ESG Metric: GHG Scope 3 emissions
Ease of implementation: Medium
Suitable for: Commuting employees
Suggested functional lead: HR
Implementation Steps
Assign responsibility to a team/member of staff to lead the cycle to work scheme Ensure a team or member of staff is assigned to manage and oversee the cycle to work scheme. They will be the first point of contact for the scheme company and employee queries.
Check you are eligible
You are eligible for various cycle to work schemes when; you pay employees by Pay As You Earn, you have legal right to enter an agreement on your business’ behalf, and you are able to pay for the bicycles initially.
Research various schemes
Globally there are a larger variety of similar schemes, therefore it is import to research which one aligns best with your business. In the UK alone, there are dozens of scheme providers available following the Government guidance on Cycle to Work. We recommend Cycle2Work and CycleScheme.
Register with the chosen scheme
Employers can register online with the chosen scheme and enter an agreement with the organisation. You may also be prompted to choose scheme parameters such as price, gear and payback period.
Use promotional resources to promote the scheme
Once registered, use the promotional material provided to promote employee engagement with the scheme. Inform employees of the new scheme and how to get started with the application through an email campaign made available by the cycle to work scheme. This is a crucial step to promote the decarbonisation of commuting into work to reduce this source of scope 3 emissions, and so continuously promoting is strongly advised.
Employee makes an online application
The employee can make their application with their chosen gear and bike. They will also be required to sign an agreement for the salary sacrifice and payback period.
Approve the application
The approval will require implementation of the salary sacrifice which the scheme will organise for your workforce.
Get your bike
This section varies per scheme, however, the employee will either be able to order their bike in store or online, or they will have made an order within the application and receive a collection code to collect their bike. For more information on participating retailers in the Cycle2Work scheme, click here.
Pay invoice sent from the scheme provider
An invoice will be sent to the company to cover the costs of the bike. This will of course be paid back by the employee through the salary sacrifice they have committed to.
Set up ownership options after the hire agreement and salary sacrifice ends
Regardless of the scheme provider, the employee will have three options after the hire agreement and salary sacrifice ends:
Own it later: keep hiring the bike for a further 36 months with no monthly payments
Own it now: pay approximately 18% of the original value of the bike and own the bike
Return it: give the bike back to the cycle scheme with no additional costs