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Research carried out by leasing firm ALD has revealed that average CO2 emissions for company cars dropped to a low of 123g/km in June, a 15g/km reduction since the same month last year.
The company also reported that business mileage was gradually reducing, while purchase of cleaner vehicles is on the up.
Managing director at ALD, Keith Allen, said: "It is evident from the analysis that UK businesses are really taking notice when it comes to reducing their CO2 emissions and mileage.
"As vehicle taxation and carbon emissions are so entwined, it is vital that employers and staff stay one step ahead of changes in legislation. With new legislation being implemented next April this will affect many large businesses.
"By having to disclose figures for the amount of emissions they expel, it's imperative that businesses take the necessary steps to reduce their carbon footprint."
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