Environmental, Social and Governance
Created a ESG framework for a travel fleet operator to reduce carbon footprint in fleet operations
26 Jul 2022
Context
A travel fleet operator wanted to reduce carbon
footprint in fleet operations through the use of sustainable alternative fuel
Our Approach:
- Analyzed
dashboard and MIS across fleet operations and CAPEX and OPEX of operations
- Conducted
cost and benefit analysis on operations, data, and metrics
- Compiled
feedback from drivers and employees on various aspects during operations, pay
scale, and benefits while taking the point of view of management and other
departments (finance, operations, planning, and mechanical)
- Understood
customer’s feedback on safety during travel
Key
Insights & Outcomes:
Customized
ESG framework for evaluation based on:
- Greenhouse
emission metrics such as fuel consumption, percentage of natural gas, and
percentage of renewable fuel
- Driver
working conditions like total recorded incidents, fatality accidents, direct
and contract employees (pay, benefits, shifts, time offs), attrition rate,
skill & training, short / long term health risks, and driving patterns
- Accident
and safety management – number of road accidents and incidents, percentiles on
unsafe driving, hours of service, drivers' fitness, controlled substance or
alcohol, vehicle maintenance, hazardous materials compliance, number, and
volume of spills (aggregate)
- Activity
metric monitoring – Load factor, revenue per mile, number of employees
- Industry
and manufacturer support and investor readiness on the PPP model
Assigned weights and rating scales as per the short-listed parameters:
- Importance of the ESG parameter in the firm’s overall industry
Assigned scores based on each of the parameters:- In-depth conversations with the management teams of the firm
- One-on-one discussions with the firm’s employees
- Interviews with the firm’s customers
Praxis value delivered:
The
client implemented Vehicle Tracking System (VTS), Vehicle Health Monitoring
Device (VHMD), and Fuel Management Solutions. In a phased approach, the client
is procuring CNG and LNG buses on a leasing model to save operation costs and
bring efficiency and sustainability through investors’ funding. The client
mandated drivers to undergo training, driving skills test using Driver Test
track (DTT), and simulation techniques sponsored through an investor.