Much has been said about the cost of private vehicle ownership—cars and motorcycles—in Singapore. On the other hand, less is said about the 6.4 million metric tonnes of carbon emissions each year as a result of the nearly one million vehicles on the road.
To help move Singapore closer to its net-zero target by 2030, the Singapore Green Plan sets out clear targets for electrifying our vehicle population. By 2030, the nation will only allow the registration of cleaner-energy vehicles such as electric, hybrid, or hydrogen fuel cell cars, enabling it to achieve its vision of 100% clean energy vehicles by 2040.
To this end, ultra-luxury and luxury vehicle distributor EuroSports Global (SGX:5G1), which has been listed on the Catalist since January 2014, is advancing the green movement in the automotive industry with its next generation fully electric, Scorpio Electric.
Here are 5 things about the ESG efforts taken by EuroSports Global if you’re interested in the automotive industry.
ESG relates to Environment, Social, and Governance. Which of these three pillars does the Group focus more on and why?
EuroSports Global, with its subsidiary Scorpio Electric, places a significant focus on the “Environment” pillar of ESG. Given its involvement in the automotive industry, EuroSports Global recognises the importance of reducing carbon emissions, adopting electric and low-emission vehicle technologies, and improving the environmental performance of its products and operations. By prioritising environmental sustainability and electric mobility solutions, EuroSports Global and Scorpio Electric align with the global push for greener and more eco-conscious transportation options, contributing to reduced carbon emissions and advancing sustainability in the automotive sector.
Has the Group’s commitment to ESG influenced its bottom line or competitiveness? If so, what are some of the biggest challenges the Group sees in its commitment to ESG?
By embracing ESG initiatives, EuroSports Global has enhanced its reputation and brand value, attracting environmentally and socially conscious customers. Additionally, it has gained favour with investors and financial institutions who consider ESG performance when making investment decisions, leading to better access to capital and favourable financing terms. Cost savings from sustainability efforts, risk mitigation, and improved employee retention further contribute to the positive impact on the bottom line.
However, along with these benefits, EuroSports Global faces challenges in its ESG commitment. Initial investment costs for sustainability initiatives, complex supply chain management to ensure ESG standards, and keeping up with evolving ESG regulations and reporting requirements can be demanding. Nevertheless, EuroSports Global recognises that the long-term advantages of its ESG commitment, including enhanced competitiveness and sustainable growth, far outweigh these challenges.
How does EuroSports Global ensure that it meets the regulatory requirements for ESG reporting?
EuroSports Global ensures compliance with regulatory requirements for ESG reporting through a well-structured governance framework.
The Board of Directors provides oversight, while the Deputy CEO is responsible for implementing the sustainability strategy. A dedicated Sustainability Management Committee, chaired by the Deputy CEO, oversees policies, programs, targets, and performance monitoring.
A specialised sustainability reporting team also monitors, collects, and verifies sustainability data to ensure accuracy and regulatory compliance. This governance structure underscores the company’s commitment to transparent and accountable ESG reporting while aligning with regulatory obligations.
What has been done to retain employees and attract new talent into the Group?
EuroSports Global focuses on 3 main pillars for employee retention and attraction:
o Well-being, Health, and Safety: EuroSports Global has implemented a robust Health and Safety Management System based on the nationally recognised BizSafe framework. This comprehensive program follows a five-step process, covering (i) legal obligations awareness; (ii) risk assessment and management, (iii) risk management audits, (iv) Workplace Safety and Health (WSH) management training, and (iv) management system audits. First-aid training is also provided together with the cooperation of organisations like the Singapore Red Cross, ensuring that employees are well-prepared to respond to accidents or emergencies.
o Professional Development: The Group invests in its employees by providing comprehensive product and job training to their skills and knowledge. Furthermore, collaboration with our brand partner, Lamborghini, has resulted in 22 training sessions in FY2023, covering various technical and non-technical topics.
o Open Communication: EuroSports Global utilises an open-door policy that allows employees to approach senior management directly with concerns or suggestions, fostering transparent communication channels where every employee’s voice is heard. To build positive working relationships and camaraderie, the Group actively promotes teamwork principles and organises social events throughout the year.
The Group recently announced plans to raise more capital for Scorpio Electric, its electric motorcycle maker. Tell us more about the Group’s initiative to lead in new forms of environmentally sustainable transportation.
Our commitment to environmentally sustainable transportation, exemplified through Scorpio Electric, is driven by a deep passion for a greener future. We are inspired by the potential for our innovations to make a lasting positive impact on our planet.
We focus on creating electric vehicles embodying cutting-edge technologies while minimising our carbon footprint. The X1, which is our first electric motorcycle, reshapes urban mobility by combining high performance with zero tailpipe emissions.
We believe the X1 presents great potential in rapidly growing electric vehicle markets such as Europe and Asia. These regions are embracing sustainability, well aligned with our vision.
Our primary goal is to accelerate the production of the X1 and expand our market presence. We are excited about the opportunities presented by the global shift to sustainable transportation and Scorpio Electric aims to be a driving force in this evolution.
The upcoming global launch of the X1 in November 2023 at the Esposizione Internazionale Ciclo Motociclo e Accessori (EICMA) exhibition in Milan, Italy, will mark a significant milestone in transforming the global electric vehicle landscape, reflecting our commitment to advancing sustainable urban mobility.
Editor’s Note: Some answers for this article were extracted from the SGX 5 in 5 series published on 22 August 2023 and have been republished with permission. You can read more on EuroSports Global (SGX Code: 5G1) on the SGX website.