Selecting Sustainable Corporate Ground Transportation Partners

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1 Selecting Sustainable Corporate Ground Transportation Partners A Whitepaper by Limousine Environmental Action Partners (LEAP) LEAP provides sustainable strategies and marketing programs for the future of corporate ground transportation

2 Why sustainable corporate ground transportation matters Corporate sustainability has experienced significant growth in recent years, and is expected to continue expanding despite recessionary realities. It is becoming standard practice for companies to create a business sustainability plan and report both direct and indirect emissions. Today, about 75 percent of the largest corporations have a sustainability plan and the trend is accelerating. During 2009, federal laws and regulations have been taking shape impacting cap and trade, greenhouse gas emissions, and vehicle fuel efficiency. Even before this became a focal point in Washington, corporations and public/non-profit organizations began mandating GHG emissions reporting within their operations and from all supply chain partners. Business travel is still undergoing this transition, as green sustainability programs are being adopted throughout the supply chain by travel managers, meeting professionals, destinations and event managers, airlines, hotels, and corporate ground transportation companies. While the media has largely focused on emissions generated by the world s airlines, it might be surprising to many that passenger ground transportation produces more CO2 emissions than any other supplier of transportation and travel services, which means creating comprehensive ground transportation sustainability programs have the potential to make a real difference in the world. According to the Energy Information Administration, transportation related energy use accounts for 70% of the 21 million barrels per day of liquid fuels consumed in the US. By 2030, the sector will produce about one third of projected total US energy-related CO2 emissions. Passenger vehicles account for approximately 60% of transportation sector fuel consumption and CO2 emissions; the remainder comes primarily from freight trucks and airplanes, with appreciable contributions from other sources such as trains and ships.

3 Selecting a truly sustainable corporate ground transportation partner requires much more than asking if they have flex fuel or hybrid sedans in their fleet. It is imperative for a leading, environmentally responsible corporate ground transportation supplier to have more than a haphazard approach to be credible, sustainability must be core to the company s long term strategy and not just window-dressing, or greenwashing. This whitepaper report presents the key points to consider when selecting transportation partners to ensure that they have made a meaningful commitment to sustainability that will support their corporate clients sustainability initiatives and withstand the scrutiny of corporate sustainability officers and travel decision makers alike. Corporate ground transportation members of Limousine Environmental Action Partners (LEAP) have committed to complying with the organization s goal of reducing total emissions by 32% by LEAP companies also are members of the EPA Climate Leaders program, where each company sets an environmental emission baseline and publicly reports results. To meet these objectives, corporate ground transportation suppliers must create complete emission reduction and tracking programs that go beyond fleet vehicles and account for every aspect of business operations. This whitepaper offers tips on gaining a big picture look at transportation partners, and if their commitment to sustainability meets realistic standards.

4 Selecting the right sustainable corporate ground transportation partners 1. Commitment to business travel sustainability Sustainability encompasses all operational aspects of corporate ground transportation companies, and the same is true for every segment of the business travel supply chain. This means that sustainable transportation operators have benchmarked their company s carbon footprint, and developed and documented their environmental policies and goals. Regardless of the size or geographic location of the environmentally sustainable ground transportation company, they should all have some basic practices in place: Investigating, testing and utilizing the best fleet combination possible for control of emissions Energy efficiency for all office and garage facility lighting, electronics, and air temperature Using less paper and recycling what gets used Reclamation and recycling programs in place for vehicle maintenance, facility management, and office practices Making sure that all suppliers enact similar green sustainability programs and work with clients to fulfill their policies.

5 In fact, client sustainability practices are of top concern for leading corporate ground transportation companies. In a recent survey of transportation operators conducted by LEAP, it was discovered that clients are more important influencers of sustainability decisions and practices than are local communities and the general public, the federal government, suppliers, environmental organizations, and other groups Most Important Influencers for Corporate Ground Transportation Companies Influence FactorS importance Your clients 85% Local communities & general public 67% Federal government 60% Your suppliers 28% Environmental organizations 26% Media 20% Other 11% Shareholders 4% The first step in any company s sustainability program is to gain an independent and thorough understanding of its current carbon and green-house gas (GHG) emissions, and all aspects of operations that play an important role in sustainability. It s important to gain understanding of the organizations that are playing a leading role: Carbon Disclosure Project: CDP is an independent not-for-profit organization which holds the largest database of corporate climate change information in the world. The data is obtained from responses to CDP s annual Information requests, issued on behalf of institutional investors, purchasing organizations, and government agencies. Since its formation in 2000, CDP has played a leading role in creating carbon disclosure methodology and processes, providing primary climate change data to the global market place. ISO 14001: International Organization for Standardization provides requirements for environmental management systems for organizations wishing to operate in an environmentally sustainable manner. ISO does not specify levels of environmental performance though it does have many other standards dealing with specific environmental issues. The intention of ISO is to provide a framework for a holistic, strategic approach to the organization s environmental policy, plans, and actions. EPA Climate Leaders Program: Climate Leaders is an EPA industry-government partnership that works with companies to develop comprehensive climate change strategies. Partner companies commit to reducing their impact on the global environment by completing a corporate-wide inventory of their greenhouse gas emissions based on a quality management system, setting aggressive reduction goals, and annually reporting their progress to EPA. Through program participation, companies create a credible record of their accomplishments and receive EPA recognition as corporate environmental leaders.

6 To comply with sustainability standards, LEAP has created two client programs: eco2footprint and eco2certification: eco2footprint: LEAP carbon footprint appraisals provide a comprehensive assessment, identifying emissions and calculating the impact that the transportation company is directly responsible for, or can realistically control within the supply chain. eco2certification: Concerned clients and investors have come to expect reassurances that greener services are in fact greener than competing offerings. LEAP, in partnership with Sustainable Travel International, the leading non-profit organization addressing sustainable development within the travel and tourism industry, has launched the Sustainable Chauffeured Transportation Eco-Certification Standard. This new standard will distinguish real environmentally sustainable transportation companies from others and provides businesses with an independently verified way to demonstrate the responsibility of service to customers and affiliates. 2. Drivers play an important role In chauffeured executive ground transportation, drivers are even more important than the vehicle for maintaining safety, efficiency, and improving transportation sustainability results. Here are some practices to consider: Eco-driving: How drivers handle their vehicles has a huge impact on fuel efficiency and GHG emissions. LEAP s eco-driving program helps operators increase fuel efficiency an average of 18%. This program trains drivers to change practices in acceleration and braking, speed levels, cruise control use, starting and stopping, idling, and increased safety through enhanced hazard protection skills. Idling: Improving vehicle idle time has a huge impact on fuel efficiency and emissions reduction. Very typically, drivers leave cars running in between trips to heat/cool the interior or use electronics systems. Controlling idle time makes a big difference. Certified programs: Transportation operators that create or outsource certification test programs for drivers and their trainers can make a difference. LEAP member MTC Limousine & Corporate Coach adopted its own program and shared the information with other LEAP companies; its online training and certification program has reduced its fuel spend by approximately 20%. Telematics: Transportation companies have made significant changes in recent years using telematics, which sends, receives, and stores information via telecommunication devices between vehicles, drivers, and dispatchers. Telematics have taken shape mostly through GPS technology integrated with computers and mobile communications in auto navigation systems, increasing passenger safety, route efficiency, fuel efficiency, and emissions reduction.

7 3. Exploring fleet vehicle options Greening your fleet involves much more than purchasing a handful of hybrids and alternative-fuel vehicles (AFVs). This is part of the sustainability game plan, but the ground transportation companies need to look at the big picture in their markets and create comprehensive green fleet programs: Group transportation is increasingly important to travel managers and meeting professionals having access to motor coaches, minibuses, shuttles, vans, and SUVs is now more important than ever. For sustainability, it s a simple equation: 10 people in one vehicle is much better for fuel efficiency and emissions reduction than 10 people in 10 vehicles. What s more important than the percentage of hybrids and AFVs in a fleet is the combination of vehicles how they apply to the needs of clients and the fueling infrastructure and regulations in that market. For LEAP member El Paseo Limousine in Santa Clara, CA, compliance with recently enacted California Low Carbon Fuel Standards was a very positive development for the company. El Paseo already had a number of propane and CNG vehicles on the road. El Paseo.is now operating 10 propane-powered buses for Santa Clara Valley Transportation Authority s Altamont Commuter Express (ACE) shuttle program. Along with regulations, fueling station availability is another influential factor. Creation of technology and drive-train systems also impacts fleet decisions and much of it is still years in the making. For now, transportation companies do have fueling options to take seriously. In the recent survey of transportation operators conducted by LEAP, a question was asked about the fuel types being used now: Fuel Types Using in Hybrids and Alternative Fuel Vehicles Fleet Fuel Types % using Gas/electric hybrid 47% Ethanol 85% (E85) 33% Biodiesel blend 17% Compressed natural gas 13% Ethanol 100% 10% Biodiesel 100% 10% Other 7% Gas/electric hybrids are the largest factor nearly half of the surveyed operators are using them. Flex fuel vehicles (E85s) are being used by a third, which is not surprising when factoring how many of these products are now available from manufacturers. Biodiesel blend and CNG are also important, and should be growing in fleet usage.

8 4. Fleet maintenance process Taking good care of vehicles is part of the process of making them last longer, run safely, increasing fuel efficiency and reducing emissions, and properly disposing of waste: Tire pressure: when drivers and maintenance staff regularly check to make sure that tire pressure is following the manufacturer s guidelines, it makes a real difference in improving mileage per trip. There are quite a few green aftermarket products available today, but it s critical to find out if they really work. LEAP has created alliances with vendors making a difference. For example, microgreen oil filters create savings on oil maintenance and increased gas mileage from a cleaner engine. LEAP members also have discounts on purchasing the BLADE tailpipe filter, which reduces CO2 emissions by as much as 12% in gasoline - and diesel-fueled vehicles, captures more toxic particulate material, and increases gas mileage up to 16%. LEAP member Exclusive Sedan Service offers eco-luxury transportation services that use BLADE on its fleet of Town Cars, limousines, and SUVs, to help reduce each vehicle s carbon footprint by more than 15% while helping improve air quality in Los Angeles. Exclusive Sedan says the percentage of riders who ask for an eco-option has been increasing over the past few years. Motor oil disposal: It used to be quite common to dump motor oil in the trash or let it run down drains, and fortunately, that s changing. Recycling keeps used motor oil from rivers, lakes, and oceans and out of our ground water supplies which can affect drinking water. Efficient, environmentally committed fleet operations have clean motor oil systems in place. Red Oak Transportation of White Plains, N.Y., has utilized the LEAP strategic alliance with microgreen engine oil filter for its fleet of 48 limousines. By extending the life of engine oil, the patented filter allows Red Oak s vehicles to operate up to 30,000 miles without an oil change. Using the microgreen oil filter, Red Oak Transportation decreases its overall maintenance costs while helping protect the environment by using 3,696 less quarts of oil and 288 less oil filters per year.

9 5. Recycling and reclamation Recycling and reclamation programs are of high importance to government agencies, environmental groups, local communities, and corporate sustainability officers. It s not just motor oil. In corporate ground transportation operations, there are a few practices that can be implemented that make a difference. For example, business travel passengers are usually offered bottled water by corporate ground transportation companies. Recycling water bottles is important it s staggering how many plastic water bottles are distributed and used every day in this country. When washing fleet vehicles, using biodegradable cleaners is important. In the washing stations, the water reclamation process is of growing importance. Just like disposing of motor oil, having systems in place that take gray water and clean it before disposal makes a difference. LEAP has developed 100% biodegradable cleaning products. Greening up offices is important. Paper usage is decreasing as more content is created and transmitted online, but companies are making a difference in the environment by reducing paper consumption and getting the word out to staff on using recycling bins. Increasing office energy efficiency is also of high importance to organizations these days, and this means switching over to Energy Star qualified compact fluorescent light bulbs, and transitioning over to energy efficient air temperature systems.

10 The benefits of creating sustainable corporate ground transportation partnerships While exploring your options when selecting sustainable corporate ground transportation partners, it s important to consider the benefits of building these relationships. For ground transportation companies consulting with LEAP on creating sustainability, the message becomes clear: It s not just about greening your own operations. It s about helping corporate clients manage and reduce their own emissions. Corporate ground transportation purchasing decision makers are offered a series of questions by LEAP to help them accurately evaluate their suppliers sustainability practices. Among the key questions they need to answer are: Can your company provide us with your 2009 environmental/ sustainability statement? Does your company provide carbon offset programs for its passengers and clients to offset the emissions that you haven t been able to reduce? Will your company provide detailed monthly trip reports of the carbon ton emission equivalent generated by our travelers? Does your company regularly purchase reusable and durable products? Does your company offer ride share booking services to minimize the number of vehicles required? Does your company offer SUV, Van, Mini-Coach or Motor Coaches to minimize the number of vehicles required to transport larger groups? Are your chauffeurs tested and/or certified as environmentally responsible drivers?

11 Corporate ground transportation companies that are successfully integrating sustainable practices bring certain advantages to the table: What gets measured well, gets managed well: To understand the impact of your indirect GHG emissions, integrating data from your supply chain partners is an important piece of the puzzle. Receiving detailed monthly trip detail and summary trend reports from partners will move your efforts forward. For LEAP executive ground transportation companies, the eco2mission booking and reporting platform offers corporate clients a management tool that ties their emissions strategy into the ride booking process. For LEAP companies, eco2mission connects with comprehensive carbon assessments, and the eco2certification standard that provides corporate clients with an independently verified way to demonstrate the responsibility of service to customers. More efficient service providers: Being green means providing better service more efficiently. Getting picked up and dropped off on time, having a safe and comfortable ride experience, and being driven by a skilled, professional driver makes all the difference in the world. Sustainable transportation companies must increase efficiency while reducing GHG emissions ultimately delivering better service at greater value. Better off financially: Corporate ground transportation companies that can build and maintain successful sustainability in this tough economy are more stable and reliable than those who don t. They also don t charge you a fee for environmental sustainability more efficient operations and better mpg s mean lower costs, not higher charges to the buyer. Advantages of reputation: Transportation providers that have created effective sustainability programs have increased respect and positive reputations with their clientele, civic communities, industry, and regulatory agencies. Building this reputation has also helped them expand their affiliate networks globally, providing travel managers and meeting professionals with a wide array of transportation options. For more information on LEAP, visit our websites at and

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