Nearly a quarter of all fleets now have a green transport policy in place and 27% restrict car choice to diesel engines only.
Almost half of all companies (48%) now encourage employees to cycle to work and car sharing is encouraged by more than a third of companies.
The findings are produced in Company Car UK 2007, produced by PricewaterhouseCoopers’ Monks division.
The study gathered data from almost 190 companies who collectively manage more than 81,000 company cars.
It covers car availability, car allocation, flexibility, cash allowances, fuel provision, mileage allowance and taxation.
Gary Hull, director of employment solutions, said: ‘Company car policies in UK companies are continuing to evolve with many companies now taking environmental pressures and road safety into account even more so than before.
‘This will have to be recognised by providers as they need to ensure that employees have access to, and are encouraged to take up, green transport options.’
Other key findings include the fact that many companies have guidelines for work-related safety and more than 90% recognise the need to communicate with drivers on mobile phone use in cars. Also, 80% carry out driving licence checks on staff who drive on company business.
The report also found that the typical salary at which a car is provided as a standard benefit continues to rise and is now £35,000, up from £33,500 in 2006. And it notes a decrease in the number of companies providing all fuel for private use. In 70% of companies, some drivers elected not to receive fuel for private motoring.
Mr Hull added: ‘In his March 1998 budget, the chancellor said it was his intention to discourage employers from providing, and employees from accepting, free fuel.
‘The consequent increase in the taxation of the provision of fuel for private use has therefore meant that the benefit has become less desirable for many employees and so a number of companies are introducing a policy whereby the provision of fuel for private motoring is an optional benefit.’
|2007 (% companies)||2006 (% companies)|
|Company credit cards||9||7|
|Company garage accounts||1||1|
|against receipted bills||21||15|
|Fixed pence per mile allowance||57||53|
|Weekly/monthly fuel allowance||4||5|
|At least one employee wishing to switch||(% companies saying 'yes')|
|back from allowance to company car|
|Area sales manager||2||48||49||16||35||16|
|Minimum status car||0||41||58||19||38||13|
|Minimum business need car||3||42||52||12||39||13|
|Promote low-emission cars||55||29||45||46||46|
|Promote alternative fuel cars||21||12||5||18||15|
|Encourage car sharing||34||59||27||46||40|
|% of companies||providing all private fuel|
|Area sales manager||26||35|
|Minimum status car||19||23|
|Minimum business need car||22||25|
|Responsibility by||company||turnover %|
|Full-time fleet manager||38||34||45||58||45|
|External fleet management organisation||9||26||42||40||28|
|In-house transport dept||15||8||9||21||14|
|Contract hire/contract purchase only||20||32||27||13||22|
|Restricted choice to diesel only||27||24|
|Encourage choice of diesel||73||76|
|Discourage choice of diesel||0||0|