool cars, hire vehicles, and car clubs, organisations can streamline business travel and mitigate the environmental impact while potentially influencing employees' choices towards greener commuting options.

Finally, the organisation can also help employees to decarbonise their own private vehicle, whether this is required for business travel or not. The main method to do this is provide employees with a zero-emission salary sacrifice scheme. 

Salary sacrifice vehicles are provided to staff, as a private vehicle, leased through the organisation (their emissions are in Scope 1 and 2, as they are leased to the organisation). The vehicle is a taxable benefit, and there is a preferential rate of taxation for low emission vehicles with an emission rating of 50 gCO₂/km or below and capable of at least 70 miles at 0 gCO₂/km. To decarbonise employees’ vehicles, a salary sacrifice scheme should be set for zero-emission vehicles only, and this enables to access these preferential tax rates, making BEVs more cost effective. A salary sacrifice scheme cannot take employees below minimum wage, and this may be disadvantageous to those nearing retirement. An employer loan scheme may also be an option, and this would allow employees to purchase second hand vehicles, making them more accessible. 

In addition to the salary sacrifice scheme, the organisation can take further steps to promote the use of zero-emission vehicles, such as:

• Workplace Charging: Provide charging stations at the workplace to accommodate employees who lack charging facilities at home or face longer commutes.
• Incentivised Parking: Offer discounted or free parking for zero-emission vehicles and impose higher parking fees for more polluting vehicles.

These initiatives not only facilitate the transition to BEVs but also reinforce the company's commitment to environmental responsibility. For comprehensive details on workplace charging, refer to our separate technical advice note: Providing electric vehicle charging for staff at the workplace: technical advice note.

Staff Scope 3 emissions, whether from commuting or business travel, can form a large part of an organisation’s total emissions. Although these are indirect emissions, it is important the organisation tackle these emissions through measures aimed at moving staff travel up the travel hierarchy, to lower-emission options. 

Tackling and reducing staff Scope 3 emissions requires behaviour change from employees at all levels of the organisation. Any new measures introduced need to be communicated clearly with employees, and modelled by senior management. The organisation must articulate its objectives, the rationale for adjustments, and the significance of individual responsibility regarding travel emissions.

The WLGA has detailed guidance to support councils in encouraging staff to travel more sustainably.