Environmental, Social and Governance
Created a ESG framework for a travel fleet operator to reduce carbon footprint in fleet operations
26 Jul 2022
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.
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