Aviva has introduced an Electric Vehicle (EV) Salary Sacrifice Scheme, giving UK colleagues the opportunity to drive a fully electric EV for a two or three year period.
Colleagues will be able to select cars such as the Nissan Leaf and the Mini Electric through the scheme, which is provided by Zenith.
Aviva has also increased the range of bikes on its Cycle2Work scheme, further assisting UK colleagues to commute to work in an environmentally friendly way. In July, the scheme limit increased from £2,000 to £4,000, making a wider range of bikes available, including electric bikes.
The scheme is part of ongoing climate-related activity to support and enable Aviva colleagues to take their own action against climate change. For example, colleagues have 21 hours’ volunteering leave a year, which can include climate-related causes and can also donate to environmental charities through Aviva’s Payroll Giving scheme.
"Our people are hugely passionate about our Net Zero carbon by 2040 goal, so we are looking for practical ways to help them limit climate change."
In March 2021, Aviva became the first major insurer worldwide to target Net Zero carbon by 2040. This includes a target of Net Zero carbon emissions from Aviva’s own operations and supply chain by 2030. The Trustee of the Aviva Staff Pension Scheme has also set an ambition for the scheme’s assets to be Net Zero by 2040 and has embedded ESG considerations into the default investment solution offered to members.
Danny Harmer, Chief People Officer, Aviva, said:
“Our people are hugely passionate about our Net Zero carbon by 2040 goal, so we are looking for practical ways to help them limit climate change. Aviva’s electric vehicle and Cycle2Work schemes are two ways we are supporting them to put this into practice.”
Some of Aviva’s climate actions include:
- cutting carbon emissions by over 76% since 2010, through innovations like solar arrays at some of Aviva’s major offices.
- one of the UK’s largest solar and energy storage initiatives at the Aviva Perth office.
- commitment to deliver all new company car leases in the UK, Ireland and Canada through battery electric (BEV), plug-in hybrid (PHEV) or hydrogen fuel cell electric vehicles (FCEV) vehicles, by 2025. This will save up to 4,200 tonnes of carbon emissions per year.
- commitment to the EV100 initiative, meaning Aviva will report annually on progress to switch its motor fleet to electric vehicles.
Under a salary sacrifice scheme, employees can sacrifice part of their salary and, in return, receive certain company-provided benefits, which can often give tax and employee National Insurance savings.
For example, a colleague paying the basic rate of tax could sacrifice £350 of monthly pre-tax salary on a car costing £23,500, to pay a net monthly cost of £242, effectively a discount of 31%.
Costs per month
Basic Rate Taxpayer (20%)
Tax/National Insurance Savings
Tax on benefit-in-kind
*Assumptions: £350/month Salary Sacrifice Benefit Spend for a battery electric car with a list price of £23,500, aged below 66, tax rates for the tax year to 5 April 2023 for a UK taxpayer (outside of Scotland).
The scheme covers Aviva comprehensive insurance, servicing and maintenance, road fund licence, breakdown cover, replacement tyres, accident management, delivery and collection and fully managed service access 24 hours a day, 365 days a year.
Notes to editors:
- We are the UK’s leading Insurance, Wealth & Retirement business and we operate in the UK, Ireland and Canada. We also have international investments in India, China and Singapore.
- We help our 18.7 million customers make the most out of life, plan for the future, and have the confidence that if things go wrong we’ll be there to put it right.
- We have been taking care of people for more than 325 years, in line with our purpose of being ‘with you today, for a better tomorrow’. In 2022, we paid £23.2 billion in claims and benefits to our customers.
- In 2021, we announced our ambition to become Net Zero by 2040, the first major insurance company in the world to do so. We are aiming to have a cut of 25% in the carbon intensity of our investments by 2025 and of 60% by 2030; and Net Zero carbon emissions from our own operations and supply chain by 2030. While we are working towards our sustainability ambitions, we acknowledge that we have relationships with businesses and existing assets that may be associated with significant emissions. Find out more about our climate goals at www.aviva.com/climate-goals and our sustainability ambition and action at www.aviva.com/sustainability
- Aviva is a Living Wage, Living Pension and Living Hours employer and provides market-leading benefits for our people, including flexible working, paid carers leave and equal parental leave. Find out more at https://www.aviva.com/about-us/our-people/
- As at 30 June 2023, total Group assets under management at Aviva Group were £358 billion and our estimated Solvency II shareholder capital surplus as at 30 September 2023 was £7.6 billion. Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.
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