Sustainable Marketing Strategies and Issues: ComfortDelGro Report

This report provides a detailed analysis of ComfortDelGro's sustainability initiatives. It begins with an introduction to the company, its vision, and core values. The report then identifies key sustainability issues, including environmental concerns, such as energy efficiency and waste management, and social aspects like employee health and safety. It explores ComfortDelGro's approach to sustainability, including its commitment to corporate governance, ethical conduct, and risk management. The report also examines the company's environmental efforts, such as its focus on energy efficiency and waste management, and its external recognition for sustainability practices. Furthermore, it delves into the company's corporate social responsibility and environmental responsibility, offering recommendations and justifications for improving sustainable practices. The report concludes by summarizing the findings and highlighting the importance of sustainable marketing for ComfortDelGro's long-term success.

Running Head: COMFORTDELGRO 0
Country: Singapore
ComfortDelGro Corporation
Sustainable Marketing
Student Name:
Student University:

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Contents
Introduction................................................................................................................................2
Key Issues..................................................................................................................................2
Our people..............................................................................................................................3
Governance............................................................................................................................3
Sustainability..............................................................................................................................4
Approach to Sustainability.........................................................................................................4
Materiality..............................................................................................................................5
Environment...........................................................................................................................5
Energy Efficiency...............................................................................................................6
Waste Management............................................................................................................6
External Recognition..........................................................................................................6
Health & Safety......................................................................................................................7
Accessibility...........................................................................................................................7
Reaching Out..........................................................................................................................7
Green Statement.........................................................................................................................7
Corporate Social Responsibility and Environmental Responsibility.....................................8
Recommendation........................................................................................................................8
Justification................................................................................................................................9
Conclusion..................................................................................................................................9
Bibliography.............................................................................................................................10

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Introduction
ComfortDelGro is a global transport company in Singapore merged with Comfort Group and
DelGro Corporation with a huge workforce, shareholder base and position from 2003
operating in seven countries with 42,300 vehicles and 12,623 employees. The company
includes taxi, bus, rail, automotive engineering services, car leasing, and rental, driving
centres, inspection and testing services, insurance broking services, non-emergency patient
transport services and outdoor advertising (ComfortDelGro, 2018). The company’s vision is
to be the largest operator of land transport in the world by innovating new ideas and
opportunities, solving problems effectively, and implement change. It also includes value
development of assets and positioning of people, and learning from its mistakes; high-
performance expectations and rewarding equitability. The core values company do business
with are to set a challenge and convincing goals, focus on outcomes and identifying and
solving issues. The company commits to fulfil customers’ needs by providing satisfactory
services, nurturing trust environment by interacting with groups, rewarding shareholders for
the achievement of sustainable outcomes for business expansion, comply with regulatory
requirements and more. They work in with majority owners of vehicles and non-vehicles
testing and inspection outfit, Vicom Limited, and rail and bus services operator, SBS Transit
Ltd (Joshi, et al., 2018). The conduct is done ethically and with professional standards, honest
business activities, respecting each other including operations of stakeholders like customers,
suppliers, business partners, shareholders, communities, and authorities; communication
skills and maintaining transparency with strong environmental factors (ComfortDelGro,
2018). ComfortDelGro sustainability is the support of the company’s strategy where the
Board pays close attention as well. In this report, the aim is to identify the sustainability
issues of ComfortDelGro the company is recently facing. The company evaluates the issues
and justify the customer base encouragement by recommending and adapting pro-sustainable
conduct, and identifying the challenges to execute policies.
Key Issues
The board of the company considers ESG (environmental, social, governance) issues for
formulating the strategy of sustainability. The strategy focuses mainly on three key aspects
which include products, planet, and people. ComfortDelGro is a company with a land
transport business constantly delivering services having a direct impact on the environment.
The company works with Regulators continuously with manufacturers and suppliers of

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vehicles to minimize the overall carbon mark. It keeps them motivated with the use of
advanced technology and closely working on developments in the field of Green technology.
The company is already working in hybrid taxis and buses operating with Regulators and
manufacturers on electric vehicle trials (Borowiak, 2019). Moreover, advanced technology
has an essential impact on environmental and operations mark.
Our people
ComfortDelGro focuses on the people as well including the safety and health of their
employees and supports them with social disadvantage and way for improvement. The
employees are devoted to the projects and activities happening within the company for
contributing to society and helping to protect the environment. The stakeholders analyse the
matters of ESG and create material into value creation combined to balance scorecard, used
for setting objectives, driving conduct, performance measurement and resolving
remuneration. The Board of the company issues materials as approved and reviewed, and
gave the management and checking to Senior Management.
The company’s business needs to be sustainable which causes workforce recruitment
continuously to provide development in operations and filling vacancies due to erosion.
ComfortDelGro recruited 4,219 employees in 2018 for operating in Singapore and other
countries (ComfortDelGro, 2018). They believe in people for their success, no matter being
new or skilled employees and investing in them continuously by developing their talent and
skills, and make sure to make them understand through training and allotting responsibilities
for doing their job. For development, the employees receive career development and
performance once a year. The company appraises employees done by supervisors based on
their performance.
Governance
The board closely relates to corporate governance when the company works on a large-scale
globally aiming at fostering a corporate culture considering employees' encouragement to
behave ethically and working on the mission to fulfil the needs of the customers and to make
sure of maintaining transparency in management and making decisions fairly (Báez, et al.,
2018). The corporate auditor system helps the company to increase the monitoring and
auditing functions effectively done by Auditors. The Board of Directors improves the
inaccuracy function of management by executing correct measures.

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Sustainability
Sustainability reports environment and society effects on business and the goals of the
company are to make a positive influence on it. If in the company, they fail to notice their
responsibilities which may lead to inequality, environmental deprivation, and social injustice
in business. To achieve progress in business, a sustainability strategy is created by firstly
assessing the problem and defining objectives, establishing the company’s mission, align the
strategy, and outcomes (Spiliakos, 2018). At the main governance level, the company is
dedicated to protecting the interests of stakeholders for sustainable growth. The material
issues are approved and reviewed by the Board and the Senior Management has the
responsibility of monitoring and management. ComfortDelGro attains benefits for society
and business which involves ways for developing the business. The company delivers
services to the groups and make sure to avoid the prospective negative environment or safety
impact not to result in operations. It is important to look towards the ways for minimizing and
managing the influence of business operations on the environment. They commit to firm
environment building operations and make sure to devote highly in Green Quotation.
Approach to Sustainability
The company holds a high standard of corporate governance and ethical conduct in business.
The practices and policies are in line with guidelines and principles to set out in the Code of
Corporate Governance issued by the Monetary Authority of Singapore in 2012.
ComfortDelGro has a strong Enterprise Risk Management Risk Framework which makes the
Business Units and Group of the company to understand the complexity and nature of the
risks in the operations involvement and systematic process providing to review and identify
the risks and manage resources as their priority. Moreover, company does their best to attain
sustainability in the areas of risk management and growth with the return of capital to create
sustainable values. The leaders of the company are ready to take corrective actions related to
competitors (Ozanne, et al., 2016). The areas of sustainability include new product
innovation, interaction with new customers and markets, green sales and marketing,
composing business range, value chains and operations sustainability, reputation and
regulatory management, and operational risk management (Giannakis & Papadopoulos,
2016). The practices and management are performed to achieve a sustainable environment in
the company for creating value. Sustainability includes mission and values, systems and
processes, internal and external leadership, and designing organization initiatives. The

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company faces complications and challenges for enhancing performance removing issues and
influence on operations from carbon emissions to human rights. Further, companies actively
seek opportunities for investing in sustainability and growth. It helps in reducing costs by
better management of water and energy; impact on the environment where raw materials of
products in agricultural food or clothing are outlined and provides opportunities by new
product innovation (Bonini & Görner, 2011).
The highest rank in the priority list of the company is of social and environmental issues
where the concerns are merged in the process of decision making. The concerns are also
included in the performance assessments safely where the improvement in environmental
problems leads by the company’s Group-wide Green Committee. The risk-based approach of
the company is associated with the protective principle. ComfortDelGro is the proud
participant to the UNGC (United Nations Global Compact). They respect privacy and are
equally devoted to every individual and obeying to significant legislation under the Personal
Data Protection Act 2012, Singapore (ComfortDelGro, 2018). The company processed with
IT security systems and operation to make sure the data security by implementing the
ComfortDelGro IT Risk Management Framework. They keep the security measures up-to-
date consistently to ever-changing threat intensities and maintaining the customers’ privacy.
Materiality
ComfortDelGro focuses on the issue for long-term sustainability with the materiality
guidance which was based on internal and external stakeholders’ expectations. The company
believes in developing a long-term economic value for them by accepting responsible
business activities and growing sustainably in business. The company considers the making
for stakeholders’ sustainable values that can be shareholders, employees, customers,
regulators, and partners by committing to reward them by the outcomes of growth in the
business (Li, et al., 2018).
Environment
The company has production of 12,000 ComfortDelGro taxis to meet the Euro 4 production
standards and aims to reach Euro 6 production standards to increase by 25% until 2020
(Iordanis & Durgheu, 2016). The human activities influence the climate system in many ways
and the change in climate is growing rapidly over time which needs awareness. The harmful
production indirectly and directly leads to loss of environment and have social, health and
economic implications. It is challenging for the government and companies to come up with

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strategies, actions, and policies for reduction and influencing the environment. The need for
innovation in sustainable growth is essential for present and future generations where they
can live with a sustainable and clean environment.
Energy Efficiency
The company in a land transport business, being the highest ranks on priority list is energy
efficiency as well. The number of time vehicles spends on the road of the company, for
instance, most of their taxis run non-stop practically where some operate in dual shifts. In
2018, the operations of the company consumed about 1.077 GJ of fuel. ComfortDelGro
closely monitors the development of renewable energy sources and explores the acceptance
of feasible energy sources in the future (ComfortDelGro, 2018). The initiatives for better fuel
efficiency were achieved by EcoDrive through trained drivers with maximum fuel efficiency.
The company tracks the drivers driving performance and their weekly reports in the Optimise
system provided to show the way they performed in fuel consumption and reducing
discharges.
Waste Management
In business, contribution to the bulk of general waste is generated from travellers in daily
operations. The contractors have the authorization to remove the general waste for disposing
at landfills (Amir, 2015). The harmful waste is generated from the repairing and maintenance
of vehicles collected within particular containers removed by expert contractors to make sure
the disposal of all harmful waste. In business, 7,476 tonnes of waste materials were generated
including engine oils, tyres, batteries, drums, papers, metal and cartons in 2018
(ComfortDelGro, 2018).
External Recognition
ComfortDelGro received the Eco-Office Label from SEC in 2009 at first and recertified in
2012-2018. The company achieved the requirements of technical competence and
management system, the VICOM Emission Test Laboratory cleared successfully was the
International Standard ISO by the Singapore Accreditation Council in 2018. A Certification
Body was qualified by SETSCO for the Water Efficiency Labelling Scheme (WELS)
administration of products done by PUB (Public Utilities Board) (ComfortDelGro, 2018).

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Health & Safety
As per the saying that prevention is better than cure, the same goes for machinery and
vehicles. The vehicles operate less than the ideal level to produce more harmful releases. The
company needs to strictly maintain the management place and the taxis are sent on a monthly
basis to the workshops for preventive maintenance. In Singapore, the global initiative in 2018
was launched by Borneo Motors to footprint the manufacturer’s obligation and support
towards making society mobile and sustainable (ComfortDelGro, 2018).
Accessibility
The company supports the Handicare Cab Scheme to make sure about the availability and
affordability of services for the ones who are physically challenged. ComfortDelGro set the
funds to compensate for the usual booking fees of taxi trips of the Handicaps Welfare
Association (HWA) taken by the members and dogs are also allowed (ComfortDelGro,
2018).
Reaching Out
CabbyCare Charity Group was established in 2000 by eight CityCab cabbies wanted to spend
their time to help the less privileged with productivity. They started with 300 members
actively participated in projects. The award to CabbyCare of the Outstanding New
Volunteerism Initiative Award by the National Volunteer Centre in 2002 and the President’s
Service Social Award in 2003 were achieved. The purpose of the company includes donating
taxis to hospitals, schools and elderly homes instead of clashing used taxis for training and
recovery; the company donated 20 plus discharged taxis till now. The company finds a way
to develop and make a sustainable environment in and outside (ComfortDelGro, 2018).
Green Statement
The aim of the company is to reduce the influence of its activities on the environment by
making sure of continuous improvement in environmental performance fundamentally
technical and operational restrictions. ComfortDelGro is devoted to obeying all legal and
monitoring requirements. The goal of managing the environment is to minimize the harmful
effects of operation in countries. The company reduces its environmental mark of every
traveller route which helps in contributing to reduce air pollution from carbon dioxide
emissions and road transport (Soe & Mikheeva, 2017). It is not possible to completely cut off
the harmful productions and to minimize the negative influence at the time of exploring the

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environment. ComfortDelGro does not stop while management improvisation of the
company’s environment influencing a reduction in using resources and waste minimization.
The company keeps on making investments in new vehicles for a reduction in production
profile and to support research continuously in substitute fuels.
Corporate Social Responsibility and Environmental Responsibility
The company aims at building positive relationships with groups with which they work by
supporting and caring for the poor, underprivileged, aged and sick. The encouragement of
support is done to suppliers by showing them opportunities in areas of CSR. The laws and
practices like pertaining to waste disposal, air emissions and pollution in the environment
need to be obeyed where suppliers effort to reduce the influence of operations on the
environment (Al Ali, et al., 2017).
ComfortDelGro believes in sustaining and developing a pleasant three-way relationship
between management and the workforce. It is a main point of the company to maintain day-
to-day operations where 80% of the workforce is covered by collective contracts in business
globally (ComfortDelGro, 2018).
Recommendation
The Board if the company recommended reviewing the qualified and training development
programs and improvements on internal control, and action effectiveness. The reviews
include taxi licenses, vehicles, and goodwill deficiency; completeness and valuation of
provision for accident claims, and business combinations. The company to adopt alternative
corporate governance practices and suggested to wait for the shareholders’ approval for
contribution and better performance. ComfortDelGro attains larger strategic goals after
analysing the company’s mission, vision and major objectives to achieve it. The company’s
sustainability strategy is for a reduction in costs, handling waste management, using green
resources, achievement through shareholders’ values by making an accurate framework. For
instance, in Singapore, the company thought of rising after the arrival of Uber’s by
brightening the market stabilization and continuous expansion globally. The company
brought an automobile repair service in Australia, begin the driving school in China as a joint
venture and developed an approved bus company (Today, 2018). The challenges faced in the
taxi business by the company but never stopped to look after the welfare of its taxi drivers.
The welcome move company took was moving “the traditional fixed rental business model to

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one in which the company co-shares revenue risk with its hires” for switching to the new
rental scheme (Nga, 2017).
Justification
ComfortDelGro protects the nature of government through regulation of policies and
practices and used strategy to expand the business globally where they gave thee priority to
shareholders’ values and approval with proper management and growth. The company
decided to deregulate routes of buses, recover of economic globally, availability of
achievement deals, and winning new rail line-downtown line. They made a track record of
profits, sales and dividends increment to its shareholders. Further, to move forward, the
growth is due to public transport services contributing to the Bus Contracting Model (Tai,
2017). For instance, the company delivered stable financial outcomes and dividends growth
to its shareholders even after he increased competition with Uber and Grab threats to the
business. The acknowledgment by the company was quick of investment and interference for
exploring new flexible technologies and solutions to diminish the influence (Tai, 2019).
Therefore, company is on a fair base with its averages and Public Transport division for
stable outcomes without ignoring the threats in the taxi industry which remains for long-term
consequences.
Conclusion
To conclude, the company with sustainable issues needs to face challenges so in the taxi
industry like ComfortDelGro with the ESG problems as part of Triple Bottom Line (People,
Profit, and Planet. The issues of energy, water, and waste management were the main concern
with focusing on the environment and social factors inside and outside the company. The
recommendations are based on the minor issues faced by the company with legit
justifications with changes and innovation in the company for providing proper customer
services, performance and growth build up.

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