Mobility management as an opportunity for businesses
Commuting and business trips have a considerable impact on the climate. Corporate mobility management is an effective, tried-and-tested tool that allows companies to assume social responsibility and become more attractive when competing for skilled workers.
VCÖ-Factsheet "Mobility management as an opportunity for businesses" as PDF
At 26 percent, commuting is the most frequent reason for travel on workdays. Two thirds of the commutes are made by car, which is significantly higher than the overall average figure of 47 percent. Although employees typically commute to work on a very regular basis and often with a similar destination, the share of carpooling is below average at five percent. When it comes to business trips, as many as three quarters are made by car.1 Commutes and business trips made by car account for more than half of the car traffic for households in Austria on workdays. This results in almost four million tonnes of CO2 emissions annually.2,3
Commuting: an opportunity for transformation
Commuting routines strongly influence our mobility behaviour outside of work. Since many employees commute each day at the same time in similar directions, shared or public mobility solutions would be sustainable travel options. On top of that, 57 percent of the commutes in Austria are shorter than 10 kilometres, but the share of those cycling to work is only seven percent.1 Therefore, commutes are a great opportunity to drive the transition to sustainable mobility. Businesses are central actors that can quickly implement effective measures through mobility management.2,3
Various approaches and fields of action
Corporate mobility management covers all activities of a business to design corporate mobility in an efficient, environmentally and socially sustainable manner: transport of goods, fleets, customer mobility as well as commuting and business trips of employees. While most companies have markedly improved logistics in terms of efficiency, they are slow to focus on mobility management. Reasons for addressing
this issue include the competition for skilled workers, rising costs for fleets and car parking spaces, as well as the importance of sustainability. The relevance of mobility management will also increase as a result of the EU’s Corporate Sustainability Reporting Directive (CSRD) to be implemented by large companies from 2024.4
Various commuting options are effective
The Vorarlberg-based company Blum with around 7,000 employees has implemented corporate mobility management since October 2021. The programme includes job bikes, job and trial tickets, conversion to an e-car fleet, an EcoPoints system and awareness-raising measures. Employees who do not need a parking space will get their job bikes and job tickets subsidised. As at June 2023, as many as 2,600 job bikes and 1,000 annual public transport passes were granted. The EcoPoints collected can be exchanged for vouchers or donated to social projects such as the Children‘s Cancer Aid. Prior to the implementation of the project, 62 percent of the employees travelled to work by car. A year and a half later, the figure is still 55 per cent. However, on peak days, already more than half of the workforce commutes to work by bus, train, bike, on foot or in car pools.22
Motto “Exercise during your commute”
The EU Interreg project “Amigo” was carried out from 2019 to 2022 and aimed to increase the proportion of active commutes in nine pilot companies in Vorarlberg, Liechtenstein and the canton of St. Gallen. The focus was on linking mobility management with company health promotion, in which commuting to work as an opportunity for exercise is usually ignored. In the case of the pilot companies, 70 percent of employees live within 15 kilometers of their workplace which makes commuting actively a good alternative. The 20 measures implemented included infrastructure improvements for cyclists, knowledge transfer, motivational campaigns, financial incentives and the involvement of managers to serve as role models. 900 individual “mobility maps” were distributed that show the time, costs, CO2 emissions and health benefits of various mobility alternatives on the way to work. As part of an exercise program, in-house coordinators were trained to support employees during the transition. An evaluation shows that the proportion of cars used to commute to work in the pilot companies was reduced from 54 percent in 2020 to 49 percent in October 2022. 40 percent of those surveyed were motivated to use bicycles, public transport and carpooling more often and 96 percent of those who took part in the exercise program now know strategies to increase their everyday activity and improve their physical and mental health.1,2
Make business flights an exception
The British banking group Lloyds has set itself two goals to reduce CO2 emissions from air travel in its own area of activity. On the one hand, the aim is to reduce the CO2 emissions of the aviation companies in the portfolio by 30 percent by 2030 compared to 2019. The second goal is to halve CO2 emissions from business trips by 2022 compared to 2019. The goal is to be achieved through a strict business travel guideline that makes air travel an exception that needs to be justified. In addition, long-term planning should be used to bundle meetings and thus avoid unnecessary trips.3,4
Internal CO2 pricing shows impact
The Swiss insurance group Swiss Re has set itself the goal of reducing the number of annual business flights by 50 percent between 2022 and 2024 compared to 2018. On the one hand, greater use of video conferences is being made, and on the other hand, an internal CO2 price of around 100 euros per ton and binding CO2 budgets per company unit have been implemented. In the 2022 financial year, the set target was exceeded and flights were reduced by 70 percent compared to 2018. The money collected from the internal CO2 price will be spent on CO2 avoidance certificates and CO2 removal certificates.5
Tiered parking space management finances mobility management
By merging all locations, around 3,000 employees are working at the ORF center on Vienna's Küniglberg every weekday. A parking space management system was introduced for the 750 parking spaces. Parking space authorizations are awarded according to a points scheme that is based on the duration of the journey on public transport. Anyone who lives within a two-kilometer radius cannot use a parking space. The fees for a car parking space depend on income and range from 15 euros to 120 euros per month, with the exception of employees with physical limitations. The income is used to finance other measures in the area of mobility management, such as supporting annual public transport tickets and a subsidized rental bike model. Bicycle parking spaces and changing rooms were also redesigned. In 2016, 66 percent of employees came to work by car. After implementing mobility management, in 2023 it was only 38 percent, while 62 percent already use public transport to get to work.6
On the highway to the mobility transition
With a focus on digitalization and sustainability, Asfinag started a comprehensive mobility management project in 2021. The number of the company car fleet was reduced by around 200 cars. In return, a pool vehicle concept was implemented, which means that around 3,000 employees now have electric cars available for private use, even on weekends. Since 2022, only electric cars will be purchased and an internal electric charging infrastructure will be built. “Digital first” applies to business trips. Using the train is made easier through simple processing via the app; first class can be booked for train journeys of two hours or more. As a result, around 830,000 kilometers per year are shifted from cars to rail. The number of business flights has fallen from around 600 per year to 15 in 2022. As a pilot project, volunteers were provided with a monthly mobility budget of 50 euros in cooperation with the Wegfinder app. This could be used privately for various forms of mobility via the wayfinder app. In addition to free bicycle checks, a movement challenge and awareness-raising, active mobility is also promoted by eight e-bikes and four e-scooters in the internal vehicle pool.7,8,9
Mobility provider does mobility management
In 2019, Wiener Linien started its operational mobility management with a comprehensive mobility survey to query the status quo and needs of employees. A mobility levy was introduced for car parking spaces at company locations, the income from which is used to finance other mobility measures. In addition, employees can use Wiener Linien's public bike and car sharing services at a discount and the purchase of the Austrian climate ticket is also financially supported. An app-based ridesharing exchange was set up to promote carpooling. Investments are also being made in measures to promote active mobility. A new bicycle garage including showers, lockers, e-charging infrastructure and a bicycle service station as well as e-company bicycles was built at the main location with almost 2,000 employees. The number of bicycle parking facilities is also being expanded at other departments. There are also free bike service days, e-bike test weeks, repair workshops and cycling training for the workforce. Information about the measures is available in the welcome brochure for new employees as well as a separate area on mobility management on the intranet. In 2023, another mobility survey was carried out for employees, which shows a shift towards climate-friendly forms of mobility on the way to work.10
Sources:
1: Energieinstitut Vorarlberg: AMIGO – betriebliches Mobilitätsmanagement mit Gesundheitsförderung verbinden. Einreichunterlagen für VCÖ-Mobilitätspreis 2023. Wien: 2023
2: https://www.interreg.org/interreg-v/projekte/P3/SZ8/abh089, Accessed 14.7.2023
3: https://travelsmartcampaign.org/wp-content/uploads/Lloyds-Banking-Group-Case-Study-04.2023.pdf
4: https://www.lloydsbankinggroup.com/assets/pdfs/who-we-are/responsible-business/downloads/2022-reporting/2022-lbg-environmental-sustainability-report.pdf, S.34, Accessed 14.7.2023
5: https://www.swissre.com/dam/jcr:5d88bdd8-8aa1-42da-ae69-028a45da60ae/2022-sustainability-report-doc-en.pdf, S.54, Accessed 14.7.2023
6: ORF: Written query responses on 16.5.2023 and 19.5.2023. Wien: 2023
7: Verbal information on 30.5.2023 and written query response on 2.6.2023
8: Asfinag: Mobilitätskonzept 2.0 der ASFINAG. Einreichunterlagen für VCÖ-Mobilitätspreis 2023. Wien: 2023
9: https://www.klimaaktiv.at/mobilitaet/mobilitaetsmanagem/betriebe/best-practice-beispiele/asfinag.html
10: Wiener Linien: Written query response in July 2023. Wien: 2023
There is no need to reinvent the wheel
There are numerous examples showing just how successful mobility management can be in practice.5 Companies implementing the concept can use available know-how and experience.6 In a project involving companies from Austria, Switzerland and Liechtenstein, 35 measures were compiled into a “toolbox”, explained and evaluated in terms of cost and effectiveness. The measures can be classified into four areas of action:7
Analysis and creation of basic structures: Developing effective measures requires a survey of the starting situation, which will also form the basis for potential analyses and subsequent evaluations. Apart from the employees’ mobility behaviour, their needs and attitudes are also relevant. Moreover, objectives, responsibilities and the integration into existing structures should also be defined at an early stage.
Organisation and incentive systems: Through organisational adjustments, standards can be set and changes can be initiated. Examples include making working hours more flexible or aligning them with public transport timetables, introducing parking management, offering public transport job tickets or job bikes, providing information packages for new employees or supporting car pooling. It can also be effective to introduce incentives such as the option to collect points for journeys made in a sustainable manner which can then be exchanged for benefits.
Infrastructure: Businesses can exert direct influence on the way different means of transport are used through their choice of location and their own infrastructure. Apart from offering high-quality bicycle parking facilities, this also means providing changing rooms and showers, departure boards, EV charging stations, introducing employee shuttle services or providing car sharing vehicles. Moreover, companies can – alone or jointly with others – push for attractive cycling paths and good public transport connections. The new Landbus line 164 in the Vorarlberg Rhine Valley is a successful example. Designed and implemented in cooperation with the Blum company, it has been connecting a
residential area with the industrial centre of Lustenau since May 2022.8,9
Information and awareness-raising: Measures can only be effective if people are aware of them. Information about mobility services can be spread via the Intranet, newsletters, brochures or in consultations. The role model effect of senior executives is also important and can make a difference. In addition, campaigns, trial and service programmes may encourage employees to rethink their travel choices. For example, more than 600 companies and 11,000 employees took part in the „Österreich radelt” (Austria cycles) campaign in 2022.10
Reducing climate-damaging business flights
Business travel is also relevant when it comes to mobility management. Around a quarter of corporate travellers book premium class tickets and, given the larger space requirements in planes, the journeys of passengers in premium classes consume three times more fuel than those in economy class. Therefore, business flights have a particularly poor carbon footprint.11,12 A study estimates that business travel accounts for 25 to 30 percent of CO2 emissions from aviation.13 One approach is to evaluate air travel based on the criteria of „avoid, shift, improve”.14,15 The highest priority is to avoid business air travel by using video conferencing instead. The International Energy Agency estimates that this measure alone might render 40 percent of all business flights redundant.16 Many short-haul flights could be shifted to direct or night train services, which are available for almost half of the most popular routes in Europe.17 To achieve this, businesses must have travel policies in place that prioritise climate-friendly options. For example, the company Haberkorn managed to reduce its kilometres of air travel by more than a third from 2008 to 2021.18 If business flights can neither be avoided nor shifted, the carbon footprint can be improved by booking economy class and buying verified CO2 offsets. Transport & Environment’s “Travel Smart Ranking” shows that urgent action is needed as 272 out of 322 businesses across the world surveyed (including nine from Austria) currently have not set any targets to reduce business air travel emissions.13
Success factors for implementation
Successful mobility management is always geared to the individual needs of a business. However, some general success factors can be identified:
• Clear structures, responsibilities, processes and budgets as well as regular evaluations are key for efficient implementation.
• The appointment of motivated, responsible mobility officers creates a central point of contact for all questions and suggestions, as well as visibility and commitment.
• The odds for success and motivation will rise if the benefits of mobility management are equally obvious to employees and the business and are communicated on a regular basis.
• For measures to be effective, they must be put into practice throughout the company. It is important that senior executives act as role models in this regard. Mobility management objectives should also be reflected in relevant strategy papers and annual reports.
Making implementation the standard
Corporate mobility management is usually implemented consistently in response to specific challenges, such as new space requirements for business expansion, skills shortage and staff retention or statutory requirements. In France, for example, it has been mandatory for sustainable mobility measures to be included in negotiations between the social partners since 2019. Failing this, companies must prepare alternative mobility plans for their employees.19 In Italy, companies and public administrations with more than 100 employees have been obliged to draw up an action plan for commuting to work that has to be updated annually, and to appoint a mobility officer since 2021.20
Increasing support, eliminating obstacles
In Austria, the klimaaktiv mobil programme “Mobility management for businesses, property developers and fleet operators” offers a comprehensive, free consulting programme, implementation funding and support for the submission of funding applications. In 2022, almost 90 projects in the business context were approved through this programme, with funding totalling more than 40 million euros.21 The job bike model and public transport job tickets allow businesses to support climate-friendly and healthy commuting options on a tax-free basis. However, the job bike regulation does not currently apply to employees paid according to a collective agreement. As of 2023, subsidies for the charging of private e-cars are tax-exempt. This also applies to the use of car sharing, but not to private car pooling. Other incentives, like repair vouchers, are taxable as non-monetary remuneration. It is not so much the costs that are a hurdle for businesses, but the administrative burden entailed. This could be remedied by way of a non-taxable lump-sum mobility allowance of 50 euros per person and month. In France, a similar regulation was enshrined in law in 2020.19
VCÖ recommendations
Using mobility management as a lever for transformation
- Commuting and business trips cause a lot of traffic and shape travel routines. This makes them an excellent starting point for the necessary transformative change towards environmentally sustainable transport.
- Business flights are especially harmful to the climate. A large share of these trips could be replaced by video-conferencing or shifted to rail.
- Businesses have a social responsibility for the mobility of their employees. By following the “challenge and promote” approach, it is possible to make corporate mobility management a standard practice.
Adjusting framework conditions, removing obstacles
- The introduction of a lump-sum mobility allowance that is not taxable as non-monetary remuneration would help remove administrative obstacles for companies.
- For businesses with 50 or more employees, implementing corporate mobility management should become a mandatory standard.
Michael Schwendinger, VCÖ ‑ Mobility with a future
“If corporate mobility management had not been successfully implemented for some time, it would have to be invented. There are numerous examples showing that it proves beneficial to employees as well as to the environment and businesses. It is therefore up to policy-makers to quickly set measures to make it become the norm in Austria.”
VCÖ-Factsheet "Mobility management as an opportunity for businesses" as PDF
VCÖ is responsible for the content and editing of the VCÖ factsheet. The content does not necessarily reflect the views or opinions of the supporting institutions. This factsheet has been produced with the financial contribution of the Federal Ministry for Climate Action, Environment, Energy, Mobility, Innovation and Technology and the provinces of Upper Austria, Styria and Tyrol. The content was edited in cooperation with the Energy Institute Vorarlberg.
Media owner, editor and publisher: VCÖ, 1050 Wien, ZVR-Zahl 674059554. Impressum: VCÖ, Bräuhausgasse 7-9, 1050 Wien, T +43-(0)1-893 26 97, E vcoe@vcoe.at, www.vcoe.at
Cost-free consulting about mobility management for companies, leisure and tourism facilities, property developers, cities, communities, regions, educational institutions and administration at: www.klimaaktivmobil.at
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