Grab Announces Initiatives To Reduce Carbon Footprint And Releases First ESG Report

Grab has announced new steps to further its commitment to lowering carbon emissions and reducing its environmental footprint. Grab customers will soon be able to lessen their carbon impact when travelling with the app through an innovative carbon offset feature within the app. 

The new initiatives were unveiled in conjunction with the release of Grab’s first annual Environment, Social and Governance (ESG) report, which outlines the company’s commitment to create socioeconomic empowerment, safeguard the environment, and deliver strong financial performance.

Anthony Tan, Group Chief Executive Officer and Co-Founder of Grab said, “The health of our business is intrinsically linked to the welfare of our communities and the protection of our environment. In order for our business to grow and succeed in the long run, we must work towards building thriving communities where our partners have sustainable income opportunities, while protecting our environment for generations to come.”

“Our first ESG Report reflects our commitment to build a business with a double bottom line, while ensuring transparency and accountability to our stakeholders,” he added. 

Grab’s new carbon offset feature, to be launched in Indonesia, Malaysia and Thailand in July before rolling out to the rest of the region, will let consumers easily purchase carbon offsets at less than US$0.10 per ride. The amount will go towards reforestation and conservation projects managed by local non-governmental organisations.

Through partnership with EcoMatcher, a certified B Corporation, Grab will join effort with vetted foundations and NGOs to plant trees. Users will receive a dedicated tree when they have completed a designated number of carbon-neutral rides.

It also allows users to virtually travel to their trees, name their trees, view photos of their newly planted trees, and learn more about the farmers who planted their trees. Grab users can start plant a tree through EcoMatcher using their GrabRewards points from the end of June.

Whereas for Malaysia, the trees will be planted by the Tropical Rainforest Conservation & Research Centre (TRCRC) to restore tropical rainforests and address the critical rate of biodiversity loss in Malaysia.

“Over the years, we have taken steps to reduce our environmental footprint, such as investing over US$200 million to build up the number of electric vehicles and hybrids in our car rental fleet in Singapore, as well as saving close to 380 million sets of single-use plastic cutlery from being used in 2020.” 

Meanwhile, Cheryl Goh, Group Head of Marketing and Sustainability, Grab, said, “However, there is still a lot of work to be done to get us to a net-zero carbon future. Our new carbon offset feature is another important step in reducing our carbon footprint, while contributing towards environmental conservation projects that uplift local communities.” 

Additionally, Grab also has launched with Hyundai Motor Group for a new Electric Vehicle (EV) pilot programmes focusing on addressing current barriers around total cost of EV ownership, and making the ownership more affordable and accessible, while jointly developing a roadmap to accelerate EV adoption in Southeast Asia. 

The pilot programmes will evaluate new electric vehicle business models such as battery-as-a-service and car-as-a-service lease agreements, as well as EV financing solutions suited to Grab’s driver and delivery partners.

Both companies also will conduct an in-depth feasibility study on feasibility study on the gaps and barriers to wider EV ownership and adoption, as well as develop a joint roadmap to make EVs a more viable option for on-demand mobility and delivery services.

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