Corporate Sustainability Strategy: driving sustainability action at TIER
October 20, 2022
Promoting sustainable development is without doubt the most urgent challenge of our time. Climate change, ongoing environmental degradation and increasing resource scarcity have put us in a "now-or-never" situation; we must take immediate action to reduce emissions and protect the environment.
The transport sector poses a particular emissions challenge, accounting for 24% of global greenhouse gas emissions and growing at a faster rate than any other sector. The biggest contributor in the sector is road passenger transport. At the same time, the global population is increasingly urbanised, with 68% of people projected to live in urban areas by 2050. This is a huge opportunity. If we can design for and invest in cleaner, more efficient transport to help citizens navigate our urban spaces whilst reducing the CO2 they create, we can reduce transport emissions and support the fight against climate change. This is at the heart of our mission to change mobility for good.
As a leading provider of micro-mobility, our ambition is to promote sustainable urban transportation; to get people to swap car trips for more sustainable mobility options; and, in doing so, to help reduce urban emissions. However, to successfully contribute to the long overdue transformation and decarbonisation of the transport sector, as called for again at COP26, we need to continuously optimise our services and increase the share of micro-mobility in the urban transport mix.
Since TIER's founding in 2018, we have made significant progress to improve the sustainability of our products and practices, including decreasing the CO2 emissions per km travelled for our scooters by over 60% and becoming the first micro-mobility provider to become fully climate-neutral in 2020. But we will not rest on our laurels. We are committed to finding ways to improve further.
In this context, we are proud to introduce our Corporate Sustainability Strategy which incorporates our core sustainability values into all aspects of decision-making and sets measurable long-term goals. This strategy lays the foundations for a journey to increase transparency around the progress of our mission, defining measurable targets against which we will report on an annual basis.
TIER’s Corporate Sustainability Strategy sets out a long-term framework to guide the company towards greater impact and ever more sustainable business practices. Using a comprehensive materiality analysis, we have identified and prioritised issues that have the greatest material impact on us and our stakeholders - that is our employees, cities that we work with, riders, policymakers and the planet.
We have distilled five action areas that enable us to drive continued sustainable change across the company and maximise our positive environmental and social impact. Each action area sets a high-level objective, ambitious targets and corresponding KPIs. In summary:
1. Driving climate action
TIER aims to remain at the forefront of climate-friendly micro-mobility by achieving science-based near and long-term emission reduction targets that will take us to net zero emissions by 2050. In line with the 1.5 degrees scenario set by the Paris Agreement target, we will halve both our direct emissions (Scope 1 & 2) and the intensity of our production and upstream-related emissions (Scope 3) by 2026.
2. Closing resource loops
TIER will minimise resource consumption, keep vehicles and resources in a cycle for as long as possible and avoid waste during production, use phase and end of life. By 2025, we will more than double the share of secondary raw materials used in all our vehicles to at least 40%; increase the share of recyclable raw materials across our vehicles from 85% to over 90%; and achieve a zero waste status in all our warehouses. In addition, to minimise the environmental impact of our batteries, we will increase the share of non-critically damaged batteries repaired from 80% to at least 85%.
3. Shaping sustainable urban environments
TIER is committed to driving sustainable urban transformation by supporting cities and citizens to reduce their dependence on cars and enabling access to more sustainable mobility solutions. To promote modal shift and encourage multimodality, we will continue to integrate our services in mobility as a service (MaaS) platforms and increase the share of deep integrations that allow our users to book and pay for their travel in the MaaS apps to 80%. We will also continue to expand into suburban and remote areas, currently not well connected to public transport systems, to improve the accessibility of our services.
4. Putting people first
TIER is creating a work environment that enables all employees to thrive, reach their full potential and develop innovative solutions together. By 2025, we aim to increase the share of leadership positions held by women to 40% and continue to build attractive, inclusive and safe employment opportunities for all employees.
5. Embedding sustainability in our value chains
TIER recognises the importance of ensuring that our sustainability standards are met not only within our organisation but along our entire value chain. By 2025, we will establish robust management processes to identify and mitigate sustainability risks and negative impacts along our value chain. As part of this process, we will make sure that 100% of our direct suppliers are subject to a comprehensive sustainability risk & impact assessment.
To ensure that our sustainability strategy and values are deeply embedded in all aspects of decision-making we established a dedicated sustainability governance structure that supports us in implementing our strategy, advises on target-setting and reporting processes, and strengthens our relationship with external stakeholders.
Statement from our sustainability team
Our sustainability strategy outlines the road ahead for TIER, with ambitious targets across the 5 action areas of driving climate action, closing resource loops, shaping sustainable urban environments, putting people first and sustainable supply chain management.
We developed the strategy in a deeply collaborative process involving virtually all departments of the company. We take pride in this approach, as we can be certain that the entire company stands behind our common goals. Together, we will implement the measures needed to reach these targets, regularly review our progress and adapt our strategy where needed. Starting in 2023, we will report on the progress towards our strategic targets in the form of an annual report.
Beyond what we do at TIER, collaboration across the industry, with city partners and policymakers is key in transforming the urban mobility landscape, that is to radically accelerate the share of micro-mobility in the urban transport mix.
We would like to invite our colleagues in the industry, city partners and policymakers to scale our actions and create enabling environments for micro-mobility by:
moving beyond climate neutrality to focus on emission reduction in line with the goals of the Paris Agreement (SBTi);
standardising life cycle assessments (LCA) across micro-mobility vehicle types to enable more transparent impact measurement and regulation;
creating a more sustainable, level playing field for operators;
removing the advantages that cars have over more sustainable modes; and
enabling mode shift and access to shared micro-mobility by building the necessary infrastructure.
Looking ahead, there is still much to be done to change mobility for good. At TIER, we are confident that we can play our part in this and look forward to partnering with others along the way.
Ailin Huang (Head of Sustainability)
Julian Ahlers (Senior Sustainability Manager)
Kerri-Leigh Robinson (Sustainability Manager)