Element Fleet Management Releases 2022 Environmental, Social and Governance (ESG) Report
19 April 2022 - 2:00PM
Element Fleet Management Corp. (TSX: EFN) (“Element”), the largest
pure-play automotive fleet manager in the world, today announced
the publication of its second annual ESG report, titled “Delivering
Real Change”. The report details progress on the Company’s ESG
strategy, goals and commitments first developed in 2020 and
outlined in its inaugural report last year, while mapping out goals
for 2022 and beyond.
As a provider of world-class fleet management services,
Element’s purpose is to ensure that its clients’ vehicles and their
drivers are safer, smarter and more productive. Understanding the
meaningful role that fleet management plays in creating a cleaner,
safer, more equitable and inclusive future, the Company created its
ESG Scorecard to hold itself publicly accountable. The 2022 ESG
Scorecard is a summary of the goals and metrics that Element has
established based on four key pillars: Sustainability; Diversity,
Equity and Inclusion; Safety and Satisfaction; and Governance.
“The business of fleet management positions Element at the heart
of decarbonization — one of the most important global ESG
priorities,” said Jay Forbes, President and CEO of Element. “The
work undertaken in 2021 to develop Arc by Element, an end-to-end
offering to guide our clients through the ICE-to-EV transition, is
a tremendous milestone in our core sustainability commitment to
reduce our greenhouse gas emissions and enable our clients to do
the same.”
“ESG is transformative work for Element and the fleet industry,”
said Jacqui McGillivray, Executive Vice President and Chief People
and Social Impact Officer at Element. “Since developing our ESG
strategy just two years ago, we’ve engaged our people and clients
in new ways as we learn and grow together on the journey to
electrification, the implementation of new solutions to drive a
culture of safety, broadening diversity and inclusion to include
equity, and augmenting our governance excellence.”
Key highlights of the 2022 ESG Report
Sustainability
- Petroleum consumption: Element
surpassed a cumulative goal of 127B grams of carbon dioxide (CO2)
saved (since 2017), with actual results exceeding its year-end 2021
target by 3B grams.
- Electrification of fleets:
- The creation of Arc by Element – the
company’s comprehensive, integrated end-to-end EV offering designed
to help clients navigate and simplify the complex transition from
ICE vehicles to EVs. The Company is actively working with dozens of
clients in pilot and pre-pilot stages to build EV transition plans.
The electrification of Element’s internal fleet outperformed
globally over the previous year, despite challenges presented by
the pandemic and the associated OEM production delays.
- EV originations continued an upward
trend, outperforming at year-end 2021 with 6,733 vehicles
globally.
Diversity, Equity and Inclusion
- Supply Chain Diversity: In 2021,
$1.5 billion USD was spent with more than 4,700 diverse suppliers
across the U.S., which included approximately $200 million USD with
identified small businesses and $700 million USD with women-owned
businesses. Despite challenges related to the pandemic, and vehicle
acquisition, Element is proud to have achieved 80% of its goal.
- In addition, Element created a new
functionality in its Xcelerate for Drivers app to help clients
support diverse maintenance suppliers.
Satisfaction and Safety
- Element surpassed its ambitious
target with an average 3.8 preventable accidents per million
kilometers driven in 2021, improving client and driver safety
through our accident management program offering.
Governance
- The Company received recognition for
its governance excellence including a first place ranking in the
Globe and Mail’s annual Board Games report on corporate governance
in Canada.
- Element moved up to silver in its
EcoVadis sustainability ranking. This result places Element among
the 85th percentile of companies assessed by EcoVadis.
To view the 2022 ESG report and related summary, please visit
https://www.elementfleet.com/about-us/esg
To learn more about Arc by Element and fleet electrification,
please visit https://www.elementfleet.com/arc
About Element Fleet Management
Element Fleet Management (TSX: EFN) is the largest pure-play
automotive fleet manager in the world, providing the full range of
fleet services and solutions to a growing base of loyal,
world-class clients – corporates, governments and not-for-profits –
across North America, Australia and New Zealand. Element enjoys
proven resilient cash flow, a significant proportion of which is
returned to shareholders in the form of dividends and share
buybacks; a scalable operating platform that magnifies revenue
growth into earnings growth; and an evolving capital-lighter
business model that enhances return on equity. Element’s services
and solutions address every aspect of clients’ fleet requirements,
from vehicle acquisition, maintenance, accidents, and remarketing
to integrating EVs and managing the complexity of gradual fleet
electrification. Clients benefit from Element’s expertise as the
largest fleet solutions provider in its markets, offering unmatched
economies of scale and insight used to reduce fleet operating costs
and improve productivity and performance. For more information,
visit www.elementfleet.com.
Forward-Looking Statements This press
release includes forward-looking statements regarding Element and
its business. Such statements are based on the current expectations
and views of future events of Element’s management. In some cases
the forward-looking statements can be identified by words or
phrases such as “may”, “will”, “expect”, “plan”, “anticipate”,
“intend”, “potential”, “estimate”, “believe” or the negative of
these terms, or other similar expressions intended to identify
forward-looking statements, including, among others, statements
regarding Element’s EV strategy and capabilities; global EV
adoption rates; enhancements to clients’ service experience and
service levels; enhancement of financial performance; improvements
to client retention trends; reduction of operating expenses;
increases in efficiency; Element's dividend policy and the payment
of future dividends; creation of value for all stakeholders;
expectations regarding syndication; growth prospects and expected
revenue growth; level of workforce engagement; improvements to
magnitude and quality of earnings; executive hiring and retention;
focus and discipline in investing; balance sheet management and
plans to reduce leverage ratios; anticipated benefits of the
balanced scorecard initiative; Element’s proposed share purchases,
including the number of common shares to be repurchased, the timing
thereof and TSX acceptance of the NCIB and any renewal thereof; and
expectations regarding financial performance. No forward-looking
statement can be guaranteed. Forward-looking statements and
information by their nature are based on assumptions and involve
known and unknown risks, uncertainties and other factors which may
cause Element's actual results, performance or achievements, or
industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statement or information. Accordingly, readers
should not place undue reliance on any forward-looking statements
or information. Such risks and uncertainties include those
regarding the ongoing COVID-19 pandemic, risks regarding the fleet
management and finance industries, economic factors and many other
factors beyond the control of Element. A discussion of the material
risks and assumptions associated with this outlook can be found in
Element's annual MD&A, and Annual Information Form for the year
ended December 31, 2020, each of which has been filed on SEDAR and
can be accessed at www.sedar.com. Except as required by applicable
securities laws, forward-looking statements speak only as of the
date on which they are made and Element undertakes no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events, or otherwise.
Contacts:
Michael Barrett
Vice President, Investor Relations
(416) 646-5698
mbarrett@elementcorp.com
Natasha Boeck
Senior Manager, Media Relations
(289) 374-1739
nboeck@elementcorp.com
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