Corporate mobility's environmental impact demands urgent attention as organizations face mounting pressure to address transport-related emissions, balance sustainability with operational needs, and prepare for evolving regulatory requirements in India's developing economy.
08 Nov 2025 | 4226 Views | By Abhinav Kalia, ARC Electric
Transport has long been a cornerstone to economic development - the ability to move people, goods, and ideas drives change. However, in the 21st century, transport has taken on the mantle of one of the greatest causes of climate change. The transport sector is globally responsible for almost a quarter ...
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Transport has long been a cornerstone to economic development - the ability to move people, goods, and ideas drives change. However, in the 21st century, transport has taken on the mantle of one of the greatest causes of climate change. The transport sector is globally responsible for almost a quarter of CO2 emissions related to energy use, with road transport contributing the greatest amount. In India, where urbanization is on the rise and mobility challenges multiply, sustainable transportation has evolved from a policy goal to a business imperative.
The Corporate Mobility Footprint
For many organizations, mobility contributes a further, pun intended, silent but damaging part of their environmental footprint. Employees move across town to the workplace in the morning and return home at night (commutes), logistics operations add to emissions, business travel increases GHG emissions as does the last mile of the goods - from the final hub to the consumer or end user. Collectively, these emissions can be significant. Emissions from transport will often reside in an organization’s Scope 3 as indirect emissions from the mobilities that the organization does not directly manage, but are critical to the business' sustainability.
As such, organizations cannot continue to ignore the emissions by which they move people and goods. As the calls for transparency and responsibility increase across the corporate landscape (increasingly from investors, customers, and regulators), sustainable transportation is no longer part of a corporate social responsibility program; it is a necessity for sustainability linked to ESG performance, the brand’s reputation, and the long-term viability of an organization.
Why Sustainability in Mobility Matters for Businesses
The benefits of sustainable transportation extend beyond climate. Companies adopting cleaner mobility can benefit in multiple ways:
Cost Efficiency: With fluctuating fuel prices, switching to lower emission or electric options can lessen long-term operational costs.
Talent Attraction: Younger employees are seeking out organizations that match their values, including climate considerations. Employers providing sustainable commute options could be an employer-of-choice differentiator.
Regulatory Preparedness: With India increasing climate policies and moving towards net-zero in 2070, adopting cleaner mobility will better position businesses to prepare for compliance.
Resilience and Innovation: Integrating sustainability typically leads to new or different ways of working, using technology, and forming partnerships that makes companies more competitive.
Pathways Toward Sustainable Corporate Transportation
Sustainable business-related transportation is not one-size-fits-all. Sustainable transportation will require multiple strategies for firms that are framed within the context of their operations and employee needs.
Fleet Electrification: The transition of company and contractor fleets to electric vehicles (EVs) can be one of the most direct ways to reduce emissions. Corporate fleets have predictable routes and centralized control and offer ideal sources for electrification.
Shared and Pooled Mobility: Employees' commutes can dramatically reduce the carbon intensity of their daily trips when riding together (i.e., carpools, shuttle services, and public transport).
Digitalization and Telematics: Using technology to improve route travel time, monitor how the use of energy, and track carbon savings will improve efficiency in all aspects of the travel process and allow for better transparency in progress reporting.
Green Infrastructure Partnerships: Working with mobility providers, charging infrastructure companies, and municipalities can improve the availability of sustainable transport options.
Policy Alignment: Making sure that patterns of mobility align the firm with national and state EV mandates, carbon credit programs, and urban planning projects can improve their successfulness in the long term.
The Role of Culture and Leadership
Sustainable transportation is not merely an operational decision, but rather, it is indicative of corporate culture and its leadership priorities. By proactively offering green commuting options, rewarding low-carbon commuting options, and leveraging sustainability in their travel policies, organizations often provide a compelling message to employees, customers, and stakeholders that climate action is part of their corporate mandate.
Sustainability work related to mobility will create a ripple effect. A corporation transitioning its fleets to low-carbon transit creates demand for responsible and cleaner vehicles, charging infrastructure and supporting technologies, which puts into motion demand across the broader clean mobility ecosystem which multiplies the impact.
Looking Ahead
Sustainable transportation is no longer an option for businesses, but is rather a necessity. As India grapples with the twin challenges of growth and decarbonisation, all corporations will need to treat themselves not only as customers of mobility, but also as enablers of cleaner transport systems.
In the emerging years ahead, we will more than likely see sustainable mobility move from being an ESG measure to being core to a business' performance measure. Businesses who move early, collaborate and build partnerships, and undertake sustainability as part of their mobility strategy, will not only lower emissions, but will future-proof themselves against the economic and regulatory uncertainty of tomorrow.
Conclusion
Sustainable transport is a business necessity and a fundamental facet of modern business around cost, talent, compliance, innovation, and reputation. If organizations can rethink the movement of people and goods, they can shift mobility from a carbon risk to a means of climate leadership. Ultimately, these organizations are not just creating a more resilient business, but they are contributing to a healthy, sustainable future for everyone.
Abhinav Kalia is the CEO and Co-founder of ARC Electric. Views expressed are the author's personal.