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Employee benefits can help staff go green

Saving a forest or two by switching to e-communications is no longer enough to demonstrate a company’s green credentials. In order to be truly classed as 'green', your benefits scheme should enable employees to adopt a more environmentally friendly lifestyle.

Wages are frozen. Fuel costs are up. Resources are in decline. With headlines full of further austerity, this year is set to be more expensive than ever for householders. Which means even the most cynical of global warming sceptics can be excused for taking an interest in saving energy. I am certainly always interested in ways to make my home more fuel-efficient and so are many of my friends and colleagues. In fact, there are huge swathes of the population who would like to run greener homes, but often don't know where to start, or who to turn to for sensible advice.

The trouble with many green home-improvement measures is that they require a certain amount of faith and cash up-front, both of which can be significant barriers to participation. The perception is that green means expensive and, of course, when we're not sure about something, the easiest answer is always, 'No, thanks'.

In business, however, recent communications from the Government on green policies show that employers will play an increasingly important role in promoting greener ways of living to their employees.

If companies were to provide employees with the means, the enthusiasm and the confidence to install fuel-saving measures in their homes, there's a much stronger chance that householders would take action. This is what the UK Government would like to see happening - and fast.

The Government has set a UK target of a reduction of 29% in home carbon emissions by 2020 (based on 2008's measure), the equivalent of 24 million tonnes of CO2 a year.

The good news is that energy-saving products and services don't have to be complicated or time-consuming to add to your benefits programme. At Grass Roots, we are working with some major employers which plan to offer their employees free energy-saving products as a starting point, moving up to a wider range of offers for those who want to extend their flexible benefits offering, spread the cost over the year and take advantage of significant subsidies. This avoids the necessity for cash up-front for bigger installation projects.

There is no doubt that a commitment to a corporate green agenda has already helped to change many employees' ways of thinking, and to improve some of our habits, particularly regarding waste and recycling. Long-standing initiatives, such as promoting telecommuting, buying lower-emission company cars and carbon offsetting, all have their part to play in reducing the corporate carbon footprint. So what are the possibilities if you were able to remove some of the barriers and actively support your employees in making a tangible difference to the energy that they consume at home?

1 Extend employee engagement with your benefits programme

Everyone who needs to pay or contribute to energy bills can be a potential participant in your green programme. By becoming a trusted source for green services and goods, a company can inspire confidence in its employees to make energy-saving changes to their home and lifestyle.

2 Empower employees to invest in green schemes

Spreading the cost of green goods and services will complement the Government's Green Deal, which begins later this year. Green Deal will enable private firms to offer consumers energy efficiency improvements to their homes at no upfront cost, and then recoup payments through instalments on their energy bill.

3 Enhance competitive advantage and corporate credentials

By offering initiatives that support national energy-saving targets, a company can be seen as a forward-thinking and socially responsible organisation.

According to the Government's Carbon Plan: "Reducing energy use and emissions in the residential sector will only be possible by developing solutions that address the barriers to action - whether through the provision of better information or removing the hassle associated with action - enabling people to take decisions that save money and reduce emissions."

As employers, we can play our part in addressing - and removing - those barriers to action. It is likely that the trend for green benefits programmes will continue to increase dramatically throughout 2011. Organisations will be looking for fresh ways to demonstrate their responsibility and to support employees with long-term energy-saving measures. Eventually, green benefits will no longer be seen as an out-of-the-ordinary or peripheral offering, but be recognised as a core part of every employee benefit programme.

Paul Bartlett (pictured) is head of employee reward and benefits at benefits firm Grass Roots