The Business Case for Investing in Corporate Cycling Programs

In today's competitive business landscape, forward-thinking companies are discovering that corporate cycling programs deliver substantial returns on investment. Beyond the obvious environmental benefits, these initiatives create meaningful financial advantages while enhancing employee wellbeing and productivity. Let's explore why implementing a corporate cycling program makes strong business sense.

Financial Benefits

Tax Incentives and Government Subsidies

The Netherlands offers some of the most generous cycling-related tax benefits in the world:

• The "Fietsplan" (Bicycle Plan) allows employers to provide tax-free bicycles to employees worth up to €1,500.

• Companies can provide tax-free cycling allowances of €0.21 per kilometer for business-related trips.

• Organizations investing in cycling infrastructure (storage, showers) can qualify for MIA/VAMIL tax deductions, allowing up to 36% of investment costs to be deducted from taxable profit.

• The "Werkkostenregeling" (WKR) enables employers to offer bicycle-related benefits within the tax-free allowance.

Strategic Advantages for Dutch Companies

Enhanced Productivity and Engagement

Dutch research confirms productivity gains from cycling:

• Utrecht University documented 15% higher productivity levels among cycling employees compared to driving commuters.

• Companies have anecdotally reported improved employee wellbeing and reduced stress among those who cycle regularly. While exact data is limited, workplace surveys and testimonials suggest a positive correlation between active commuting and employee performance.

Sustainability Leadership

For Dutch companies committed to environmental, social, and governance (ESG) goals, cycling programs can serve as a practical step toward achieving measurable sustainability targets:

• Corporate cycling initiatives contribute to reducing overall carbon emissions, especially when replacing car commutes with bicycle travel.

• Several major Dutch companies, including those in the FMCG and chemical sectors, have incorporated cycling into broader sustainability strategies, often as part of mobility or health & wellbeing goals.

• Business networks such as De Groene Zaak and other sustainability-focused organizations in the Netherlands actively promote cycling as a low-carbon commuting option that aligns with green certification standards.

• While specific impact metrics may vary, promoting cycling within corporate policies is increasingly recognized as part of best practices for sustainable business operations.

Dutch Success Stories

Achmea Insurance

This Dutch insurance giant implemented a comprehensive cycling program including:

• €1,500 e-bike allowance for employees

• Covered bicycle insurance and maintenance

• Premium bicycle parking facilities

  
  

Results:

• €27 million saved over three years in reduced absenteeism

• 15% reduction in healthcare claims

• 22% decrease in car parking demand at headquarters

• Strengthened position as a sustainable employer

ASML (Eindhoven)

The tech manufacturing leader enhanced its cycling program to address:

• Last-mile transportation challenges

• Congestion around its campus

  
  

Results:

• 34% of employees now cycle to work regularly

• 18% reduction in local traffic congestion

• €2.3 million annual savings in parking infrastructure

• Enhanced recruitment success among international candidates

Conclusion

For Dutch companies, investing in corporate cycling programs represents a particularly strong business case. With generous government support, existing infrastructure, and cultural acceptance, the Netherlands offers the perfect environment to maximize returns from corporate cycling initiatives. Beyond the substantial financial benefits, these programs strengthen corporate identity, enhance employee wellbeing, and position companies as leaders in sustainable business practices – making cycling programs not just an expense, but a strategic investment with measurable returns.