Leading rail and road transport companies in the ESG theme – Railway Technology

The future of the travel and tourism industry will be shaped by a series of disruptive themes, with environment, social and governance (ESG) being one of the themes that will have a significant impact on rail transport companies. and road.

According to GlobalData’s Third Quarter 2021 Consumer Survey, 56% of respondents worldwide said they “somewhat” or “strongly” agree that they are more loyal to brands that support green and environmental issues, and 54% echo this sentiment for brands that are true to people. and social rights issues. These high percentages suggest that companies with transparent ESG strategies, which can demonstrate positive work to address environmental and social issues, could retain travelers who may be undecided about which company to use for a specific aspect of their trip. Transparency on ESG issues will not only appease consumers; it is now demanded by many other stakeholders and potential futures. Investors will often assess a company’s ESG performance during due diligence. As a result, many business leaders are allocating ever-increasing capital and resources to addressing ESG aspects and increasing attractiveness. According to a GlobalData survey (completed October 19, 2021, with 1,500 responses), 78.7% of respondents said their company now monitors ESG performance directly alongside financial performance.

However, not all companies are equal when it comes to their capabilities and investments in the key themes that matter most to their industry. Understanding how companies are positioned and ranked in the most important themes can be a key indicator of their future earnings potential and relative competitive position.

According to GlobalData’s thematic research report, ESG in Travel & Tourism, the main adopters are: Avis Budget Group, SNCF Group, Deutsche Bahn, Flix, East Japan Railway Company, Europcar, Stagecoach Group, Indian Railways, Enterprise Holdings, National Express, FirstGroup and MTR Company.

Top-ranked company insights

East Japan Railway Company

East Japan Railway Company is a passenger rail operator. It owns and operates a network between Tokyo and major cities in eastern Honshu and the main island of Japan. Regarding its trains, the company promotes the introduction of energy-efficient vehicles equipped with regenerative braking that converts kinetic energy during deceleration into electrical energy, as well as VVVF inverters (variable voltage inverters and variable frequency that convert direct currents to alternating currents) for efficient motor control performance. Its “Move Up 2027” management vision puts ESG at the center of its strategy, while its “Zero Carbon Challenge 2050” announced in May 2020 defines the company’s objective of achieving net CO2 emissions in the rail sector by FY2051. In October 2020, he announced that his Zero Carbon Challenge 2050 would be the Group-wide goal and that he would work together to achieve net zero CO2 emissions. The company is also committed to social causes. It promotes city development focusing on central stations in conjunction with central urban district revitalization projects, urban planning projects and other initiatives undertaken by local governments near Akita Station, from Niigata Station, Iwaki Station and Aomori Station.

Europcar

Europcar is an integrated mobility service provider. It offers a wide range of car rental or leasing services, including short-term vehicle rental, low cost rental services, car sharing and reservation services through its fleet of cars, vans and trucks. It offers rental services under the Europcar, InterRent, Goldcar, Ubeeqo, GoCar, Brunel, Buchbinder, E-Car Club, Scooty, Snappcar and Wanderio brands. In September 2021, the company issued a 500 million euro ($555.8 million) offering of sustainability-linked senior secured notes, based on “fleet greening” criteria and aimed at the refinancing of its fleet. Europcar aims to leverage sustainable financing mechanisms to accelerate its carbon transition.

Deutsche Bahn

Deutsche Bahn is a transportation service provider. It offers mobility and logistics services, which include passenger transport by train and bus, freight transport and rail infrastructure services. Its sustainable social commitment includes safeguarding the long-term success of the company through an early detection system for non-compliance risks as well as safety in railway facilities. Deutsche Bahn has preventive measures in place to prevent accidents, provides hazard information at around 5,600 stops and stations throughout Germany, and provides educational materials and educational videos. In addition to various projects and initiatives of its own, the railway company supports numerous cultural and social centers through donations. In 2012, she donated a total of 1.1 million euros ($1.2 million) to such projects in Germany alone.

To better understand the key themes and technologies disrupting the travel and tourism industry, access GlobalData’s latest thematic research report on ESG in Travel and Tourism.

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GlobalData, the leading industry intelligence provider, provided the underlying data, research and analysis used to produce this article.

GlobalData’s Thematic Dashboard ranks companies in an industry based on their overall leadership in the 10 most important themes for their industry, generating a leading indicator of their future revenue and relative position in key strategic areas.