ComfortDelGro Corporation

CDG works with local public authorities to design climate policies to reduce emissions. In Singapore, the company has shared its insights about the opportunities and difficulties in accelerating its electric vehicle (EV) deployment plan. This included the company presenting an assessment to the Singapore Ministry of Transport on how extending the statutory lifespan of electric taxis will improve the commercial viability of such vehicles. The government has now adopted an EV policy. Additionally, CDG is working on a USD 16.5 million project with Transport for London (TfL) to trial 20 hydrogen buses in the UK.

CDG has implemented board-level oversight of climate change and ensured that board members have expertise in climate and the low-carbon transition. Notably, the Chairman of the Sustainability Committee is the managing director of an organisation dedicated to sustainable development, has qualifications in environmental, social and governance (ESG) investing and has authored a book on Singapore’s transition to an eco-city. Other members of the Committee hold scientific academic qualifications. CDG can go further still by linking monetary incentives for low-carbon performance to a significant proportion of the remuneration package for board members.

CDG has a strategy to influence its clients to reduce their greenhouse gas (GHG) emissions. To engage commuters, the company provides information on their low-carbon fleet at bus interchanges and metro stations, as well as online and through social media. To engage businesses, CDG runs outreach programmes where new and existing customers can visit its operations. The company can improve its performance in this area by setting time-bound targets for reductions in client emissions. This may require the introduction of new business models such as mobility as a service or financial incentives such as discounts.

CDG has set near- and medium-term emissions intensity reduction targets for its scope 1 and 2 emissions. It has also set medium-term absolute emissions reduction targets for all scopes. Furthermore, the Science Based Targets initiative (SBTi) has validated that the company’s absolute emissions targets are consistent with a 1.5°C pathway. However, these targets do not extend beyond the average expected lifetime of CDG’s vehicles and are not set at intervals of five years or less. CDG can improve its emissions reduction performance by setting a long-term decarbonisation target as well as regularly spaced intermediate targets. The company can also benefit from extending its transition plan, including its scenario analysis, to reflect any new longer-term target.

CDG has committed to spending USD 134 million on research and development (R&D) of low-carbon vehicles and energies. This includes setting up an in-house Autonomous Vehicle Centre of Excellence and investing in a Living Lab with the National University of Singapore to accelerate the mass market for clean energy vehicles. CDG is also using its venture capital fund to invest in mobility and transport technology start-ups. However, the company does not disclose its annual R&D expenditure as a whole or for low-carbon projects. CDG should consider partnering with manufacturers and infrastructure operators to improve performance on its R&D projects.

CDG has set a target to reduce its absolute scope 1 and 2 emissions by 54.6% by 2032 compared to 2019. This target has been validated to align with the 1.5°C scenario by the SBTi. The company has also set a target to reduce its scope 1 and 2 emissions intensity by 20% by 2023 and 50% by 2030 compared to 2015.

To achieve its targets, CDG has a schedule to transition to a low-carbon fleet. By 2032, 97% of its vehicles will be low-carbon and by 2038, 69.5% of vehicles will be electric, 30% hybrid and 0.5% will have an internal combustion engine. The company also intends to increase its owned solar output to 8 megawatt peak (MWp) by 2030, equivalent to approximately 2% of its energy use.

CDG has set up an Autonomous Vehicle Centre of Excellence. Additionally, it is working with the National University of Singapore on a sustainable mobility testing lab and is investing venture capital in mobility start-ups. Through these ventures, the company has committed USD134 million to R&D.

The company disclosed insufficient emissions and activity data between 2015 and 2020 to be able to provide a useful assessment of its past emissions intensity trend. However, the company discloses that it has achieved a 17% reduction in emissions intensity compared to 2015. In 2021, the company had a 37% share of low-carbon vehicles in its fleet and a solar photovoltaic (PV) output of 4.15 MWp.

CDG’s targets and strategy indicate it is committed to the low-carbon transition. It has already taken concrete steps to realise its aims and is investing in the transport sector’s transition more widely. However, its lack of data disclosure means its performance cannot be assessed against its 1.5°C pathway.

The company publicly discloses a commitment to engaging in social dialogue with workers and unions. However, no relevant disclosure was found regarding the categories of stakeholders it engages with on a just transition. Nor was there any evidence to show the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue or engagement with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.

No public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting the ILO fundamental rights at work. However, it can strengthen its commitment to respecting human rights and its expectation that its business relationships respect the ILO fundamental rights at work. Furthermore, it can increase disclosure on its human rights due diligence process and engagement with affected stakeholders. While the company has a grievance mechanism available to workers, no relevant disclosure was found regarding a grievance mechanism available to external stakeholders.

The company commits to gender equality and women’s empowerment. Additionally, the company discloses that 38% of its board members are female. The company also discloses the proportion of its direct workforce covered by collective bargaining agreements and some indicators of workforce diversity, including the age and gender of its workforce by employee category. However, it can increase disclosure on these subjects, as well as on its living wage and working hours practices. Furthermore, the company can strengthen its commitment to worker health and safety.

While the company includes anti-bribery and anti-corruption clauses in its contracts with business relationships, no evidence within policy documents was found of the company prohibiting bribery and corruption in its own operations. Furthermore, the company can strengthen disclosure of its policies regarding personal data protection, responsible tax practices and responsible lobbying and political engagement.