Green Thinking in Benefits Administration
March 20, 2025
SEB Marketing Team
Traditional benefits administration is paper-heavy in the enrollment process, often uses plastic insurance cards and can offer investment options tied to environmentally harmful industries. These factors contribute to a substantial carbon footprint, but forward-thinking HR professionals and benefits administrators are integrating sustainability into their benefits programs which reduces environmental impact while also enhancing employee satisfaction and talent retention. Here are some green thinking suggestions to incorporate into your benefits strategy.
Digital-First Administration to Reduce Paper Waste
Despite all our technological progress, benefits administration still generates significant paper waste. According to Environment and Climate Change Canada’s 2022 Workplace Waste Audit up to 4kg of paper is wasted annually, including enrollment forms, benefits guides, insurance cards, reimbursement receipts, and endless explanations of benefits.
Shifting to a fully digital benefits system can dramatically reduce both environmental impact and administrative costs. Consider these alternatives:
- Replace physical benefits guides with interactive online portals
- Implement e-signature solutions for all enrollment processes
- Partner with insurance providers offering digital ID cards
- Use mobile apps for claims submission and benefit tracking
- Enable digital EOBs (Explanations of Benefits) by default
These seemingly small changes are a measurable sustainability initiative. For example, the Canadian Benefits Administrators Association estimates that a 500-employee organization saves approximately 17 trees annually by fully digitizing their benefits processes.
Sustainable Commuter Benefits: Rethink How People Get to Work
Free parking is often a primary commuter benefit, but also essentially subsidizes one of the most environmentally damaging daily activities your employees engage in – driving. Offering green commuter benefits where possible, such as transit subsidies, bike share memberships, and EV charging stations can greatly reduce carbon emissions. Other eco-friendly commuter benefits include:
- Replacing or supplementing parking subsidies with transit passes
- Offering micromobility credits (bike share, e-scooter programs)
- Installing secure bike storage and shower facilities
- Providing EV charging infrastructure and preferential EV parking
- Developing carpool matching technology for your workforce
These initiatives also help attract younger talent who are focused on eco-friendly corporations, not just in name, but in practice.
Wellness Programs with Environmental Impact
Wellness programs that integrate sustainability support personal health and contribute to a healthier planet. As more employees are drawn to initiatives that align with their environmental values, simple changes, such as offering fresh produce deliveries through local organic CSA programs, replacing plastic water bottles with filtered water stations, or providing access to community garden plots, can make a meaningful impact. Encourage volunteer days for environmental restoration or incorporate plant-based meal options in cafeterias to further reinforce the connection between wellbeing and sustainability. When employees see that their workplace prioritizes both their health and the environment, they are more likely to take an active role in wellness initiatives, fostering a culture of responsibility and engagement.
Retirement Plans with Environmental Criteria
Many employees are unaware that their retirement investments may be supporting industries that contribute to environmental harm. As awareness of sustainable investing grows, more workers are seeking options that align with their values. In response, forward-thinking benefits administrators are incorporating Environmental, Social, and Governance (ESG) funds into retirement plans, offering educational resources on sustainable investing, and making low-carbon funds the default option for new enrollees. By screening investments for climate-related financial risks and providing impact investing alternatives that support environmental solutions, organizations can empower employees to make informed financial decisions without compromising their commitment to sustainability. A well-structured, responsible investment plan not only helps reduce the environmental impact of retirement funds but also enhances employee confidence in their long-term financial security.
Healthcare Benefits with Lower Environmental Impact
The healthcare industry has a significant environmental footprint, but benefits administrators have the power to help reduce its impact through thoughtful plan design. Choosing providers with strong sustainability initiatives, supporting telehealth services to minimize transportation emissions, and including health spending account allowances for active transportation equipment are just a few ways to promote greener healthcare options. Partnering with pharmacies that offer medication recycling programs and selecting insurance carriers committed to carbon reduction further align employee benefits with environmental responsibility. By integrating sustainability into healthcare benefits, organizations can support both employee wellbeing and a healthier planet, demonstrating a commitment to responsible business practices that extend beyond the workplace.
Shifting to a more sustainable benefits administration approach takes time but is worth the investment. By assessing your current programs and identifying key areas for improvement, you can build a benefits strategy that aligns with both environmental and business goals. Organizations that act now will reduce their environmental impact, attract and retain top talent, foster a culture of innovation, and strengthen their reputation as forward-thinking employers. The shift toward greener benefits creates a workplace where both people and the planet thrive.