Electric Scooters Industry Emphasizes Sustainable Commitments to Foster ESG Goals - Astra ESG Solutions
SAN FRANCISCO, April 20, 2023 /PRNewswire/ -- Electric scooters have witnessed a notable journey from risky tech novelty to a green travel solution. The development of more sustainable, safe, affordable, convenient and efficient urban transportation solutions will see consumers transitioning to e-scooters. Electric mobility has witnessed profound traction to encourage environmentally friendly companies to invest in ESG initiatives. An increased commitment to a cleaner planet, sound corporate governance, safety & resilience and social impact will steer EV adoption.
Consumers, think tanks, independent researchers and media have furthered their focus on lightweight electric bikes that can propel carbon neutrality. With air quality, noise and pollution emerging as global concerns, stakeholders could vouch for electric scooters. There are tailwinds galore: accessibility to mobility, convenience and lower environmental impact if decarbonized or renewable energy is used.
Amidst the sustainable aspects of EVs, e-scooter manufacturers have received flak for greenhouse gas emissions during the manufacturing process, moving and managing them. According to a 2019 study from researchers at North Carolina University, e-scooters emit more GHG emissions per mile than traveling by bus, moped, bicycle or on foot. As such, increasing e-scooters' lifespan could be the way forward. Furthermore, e-bikes can be an invaluable addition to commuters to enhance a shared model, and for manufacturers to foster recyclability, improve quality of life and bolster safety.
Environmental Perspective
Lately, battery-swapping technology has gained ground to refuel e-scooters and contribute to a sustainable environment. Industry leaders assert that using swappable batteries could help minimize emissions. To illustrate, in February 2023, Gogoro Inc. launched its Impact Report illustrating how battery swapping has become paramount for sustainable transportation. The swapping system can integrate renewable power into electricity grids with demand response and virtual power programs. It has introduced Swap & Go, which offers up to 67% lower GHG emission per passenger kilometer. Besides, in 2022, the Taiwanese company started purchasing renewable energy to further minimize the amount of scope 2 emissions caused by retail operations, manufacturing and battery swapping services. Concrete plans to foster renewable energy, quality maintenance & repairs can underpin sustainable strategies.
Social Perspective
Stakeholders have prioritized e-bikes to offset noise pollution, efficiently use space & preserve public space, safety and foster diversity. According to the European Environment Agency (EEA), over 100 million people are exposed to harmful levels in the EEA-33 member countries, with road traffic becoming infamous as the most prevalent source of environmental noise. Moreover, noise pollution is associated with increased depression, stress and impaired learning abilities. Leaders are expected to promote silent electric mobility to negate noise pollution. Predominantly, diversity has become pivotal to propelling the social profile. According to the VOI ESG Sustainability Statement 2019-2020, 50 nationalities represent its 500 employees from diverse profiles and skill sets. The mobility company has also introduced incentivized parking zones to foster responsible parking. These trends indicate the global electric scooters industry is poised to gain ground as companies strive to unlock the social benefits of EVs.
Governance Perspective
Unlocking the compelling impact of e-scooters will need transparency, good corporate behavior, ethics & compliance, transparency and board diversity. At a time when sustainable development has become a benchmark to measure a company's value and success, industry players have ramped up efforts to introduce ESG policies. For instance, in October 2021, Yadea formed an ESG Committee to foster green transformation and modern governance. It has also exhibited concerted efforts toward the disclosure of ESG policies. The company is counting on regular reporting to update the public and investors on green initiatives. The Shanghai-based company is well-positioned to foster diversity and maintain a high standard of corporate governance. Yadea has eight directors, including four independent non-executive directors and one non-executive director, according to its Annual Report 2021.
Investors, entrepreneurs and other stakeholders expect bullish policies, consumer acceptance, technology advancements in battery technology, increased lifespan of scooters, renewable energy and improvement in the charging infrastructure to fuel the adoption of two- and three-wheel EVs. In doing so, leading players will bolster their ESG goals and focus on micromobility. To illustrate, Halfords suggests it collected and recycled 4,562kg of used domestic batteries in the U.K. stores in FY 2020. With the recycling efforts becoming pronounced, the marketplace is slated to witness investment galore. The electric scooters market is expected to witness a robust CAGR of 7.8% from 2022 to 2030.
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Astra is the Environmental, Social, and Governance (ESG) arm of Grand View Research Inc. - a global market research publishing & management consulting firm.
Astra offers comprehensive ESG thematic assessment & scores across diverse impact & socially responsible investment topics, including both public and private companies along with intuitive dashboards. Our ESG solutions are powered by robust fundamental & alternative information. Astra specializes in consulting services that equip corporates and the investment community with the in-depth ESG research and actionable insight they need to support their bottom lines and their values. We have supported our clients across diverse ESG consulting projects & advisory services, including climate strategies & assessment, ESG benchmarking, stakeholder engagement programs, active ownership, developing ESG investment strategies, ESG data services, build corporate sustainability reports. Astra team includes a pool of industry experts and ESG enthusiasts who possess extensive end-end ESG research and consulting experience at a global level.
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