Climate Change Data

Element Fleet Management Corporation

Climate Impact & Sustainability Data (2020, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

ESG Focus Areas

  • Sustainability
  • Diversity & Inclusion
  • Satisfaction & Safety
  • Governance

Environmental Achievements

  • Installed workplace electric vehicle chargers to promote employee EV adoption
  • Achieved 50% EVs for company-owned vehicles in New Zealand operations
  • Installed efficient lighting in Maryland office, saving 991,838 KWH per year
  • Closed several physical offices and shifted to remote work
  • Downsized Minnesota office into a multi-tenant building with environmentally-friendly features
  • Renovated Toronto office with environmentally-friendly features
  • Replaced water fountains in Maryland office with bottle fillers
  • Decreased landfill waste by adopting a single-stream recycling program
  • Switched to low sulfur diesel fuel for emergency generators

Social Achievements

  • Hired a senior Diversity & Inclusion leader
  • Over 900 employees completed a Conscious Inclusion workshop
  • Joined the National Minority Supplier Development Council and the Canadian Aboriginal and Minority Supplier Council
  • Donated $180K to six non-profit organizations and $150K to Doctors without Borders
  • Rolled out comprehensive driver safety tips during the COVID-19 pandemic
  • Achieved a Global Employee Engagement Score of 86%

Governance Achievements

  • Virginia Addicott joined the board, increasing female representation to 30%
  • Achieved one of the highest annual score increases in the Globe & Mail’s Board Games rankings
  • Over 85% of shareholders voted with over 97% approval for every director at the 2020 Annual Meeting

Climate Goals & Targets

Long-term Goals:
  • Review procurement options to reflect focus on climate-friendly and/or diverse supplier-certified options
Medium-term Goals:
  • Leverage baseline to publish more detailed ESG reporting
  • Incorporate ESG into investor disclosures, client communications, RFPs
  • Identify indicators aligning with UNSDGs
  • Explore new technology to improve environmental and safety outcomes
  • Commit to internal fleet electrification
Short-term Goals:
  • Establish a robust ESG baseline
  • Continue rollout of priority initiatives (EV, D&I training)
  • Include GHG emissions in client monthly business reviews
  • Full employee D&I baseline
  • Pay equity analysis
  • Supplier diversity fact base

Environmental Challenges

  • Increased costs of EVs and associated charging infrastructure
  • Increased operational complexity of EVs
  • Nascent and fragmented EV support networks
  • Navigating stakeholders for successful EV adoption
Mitigation Strategies
  • Needs-centric approach to deliver a comprehensive North American EV offering
  • Detailed situational assessment aligning internal capabilities to external factors
  • Knowledge Management process to share best practices
  • External advisory panel with large customers and industry stakeholders

Supply Chain Management

Responsible Procurement
  • Directing spend to minority-, women-, veteran-owned businesses
  • Active corporate members with NMSDC and CAMSC
  • Active corporate partners with Disability:IN Minnesota

Climate-Related Risks & Opportunities

Opportunities
  • Fleet electrification

Reporting Standards

Frameworks Used: GRI, SASB, UNSDGs

UN Sustainable Development Goals

  • Climate Action (Goal 13)
  • Sustainable Cities and Communities (Goal 11)
  • Responsible Consumption and Production (Goal 12)

Electrifying fleets, investing in tools that create efficiencies for clients, promoting inclusive and sustainable industrialization, ensuring sustainable consumption and production.

Sustainable Products & Innovation

  • EV+ electric vehicle offering in Australia and New Zealand

Awards & Recognition

  • Johnson Controls Supplier Diversity Partner
  • Advance Auto Parts 2020 Supplier of the Year
  • Named among the Best Places to Work in Mexico

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:1,828,752 tCO2e/year (2022)
Scope 1 Emissions:950 tCO2e/year (2022)
Scope 2 Emissions:2,277 tCO2e/year (2022, market-based)
Scope 3 Emissions:1,825,525 tCO2e/year (2022, upstream)
Waste Generated:344 tons/year (glass)

ESG Focus Areas

  • Fleet Electrification
  • Diversity, Equity, and Inclusion (DE&I)
  • Community Involvement
  • Greenhouse Gas Emissions Reduction
  • Driver Safety

Environmental Achievements

  • 55% reduction in scopes 1 and 2 GHG emissions compared to 2019 baseline
  • 100% electrification of internal fleet in New Zealand (2021), Australia on target for mid-2024, North America by end of 2025
  • 75% increase in Electric Vehicle originations
  • 344 tons of glass recycled in 2022
  • Repair First policy resulting in at least 70% less CO2 emissions per repair

Social Achievements

  • 51% women and 21% BIPOC in workforce
  • 87% DE&I Index score
  • 82% Employee Engagement Index score
  • $1.75B spent with over 4,800 diverse suppliers
  • 11,482 accidents avoided and $57M in repair spend avoided through safety products
  • Achieved pay parity for women and BIPOC employees compared to men and non-BIPOC colleagues in the U.S. and Canada

Governance Achievements

  • Top 7% of 226 Canadian companies in The Globe and Mail’s Board Games
  • EcoVadis Silver Medal (top 25% of companies assessed)
  • Signatory of the United Nations Global Compact
  • 44% women on Board of Directors, 22% diverse

Climate Goals & Targets

Long-term Goals:
  • 100% electrification of internal fleet by end of 2025
Medium-term Goals:
  • Transition 350,000 client vehicles by 2030
Short-term Goals:
  • Install charging infrastructures across all global offices by 2023
  • Electrify internal fleet in Australia and New Zealand by mid-2024 and North America by the end of 2025

Environmental Challenges

  • Supply chain constraints and availability of relevant service vehicles hindering client EV conversion
  • Upstream Scope 3 emissions increased due to business growth
  • Early stages of EV adoption cycle
Mitigation Strategies
  • Working closely with OEMs to incorporate new model launch timing into clients' replacement planning
  • Developing new products and services to scale to meet demands of fleets of any size
  • Investing in training, technology, and operations to advance sustainability mandate
  • Leveraging advanced analytics to conduct greenhouse gas emission modeling for clients

Supply Chain Management

Responsible Procurement
  • Supplier diversity program
  • Diverse supplier locator and diversity spend dashboard tools
  • Vendor Code of Conduct

Climate-Related Risks & Opportunities

Opportunities
  • Fleet electrification

Reporting Standards

Frameworks Used: SASB (Transportation Sector, Car Rental and Leasing Standard), CDP, UN Global Compact

Third-party Assurance: EY (limited assurance on Scope 1, 2, and upstream Scope 3 emissions)

UN Sustainable Development Goals

  • 3.4
  • 3.6
  • 4.3
  • 8.3
  • 10.3
  • 13.1

Element's actions contribute to these goals through initiatives related to mental health and well-being, driver safety, access to quality education, economic inclusion in the supply chain, equal opportunity, and climate resilience.

Sustainable Products & Innovation

  • Arc by Element (end-to-end fleet electrification solution)
  • DriverCare Risk Manager
  • DriverCare Connect
  • DriverCare CoPilot

Awards & Recognition

  • Socially Responsible Company by ESR in Mexico (3 consecutive years)
  • Best Places to Work in 2022
  • Best CEOs in Mexico
  • Best-in-Class Employer by Gallagher
  • Supplier Leadership Award in Diversity from Johnson Controls International (3 consecutive years)
  • Baltimore Station Community Partner Award

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:14,342,428 tCO2e/year
Scope 1 Emissions:1,333 tCO2e/year
Scope 2 Emissions:2,809 tCO2e/year
Scope 3 Emissions:14,026,246 tCO2e/year

ESG Focus Areas

  • Climate Change
  • Diversity, Equity, Inclusion, & Belonging (DEI&B)
  • Fleet Electrification
  • Driver Safety
  • Community Investment
  • Governance

Environmental Achievements

  • 44% reduction in Scopes 1 and 2 GHG emissions (restated 2019 baseline)
  • 100% electrification of internal fleet in Australia and New Zealand
  • 62% increase in EV originations (U.S. and Canada, inclusive of PHEV & HEV)
  • Transitioned 45,000 client vehicles towards EVs (13% of 2030 target)

Social Achievements

  • 51% women globally and 24% Racially and/or Ethnically Diverse people in workforce
  • 84% team member engagement diversity index score
  • 73% team member engagement index score
  • Over 10,500 vehicle collision accidents prevented and $61M in repair spend avoided through safety products
  • $2.43B spent with 4,800+ diverse suppliers
  • 30% increase in team member volunteer hours (over 2,700 hours)
  • $570k donated to non-profits

Governance Achievements

  • 60% women on the Board of Directors
  • EcoVadis Silver Medal (top 25% of companies assessed)
  • Top 8% of 219 Canadian companies in The Globe and Mail’s Board Games
  • B score on CDP Climate Change questionnaire

Climate Goals & Targets

Medium-term Goals:
  • Transition 350,000 client vehicles by 2030
Short-term Goals:
  • Electrify 100% of internal fleet by end of 2025
  • Reduce absolute Scope 1 and 2 GHG emissions 63.7% by 2034 from a 2019 base year.
  • Reduce Category 11 (Use of Sold Products) and Category 13 (Downstream Leased Assets) emissions 66.4% per dollar of net revenue by 2034 from a 2019 base year.

Environmental Challenges

  • Transitioning to an electrified fleet involves more than just operational adjustments; it requires a comprehensive approach to mitigate broader environmental impacts, including assessing the carbon footprint of new electric equipment and charging infrastructure.
  • Balancing interim emissions goals with an orderly transition.
  • Challenges of achieving GHG reduction targets due to external factors outside of Element’s reasonable control (government policies, legislation and regulatory actions, global supply-chain disruptions, geopolitical risk, etc.).
  • Availability of comprehensive and high-quality GHG emissions data and standardization of sustainability-related measurement methodologies.
Mitigation Strategies
  • Developed Arc by Element™, an end-to-end electric vehicle fleet offering to guide clients through the EV transition.
  • Established strategic partnerships to simplify the EV journey for clients (charging solutions, training, support).
  • Developed decarbonization strategies beyond fleet electrification (alternative fuels, optimization technology, telematics).
  • Improved risk management processes, comprehensive disclosure of GHG emissions, and promotion of low-carbon solutions.

Supply Chain Management

Responsible Procurement
  • Supplier diversity program
  • Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Water stress
Transition Risks
  • Cost of transitioning to low-carbon technology
  • Regulatory mandates
  • Market shifts
  • Reputation risks
Opportunities
  • Resource efficiency
  • Energy source transition
  • New products and services
  • New markets
  • Resilience

Reporting Standards

Frameworks Used: SASB (Car Rental and Leasing Standard), TCFD, UN Global Compact

Third-party Assurance: EY (limited assurance on Scope 1, 2, and 3 emissions for 2019 and 2023)

UN Sustainable Development Goals

  • SDG 3
  • SDG 4
  • SDG 8
  • SDG 10
  • SDG 13

Detailed explanation provided in UN SDG Index section of the report.

Sustainable Products & Innovation

  • Arc by Element™
  • DRIVERCARE solutions

Awards & Recognition

  • Geotab Innovation Award
  • CSR Certification (CEMEFI)
  • Johnson Controls Sustainability Supplier Leadership Award
  • EcoVadis Silver Medal
  • Globe and Mail Board Games
  • Better Companies from Betterfly
  • IR Magazine Canada awards
  • Grupo Expansión MX award
  • Sustainable Supply Chain Case Study Award
  • Australian Workplace Equality Index (AWEI) Bronze Award
  • Work 180 Endorsement