HSBC UK is letting 35,000 staff leaseEVs for up to four years and then opt to buy them outright.- Under UK law, EVs are subject to a lower
tax rate if they're bought as part of an employee benefit.
HSBC's new corporate perk allows 35,000 UK staff lease Teslas, and nearly 200 other models of electric vehicles.
The news was first reported by Bloomberg and confirmed to Insider by the bank.
Workers will be able to lease EVs from the bank for up to 48 months and receive tax benefits. They will then have the option to buy the car in full at the end of the contract, per the report.
Banks are keen to improve their offers to employees amid a talent war with tech and other industries, which has forced them to boost pay, improve corporate culture, and heed calls to provide more flexible working.
Offering EVs, or at least a place where workers can charge their electric cars, is becoming an increasingly popular way of attracting talent as concerns over the climate crisis, and therefore a desire for more sustainable forms of transport, increase. Bank of America unveiled a similar scheme earlier this year, per Bloomberg.
HSBC UK's green car program will help employees become more sustainable in their day-to-day lives, said its CEO, Ian Stuart.
Under UK tax rules, employees have to pay tax on employee benefits like company cars. But they pay less for electric or hybrid vehicles, which are subject to "benefit-in-kind" tax breaks. The tax rate on EVs with a range of 130 miles is 2%.
Many UK employers offer a similar cycle to work schemes, where they subsidize the purchase of a bike or let employees pay them back as part of their monthly paycheck — a practice known as salary sacrifice.
Climate-focused perks, like access to greener transport or sustainability education and training, is also a way for banks to boost their green credentials.
In May, HSBC suspended an executive after he appeared to publicly dismiss the climate crisis.
During a presentation at the Financial Times Moral Money Summit, Stuart Kirk, head of responsible investing in the bank's asset management office, claimed that warnings over the climate crisis were "unsubstantiated" and "shrill."
In March, the bank promised to reduce its investments in the highly pollutant oil and gas industry, which it will outline in a global transition plan in 2023, Bloomberg reported.
Data compiled by Bloomberg at the time found that HSBC was behind only Barclays as the largest European underwriter of oil and gas companies.
Since the Paris Climate Accords in 2015, the bank helped fossil fuel companies generate $52 billion through the sale of bonds, per Bloomberg.