By Shashwati Shankar, Project Manager & Content Advisor
Autonomy has partnered with Capgemini Invent to author this White Paper on Sustainable Corporate Mobility.
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According to the World Business Council for Sustainable Development (WBCSD), transport accounts for 24% of global emissions, with more than 50% of these emissions being linked to the movement of people. In fact, approximately 6% of global emissions come from people commuting to work. In order to reduce the carbon footprint of their employees, Companies need to take action in order to influence their mobility choices. Here is an overview of the corporate mobility initiatives currently underway in France, Belgium and the Netherlands.
What are countries doing to reduce employees’ corporate mobility emissions?
In 2019, France passed the Mobility Orientation Law which put into effect the Forfait Mobilité Durable (FMD), or a Company Mobility Plan. The FMD has been designed to support companies which want to empower their employees to commute via cleaner transportation modes, such as public transport, carpooling or shared bikes and scooters. According to the FMD Barometer, by the beginning of 2022, 38% of companies already offer the €400 per year allowance to employees and many others are preparing to follow suit.
In Belgium, the Mobility Budget was launched in February 2019 with the aim of encouraging employees to opt for a ‘greener’ car, or to give up car ownership altogether. Employees who do opt for a more sustainable mode of transport are incentivized by being paid out in cash. The savings could then be put towards alternative modes of transportation such as public transport and active modes, or be paid out in cash.
In the Netherlands, regulations are expected to be passed which would require all companies with more than 100 employees to report their employees’ business travel and commuting emissions (scope 3) starting January 2023. If a company’s emissions exceed the maximum standard set by the government, the company will be granted approximately 4 years to lower its carbon emissions. The ways of reducing emissions could include promoting the use of bicycles, public transport and electric vehicles.
While this White Paper with Capgemini Invent gives the reader deeper insight into the Netherlands and Belgium, it specifically highlights the use case of France and includes inputs from interviews with people in the French mobility ecosystem.
What can you learn from this paper?
- How companies have a strong opportunity to impact employees’ mobility choices: Studies suggest that commuting constitutes as much as 98% of an employee’s work-related emissions. Employers have a responsibility to help their employees in reducing their emissions and there are many recent examples of companies rolling out initiatives to promote sustainable commuting habits. Examples of such initiatives from companies such as IKEA are explored throughout the white paper.
- The origin and current state of corporate mobility regulations in France and other countries: Two and a half years after the Mobility Orientation Law came into force in France, 38% of private sector employers have responded, saying they have deployed a Company Mobility Plan (or FMD, Forfait de Mobilités Durables) within their organization. This is an increase of 12 points compared to 2021. Today, nearly 80% of employers are aware of this system, and 40% of organizations are considering deploying it. While this paper focuses on France as a use case, it also looks into other countries such as the Netherlands and Belgium.
- The obstacles companies are facing in developing real corporate mobility strategies: There are a number of barriers to implementing corporate mobility strategies. For instance, regulations do not directly help companies to develop a corporate mobility strategy. In the case of France, while the LOM offers new features like the FMD (Company Mobility Plan) and the Crédit Mobilité (Mobility Credit), both these features do not directly translate into a majority of companies developing a strategy for corporate mobility. There is a problem with the legislation not sufficiently incentivizing companies to take action quickly.
- Impactful solutions according to different companies’ constraints: To address more diverse commuting patterns and incentivize employees to use greener transportation modes, companies usually start by improving their infrastructure, by offering secured parking spots for bikes and installing electric charging stations. In addition to this, companies can also provide subsidized costs to employees to use public transportation. While the current legislative framework is slowly encouraging companies to act on corporate mobility, a solid corporate mobility strategy needs the right governance and mobility solutions developed at the local level, accounting for each site’s characteristics. Lastly, there is an increasing availability of different tools that are available to companies to ease their relationship with third-party providers and change the way they provide corporate mobility plans.
Interested in learning more? Download our White Paper here!