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The debate around environmental, social and governance (ESG) strategies is gaining significant momentum in the commercial framework and consequently companies are now considered not only on their financial reporting but also on their business stability. Whilst many groups would prefer carbon neutral outcomes, renewable energy and moral standards it is critical to evaluate many aspects of ESG compliance which is generally overlooked and which is of particular note is corporate transport.
With commercial travel, it has become necessary to include green transport in ESG strategies, creating a large part of the daily employees, and the logistics company’s carbon footprint. Businesses here need to revaluate their mobility strategies and adopt permanent transport solutions.
The carbon cost of corporate transportation
Corporate transport is a major contributor to greenhouse gas (GHG) emissions. Reports suggest that the transport sector is about 15% of global CO, responsible for emissions, the company-owned vehicles and employees work as well as being important factors.
Corporate vehicle fleets based on human driven, internal combustion engine (petrol and diesel) vehicles are important contributors of anthropogenic air pollution and climate change. Business travel (by plane, taxi, or company car) is affected by this carbon footprint. This effect is especially apparent in urban environments since fuel consumption and emissions are increased by high traffic flow.
While there is growing corporate support for net-zero targets, a significant proportion of organisations remain unaware of the impact of transport emissions and thus undermine progress in delivering on ESG commitment. Green mobility options, such as electric vehicles (EVs), require interaction with shared transport and public transport services and may be leveraged in order to reach out and meet this need.
Regulatory pressures and ESG compliance
Governments around the globe are adopting policies in an attempt to cut emissions and promote corporate sustainability in addition to this India’s supra-national regulator SECBI SEBI Business Responsibility and Sustainability Reporting (BRSR) framework has required companies to disclose any ESG initiative specifically strategies for carbon reduction including identifying carbon reduction strategies.
Companies that fail to comply with the sustainability requirements will face potential regulatory penalties, diminished investor trust and harm to their reputations. In especially contrast, companies that take the initiative to adopt green transportation systems will stand to benefit from a number of advantages such as the carbon certifications, tax reductions and an improved Environmental Social Governance (ESG) rating. In addition, global investors are favouring businesses which comply with ESG standards as the situation unfolds. In 2021 ESG focused funds managed to attract $6. 49bn in investment worldwide and companies showcasing robust sustainability efforts attract a competitive advantage. By incorporating low carbon transportation strategies into their business it is likely that companies will be able to meet the expectations of investment and thereby form the basis of their future operations.
The business case for green transportation
In addition to fulfilling transportation regulations, which offer several significant commercial advantages, green mobility should be integrated into Environmental Social Governance strategies.
Cost savings: Shifting to electric vehicle fleets and adopting modern corporate travel policy allow for practical reduction in ongoing operating costs of the running of the vehicle. Electric vehicles generally have much lower fuel and maintenance costs when compared to conventional vehicles making long term savings accrue.
Employee Wellbeing and Productivity: Sustainable transportation initiatives, such as EV-based corporate cab services and shared mobility programs, create a healthier and more efficient commuting environment for employees. Studies show that long and stressful commutes reduce productivity, whereas green mobility options that ensure comfort, reliability, and reduced travel time contribute to improved employee well-being and job satisfaction.
Actual Enhanced Brand Reputation: Companies that adopt sustainable transportation policies not only demonstrate their admirable commitment to climate change mitigation, but their environmentally aware customers, investors and employees attract business. Thereby, it improves the overall brand solidarity.
Key green mobility strategies for corporates
To implement sustainable transportation into ESG strategies a structured approach needs to be taken into consideration. Here are some key initiatives:
Transitioning to EV fleets: Replacing diesel and petrol based company fleets with electric vehicles will drastically reduce emissions that are produced by vehicles while driving. Large scale companies making this change will be able to offer employee fleets of electric vehicles that are customized for multiple transportation modes such as taxis, vans or cargo cars of the same utility as a part of a service at work. In many scenarios businesses will also be able to offer electric based vehicle services to employees for everyday commuting. Encouraging shared mobility is a practice that encourages the use of car-sharing schemes, shuttle buses as well as public transport partnerships in order to reduce the carbon footprints of individual car users.
Carbon-neutral business travel: Implementing sustainable business travel policies such as prioritizing virtual meetings, selecting green certified travel options, and developing and investing into carbon offset programs would reduce carbon emissions.
Infrastructure Investments: Corporates rental of EV charging stations at office premises, enables incorporation of employees into the use of electric mobility .
ESG based vendor selection: Choosing eco-friendly logistics and transportation providers will ensure a sustainable supply chain.
The way forward
Businesses that aspire to be ESG compliant must make green transportation a priority rather than an afterthought. Recent sustainability trends in corporate mobility are not only about reducing emissions, they also entail a confluence with global sustainability goals, an improvement in financial performance and the enhancement of stakeholder confidence.
By embedding eco-friendly transportation solutions into their ESG strategies, companies are putting the foundation in place for a more mature green form of corporate landscape, one where corporate sustainability and profitability are inseparably linked.
(The author is CEO and co-founder at ARC Electric. Views expressed are personal.)
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While there is growing corporate support for net-zero targets, a significant proportion of organisations remain unaware of the impact of transport emissions.
“>
The debate around environmental, social and governance (ESG) strategies is gaining significant momentum in the commercial framework and consequently companies are now considered not only on their financial reporting but also on their business stability. Whilst many groups would prefer carbon neutral outcomes, renewable energy and moral standards it is critical to evaluate many aspects of ESG compliance which is generally overlooked and which is of particular note is corporate transport.With commercial travel, it has become necessary to include green transport in ESG strategies, creating a large part of the daily employees, and the logistics company’s carbon footprint. Businesses here need to revaluate their mobility strategies and adopt permanent transport solutions.
The carbon cost of corporate transportation
Corporate transport is a major contributor to greenhouse gas (GHG) emissions. Reports suggest that the transport sector is about 15% of global CO, responsible for emissions, the company-owned vehicles and employees work as well as being important factors.
Corporate vehicle fleets based on human driven, internal combustion engine (petrol and diesel) vehicles are important contributors of anthropogenic air pollution and climate change. Business travel (by plane, taxi, or company car) is affected by this carbon footprint. This effect is especially apparent in urban environments since fuel consumption and emissions are increased by high traffic flow.While there is growing corporate support for net-zero targets, a significant proportion of organisations remain unaware of the impact of transport emissions and thus undermine progress in delivering on ESG commitment. Green mobility options, such as electric vehicles (EVs), require interaction with shared transport and public transport services and may be leveraged in order to reach out and meet this need.
Regulatory pressures and ESG compliance
Governments around the globe are adopting policies in an attempt to cut emissions and promote corporate sustainability in addition to this India’s supra-national regulator SECBI SEBI Business Responsibility and Sustainability Reporting (BRSR) framework has required companies to disclose any ESG initiative specifically strategies for carbon reduction including identifying carbon reduction strategies. Companies that fail to comply with the sustainability requirements will face potential regulatory penalties, diminished investor trust and harm to their reputations. In especially contrast, companies that take the initiative to adopt green transportation systems will stand to benefit from a number of advantages such as the carbon certifications, tax reductions and an improved Environmental Social Governance (ESG) rating. In addition, global investors are favouring businesses which comply with ESG standards as the situation unfolds. In 2021 ESG focused funds managed to attract $6. 49bn in investment worldwide and companies showcasing robust sustainability efforts attract a competitive advantage. By incorporating low carbon transportation strategies into their business it is likely that companies will be able to meet the expectations of investment and thereby form the basis of their future operations.The business case for green transportation
In addition to fulfilling transportation regulations, which offer several significant commercial advantages, green mobility should be integrated into Environmental Social Governance strategies.
Cost savings: Shifting to electric vehicle fleets and adopting modern corporate travel policy allow for practical reduction in ongoing operating costs of the running of the vehicle. Electric vehicles generally have much lower fuel and maintenance costs when compared to conventional vehicles making long term savings accrue.
Employee Wellbeing and Productivity: Sustainable transportation initiatives, such as EV-based corporate cab services and shared mobility programs, create a healthier and more efficient commuting environment for employees. Studies show that long and stressful commutes reduce productivity, whereas green mobility options that ensure comfort, reliability, and reduced travel time contribute to improved employee well-being and job satisfaction.
Actual Enhanced Brand Reputation: Companies that adopt sustainable transportation policies not only demonstrate their admirable commitment to climate change mitigation, but their environmentally aware customers, investors and employees attract business. Thereby, it improves the overall brand solidarity.
Key green mobility strategies for corporates
To implement sustainable transportation into ESG strategies a structured approach needs to be taken into consideration. Here are some key initiatives:
Transitioning to EV fleets: Replacing diesel and petrol based company fleets with electric vehicles will drastically reduce emissions that are produced by vehicles while driving. Large scale companies making this change will be able to offer employee fleets of electric vehicles that are customized for multiple transportation modes such as taxis, vans or cargo cars of the same utility as a part of a service at work. In many scenarios businesses will also be able to offer electric based vehicle services to employees for everyday commuting. Encouraging shared mobility is a practice that encourages the use of car-sharing schemes, shuttle buses as well as public transport partnerships in order to reduce the carbon footprints of individual car users.
Carbon-neutral business travel: Implementing sustainable business travel policies such as prioritizing virtual meetings, selecting green certified travel options, and developing and investing into carbon offset programs would reduce carbon emissions.
Infrastructure Investments: Corporates rental of EV charging stations at office premises, enables incorporation of employees into the use of electric mobility .
ESG based vendor selection: Choosing eco-friendly logistics and transportation providers will ensure a sustainable supply chain.
The way forward
Businesses that aspire to be ESG compliant must make green transportation a priority rather than an afterthought. Recent sustainability trends in corporate mobility are not only about reducing emissions, they also entail a confluence with global sustainability goals, an improvement in financial performance and the enhancement of stakeholder confidence.
By embedding eco-friendly transportation solutions into their ESG strategies, companies are putting the foundation in place for a more mature green form of corporate landscape, one where corporate sustainability and profitability are inseparably linked.
(The author is CEO and co-founder at ARC Electric. Views expressed are personal.)