News

Corporate sustainability strategies have evolved from simply creating a “green” strategy or statement to establishing entire Environmental, Social, and Governance (ESG) programs. This is necessitated to reduce their environmental impacts, enhance brand reputation, attract top talent, and meet the expectations of employees, management, stakeholders, investors, and customers. However, building an effective ESG program requires more than just good intentions; it demands a structured, strategic approach.

Organizations in the parking, transportation, and mobility industry have endless opportunities to implement direct and impactful ESG initiatives. Our industry touches upon many key elements that lend themselves to enhancing sustainability including energy use, building construction, waste management, alternative vehicle use and vehicle emissions, and much more.

Our industry’s organizations have an incredible opportunity to implement real change. Many have already made that commitment. This article serves as a roadmap for companies looking to develop and implement a scalable ESG program appropriate for their services and solutions, and that delivers measurable results.

What is ESG?

ESG criteria serve as a foundation for sustainable corporate practices. The three pillars guide businesses in making decisions that minimize environmental impact, foster social responsibility, and maintain ethical governance. While ESG originated as a framework for investors to assess corporate sustainability, it has since evolved into a best-practice model for companies looking to future-proof their operations and create and implement greener practices.

Why Does ESG Matter?

Fundamentally, ESG is a framework that helps organizations assess and improve their environmental and social impact while maintaining strong governance practices. The environmental component focuses on sustainability initiatives like reducing carbon footprints, conserving resources, and minimizing waste. The social aspect involves corporate responsibility towards employees, customers, and communities, including diversity initiatives and fair labor practices. Finally, governance ensures transparency, ethical business practices, and regulatory compliance.

Organizations in the parking, transportation, and mobility space encompass not just private (or publicly traded) for-profit businesses like operators, consultants, and solution providers but also universities, municipalities, transit agencies, healthcare institutions, airports, private developers, and more. For an industry that embodies such an extensive range of concentrations, ESG is not focused solely on corporate responsibility but also dedicated to identifying and implementing strategies to improve operational efficiency, reduce costs, and future-proof the organization. A firm ESG policy or strategy can lead to a reduction of energy and more sustainable parking and transportation initiatives as well as lower energy expenses, increased customer loyalty, and new revenue streams through green technology adoption.

Role of Corporate ESG Strategies

ESG adoption is more than just an ethical prerogative for organizations—it drives tangible business benefits. Companies that implement ESG strategies effectively can:

• Improve operational efficiency and reduce costs through energy conservation and waste management.
• Enhance brand reputation and attract sustainability-conscious customers.
• Gain access to ESG-focused investment funds and grants.
• Mitigate regulatory and legal risks by proactively adhering to environmental laws.
• Improve employee morale and retention by fostering a value-driven workplace.

Community Impacts

The impact of ESG initiatives extends beyond corporate boundaries. By integrating sustainable practices, businesses contribute to healthier, more resilient communities. These efforts:

• Reduce pollution and carbon emissions, improving air and water quality.
• Promote alternative transportation options, reducing congestion and lowering fuel consumption.
• Support local economies by prioritizing partnerships with ethical vendors.
• Encourage corporate social responsibility through community engagement and philanthropy.

Building a Corporate ESG Roadmap

A well-defined ESG roadmap is essential for guiding companies through sustainability implementation. The following steps provide a structured approach to building a successful ESG program:

1. Engage with Industry Experts: Organizations should begin by consulting sustainability professionals specializing in their sector. These experts can offer insights into best practices, regulatory requirements, and emerging trends.
2. Conduct a Benchmark Assessment: Before launching an ESG initiative, companies must assess their current sustainability performance. This involves:
   • Measuring carbon footprint and energy consumption.
   • Evaluating waste management and recycling efforts.
   • Identifying existing sustainability policies and gaps.
   • Understanding stakeholder expectations.

4. Define ESG Priorities and Goals: Leadership engagement is crucial in setting ESG priorities and understanding short-term and long-term risks to the business. Companies should focus on:
   • Short-term goals: Developing an ESG Policy that articulates ESG commitments and future actions, a Human Rights policy consistent with United Nations Guiding Principles on business and human rights, and reducing single-use plastics.
   • Long-term goals: Broader initiatives like transitioning to a carbon-neutral fleet or investing in solar energy, completing a greenhouse gas inventory to manage risk and identify reduction opportunities.
   • Industry-specific concerns: What strategies are a good fit for your specialty and would allow your organization to succeed in this area? For instance, parking operators may prioritize EV infrastructure, while solution providers may focus on reducing material waste or energy usage.
5. Operationalize ESG Initiatives: Once priorities are set, companies can integrate ESG initiatives into their daily operations. Key focus areas include:

Energy Efficiency

• Retrofitting buildings with LED lighting and automated energy controls.
• Investing in renewable energy sources such as solar or wind power.
• Utilizing energy procurement strategies like carbon offset programs.

Water Conservation

• 

  Implementing rainwater harvesting systems.
• Using low-flow toilets and faucets.
• Mapping water usage to identify conservation opportunities.

Waste Management

• Establishing comprehensive recycling programs for paper, plastic, and e-waste.
• Eliminating single-use plastics in office spaces and customer-facing areas.
• Partnering with vendors who use sustainable packaging materials.

Air Quality and Pollution Reduction

• Implementing idle-reduction policies for fleets and shuttle services.
• Expanding EV charging infrastructure.
• Supporting alternative transportation programs such as bike-sharing and walking initiatives.

Behavioral and Cultural Change

• Educating employees through sustainability training sessions.
• Launching company-wide ESG challenges to engage staff.
• Promoting sustainability through internal newsletters and social media campaigns.

Case Study: A Look at ESG Success

LAZ Parking has committed to establishing an extensive ESG program and implementing principles to integrate effectively into its business model for many years. Key initiatives include:

• EV Charging Expansion: Partnering with BP to enhance electric vehicle charging infrastructure.
• E-Commerce Solutions: Reducing paper waste by digitizing transactions and customer interactions.
• Idle Reduction Programs: Implementing smart valet and healthcare shuttle systems to minimize fuel consumption.
• Sustainable Procurement: Establish a procurement policy with ESG and human rights commitments to ensure goods and services are obtained responsibly and ethically. Implement a Responsible Vendor Code of Conduct that outlines ethical standards for suppliers.
• Last-Mile Logistics Optimization: Developing efficient delivery models to reduce urban congestion and emissions.

By embedding sustainability into its core operations, LAZ has not only transformed its internal corporate operations, but this vision has extended to the opportunity to apply sustainable strategies at many of the facilities it operates across the U.S.

ESG in Action

University of California, Merced

In support of its sustainability goals, the University of California, Merced implemented an idle reduction project for its shuttle system. Prior to the program’s launch, the idling rate amounted to 19% of engine running time.

By the end of the pilot, the idle rate had dropped significantly to 9% of engine running time. Originally launched as a pilot program, these idle reduction policies have now become institutionalized for the University’s shuttle system, maintaining an average idle rate of 9%.

City of Norwalk, CT

The City of Norwalk has developed and identified several new opportunities to enhance climate resilience efforts while addressing critical gaps to effectively build a pipeline of viable sustainability projects at the city level. The City worked to identify sustainability initiatives that would produce a long-term return on investment. The City has committed to investing in several strategies to reduce operational costs, increase energy efficiency, reduce carbon footprint, increase customer experience, and advance the well-being of employees.

“I am determined to make Norwalk the greenest City in Connecticut,” said Mayor Rilling. “Addressing the threats of climate change cannot wait. It’s our responsibility to take a proactive approach by implementing the steps in this Sustainability and Resilience Plan on behalf of our children, grandchildren, and future generations, and that’s exactly what we’re doing.”

Examples of sustainability initiatives employed throughout the parking division include renewable energy solutions, LED lighting, EV charging station installations, community partnerships, recycling and composting programs, low-impact construction materials, green technology, and third-party certifications. The parking division is launching a new parking access control system that will encourage payment before exit using a paperless (mobile pay) process. This program is designed to reduce vehicle idling by decreasing exiting time.

Measuring and Reporting ESG Progress

To ensure ESG initiatives realize tangible results, organizations must implement a data-driven approach to track performance. Key strategies include:

• ESG Performance Metrics: Setting benchmarks for carbon footprint reduction, waste diversion, and energy efficiency.
• Sustainability Reporting Frameworks: Utilizing reporting and tracking platforms to maintain transparency.
• Stakeholder Communication: Engaging investors, customers, and employees through annual ESG reports and updates.
• Continuous Improvement: Regularly reviewing and refining ESG strategies based on data insights and industry advancements.

Long-Term Outcomes of ESG Integration

Beyond immediate operational improvements, ESG commitment yields long-term business advantages:

• Talent Acquisition and Employee Retention: Sustainability-conscious professionals are increasingly drawn to organizations with strong ESG values, improving recruitment and retention rates.
• Enhanced Brand Reputation: Companies with verifiable ESG initiatives attract ethical consumers, corporate clients, and investors, gaining a competitive edge.
• Regulatory Compliance and Risk Management: Proactive ESG adoption helps businesses navigate evolving environmental regulations, avoiding potential fines and legal complications.
• Financial Performance and Investor Confidence: Sustainability-focused companies are more likely to secure ESG-linked funding, improving overall financial health and stock performance.

Creating a comprehensive ESG roadmap requires commitment, collaboration, and a strategic approach. Businesses can drive meaningful environmental and social impact by engaging experts, benchmarking current practices, setting measurable goals, and integrating sustainability across operations. ESG transformation benefits corporate performance and contributes to the broader community and industry evolution. As companies embrace sustainability, they position themselves as leaders in transitioning to a greener, more ethical future.

Read the full article in Parking & Mobility magazine here:  April 2025 — Featured | Creating Sustainable Business Action Plans