Enabling an Energy Efficient Transport System
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COMFORTDELGRO CORPORATION LIMITED ENABLING AN ENERGY EFFICIENT TRANSPORT SYSTEM The ComfortDelGro Group of Companies remains committed to environmental sustainability despite the challenges of 2020. We seek to minimise the impact of our operations on the environment by ensuring continuous improvement in environmental pe!ormance. PG 32 SUSTAINABILITY REPORT 2020 CLIMATE ACTION There are important lessons to learn from the COVID-19 crisis in how we should act and adapt in the age of climate crisis. Similar to how the pandemic forced business transformation, climate change will accelerate business models that can reduce emissions drastically and urgently. Our greenhouse gas (GHG) emissions reduction targets will drive the greening of our fleet, improvements in energy e"iciency and the use of renewables. Progress against targets: BY 2023 BY 2030 2020 PERFORMANCE Reduce GHG emissions • Reduce GHG • GHG emissions intensity by 20% from emissions intensity by intensity reduced by 2015 levels 50% from 2015 levels 8.1% from 2015 level 50% of all o!ce buildings • 100% of all o!ce • 44% of our o!ce in Singapore to be green buildings in Singapore buildings in Singapore building certified to be green building are Green Mark / Eco certified O!ce certified Increase solar PV output • Increase solar PV • Solar PV output stands to 4MWP output to 8 MWP at 1.85 MWP ENERGY EFFICIENCY WHY THIS ISSUE IS MATERIAL HOW WE MANAGE THIS ISSUE Despite the unprecedented fall in One of the key thrusts of our strategy to transport and movement in 2020, it improve e!ciency and reduce emissions remains to be seen how this will impact is to green our fleet. Since the early days, transport behaviour going forward and ComfortDelGro has been among the hence the emissions arising from it. As of first adopters of policies and innovation 2019, the transport sector is the fastest- in deploying suitable vehicles for service growing contributor to climate emissions, to improve energy e!ciency. We have accounting for nearly one-third of the started phasing out our diesel fleet world’s energy demand and more than globally and converted our fleets to hybrid 20% of its carbon emissions globally. or electric vehicles (EVs). Operating in seven countries with fleets For our existing diesel fleet, we ensure of buses, taxis and rail, we recognise our that they meet the latest standards (Euro influence and ability to make a di"erence 5 or higher), which produces lower in transport emissions. By maximising levels of harmful exhaust emissions such fuel e!ciency and investing in innovative as nitrogen oxide, carbon monoxide, solutions, ComfortDelGro is able to hydrocarbons and particulate matter. reduce GHG emissions, provide cleaner By reducing these pollutants, we can transportation and therefore mitigate also improve fuel economy and reduce climate change. The e!ciency of our fleet carbon emissions. allows us to move people longer, further, and faster with less resources. We also work hand in hand with our vehicle manufacturers and fuel suppliers, providing them with valuable feedback about the engineering performance of prototype vehicles and fuel technologies. PG 33 COMFORTDELGRO CORPORATION LIMITED ENABLING AN ENERGY EFFICIENT TRANSPORT SYSTEM ComfortDelGro commits to a long-term had to be put on hold. Notwithstanding, approach in transforming and innovating we remain optimistic and confident that our operations for a more sustainable we are able to pick up where we left o" in future. This year, due to the restrictions addressing climate change, and joining the brought about by the pandemic, some world to build back better. of our plans to improve energy e!ciency TOWARDS A GREENER FLEET Greening our Fleet Across the World CHINA • Over 39.5% of the 10,345 strong fleet in China is environmentally -friendly compressed natural gas (CNG)/electric taxis SINGAPORE ComfortDelGro Taxi • 57.1% of over 9,400 taxis are UNITED KINGDOM electric and hybrid taxis • Metroline operates 1,502 buses • 54.2% of the Metroline’s bus SBS Transit fleet is hybrid (724) and electric • SBS Transit operates 3,531 buses (90) buses • 25 hybrids and 20 electric buses • 87% of our Metroline fleet is are currently being deployed Euro 5 and 6 compliant • 79.5% of the bus fleet is Euro 5-compliant or better AUSTRALIA • CDC Australia operates 1,186 taxis • 66.8% of CDC Australia’s taxi fleet is hybrid/electric taxis (792) The transport industry is fast trending taxi fleet in Singapore is now hybrid or towards cleaner, less polluting vehicles. In electric. We aim to continue increasing the Singapore, we expect to phase out diesel share of hybrid and electric vehicles in our in our taxi operations by 2023. With 5,389 fleet progress towards our goal. hybrid vehicles and four EVs, 57.1% of our PG 34 SUSTAINABILITY REPORT 2020 GROUP PERFORMANCE SUMMARY Proportion of hybrid taxis/buses across geographies SINGAPORE UK & IRELAND AUSTRALIA Hybrid Hybrid/ Hybrid/ Hybrid Hybrid/ Hybrid/ Hybrid Hybrid/ Hybrid/ taxis electric electric buses electric electric taxis electric electric taxis Taxis buses buses taxis taxis 66.8% 57.1% 55.0% 52.0% 46.9% 43.9% 45.0% 20.0% 16.5% DEC 2018 DEC AT AS 2019 DEC AT AS 2020 DEC AT AS 2018 DEC AT AS 2019 DEC AT AS 2020 DEC AT AS 2018 DEC AT AS 2019 DEC AT AS 2020 DEC AT AS We have also been working to increase the charged. It is also equipped with active number of green buses on the roads. SBS safety driving assistance technologies such Transit, our listed subsidiary and a major as Blind Spot Warning and Rear Cross Tra!c public bus operator in Singapore, has 3,531 Collision Warning, as well as a regenerative buses in its fleet as of end-2020. SBS Transit, braking system. We are encouraged by the together with the Land Transport Authority outcome of the trials and will progressively (LTA), newly introduced 20 electric buses on refresh our fleet with EV taxis. trial in 2020. As at the end-2020, SBS Transit operates 25 Volvo diesel hybrid buses In Australia, we built on our successes in (DHBs) which were previously procured by 2019 by introducing more hybrid buses in the Land Transport Authority (LTA). These Melbourne. In 2018, the Group’s Australian DHBs have low emission levels and have subsidiary secured an A$25 million (S$23.1 also reduced operations and maintenance million) green loan from OCBC Bank to costs. As at end-2020, 80% of the its fleet finance its hybrid bus fleet in Victoria. The are Euro 5-compliant or better. loan was structured according to the green loan principles issued in 2018 by the Loan We continue to support EVs with our Market Association and Asia Pacific Loan Direct Current (DC) fast charging station, Market Association. We have since taken operated by ComfortDelGro Engineering. delivery of 40 out of the 50 planned hybrid Since 2019, ComfortDelGro Taxi has been buses in 2020. We expect the last batch of expanding trials for EV taxis with Hyundai buses to be delivered in mid-2022. long-range Kona taxis. To support this, the DC fast charging station in Braddell was In the United Kingdom (UK), Metroline made available 24 hours a day to cabbies is keeping in line with its philosophy to trialling the new taxis. The Hyundai Kona maintain a young and environmentally electric taxi has twice the power of the friendly fleet. Hybrid and electric buses battery power of the fully-electric Hyundai make up 54% of Metroline’s 1,502 fleet of Ioniq, which is part of the Group’s ongoing buses. In 2020, Metroline introduced an trial. With DC charging, the Hyundai Kona additional three Optare Metrodecker electric electric taxi charges up in just over an hour buses. In ensuring that diesel buses in the and can travel up to 350km when fully fleet are as e!cient as possible, Metroline PG 35 COMFORTDELGRO CORPORATION LIMITED ENABLING AN ENERGY EFFICIENT TRANSPORT SYSTEM sold over 160 older buses which are either Changes in driving behaviour can also Euro 3 or Euro 5 emissions. As part of our improve fuel e!ciency, which not only e"orts to ensure that our entire Metroline reduces pollution but is also cost saving. bus fleet is Euro 6 emissions standard We regularly train our drivers to adopt compliant, a further 71 vehicles were driving patterns that can reduce the converted to be Euro 6-compliant in 2020. average fuel consumption by as much With that, 87% of our Metroline fleet is Euro as 15% a year, which in turn cuts carbon 5 and 6 complaint. dioxide emissions by more than half a tonne. These include proper acceleration EFFICIENCY ACROSS OUR OPERATIONS and braking techniques, as well as other less Beyond increasing the share of greener pollutive driving habits such as switching vehicles in our fleet, we also constantly find the engine o" when stationary, filling improved ways to manage our energy in up to three-quarter of the fuel tank and other aspects of our operations. As the bulk decluttering the vehicle to lighten the load. of our electricity consumption comes from our train operations, depots and workshops, Since 2019, we expanded our driver we focussed on implementing various training from the UK and Australia to also improvements and technologies in cover Singapore. As such, SBS Transit’s bus these areas. captains have now received annual training on how to drive e!ciently. Energy-e!cient designs in our stations include: ASSESSING LOW!CARBON TRANSITION INITIATIVE "ACT# • energy-saving escalators that reduce In 2020, the Group Sustainability O!ce speed when they are not in use participated in the Assessing Low-Carbon • energy-e!cient LEDs and fluorescent Transition (ACT) for Transportation study lighting initiated by the Carbon Disclosure Project • carbon dioxide sensors in AC system to (CDP), a leading global disclosure provider regulate outdoor air supply to reduce of ESG ratings to investors.