The Need to Rethink Sustainability Reports is an Extraordinary Opportunity.
The ESG approach is increasingly part of the vocabulary of companies and institutions, though it is not entirely new. It has roots in John Elkington's Triple Bottom Line theory (1990s) and in an initiative by Kofi Annan, then UN Secretary-General, who in 2004 challenged CEOs of major global financial companies to consider integrating environmental (E), social (S), and governance (G) issues into capital markets.
In the European Union, transport accounts for approximately 25% of CO2 emissions, making it one of the sectors where significant emission reductions have not been observed. On the other hand, under the European taxonomy, passenger and freight land and river transport are classified as sustainable, facilitating access to funding mechanisms, which represents an opportunity to be explored.
The need for transformation in the transport and mobility sector is urgent and has primarily been attributed to industry, which is “encouraged” to invest in cleaner technologies, and to cities, which are challenged to introduce policies that reduce car dependency. However, this discussion has largely excluded companies and major activity centres, which justify many of the trips being made.
Work-related travel still accounts for a substantial share of mobility today, making it incomprehensible that companies are not involved in the process of promoting sustainability, particularly within the framework of ESG principles.
There are clear opportunities for companies to engage meaningfully with the ESG approach in the context of mobility and transport. It is essential to distinguish between companies that consume mobility and those whose business model is based on the transport of goods and freight.
For the former, mobility consumers, it is recommended to develop a Corporate Mobility Plan (CMP) as part of the company’s Sustainability Policy. In Portugal, this tool is referenced in the National Energy Efficiency Plan for companies with more than 500 employees, but in several European countries, it is mandatory for companies with significantly lower thresholds (100 to 200 employees).
This is a fundamental tool for understanding how employees commute, calculating the carbon footprint of mobility, and assessing the adequacy of transport options relative to their needs. Once the baseline situation is understood, actions can be identified to integrate into the company’s strategy, thereby influencing its mobility practices.
Implementing a CMP can significantly contribute to improving workers’ quality of life, fostering greater inclusion and resilience in employee retention and recruitment, and promoting more sustainable mobility patterns.
For the second type of companies, whose business model is based on the provision of transport services, fleet decarbonisation is underway, but much remains to be done to enhance resource efficiency and better meet client needs.
While it is evident that these issues are not resolved solely within the context of a Sustainability Report, it is essential to include evaluation indicators to assess whether improvements are being introduced into the system and to what extent these benefits are transferred to clients and society at large. The need to rethink Sustainability Reports is an extraordinary opportunity to involve companies in addressing the challenges we face. Let us not waste it!
CEO of TIS, a consultancy firm specialising in sustainable mobility
