A growing number of companies are devising strategies to help the environment, including introducing green travel plans and putting a cap on CO2 emissions of company cars.

According to the PricewaterhouseCoopers (PWC) Company Car UK Report, more than a third (35%) of companies now have a green transport plan, compared with one in four (24%) last year.

These include encouraging staff to use public transport and making better provisions for staff who cycle to work.

Of the 154 companies surveyed, ranging in revenue size from £1 million to £35 billion, a third prefer employees to use public transport for business travel, while one in three organisations that offer a company car now place a CO2 emissions limit on employees’ choice of vehicle.

Matthew Hunnybun, partner and head of employment solutions at PWC, said: “The green agenda is coming through loud and clear in companies’ car policies.

"While we’re clearly a good few years away from the widespread use of electric cars and hybrid vehicles, organisations would embrace providing them to employees if there were greater tax and cost incentives.

“For some organisations, for example those with a large travelling sales force, providing cars to employees is an essential but expensive part of doing business.

"By being environmentally conscious, such as through choice of vehicle and monitoring emissions, companies can make real cost savings.”