#Commuter Benefit Solutions Difference

What are commuter benefits and how to use them in your ESG strategy?

May 02, 2023

As a company, employee benefits play a significant role in attracting and retaining top talent, and commuter benefits are no exception.

Commuter benefits help employees save money on their daily commute to work, which can range from public transportation subsidies to carpooling incentives, or bike-sharing programs.

Not only do these benefits help employees save money, but they can also contribute to a company’s ESG (environmental, social and governance) goals, which promote sustainability and social responsibility.

Environmental Benefits

One of the primary ways that commuter benefits contribute to ESG goals is through their environmental benefits. Encouraging employees to use public transportation, carpool, or biking to work can reduce a company’s carbon footprint and promote the fight against climate change. 

A recent study from the University of California Berkeley showed that, on average, workers who participated in commuter benefits programs had a 7.4% reduction in carbon emissions compared to those who did not participate. Commuter benefits can significantly reduce a company’s environmental impact, thereby promoting a more sustainable future.

Social Benefits

Commuter benefits can also contribute to social goals by improving accessibility and mobility for employees. Public transportation subsidies, for instance, can make it easier for employees who lack access to a vehicle to get to work, which can promote diversity and inclusion in the workplace.

Furthermore, biking can encourage healthy and active lifestyles, thereby promoting employees’ overall wellness. Implementing commuter benefits can help create a more inclusive and healthy workplace culture.

Governance Benefits

Finally, commuter benefits can contribute to governance goals by promoting responsible and ethical business practices.

Investing in programs that promote sustainability and social responsibility helps companies strengthen their reputations and build trust with stakeholders. Promoting diversity and inclusion through commuter benefits can create a more equitable workplace culture, contributing to long-term success and profitability.

Also, in an effort to support employee engagement and business outcomes, an APQC study has shown that companies that invest in employee engagement programs are associated with positive business outcomes such as higher employee satisfaction, reduced turnover, and increased productivity.

How to Implement Commuter Benefits in Your ESG Strategy

Implementing commuter benefits in your ESG strategy is relatively simple and budget-friendly, with several options to choose from depending on your company’s goals. Some of the most common commuter benefits include:

  • Public transportation 
  • Biking expenses
  • Parking 

When implementing commuter benefits, communicate them clearly to employees and ensure they are accessible and user-friendly. Partnering with local transportation providers or advocacy groups can help promote your programs and increase participation. By integrating commuter benefits into your ESG strategy, you can create a more sustainable, inclusive, and responsible workplace culture.


What are the benefits of implementing commuter benefits for your ESG strategy?

Implementing commuter benefits can help your company reduce its environmental impact and promote sustainable transportation. Additionally, it can help employees save money on transportation costs, which can increase their overall job satisfaction and reduce financial stress. Commuter benefits also show that your company cares about the well-being of its employees and is committed to promoting a sustainable future.

How do commuter benefits work in the context of an ESG strategy?

Commuter benefits allow employees to use pre-tax dollars to pay for qualified transportation expenses, which can include public transit, parking, and biking expenses. By offering these benefits, companies can offer a tax-free up to the IIRS limits employer subsidy, which can motivate employees to use sustainable transportation options.

Which transportation expenses are covered by commuter benefits?

Commuter benefits can cover a variety of transportation expenses, including transit passes, parking, vanpooling, and biking expenses. These expenses must relate to commuting to and from work and meet specific IRS regulations to qualify.

How can my company implement commuter benefits as part of our ESG strategy?

Partnering with a third-party provider like Edenred can help design and implement a customized program that meets the specific needs of your business and employees. Edenred can offer a variety of solutions, including transit and parking benefits, biking, and even telecommuting options.

Offering stress-free transportation benefits for your company is what Edenred does best

The first step is to assess your company’s transportation needs and determine which benefits would be most valuable to your employees. Then, Edenred can work with you to design a program that aligns with your company’s ESG goals and budget.

Once the program is in place, Edenred will handle all the administrative tasks, from enrollment and account management to compliance and reporting. This action allows your HR team to focus on other important initiatives while your employees enjoy the benefits of a convenient and cost-effective transportation program.

Commuter benefits not only benefit your employees but also your company. They can help reduce employee absenteeism, increase employee morale and productivity, and attract and retain top talent.

By implementing commuter benefits as part of your ESG strategy, you can demonstrate your company’s commitment to sustainability and employee well-being. So why not partner with Edenred today and start offering your employees the commuter benefits they deserve?

Commuter Benefits for companies: everything you need to know

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