Element Releases 2022 Environmental, Social and Governance (ESG) Report
April 19, 2022
The second annual report details the Company’s focus on accelerating EV adoption, enhancing supply chain diversity, and continued progress toward embedding an ESG framework across the organization.
TORONTO, April 19, 2022 – 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
- 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.
- 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 one-page 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.
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.