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  • Human Rights & Community Relations
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  • Access & Affordability
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General Issue Category
(Industry agnostic)

Disclosure Topics (Industry specific) for:
Road Transportation

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GHG Emissions

Greenhouse Gas Emissions

The Road Transportation industry generates emissions mainly through the combustion of diesel and other fuels in truck engines. Greenhouse gases (GHGs) including carbon dioxide (CO2) are of particular importance to government regulators concerned about climate change and to consumers demanding low-carbon or carbon-neutral transportation solutions. As GHG emissions from trucks constitute a significant portion of transportation-related emissions, the industry is a focal point for regulations to limit GHG emissions. Changes to operations that increase fuel efficiency offer an effective way for companies to reduce fuel costs while also limiting exposure to volatile fuel pricing, regulatory costs, and other consequences of GHG emissions. While newer trucks are more fuel-efficient, measures can be taken to improve efficiency and reduce emissions in existing fleets.

Air Quality

Air Quality

Compared to other modes of transport, road freight has a more localized negative effect on air quality through its emissions of sulfur oxides (SOx), nitrogen oxides (NOx), and particulate matter (PM). Heavy reliance on diesel fuel is of particular concern; although diesel engines realize better gas mileage than gasoline engines, they generate more harmful air pollutants. Using alternative fuels and filtering emissions prior to release can help companies comply with air quality regulations and avoid contributing to smog in cities and dense population centers, which may damage their social license to operate.

Employee Health & Safety

Driver Working Conditions

The Road Transportation industry faces challenges with driver recruitment and retention. A growing labor shortage, due in part to the challenging working conditions in the industry as well as to regulations that limit working hours, may raise labor costs and lower industry revenue. Time-critical deliveries are demanding for drivers, who may experience long and often odd hours behind the wheel, lengthy stays away from home, lack of sleep, and feelings of isolation. These factors, in combination with high injury and illness rates, largely due to accidents, make it difficult to recruit new drivers and to retain existing staff. Companies that offer better driver working conditions may benefit from lower turnover rates, higher productivity, and the ability to hire staff to expand operations and increase revenue.

Critical Incident Risk Management

Accident & Safety Management

Road transportation involves inherent dangers, including accidents resulting from mechanical failure or human error. Companies in this industry take measures to train drivers and maintenance staff to minimize accidents. Evidence of injury and fatality rates, associated costs, and investment in safety technologies supports the significance of the issue for the industry. Companies with more effective safety management can improve the efficiency of operations, retain drivers, reduce delays, and avoid costs associated with serious accidents. In contrast, those with poor safety management may experience regulatory penalties, higher insurance premiums, and service disruptions that reduce revenues and brand value.

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