From heavy-duty emissions and NOx control regulations to clean fleet strategies and sustainability in trucking, the term “ESG“ is working its way into common conversation in the heavy-duty transportation sector.
But what does ESG mean, and how does it apply to the day-to-day of trucking?
Very broadly, ESG – which stands for Environmental, Social, and Governance goals – refers to frameworks that aim to quantify and identify the best possible pathways to minimize negative impacts and protect or improve human and ecological health and well-being. ESG strategies call for a wide variety of action steps, such as community philanthropy, supply chain transparency, and increasing diversity, equity and inclusion (DE&I).
In trucking and heavy-duty transportation, ESG carries important nuances. ClearFlame is committed to helping fleets advance their progress toward ESG goals immediately and cost-effectively. Here are some facts to know:
What is ESG in heavy-duty transportation and trucking?
In trucking, ESG usually refers to efforts to clean up truck emissions, improve air quality, and reduce soot. Even if trucking companies themselves do not have ESG strategies, their customers likely do – and may be prioritizing trucking business partners who can help them reduce emissions.
The pressure to act is heightening. A McKinsey & Company report highlighted how the large majority (90%) of Fortune 500 companies publish some form of ESG reports. In addition, the US Securities Exchange Commission (SEC) is considering new rules requiring more detailed disclosure of climate-related risks and greenhouse-gas emissions.
Perhaps most importantly, government requirements are escalating. Be aware of regulations like the California Heavy-Duty Low NOx rule, the Advanced Clean Truck rule, and national 2024 and 2027 federal emission reduction targets. ClearFlame Engine Technologies was founded because we respect and want to protect the power, durability and versatility of diesel engines but decouple them from fossil fuels that threaten the environment in a way that makes pragmatic business sense. Our technology helps fleets lower overall CO2 engine emissions by more than 40% while reducing the total cost of ownership.
Why is ESG and sustainability in trucking important?
ESG in trucking is good for the environment
Trucking is an essential service, but it accounts for approximately 25% of the country’s overall transportation emissions. Reducing transportation emissions at the source will make a tremendous positive impact.
ESG is good for business
Clear ESG initiatives could help attract capital and talent. According to a report from Nasdaq.com, investors and prospective employees are prioritizing companies with clearly defined, quantifiable, and long-term ESG strategies.
A recent study by McKinsey & Company found that global investment in sustainability now tops $30 trillion, up 68% since 2014. The study also concluded that companies dedicated to ESG do not experience losses in profit.
ESG can help trucking fleets save money
An independent study found that ClearFlame’s technology lowers your cost of ownership and allows you to recoup your initial investments within two years. For example, if a fleet had 20 trucks that drove 120,000 miles per year, switching to ClearFlame’s technology would save almost 1 million dollars on fuel savings alone.
Is ESG and sustainability in trucking a good investment for the future?
Some of the world’s largest fleet-using companies have become supporters and investors in ClearFlame because they see how our vision could sustain and empower heavy-duty engines. Fortune magazine recently highlighted how investors are taking note of ClearFlame, Fast Company awarded ClearFlame its “Next Big Thing in Tech” award, and our company was named among the “Most Promising Sustainability Startups in Transportation” by top venture capitalists (VCs), according to Business Insider. ClearFlame’s innovation also won notice as one of the Top 3 Trucking Trends to Watch in 2023 by Heavy Duty Trucking Magazine and in Business Insider. Learn more about investing in ClearFlame's engine decarbonization technology.
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