EROAD FY23 Sustainability Report
EROAD FY23 Sustainability Report
Transportation technology services company EROAD (NZX/ASX: ERD), with its purpose of
delivering intelligence you can trust, for a better world tomorrow, is pleased to today release
its FY23 Sustainability Report.
Ends
Authorised for release to the NZX and ASX by General Counsel, Ksenija Chobanovich.
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---
EROAD
Sustainability
Report
2023
EROAD 2023 SUSTAINABILITY REPORT
PAGE 2 PAGE 3
Delivering intelligence
you can trust,
for a better
world tomorrow
At EROAD, we believe you can’t plan where you are going
tomorrow,
if y
ou don’t know where you are
t
oday. At the heart
of local economies, our customers don’t just need data, they
need
intelligence. Reliable, accurate and real-time insights helping
them to
mak
e decisions which move us all
f
orward towards a safer
and more
sustainable future.
With more than a decade of experience in the transportation industry,
EROAD is uniquely positioned to address our customers’ needs and
cater to their sustainability objectives.
We have a deep understanding of the challenges our customers
encounter and we use this knowledge to provide innovative solutions
that offer tangible benefits and facilitate sustainable outcomes.
Contents
PAGE 4
OUR CONNECTIONS
PAGE 6
LETTER FROM THE CHAIR
PAGE 8
MESSAGE FROM THE CHIEF EXECUTIVE OFFICER
PAGE 10
A NOTE FROM THE CHIEF SUSTAINABILITY OFFICER
PAGE 12
SUSTAINABILITY GOVERNANCE
PAGE 14
OUR COMMUNITY
PAGE 24
OUR ENVIRONMENT
PAGE 38
OUR PEOPLE
PAGE 48
OUR COMMERCIAL APPROACH
PAGE 55
MODERN SLAVERY STATEMENT
PAGE 62
GRI STANDARDS INVENTORY
Our purpose
PAGE 5PAGE 4
EROAD 2023 SUSTAINABILITY REPORT
Our Connections
The total kilometres by region
Location of all EROAD in market products
The total distance travelled by EROAD units in FY23 is
more than the distance from the Sun to Neptune and back
9,276,940,200 kms
OUR CONNECTIONS |
NORTH AMERICA
5,320,464,853 kms
AUSTRALIA
627,463,093 kms
NEW ZEALAND
3,329,012,252 kms
EROAD 2023 SUSTAINABILITY REPORTMESSAGE FROM THE CHAIR |
At EROAD, our purpose is to deliver
intelligence you can trust to create a
better world tomorrow. We recognize that
through our actions, in collaboration with
our customers and partners, we have the
opportunity and responsibility to make
a positive impact on our community, the
environment, and economic growth.
It is with pride that we present our
second annual sustainability report,
showcasing the significant progress we
have made in advancing sustainability
within our company.
Dear Stakeholders,
It is my pleasure to write the introduction to our second
Annual Sustainability Report. Sustainability is at the core
of our decision-making process, guiding us to balance the
needs of present and future generations while preserving
and nurturing our natural environment. Our commitment is
rooted in doing the right thing for all EROADers, our valued
customers, and the environment. We are steadfast in our
pursuit of establishing and nurturing a thriving business
that sustains itself for the long run. This report builds upon
the foundation laid last year and represents a significant
milestone in our sustainability reporting journey.
In FY23, we took a comprehensive approach by partnering
with Toitū Envirocare to capture our company’s full
emissions profile. Additionally, following the integration of
Coretex, we have taken the opportunity to reset our base
year emissions profile. In line with these developments,
our Net Zero Steering Group has been reimagined and
renamed as the Sustainability Committee. This reformed
committee is dedicated to driving global sustainability
initiatives throughout our entire business.
Letter from the Chair
Looking ahead to FY24, our focus will be on empowering
EROAD customers with tools and insights that enable
them to reduce their emissions and operate more
sustainably. We are proud to announce the appointment
of our first-ever Chief Sustainability Officer, a testament to
our unwavering commitment to this journey. This pivotal
role will help us navigate the evolving climate landscape
and prepare for forthcoming reporting obligations under
New Zealand’s climate-related disclosure framework.
Sustainability and sustainability reporting are integral to
our long-term strategy, and we are fully committed to this
journey. We are excited to share our progress with you and
keep you updated on our ongoing efforts. We extend an
invitation to our customers and partners to join us on this
journey to create a better, more sustainable future for all.
Thank you for your continued support and engagement.
Together, we can make a meaningful difference in building
a resilient and thriving world for generations to come.
Graham Stuart
Chair
PAGE 7PAGE 6
Yours sincerely,
PAGE 8
EROAD 2023 SUSTAINABILITY REPORT
Message from the
Chief Executive Officer
Sustainability is core to what we do at
EROAD. We support our customers
to deliver sustainable outcomes for
their businesses and the transportation
industry. With new product and service
functions on the horizon, EROAD is
continuing to advance our delivery of
trusted intelligence to create a better
world for tomorrow.
Delivering on our purpose
Ensuring EROAD has a positive impact on the
environment, our communities and the economy is
fundamental to achieving our purpose and values. EROAD
leads from the front, and we take every opportunity to
connect with and support our customers and industry
partners. In FY23 EROAD organised special fleet events for
customers to give them insights into the latest technology
and sustainability initiatives, and to provide our customers
with industry networking opportunities. Our people
attended sustainability events around the world, and we
appointed our first ever Chief Sustainability Officer to help
us deliver on our sustainability strategy.
Mark Heine
Chief Executive Officer
MESSAGE FROM THE CHIEF EXECUTIVE OFFICER |
PAGE 9
Supporting customers to reduce
their emissions
Within the next five years, EROAD is aiming to implement
our sustainability strategy which will include introducing
innovative solutions and features. These additions will
support customers by promoting fuel efficiency, economic
driving, decarbonisation planning and fleet management
recommendations. EV specific fleet management tools
and state of charge reporting are all on the horizon to
ensure our customers have the decision-making tools they
need to minimize their carbon emissions. Through our
partnership with EECA, we are developing an innovative
decarbonisation tool which will provide customers with
sustainability intelligence to support their own emission
reduction journey. We want to leverage our knowledge
and experience to deliver innovative and sustainable
solutions to customers throughout New Zealand, Australia
and North America to help our customers achieve their
environmental, social and governance objectives.
Focus for FY24
EROAD’s Board and Executive team are committed
to achieving our purpose. Our product teams are fully
focused on assisting our customers and drivers in reducing
their emissions, while supporting broader sustainability
initiatives. With new product and service features on the
horizon, EROAD will continue to deliver intelligence you
can trust, to create a better world tomorrow.
PAGE 8
PAGE 11
A NOTE FROM THE CHIEF SUSTAINABILITY OFFICER |
PAGE 10
EROAD 2023 SUSTAINABILITY REPORT
A note from the Chief
Sustainability Officer
I am delighted to be EROAD’s first
Chief Sustainability Officer and I look
forward to leading EROAD through our
next phase of sustainable growth. Since
our last report, we have integrated the
EROAD and Coretex businesses, and
have measured and reported on our full
carbon emissions profile.
Measuring and reducing our carbon footprint
In FY23 we have re-set our baseline emissions to ensure we
have an accurate view of the total emissions profile for the
entire EROAD Group. In FY22 we signalled to the market
that we would be providing emissions reductions targets in
this report, however we are now looking to provide these
in our FY24 report to allow time for reduction plans to be
established. As Chief Sustainability Officer, I will be leading
this work together with the Sustainability Committee and
wider team.
EROAD is actively working to reduce our category 1 & 2
emissions – which includes our fuel and electricity emissions.
We are pleased to confirm that we have reduced our New
Zealand electricity emissions by switching our electricity
supply to Ecotricity, a certified carbonzero provider.
In FY23 we hosted an internal Sustainability Month to
encourage EROADers to think more actively about
sustainability and the actions we can take - both personally
and professionally. We have a real opportunity to foster
enduring change and we are passionate about advancing
sustainable outcomes.
Performance metrics and targets
With a new business strategy confirmed from FY24, we are
focused on setting meaningful performance targets. These
will be provided in EROAD’s FY24 Sustainability Report,
together with our climate-related risks and opportunities.
It is a privilege to lead EROAD’s Sustainability Committee
as we work to create a more sustainable world for us all.
Craig Marris
Chief Sustainability Officer & EVP Mixed Fleets
PAGE 11PAGE 10
EROAD 2023 SUSTAINABILITY REPORT
PAGE 12 PAGE 13
SUSTAINABILITY GOVERNANCE |
EROAD’s Sustainability Policy guides our sustainability
approach, encompassing the pillars of environment, social, and
governance. The Board assigns climate-related responsibilities
to the management team, who report back on progress.
Our management teams prioritise sustainability and manage
climate-related risks and opportunities.
Sustainability is the foundation for our global decision-
making processes, and the recent introduction of a new
business strategy provides an ideal opportunity to explore
ways to operate in a more sustainable manner. We are
committed to seizing climate-related opportunities
while mitigating associated risks, and our Sustainability
Committee offers guidance and advice on the strategies
that will achieve our sustainability goals.
Sustainability
Governance
EROAD
Sustainability governance
Representatives from the management team convene
monthly within the Sustainability Committee. This
proactive approach keeps the business well-informed
about the evolving climate landscape, and puts EROAD
in a strong position to realise our objectives, plus will
have significant impact on the carbon emissions in the
transportation sector.
* EROAD’s Board has delegated authority for climate risks to FRAC
Board of
Directors
EROAD’s Board is
ultimately responsible
for overseeing the
company’s sustainability
strategy and performance
against our sustainability
goals and targets.
FRAC*
EROAD’s Finance, Risk and
Audit Committee has been
delegated the authority
to oversee EROAD’s
sustainability initiatives
including the company’s
climate-related disclosures
from FY24.
Executive
Team
EROAD’s Executive
Team are responsible
for overseeing the
delivery of the
company’s sustainability
initiatives and ensuring
each business unit is
progressing the company’s
sustainability programme.
Sustainability
Committee
EROAD’s Sustainability
Committee is an internal
committee chaired by
the company’s Chief
Sustainability Officer,
and it includes key
representatives from
each relevant business
unit. The Sustainability
Committee is responsible
for actioning EROAD’s
sustainability initiatives
and advancing the
company’s ESG
performance.
OUR COMMUNITY |
PAGE 15
Our
Community
Goals and aspirations
EROAD 2023 SUSTAINABILITY REPORT
PAGE 14
• Support decarbonisation and air pollution reduction efforts to create
healthier and more sustainable communities
•
Enhance operational safety and reduce the occurrence of serious
injuries and deaths on roads
•
Impro
ve survivability of crashes by supporting our customers to ensure
vehicles are fit for purpose
• Advocate for regulatory solutions that are sensible, cost effective and
future proof
• Adv
ocate for data led decision making in the transport industry to
achieve a sustainable supply chain and efficient transportation network
•
Support communit
y initiatives and give back to our local communities
OUR COMMUNITY |
PAGE 17PAGE 16
EROAD 2023 SUSTAINABILITY REPORT
Up-cycling laptops
supports local schools
Positioning EROAD as
a fleet sustainability partner
EROAD proudly supports The Laptop Drop,
a New Zealand non-profit organisation which donates
second-hand laptops to school-aged children. Not only
did we donate the first laptops to this programme,
but in March 2023 we were delighted to donate their
100th
laptop. As well as keeping devices out of landfill,
this gives local children access to essential technology
needed for their education.
During FY23 EROAD surveyed key business decision
makers across Australia and New Zealand to understand
their sustainability goals and challenges. EROAD’s
customer base includes industries which are typically high
Green House Gas (GHG) emitters and we are well-placed
to support them on their sustainability journey.
Our survey found that 65% of heavy fleets said they will
have at least one low or zero emissions vehicle on their
fleet by 2025. In the next two years, 46% expect to have
a goal to decarbonise their fleet and assets.
As fleets transition towards lower emissions alternatives
in the coming years, it’s likely that their fleet data and
reporting requirements may also change.
Our Community
Over the last year and half, EROAD has been proud to
partner with Fuso New Zealand on two zero emissions
last-mile delivery truck trials in Auckland and Christchurch.
Sev
eral New Zealand companies are taking part in the
trials which aim to encourage the adoption of electric
trucks in New Zealand.
As the telematics partner on both trials, EROAD can
gather data and learnings about running electric vehicles
as part of a mixed fleet, including reporting requirements.
The trials ar
e helping to inform the development of
EROAD’s upcoming fleet decarbonisation tool which will
be released later this year. Mor
e information on this tool is
outlined in the Our Commercial Approach section.
65%
of heavy fleets said they will
have at least one low or zero
emissions vehicle in their
fleet by 2025
Jonathan Morgan from Laptop Drop and EROAD’s Mark Heine
Waitakere College teachers
OUR COMMUNITY |
PAGE 19PAGE 18
EROAD 2023 SUSTAINABILITY REPORT
Offering new tools in the fight
for climate action
EROAD’s 2022 Sustainability Survey uncovered that:
“Over half of businesses say they’re hampered by the ability to
track and measure sustainability performance.” How is EROAD
supporting our customers to overcome this?
EROAD is aware of the challenges our customers face
around measuring sustainability performance due to
complexity and large number of variables to consider. It
has been a game of layering estimates after estimates.
However, EROAD deals in data around vehicle information,
driver performance, and trip data which offers the
opportunity to assist customers with emissions reporting
through our new decarbonisation tool. Starting with
identifying the low-hanging areas of fleet operations
that can immediately yield fuel and costs savings,
through to the best and worst fleet groups and
drivers as it relates to eco driving and idling.
Our decarbonisation tool brings new visibility and
transparency through a range of reports that serve four
areas of concern: emissions, unproductive idling, energy
consumption, and replacement suitability. The latter
provides fleet managers insights to which of their heavy
vehicles are candidates to switch to lower-emitting vehicles
and fully-electric vehicles.
Our Community
Emission impacting factors
Vehicle
• Technology standards
• Drive train technology
• Weigh
t
• Maintenance (tire
inflation,tire wear, axle
alignment, lubrications)
•
Aer
odynamics
Driver
• Idling
• Speed
• Ac
celeration/
braking
•
Gearing (RPM)
•
Habits (window
open, AC usage)
Route & Load
• Distance
• Terrain
• Tr
affic conditions
• Number of stops
• Road surface conditions
• Load optimisa
tion
(maximize load per km)
OUR COMMUNITY |
PAGE 21PAGE 20
EROAD 2023 SUSTAINABILITY REPORT
Reducing EROAD’s
own impact
As well as supporting customers to lessen their footprint on
the planet, EROAD is also focused on our internal operations
to do the same. With our headoffice in New Zealand and
offices in Australia and the US, we are looking at ways to
reduce our category 1 & 2 emissions, and while early in this
journey, have made progress around our fuel and electricity
emissions. In late 2022 we switched our electricity provider
for all NZ locations to Ecotricity, an accredited carbon
neutral provider. In Albany we changed waste collection
provider to align with the same provider used by other
businesses in the precinct, thereby reducing the need for
additional vehicles accessing the site and reducing fuel
usage. There are also additional financial savings which align
with our strategic goal of increasing efficiencies within the
business. In FY24 we are moving to a hybrid/EV fleet within
our NZ Sales team. We will continue to explore how we
can escalate initiatives not only in NZ, but across our global
locations to positively benefit our sustainability goals and
the environments where we operate.
“At Downer we believe that relationships
create success. In times of need
it is incredibly powerful that our
businesses (Downer and EROAD) can
come together to support critical first
responses faced with an unprecedented
immediate demand. As much as we
enabled them, ultimately they enable the
community to move into the next phases
of a recovery process.
ERO
AD telematics
provided critical visibility across these
units during this time.”
Downer
Using technology in the aftermath
of Cyclone Gabrielle
Following the widespread damage caused when Cyclone
Gabrielle swept through NZ’s North Island in February
2023, communication outages and difficulty accessing
some areas made providing emergency support difficult in
parts of regional Hawkes Bay.
To assist with the immediate emergency response, long
term EROAD customer Downer loaned NZ Police 20 four-
wheel-drive vehicles to access the worst affected areas.
EROAD donated satellite enabled devices (EHUBO2 and
Where) so that for safety purposes Police could always
track these vehicles and drivers.
Our Community
E-Bike day at EROAD HQ
One of EROAD’s EVs
Cyclone Gabrielle damage @DownerCyclone Gabrielle response @Downer
OUR COMMUNITY |
PAGE 23PAGE 22
EROAD 2023 SUSTAINABILITY REPORT
Supporting our
local communities
North America
sustainability expo
• Food parcel support at Auckland City Mission
In 2022 two groups of EROADers volunteered to pack
food parcels for families in need at the Auckland City
Mission distribution centre.
• Planting for improved water quality
EROADers volunteered to plant special fauna that
provides important habitat and reduces runoff and
sediment from reaching a local estuary.
EROAD’s North American team attended the Advanced
Clean Transportation Expo in Anaheim, California. AK Koyi,
Craig Marris and board member Susan Paterson joined nearly
13,000 people at the four-day event to hear about the latest
infrastructure solutions, and technologies transforming clean
commercial transportation. Many of the conference presenters
were existing EROAD customers.
Our Community
• Weeding for sustainability
Two EROAD teams used their volunteer opportunity to
get their hands dirty helping a river restoration trust.
They cleared overgrown weeds and vines that were
choking the trees on the banks of a local river.
• Supporting families in need
EROADers were pleased to help with maintenance at
a local Ronald McDonald House, a global charity which
provides a ’home away from home’ for families with
children in hospital.
Each year EROAD staff can dedicate one paid day volunteering
with a charity or organisation in their local community. In FY23
EROAD staff supported several charitable causes including:
Orewa Estuary planting Conference in Anaheim, May 2023 ® ACT EXPO
OUR ENVIRONMENT |
PAGE 25PAGE 24
EROAD 2023 SUSTAINABILITY REPORT
Our Environment
EROAD 2023 SUSTAINABILITY REPORT
• Deliver intelligent solutions that contribute to net zero
government targets
•
Provide actionable insights to customers on their fleet’s
emissions performance and their areas of impact
•
Empow
er customers to take targeted actions to decarbonise
•
Impro
ve our customers’ fleet utilisation and fuel efficiency to
reduce their emissions
• Reduce food, construction and industrial wastage and reduce
contamination in transit
• Opera
te efficiently and sustainably to reduce EROAD’s
emissions across all areas of our operations
•
Con
tinue to measure and reduce EROAD’s carbon footprint
• Further our understanding of EROAD’s climate landscape in
accordance with the NZ climate-related disclosures framework
• Remain agile and r
esponsible to environmental challenges
PAGE 24
Goals and aspirations
OUR ENVIRONMENT |
PAGE 27PAGE 26
EROAD 2023 SUSTAINABILITY REPORT
The majority of vehicles in the transport
industry rely on fossil fuels, such as
gasoline and diesel, which produce
carbon dioxide (CO2) and other
greenhouse gases when burned.
These emissions contribute to climate
change, which has negative impacts
on the environment, including rising
temperatures, rising sea levels, and
increased frequency and severity of
extreme weather events.
Over half of businesses say they’re
hampered by the ability to track and
measure sustainability performance.
Our Environment
Measuring fleet sustainability performance
Globally, sustainability reporting is increasing – with or without
regulation. In our 2022 Sustainability Survey, 8 in 10 heavy fleets say
their customers are reviewing sustainability performance in their
vendor selection processes.
Businesses with a fleet of vehicles – heavy or light –
need information they can use to demonstrate their
sustainability performance.
EROAD already provides many of our customers with
valuable data that they’re using as part of their overall
sustainability reporting, including total distance travelled,
vehicle/asset utilisation, overspeeding and harsh driving
trends, idle time and fuel usage.
EROAD’s Fleet Decarbonisation Tool, which is due to
launch later this year, will provide fleet businesses with
further data on their fleet sustainability performance and
give insights as to which fleet vehicles are suitable for EV
conversion.
EROAD hopes the tool will help the more than 50%
of businesses surveyed who face challenges with
data availability for setting, measuring and achieving
sustainability goals.
At EROAD we’re committed to reducing our own carbon
emissions and supporting customers to do the same. We
are on the sustainability journey with our customers and
together we can create a better world tomorrow.
EROAD provides data intelligence that helps fleet
operators optimize their routes and reduce fuel
consumption, including the incorporation of real time
traffic through turn-by-turn navigation. By providing
real-time data on vehicle location, speed, and fuel use,
EROAD’s telematics services can help operators identify
opportunities to improve efficiency and reduce emissions.
EROAD is also supporting the adoption of electric vehicles
including the integration into electric charging points
and reporting State of Charge (SoC) of electric vehicles
and encouraging customers to explore options for
incorporating EVs into their own fleets.
OUR ENVIRONMENT |
PAGE 29PAGE 28
EROAD 2023 SUSTAINABILITY REPORT
Decarbonisation tool launches in FY24
By analysing fuel consumption, mileage, and other data,
the tool highlights the most inefficient vehicles, allowing
customers to make informed decisions around reducing
fuel consumption to lower emissions.
It also provides data on vehicle utilisation, so that fleet
managers can optimize vehicle usage and minimize idle
time, resulting in reduced fuel consumption and emissions.
The Decarbonisation Overview feature provides detailed
reports on the fleet’s carbon emissions, helping fleet
managers track progress towards emissions reduction
targets and report to stakeholders on their company’s
commitment to sustainability and responsible business
practices.
Organisations will be empowered to make data-led
decisions to manage their vehicles in a sustainable and
efficient way which will improve their operating costs and
further their sustainability goals.
The tool will be free to all My EROAD customers for the
first year.
Scheduled to launch in FY24, EROAD’s new decarbonisation tool will help
customers operate a more sustainable and cost-effective fleet. Partially
funded by the Energy Efficiency and Conservation Authority (EECA), the
tool helps customers assess the environmental impact of their fleet and
identify areas for improvement.
EROAD’s decarbonisation tool is a powerful
asset on our sustainability journey. With
more than 70 trucks using over 500,000l
of diesel per annum, the EROAD decarb
tool’s reporting capabilities allows us to use
our fleet data to identify how we can better
serve our customers, increase efficiency in
transport, analyse if we have the right fleet
in the right place, and see the emissions
profile by region for that service.
It’s powerful
to know where you sit within your industry
and compared to similar fleets. It’s difficult
navigating all available tools on the market,
so to have integrated data through EROAD
allows clarity for decision making, reduces
the guess work, and ultimately facilitates
more timely decisions.
Now we can create
changes and targets and use the tool to
report improvements over time.
Phoenix Metalman Recycling
Decarbonisation tool at a glance
SUPPORTS:
• Achieving customers
sustainability goals
•
Reducing oper
ating costs
•
Improving bottom line
GIVES INSIGHTS INTO:
• Emissions overview
• Unproductive idling
•
Fuel and energy economy
• EV replacement suitability
Our Environment
*Decarbonisation tool UX workflow
PAGE 30
EROAD 2023 SUSTAINABILITY REPORT
Electric vehicles
OUR ENVIRONMENT |
PAGE 31
Our Environment
EROAD Fleet Expo, Wellington 2023
Giving insights into the sustainability journey
EA Sween, North America
North American foodservice
manufacturer and distributor EA
Sween joined EROAD in 2010. The third
generation, family-owned company
produces more than 100 million
sandwiches a year and provides fresh,
daily delivery to more than 2,000
7-Eleven stores across the US.
“EROAD’s fleet management solutions
allow us to run a more efficient
fleet and reduce the biggest costs
associated with fleet ownership. We
can easily manage deliveries and route
performance, and remotely control
the temperature of our refrigerated
trailer units during transportation. We
recently rolled out CoreTemp, EROAD’s
simulated product solution, which
gives us real-time food temperature
which maintains a high standard of
food quality during transportation and
a more sustainable solution for our
customer. We can be more proactive
with our delivery management and our
customer gets increased visibility of
food safety during transit.”
Shawn Enloe, VP-Final Mile Solutions,
EA Sween
Transport accounts for 17% of New Zealand’s emissions,
and in EROAD’s 2022 Sustainability Survey, 76% of
businesses operating light vehicles said low or zero
emissions vehicles will become part of their fleet by 2025.
Events like EROAD Fleet Expo aim to help businesses
understand the options available to them and learn from
each other as they work to reduce emissions.
More than 120 fleet professionals, experts and business
leaders took part in discussions on the journey to
electrification and the actions leaders should take to
prepare for the future.
There was also practical advice on
fleet optimisation, leasing versus buying and how to plan
for EV charging infrastructure, and the opportunity to test
drive electric vehicles suitable for light fleets.
BookIt: Tracking the shift to EVs
Our pool vehicle fleet solution ‚Bookit‘ enables EROAD‘s
customers to record and track the utilization of their
vehicles by fuel type (ICE, Electric & Hybrid). Across all our
Bookit pool vehicle fleets in New Zealand we see a strong
trend in the use of new energy and hybrid vehicles over
time. The proportion of EVs on the system has grown from
8% in Jan 2022 to 24% in April 2023, reflecting the rapid
adoption of EVs in the New Zealand light-vehicle segment.
Tools for electric vehicle (EV)
management
In FY24 EROAD will launch seamless management of both
internal combustion engine and electric vehicles within
a single fleet management platform. This will include the
ability to view the EV’s charge status directly on the map
display.
Electronic logging devices (ELD)
for EVs
In North America, avoiding driver fatigue is mandated by
the ELD mandate. EROAD’s Electronic Logging Devices
let drivers easily manage their hours of service, clearly
displaying when they should take rest breaks and how long
until they can begin work again. To support customers who
are investing in EV vehicles within their fleets, EROAD’s
ELD enables connectivity with EV vehicle CANBUS so our
North American customers remain compliant.
Encouraging light fleets to go electric
EROAD’s Fleet Expo hosted managers of light fleets
for a first-of-its-kind event for light fleet managers and
business leaders. Held in Wellington, NZ, the one-day
event, sponsored by EROAD and the Greater Wellington
Regional Council brought together light fleet professionals
and businesses to discuss the challenges, trends and
opportunities in the sector.
OUR ENVIRONMENT |
PAGE 33PAGE 32
EROAD 2023 SUSTAINABILITY REPORT
Climate-related disclosures
As a publicly listed company in New Zealand, EROAD
adheres to the mandatory disclosure requirements outlined
in the Financial Sector (Climate-related Disclosures and
Other Matters) Amendment Act 2021. This legislation
mandates the publication of climate-related information
and analyses, necessitating ongoing consideration of
the impact of climate change on our company. The aim
of these requirements is to enhance our comprehension
of the climate landscape, leading to more informed and
efficient allocation of capital. This increased understanding
aligns with our purpose and facilitates EROAD’s transitions
toward a more sustainable organisation.
EROAD is on the way to assessing the company’s risks
and opportunities and we will be disclosing our metrics
and targets in our FY24 Reports. Climate reporting is
an evolving process, and we approach it with an open
and engaged mindset, recognising that it is a journey of
continuous improvement.
EROAD insights for zero emission trials
EROAD played a critical role in the EECA funded trials
sponsored by the Christchurch City Council and Auckland
Transport, which aimed to gather crucial data and insights
for future policies, development, and utilisation of electric
delivery vehicles in city centres. Fuso NZ collaborated with
both organisations to procure and deploy electric trucks
for the trials, while EROAD’s involvement was crucial in
providing the means for data collection, analysis, and
insights.
In Christchurch, Fuso deployed nine eCanter electric trucks
to fleet participants, five for the Civil Construction and
Maintenance Trial and four for the Shopping District Trial.
Auckland’s Zero Emission Area City Centre trial saw Fuso
deploy five eCanter electric trucks. The trials produced
reports detailing information including the eCanter’s State
of Charge (SoC), average kilometers travelled per kWh
of charge, greenhouse gas emissions avoided, and depot
charger utilisation and time of use.
EROAD’s first foray into the electric vehicle (EV) space
provided valuable learnings for future work. The trial results
revealed disparities between expectations and reality, with
initial assumptions made about accessing State of Charge
(SoC) data proving to be a challenge. Both the Auckland
and Christchurch trials played a significant role in EROAD’s
discovery and knowledge around EVs and CANBUS.
The trial also shed light on the varying attitudes of fleet
managers towards EVs, chargers, and other related
aspects. These insights will be crucial in guiding future EV
work, ensuring that both EROAD and our customers are
well informed and equipped to utilise the full potential of
electric vehicles.
Our Environment
OUR ENVIRONMENT |
PAGE 35
EROAD 2023 SUSTAINABILITY REPORT
A focus on lowering emissions
Orion, New Zealand
Over the last eight years, the team
at Orion has been on a journey to
electrify their fleet, and now 50% of
the passenger fleet is electric – mostly
plug-in hybrid. As they transition to
low-emission vehicles, the data and tools
within EROAD are helping to make their
fleet more efficient and sustainable. As
Fleet Manager, Richard says “we can’t
manage what we don’t measure.”
As part of their sustainability drive,
people leaders review the overspeed
and idle reports, while their sustainability
team has created a dashboard using
EROAD’s fuel card management tool
and EROAD Analyst to track and report
on their fuel usage.
“As part of our sustainability journey
we are now starting to go from
passively to actively managing
the data. Overspeed goes hand in
hand with efficiency of the vehicle
and we’re also looking at the idling
numbers.
We get the data back from card smart
through EROAD and we’re using that
data to come up with a BI dashboard
on fuel use.”
Orion
PAGE 34
EROAD 2023 SUSTAINABILITY REPORT
Data-driven business decisions
When you’re looking for ways to improve efficiency or productivity in
your business, good data is invaluable. Orion is one of many businesses
that are harnessing the power of data.
By combining EROAD’s accurate data with other critical business data,
Orion can make informed business and policy decisions.
HERE’S HOW ORION NZ HAS GROWN WITH EROAD
JAN 2020
started with
a trial of
10 x Ehubos on
SafeDriver plan
MAY 2020
added
10 x EROAD
Where asset
trackers
JUL 2020
began full roll
out of Ehubos
across c100
vehicle fleet
OCT 2020
added another
10 x EROAD
Where asset
trackers
JUL 2021
added
EROAD
Analyst
(creates
graphical
reports and data
comparisons)
MAY 2022
Connetics
Limited (wholly
owned by Orion
NZ Ltd) roll out
Ehubos across
250 vehicle fleet
Our Environment
OUR ENVIRONMENT |
PAGE 37PAGE 36
EROAD 2023 SUSTAINABILITY REPORT
EROAD’s internal emissions
Reducing EROAD’s internal emissions
EROAD is proud to mark its second year as member of
the Toitū carbonreduce programme in New Zealand.
Since the FY22 Report, we have successfully completed
the integration with Coretex and have included the
corresponding emissions in this year’s report.
Due to the significant changes resulting from the Coretex
acquisition, we have recalibrated our base year emissions
profile to accurately reflect the emissions profile of
the entire EROAD Group. As a result, we are unable to
report specific emissions reduction targets at this stage.
Nevertheless, we have taken steps to reduce our New
Zealand electricity emissions by transitioning to Ecotricity,
a certified carbonzero provider. We have also introduced
lower emission fleet vehicles including hybrid vehicles to
lower our fuel consumption. We are aiming to reduce our
company wide electricity and fuel usage in line with Toitū
programme requirements.
While we recognise that category 4 emissions, including
purchased goods and services, pose a challenge as we
have limited control over them, we are committed to
collaborating with suppliers to reduce these emissions as
part of our long-term sustainability goals.
In FY23 EROAD organised an internal Sustainability Month
encouraging staff to consider the actions they can take
on a personal and professional level to benefit the fight
against climate change and a more sustainable existence.
EROAD’s dedication to reducing carbon emissions extends
beyond our internal business operations. We also strive
to support our customers and their drivers in reducing
their own emissions and contribute to wider sustainability
initiatives. By delivery intelligence that fosters a better
world tomorrow, we can actively contribute to creating a
more sustainable future.
28,610.86
EROAD’S TOTAL EMISSIONS
FOR FY23 (tC02e)
Emissions (tC02e) by categoryCategories under the scope terminology with actual emission areas for EROAD
Emissions reporting in New Zealand follows the GHG
Emissions reporting Protocol which breaks down emissions
into three Scopes:
• Scope 1: Direct GHG emissions and removals
• Scope 2: Indirect GHG emissions from imported energy
• Scope 3: Other indirect GHG emissions.
From FY21, Toitū emissions inventory reporting aligns
with ISO 14064-1:2018 which breaks emissions into six
Categories instead of the three Scopes. This allows for
more granular reporting.
167.41
CATEGORY 1
Direct emissions and
removals
SCOPE 1SCOPE 2
Our Environment
1,641.00
CATEGORY 3
Indirect emissions from
transportation
84.78
CATEGORY 2
Indirect emissions from
imported energy
(market-based method)
26,717.68
CATEGORY 4
Indirect emissions from
products used by
organisations
CATEGORY 1
Direct emissions and removals
Company vehicles
• Diesel
• Petrol
CATEGORY 2
Indirect emissions from
imported energy
Purchased electricity
for own use
• Electricity
SCOPE 3
CATEGORY 3
Indirect emissions from
transportation
Business travel - Transport
(non-company owned vehicles)
• Air travel domestic, short haul,
long haul
• Staff mileage claims
• Taxis
Downstream freight - Paid by
the organisation
• Freight - air, sea, road and rail
Employee commuting
• Bus travel
• Car travel
CATEGORY 4
Indirect emissions from products
used by organisation
Disposal of solid waste - Landfilled
• Waste landfilled
Transmission of energy
(T&D losses)
• Electricity distributed T&D losses
SCOPE 3
Additional
CATEGORY 3
Indirect emissions from
transportation
Working from home
CATEGORY 4
Indirect emissions
from products used by
organisation
Purchased goods
and services
• Paper use
•
Pre-calcula
ted (tCO2-e)
- Purchased goods
and services
OUR PEOPLE |EROAD 2023 SUSTAINABILITY REPORT
PAGE 38 PAGE 39
Our People
Goals and aspirations
EROAD 2023 SUSTAINABILITY REPORT
PAGE 38
• An inclusive, collaborative engaged culture aligned to our
values and vision
•
Strong talent pipelines and career progression
opportunities for current and potential EROADers
•
Remuner
ation and benefits that recognise performance and
support attraction and retention
• Leaders with the capability, tools and empowerment to lead
OUR PEOPLE |EROAD 2023 SUSTAINABILITY REPORT
PAGE 40 PAGE 41
Our Values
WE DO WHAT’S RIGHT
We put customers at the heart
of what we do.
We look after our people and put
their safety & wellbeing first.
We focus on delivering quality
outcomes.
WE PLAY AS A TEAM
We all play for the same team and that
includes our customers and partners.
We value and respect diverse opinions
and we work together to overcome
challenges.
We embrace our differences and
celebrate what makes us unique.
Our People
People at the heart
This year we established a solid foundation of platforms,
processes, and development programmes to support
our people throughout their time with EROAD to reach
their own professional goals and contribute to EROAD’s
commercial success.This year brought challenges as the
world returned to a new ’normal’ following the disruption
of the covid pandemic and changing global economic
conditions. As we embarked on a return to more regular
office-based hours after so long working from home,
we were pleased to offer a flexible hybrid working
environment for staff. Our people now enjoy the benefits of
working remotely and also coming together to collaborate
in our seven global locations.
The health, wellbeing, and development of our people remains a
top priority for EROAD. We understand that the success of the
individual is directly linked to the success of our business.
Now in our second year since the merger with Coretex,
we’re working to ensure our combined team culture
reflects togetherness, where we see the value and role we
play both individually and to EROAD’s overall success.
For FY24 we are focused on continuing to build the
capability and skill of our team leaders so they can provide
world class support and coaching to our people as we
embark on our growth strategy.
WE LEARN & GROW
We listen to learn.
We own and learn from mistakes,
choosing to hold a growth mindset.
We believe that curiosity fuels
successful innovation.
WE GET IT DONE
We do what we say we will.
We prioritise to deliver the most
important outcomes.
We take ownership and work together
to get to a solution.
OUR PEOPLE |EROAD 2023 SUSTAINABILITY REPORT
PAGE 42 PAGE 43
Reward and recognition
234
EROAD Award
nominations
34,918
Bonusly recognition
messages
$1,500
donated to charity
through EROAD Awards
Reward and recognition are important in a high-performing culture,
and at EROAD we celebrate success through two peer-to-peer
initiatives; our online reward platform, Bonusly, and a quarterly
EROAD Awards programme.
Our People
Training and development
Building leadership capability
In FY23 two cohorts of leaders underwent EROAD’s
Leadership Programme (ELP) with 10 senior leaders in
North America and 18 in New Zealand completing the
intensive six month programme.
This year EROAD launched a new interactive programme
designed for people leaders across the globe, whether they
were seasoned managers or new to a management role.
The Leadership Essentials Programme offers 12 modules,
covering the skills needed to lead people and teams more
effectively and efficiently. The modules cover essential
skills including recruiting new staff, having difficult
conversations, coaching teams, finance for non-financial
leaders, and giving effective feedback. The programme
aims to grow leadership skills to assist managers to
support EROAD teams through our next growth phase.
Increasing leadership capability is an important goal for
FY24.
Training and education
IN FY23 we:
• Launched our new e-learning platform on Workday which
offers all online training within EROAD’s global central HR
system
•
Offer
ed 16 Open Sesame online learning courses
including Agile Crash Course, Safe Driving Distracted
Driving, Productivity and Time Management, Excel for
beginners, Change Management Global
•
Engaged specialist e
xternal course providers to upskill
and support teams including specific training in Lean Six
Sigma Yellow Belt, Telephone Sales Growth Retention,
Chapter Lead Training
•
Launched a new manda
tory course: Working for a listed
business which sits with other compulsory courses for all
staff: data security, legal privacy, health and safety, new
starter induction, hardware familiarisation, and MYEROAD
fleet management portal.
Career development
In FY23 EROAD introduced new development plans
for all staff. Completed by staff and endorsed by their
people leader, these plans outline career progression goals
alongside potential training opportunities to support staff.
By the end of FY23, 71% percent of EROAD had completed
a development plan.
EROAD’ s managers continued to hold regular
development one-to-ones a with team members,
ensuring everyone has the opportunity for development
conversations to take place across the business.
Attracting new talent
Attracting new talent is a priority at EROAD. We are
focused on providing an innovative and engaged
workplace to support our team now and in the future.
Intern programme
EROAD received more than 100 high calibre applicants for
our FY23 summer intern programme. The nine successful
interns received a hands-on experience working with
our product development and engineering team gaining
valuable skills for a career in the technology sector.
Four interns were welcomed into EROAD’s graduate
programme in late 2023.
Scholarship
For the seventh year, EROAD offered a $5,000 scholarship
award through the University of Auckland. The scholarship
is awarded to a Māori or Pacific student studying advanced
science, computer/data science, information systems, or
software engineering. This year’s worthy recipient was
Cameron Nathan.
Immigration status
EROAD retains Immigration NZ employer status.
OUR PEOPLE |EROAD 2023 SUSTAINABILITY REPORT
PAGE 44 PAGE 45
EXPLORING VALUE |
Diversity and equality
As part of our commitment to ensuring all EROADers can
prioritise family, EROAD offers various resources such
as flexible work arrangements, and remote working and
parental leave (both maternal and paternal). We recognise
that when our wider family thrives, so do we.
To foster a sense of belonging and unity across our
organisation, we have established the WISH (Wellbeing,
Inclusion, Social & Health & Safety) committee. Comprised
of passionate volunteers from different areas of EROAD,
this committee strives to bring everyone together as one
team, regardless of their geographical location. Throughout
the year, the WISH committee organizes a range of events,
activities, and celebrations that allow our team members to
connect, celebrate, meet new colleagues, and have fun.
EROAD values its people and is dedicated to fostering a diverse
and inclusive work environment. Our company embraces diversity
and promotes an inclusive culture that thrives on the contributions
of individuals from 30 different countries. In terms of female
representation, EROAD surpasses industry standards in the
technology sector.
The WISH committee plays a vital role in promoting
inclusion and celebrating our diverse workforce. Their
efforts include organising events such as, a global walking
competition, international women‘s day, pink shirt day,
and community volunteer opportunities. These events
showcase the wide range of passions and backgrounds
within EROAD, reinforcing our commitment to diversity
and fostering a sense of belonging. Follow on from the
COVID years of remote working, the WISH committee
remains determined to connect all EROAD teams
worldwide. With many EROAD employees working
remotely, in FY23 the committee organised virtual events
and activities to connect our global team regardless of
their physical location. These included a weekly online
pop quiz, a celebration of new EROAD products, a panel
discussions and more fun events which allowed our global
team to come together and enjoy shared experiences, even
from a distance.
35%
EROADers are female
64%
EROADers are male
1%
Gender not declared
32%
20%
32% of EROAD female employees are in leadership roles
compared to 20% in the technology sector overall
EROAD
TECH
SECTOR
Our People
OUR PEOPLE |EROAD 2023 SUSTAINABILITY REPORT
PAGE 46 PAGE 47
Health and safety is a priority at EROAD and in FY23 this focus
was bolstered with the appointment of a dedicated Group
Health and Safety team.
Health and safety is fundamental to the sustainable growth of
the business, ensuring our people can support customers to
raise industry standards. A comprehensive roadmap for FY24
outlines new initiatives and programmes supports EROAD to
deliver on its health, safety, and wellbeing commitments.
To support our team’s psychological health and wellbeing,
we offer 24-hour access to employee assistance programmes
across our global locations, as well as wellbeing packages
including free healthcare, insurance, and wellbeing packages to
all EROADers, globally. This includes mobile support through
the use of our Being Well app, so EROADers can access support
from anywhere, at any time.
Our People
Health, safety and wellness
of our people
EROAD 2023 SUSTAINABILITY REPORT
PAGE 48 PAGE 49
Goals and aspirations
EROAD 2023 SUSTAINABILITY REPORT
• Deliver sustainable and growing financial returns
for shareholders
•
Deliver innovative solutions to solve customers’ challenges
• Maintain r
esilient and robust platforms
• Ensure high level protections against breach of confidentiality,
loss or unauthorised access to data, and technology disruption
PAGE 48
OUR COMMERCIAL APPROACH |
Our Commercial
Approach
EROAD 2023 SUSTAINABILITY REPORT
PAGE 50 PAGE 51
OUR COMMERCIAL APPROACH |
Reliable and secure data
At EROAD, our success hinges on building and maintaining reliable, high
performing technology platforms which protects privacy and security
for our customers. Cyberattacks are a constant threat so it is paramount
we protect our customers from confidentiality breaches, data loss, or
technological disruptions which can lead to financial and reputational
consequences for our customers.
We work closely with our key technology partners,
including AWS, Microsoft, HERE, and Vodafone, to 100%
align on the frameworks and key pillars of well architected
platforms. This ensures we follow best practices and that
we are leveraging changing products and services that
benefit our products and customers.
• Operational Excellence
• Security
• Reliability
• Performance Efficiency
• Cost Optimisation
Our products are built on the top of our world class cloud
platforms, leveraging the distributed global network
of datacentres, isolated availability zones and regional
redundancy. Architected from the ground up for low
latency, resilience, and scalability.
We implement stringent security measures, from early
design through to operational controls, and conduct annual
third-party penetration testing. We prioritise privacy in
all design processes and have launched a privacy impact
assessment tool to strengthen our efforts.
We’re continuously working to clarify and fortify IT and
cybersecurity policies, emphasising robust security
practices. Our comprehensive training programmes help
employees understand privacy risks, data security, and
effective mitigation strategies.
99.7%
Overall EROAD uptime
across all platforms
In FY23 two EROAD security engineers achieved
Offensive Security Certified Professional (OSCP)
certification. The qualification which covers ethical
hacking, forensics and penetration testing culminating in
a 48-hour practical exam, is highly respected amongst
information security professionals.
84%
of businesses have seen at least one
positive impact as a result of taking
sustainability action
9 in 10
businesses have already started taking
action through sustainability initiatives
Our Commercial Approach
EROAD 2023 SUSTAINABILITY REPORT
PAGE 52 PAGE 53
OUR COMMERCIAL APPROACH |
Data driven decisions
PLM, North America
PLM Fleet is a dedicated fleet management
provider serving the cold supply chain
and refrigerated trailers through leasing,
maintenance, telematics, rental, and lifecycle
management solutions to reduce total cost
of ownership. Currently PLM Fleet manages
over 14,000 refrigerated trailers consisting
of diesel, hybrid, and fully zero emission.
Our Commercial Approach
EROAD’s own fleet vehicles
EROAD is continually looking at ways to reduce our own fleet’s fuel
burn and CO2 emissions. We recently reduced our NZ sales fleet size
and swapped higher emission vehicles for lower emission vehicles.
We have reduced
sales vehicles
from 34 to 25
We are forecast to
save 7,305 litres of
fuel per year
We are forecast to
reduce our CO2
emissions directly
from fuel consumption
from 57.5 tonnes
per year to 39.5
tonnes per year
We already have three EVs and 19 hybrid vehicles in our fleet. We
are actively investigating how to increase the number of EVs we
have in the future.
“EROAD works with us to produce new data
points to track the overall performance of both
diesel and zero emission Transport Refrigeration
Units. Via these data points we can provide
advanced analytics to our customers to reduce
diesel consumption and optimize overall fleet
efficiency. This coupled with battery and
temperature analysis of our zero emission TRU
allows us to reduce the carbon footprint of
our customer and ensure they are making the
necessary operational changes to fully transition
to the zero-emission climate.
Through EROAD’s numerous data points
provided by their telematics we can build
customer facing analytic reports to help lay out
a roadmap as to how a fleet can transition to
fully zero emission. EROAD is always willing to
work with our teams here at PLM to integrate
new data points such as battery state of charge
to ensure the electric Transport Refrigeration
Unit is working to its utmost capabilities.
The long-term relationship with EROAD to
leverage their technology solution to reduce
diesel fuel consumption and food waste is a
win/win for the company and our environment
through lower costs and lower emissions.”
PLM
PAGE 55
OUR COMMERCIAL APPROACH |EROAD 2023 SUSTAINABILITY REPORT
PAGE 54
Modern Slavery Statement
EROAD is committed to upholding human rights practices across
all our business-related activities. The company’s purpose and
values support this commitment. Upholding human rights practices
involves ensuring that slavery and human trafficking are not taking
place in any part of our business operations. Modern slavery in any
form* is against EROAD’s company policies.
This Modern Slavery Statement is made in accordance with our
obligations as a listed entity on both the NZX and ASX (foreign-
exempt issuer) and under the Modern Slavery Act 2018 (Australia)
and Transparency and Supply Chains Act 2010 (California).
EROAD publishes an annual Modern Slavery Statement in
accordance with our legal obligations and our moral obligations as
a socially responsible entity.**
*Modern slavery risks include all forms of slavery or practices like slavery such as child labour, forced or compulsory labour, bonded labour, serfdom,
and recruitment for armed conflict.
**EROAD is aware that New Zealand’s Ministry of Business, Innovation and Employment (MBIE) is presently developing modern slavery and worker
exploitation legislation for all organisations in New Zealand. EROAD will address these requirements once they are known.
Our Commercial Approach
Sustainable Supply Chain
Following the relaxation of COVID-19 restrictions worldwide, and
the subsequent reopening of borders, EROAD’s supply chain team
re-established connections with our global partners. This enhanced
interaction facilitated several crucial initiatives focused on stability,
sustainability, and social responsibility.
Conducting on-site visits allowed us to audit our top
suppliers, ensuring that our supply chain maintains
a strong commitment to social responsibility. These
visits provided an opportunity to further fine tune
our environmental objectives, particularly around our
emissions reduction goals. We are eager and have begun
to collaborate with our suppliers to explore ways to
collectively reduce our carbon emissions.
In FY23 EROAD formalised our sustainable supplier
questionnaire. This questionnaire requires suppliers
to undertake a self-assessment and declare key
sustainability policies and practices. This initiative gives
EROAD’s continuous oversight of our supply chain practices
and so we maintain visibility over sustainability efforts.
The integration with Coretex presented us with the
opportunity to work on optimising our supply chain while
prioritising environmental, social and governance factors.
Building on the progress made in FY22, we have been
actively developing alternative sources for critical product
lines, with strong focus on the impact on customers around
the upcoming 2G and 3G networks phase out.
Within FY24 we will be embarking on additional projects to
support sustainability objectives. This will include a tender
process for freight providers in an effort to reduce costs,
provide improved visibility and reporting as well as allow
for further integration of combined services.
EROAD’s focus on securing critical components
necessary to sustain production operations through the
semiconductor shortage period has, to date, been helpful
in enabling production to continue unhindered. With the
easing of a large proportion of the industry shortages, the
business now shifts focus to that of reducing component
inventory and aiding the overall FCF performance.
PAGE 57
OUR COMMERCIAL APPROACH |EROAD 2023 SUSTAINABILITY REPORT
PAGE 56
EROAD’s Business and
Organisational Structure
EROAD’s Business
EROAD modernises road charging and tax compliance
and health and safety compliance for road transport
by replacing paper-based systems with easy-to-use
electronic systems that also improve fleet management
and driver experience.
The company is headquartered in Auckland, New Zealand,
and is listed on the New Zealand Exchange (NZX: ERD)
and Australian Stock Exchange (ASX: ERD). Its US business
is based in San Diego, California, serving customers with
vehicles operating in every US mainland state.
In 2009 EROAD introduced the world’s first nationwide
electronic road user charging (ERUC) system in New
Zealand. The Company develops and sells end-to-end
hardware enabled software as a service (SaaS) products
for the management of vehicle fleets in New Zealand,
Australia and North America. EROAD’s product offerings
are intended to:
1. support regulatory compliance including transportation
taxes, road user charging, fuel and vehicle registration;
2. improve record keeping of both mobile assets (vehicles)
and drivers (including fatigue related products);
3.
help reduce vehicle operating costs and carbon emissions
by improving fleet efficiency;
4.
help impro
ve and promote driver safety;
5.
monitor r
efrigerated fleets and provide services to
construction and waste fleets; and
6. track micro assets.
EROAD has undergone a period of significant growth
following the acquisition of Coretex in 2021.
EROAD’s Organisational Structure
EROAD’s business includes EROAD Limited and all
related entities. EROAD operates in New Zealand,
Australia, and North America and includes all
entities formerly under Coretex operations from
1 December 2021.
EROAD’s Governance Structure
EROAD’s Board of Directors undertakes to perform its
duties and exercise its powers in the best interests of the
Company. The Board is assisted in its role by the Finance,
Risk and Audit Committee, Remuneration Talent and
Nomination Committee and Technology Committee.
EROAD’s Executive Team is responsible for the day-to-day
management of the Company and is supported by the
Senior Leadership Team and internal committees including
EROAD’s Sustainability Committee.
Board of Directors
FRAC*RTNCTC
Executive Team
Sustainability
Committee
EROADers
EROAD Ltd
(NZ operating entity)
EROAD Inc
(US operating entity)
EROAD Financial Services
Limited (NZ holding)
Coretex Ltd
(NZ operating)
Coretex Telematics Ltd
(Canada dormant)
Imarda Pty Ltd
(AU holding)
International Telematics
Holdings Ltd
(NZ dormant)
International Telematics
Corporation
(US dormant)
Coretex NZ Ltd
(NZ operating)
Coretex Australia Pty Ltd
(AU operating)
Coretex USA Inc
(US operating)
EROAD Australia Pty Ltd
(AU operating entity)
EROAD LTI Trustee
Limited (NZ trustee)
Modern Slavery Statement
PAGE 59
OUR COMMERCIAL APPROACH |EROAD 2023 SUSTAINABILITY REPORT
PAGE 58
Supply Chain
EROAD Limited manufactures its hardware products within
a number of countries in Asia. Hardware manufacturing
occurs in China, The Philippines, Singapore, Malaysia
and Indonesia. The company has distribution centres
in New Zealand, Australia and North America. EROAD
uses a variety of freight methods including road, sea,
rail and air, with the majority of our freight going via air
travel. The Company is committed to sustainable supply
chain management and accordingly, products are always
refurbished where possible.
EROAD employs a number of EROADers to create, manage
and develop our software, as well as EROADers to serve
our customers, comply with corporate requirements and
lead our teams. These employees are primarily based in
New Zealand, Australia and North America. In FY23 the
company reported 484 employees worldwide.
EROAD’s governance framework and remuneration policies
ensure fair wages and benefits for all EROADers. EROAD
has a number of mechanisms, in particular the company’s
Code of Conduct, Code of Ethics, Risk Management Policy,
Diversity and Inclusion Policy and Whistleblower Policy,
which all seek to ensure fair and appropriate behaviour
by the company. Any concerned party is encouraged
to raise issues with their manager or to utilise EROAD’s
independent whistleblower service managed by Deloitte.
Risks of Modern Slavery Practices
Risk Identification
EROAD is aware that slavery-like practices can include
underpayment of wages, excessive working hours, debt
bondage and confiscation of personal documents; and that
these risks are typically associated with other human rights
transgressions such as inadequate grievance mechanisms,
discriminatory practices, bullying/ harassment, unsafe/
unsanitary working conditions.
Slavery-like practices are not restricted to a specific part
of business, but may be prevalent along the entire supply
chain, within core operations (own employees and third
parties), as well as at customers. Of these three areas
EROAD has determined that the greatest relative risk
resides within our supply chain.
While modern slavery risks exist in every country,
the Global Slavery Index identifies Asia as being
highly vulnerable to, and having a high prevalence
of modern slavery. The Index also identifies similar
vulnerabilities and prevalence levels in the electronics
sector (component and equipment manufacture), and
freight (particularly shipping).
To date, EROAD has not identified or become aware of
any instances of human trafficking or slavery within our
operations or supply chain.
Risk Assessment and Evaluation
With our supply chain being our main area of focus, we
have adopted a multi-pronged approach to assessing the
risk. This includes supplier pre-qualification due diligence;
supplier self-assessment (via our Sustainable Supplier
Questionnaire); and on-site assessment and audits to
’ground truth’ the supplier governance documents and
other pertinent information provided.
EROAD has a Sustainable Supplier Questionnaire which is
sent out to all key suppliers we work with. The section on
social responsibility requires suppliers to disclose whether
they have any human rights and/or labour policies in place,
and to provide these where applicable. Likewise with
any safety and wellbeing policies. EROAD is committed
to upholding human rights practices in all our business-
related activity.
We ask suppliers for a statement to be made on fair
labour practices and adherence to labour laws within their
territory of operation. Should red flags be identified, our
focus is on supplier engagement to discuss our concerns,
and where required, agree on actions to be taken.
EROAD acknowledges that rapid termination of suppliers
involved in human rights violations may not be in the
best interest of vulnerable people within the supply chain,
and therefore we intend to use supplier termination as a
measure of last resort.
Actions taken by EROAD to address
modern slavery risks
Integration across our business
EROAD has no appetite for slavery and human trafficking
risks across our business. Accordingly, we expect all of
EROAD, organisations in our supply chain, as well as our
contractors, customers and third parties to comply with
this commitment.
Our Code of Ethics, Code of Conduct, Diversity and
Inclusion Policy, Whistle-blower Policy, Sustainability Policy
and Risk Management Policy all reinforce our value of
doing what’s right by committing to acting ethically and
with integrity in all our business relationships to address
modern slavery risks.
We have a multidisciplinary team, with representation
from People & Capability, Global Operations, Supply
Chain, Product and Legal, overseeing the application and
assurance of these requirements.
Entities we Own / Control
For entities we own/control, for example entities formerly
controlled by Coretex Limited, EROAD adopts the same
approach. All companies and divisions under the EROAD
umbrella are subject to our policies on modern slavery. We
undertake supplier questionnaires and audits for any entities
within our control as applicable. Any concerns are addressed
and escalated in the same manner described above.
Modern Slavery Statement
PAGE 61
OUR COMMERCIAL APPROACH |EROAD 2023 SUSTAINABILITY REPORT
PAGE 60
Assessing the Effectiveness of our Actions
We assess the effectiveness of our actions regularly to
ensure our approach is fit for purpose. We operate from
a position of trust and hope that our suppliers are honest
in their responses. We are however conscious of the fact
that without being on the ground, it is difficult to verify
the truth and accuracy of the information provided to
us by suppliers. We work hard to ensure a thorough
due diligence process and we continue to monitor our
approach to ensure it is appropriate. In FY23 EROAD’s
Supply Team was able to travel to supplier locations to
meet with workers and personally assess their working
conditions. This naturally afforded us the opportunity to
verify the accuracy of supplier self-assessments.
We visit suppliers to assess truth of questionnaire responses
and supplier declarations. If visits show deception on the
part of the supplier, we request additional information. To
date we have not uncovered any modern slavery issues. If
we were to find workers are not being treated in a safe and
healthy manner, we take this extremely seriously. In FY23
we were recommended a supplier, but upon visiting the
facility we determined that the health and safety conditions
were not appropriate - respiratory requirements were not
being met and as a result, we chose not to engage with this
supplier on that basis.
EROAD is committed to taking meaningful action to
identify, mitigate and manage any modern slavery risks in
accordance with our zero tolerance policy.
Recruitment and Employment Practices
EROAD’s People & Capability Team is responsible for
making sure that modern slavery does not feature in
EROAD’s internal operations. We have robust processes
in place around pre-employment screening, employment
conditions and workplace behaviour. Expectation of
workplace behaviour and employee safety is provided to
all EROADers when they commence their employment
with EROAD.
Procurement Practices
EROAD’s procurement policies and processes strive to
support partnering with other socially responsible and
reputable organisations across our supply chain and in
support of our core operations. (For example: business
support services, recruitment providers and professional
employer organisations, etc.)
To minimize the disparate and inadequate application
of our policies our key procurement requirements are
predominantly centralized in the business. Furthermore,
business relations with our key suppliers, contractors
and third-party providers are well established, which
contributes to improved relations with these entities, and
greater knowledge of their business practices.
Awareness and Training
EROAD raises awareness of modern slavery issues
by ensuring this statement is readily accessible to all
relevant stakeholders, beginning with all directors and
Executive Team members who have been briefed on the
requirements of the Australian Modern Slavery Act 2018.
To mitigate the risk, we provide training and appropriate
guidance materials to relevant employees across the
business. This is intended to help staff recognise the risks
of modern slavery and human trafficking in our business
and supply chains.
EROAD also provides a notification mechanism to capture
suspected instances of serious wrongdoing, including
slavery-related practices. These may either be reported
to EROAD’s General Counsel, Chair of our Finance, Risk
and Audit Committee, or anonymously through our
Whistleblower facility. This service is managed by Deloitte,
an independent third party, on behalf of EROAD and may
be accessed by either email, webform or phone.
Monitoring and reviewing the effectiveness
of our actions
Modern slavery falls within the broader realm of
Environmental, Social and Governance (ESG).
Consequently, ongoing monitoring and evaluation of
EROAD’s other ESG initiatives provides insights into the
adequacy of our modern slavery risk management; and
how this should be adapted to be better aligned and
more effective. EROAD supports the UN Sustainable
Development Goals and makes disclosures against the GRI
framework in our annual Sustainability Report.
Impacts of COVID-19
The impact of the COVID-19 pandemic on international
supply chains (such as commodity shortages, business
closures, and economic downturn) is widely known.
However, the nature and extent of such impacts directly
influencing potential slavery and trafficking practices is
many organisations’ supply chains are less apparent –
particularly beyond Tier1/direct suppliers.
Limitations on international travel over the majority of
FY22 undermined the ability to assess first hand conditions
at manufacturing facilities within our supply chain. We
are pleased to have been able to resume travel to key
suppliers in FY23. This proved to be a significant measure
for us throughout the year as it enabled us to circumvent
involvement with a supplier who did not meet our health
and safety standards, as outlined earlier in this statement.
Our Consultation Process
In FY22 our consultation has primarily focused on notifying
key internal stakeholders and priority suppliers of the
requirements they are required to adhere to. Deeper
internal and external engagement occurred in FY23. A
cross-functional approach to modern slavery has been
taken and EROAD’s supply team regularly engages with
other EROAD teams. In FY24 we are driving further
engagement through our Sustainability Committee with
key company representatives. The consultation also
involves Directors at the Board level.
Approval
This statement is made in accordance with the Australian
Modern Slavery Act 2018 and constitutes our Group slavery
and human trafficking statement for the financial year
ending 31 March 2023. It is approved by the Board and
reviewed annually.
Modern Slavery Statement
GRI INDEX |
PAGE 63
EROAD 2023 SUSTAINABILITY REPORT
PAGE 62
United Nations Sustainable Development Goals
The Sustainable Development Goals (SDGs) are the UN’s blueprint for
a more sustainable future for all. These goals look to create a better
world by ending poverty, fighting inequality and addressing climate
change.
EROAD is supportive of the United Nations Sustainable Development
Goals and has linked these to our GRI disclosures below.
EROAD Limited has made GRI-referenced claims in accordance
with the GRI Standards for the period 1 April 2022 - 31 March 2023.
EROAD is committed to advancing our disclosures in the interests
of being fully transparent with our stakeholders.
GRI-2 GENERAL DISCLOSURES
2-1Organisational
details
Cover/About
EROAD
a) EROAD Limited
b) Limited company incorporated under the New Zealand Companies Act
1993. Owned by shareholders trading on the NZX and ASX.
c) Le
vel 3, 260 Oteha Valley Road, Albany, Auckland, New Zealand
d) New Zealand, Australia, United States of America
2-2Entities included in
the organisation's
sustainability
reporting
Directory
a) EROAD Limited and associated entities. These are: EROAD Inc (US
incorporated entity, EROAD Financial Services Limited (NZ holding),
EROAD Australia Pty Ltd (AU operating entity) and EROAD LTI Trustee
Limited (NZ Trustee entity). Coretex Ltd, Imarda Pty Ltd, Coretex NZ Ltd,
Coretex Australia Ltd and Coretex USA Inc. are also included.
b)
Entities EROAD Limited controls or has an interest in are included in our
sustainability reporting. Please see financial statements.
c)
i) No minority interests to adjust for.
ii) Cor
etex Limited and its subsidiaries was acquired on 1 December
2021, the operations of the Coretex subsidiaries are included in this
sustainability report.
iii)
No differ
ences in approach across the disclosures in this Standard or
across material topics.
2-3Reporting
period,
frequency and
contact point
-
a) 1 April - 31 March, annually
b) 1 April - 31 March, annually - sustainability reporting is aligned with
financial reporting.
c)
16 June 2023.
d) Citadel MAGNUS for Investor Relations
e) Hugo Shanahan for Media Enquires
2-4Restatements of
information
EROAD’s
Internal
Emissions
a) EROAD has updated the Company’s base year carbon emissions profile
to include the Coretex side of the business.
i) It is important for us to provide a true and accurate presentation of the
Company’s carbon emissions and the former Coretex entities are now
sufficiently integrated into our operations to enable us to provide this.
ii) This will naturally show an increase in the Company’s carbon emissions
with the addition of the former Coretex entities. EROAD does not shy
away from this disclosure and is working hard to reduce our emissions
profile.
Our FY23 emissions are 61% higher than our FY22 emissions due to
the inclusion of business activity that was formerly part of the Coretex
operations
GRI Standards
Inventory
What has EROAD reported on?
DisclosureDescription
Report
Section
FY23
GRI INDEX |EROAD 2023 SUSTAINABILITY REPORT
PAGE 64 PAGE 65
2-5External assurance-a) EROAD seeks external assurance for our financial statements - these are
audited by KPMG in accordance with legal requirements. EROAD also
elects to seek external assurance for our carbon emissions reporting
through the carbonreduce programme with Toitū Envirocare. Senior
executives and the Board provide oversight and guidance in relation to
these commitments.
b)
EROAD’s sustainability reporting has not been externally
assured, however, EROAD’s carbon emissions reporting has been certified
by Toitu Envirocare under the Toitū carbonreduce programme and we
will be seeking external assurance in accordinace with climate-related
disclosure requirements from FY24.
i) Toitū carbonreduce certification disclosure (Toitu.co.nz)
ii) Toitū carbonreduce certified means measuring emissions to ISO 14064-
1:2018 and Toitū requirements; and managing and reducing against
Toitū requirements.
Level of Assurance: Reasonable for all categories excluding category 3
employ
ee commute and category 4 purchased goods and services &
Limited for category 3 employee commute and category 4 purchased
goods and services
iii)
EROAD has no other r
elationship with Toitū Envirocare outside of the
Toitū carbonreduce certification.
2-6Activities,
value chain and
other business
relationships
a) EROAD Limited (ASX: ERD; NZX: ERD) (“EROAD”) purpose is delivering
intelligence you can trust for a better world tomorrow. EROAD develops
and markets technology solutions to manage vehicle fleets, provide
supply chain visibility, support regulatory compliance, improve driver
safety, and reduce the costs associated with operating a fleet of vehicles
and inventory of assets. EROAD has a proven SaaS business model
and is experiencing continuing growth in installed units and revenue.
EROAD has operations in New Zealand, North America and Australia with
customers ranging in size from small fleets through to large enterprise
customers.
EROAD’s solutions span fleets that service over-the-road delivery,
less than truckload, broadliners, civil engineering, construction,
ready mix, waste and recycling, refrigeration transportation,
intermodal, private fleets. In 2023, we added another Shipper to our
simulated product temperature solution, Coretemp. This solution
significantly reduce product waste by providing clear visibility about
the core product temperature integrity for Shippers and Carriers as
well as transparency for Receivers.
b)
Infrastructure
EROAD’s infrastructure includes its software platform, the cloud
infrastructures they are hosted on, and its network of hardware,
software and sales partners. The software platform is the foundation
of EROAD’s business, and it allows customers to track their vehicles,
manage their fleets, and comply with regulations. The data centers
are used to store and process data, and the network of partners
allows EROAD to develop & manufacture hardware components,
integrate additional SaaS services to our core offering and extend our
sales network.
P&C
EROAD’s people and culture are essential to its success, attracting
top talents, especially in the engineering field is critical. The company
has a strong focus on innovation, and it is committed to providing
a positive, supportive and diverse work environment. EROAD’s
employees are passionate about their work, and they are committed
to helping customers improve their efficiency, enhance the safety for
all road users and support a move to more sustainable practices in
transport.
Technology
EROAD’s technology development process is focused on creating
innovative products and services that meet the needs of its
customers. This includes either designing and developing software
and hardware, testing and refining it, or assessing, partnering and
integrating with 3rd party providers then deploying the products
and services to customers. EROAD’s software development process
includes agile development methodologies to quickly iterate on new
features and functionality. EROAD invests heavily in R&D for both
their SaaS and Hardware products to ensure ongoing competitive
advantage and compliance with regulations.
Procurement
EROAD has a team of experienced procurement professionals who
are responsible for sourcing, evaluating, and selecting suppliers.
The procurement process at EROAD is aligned with the company’s
overall business goals. The team is responsible for ensuring that
the company obtains the best possible prices for its inputs (Cloud
services, Cellular connectivity, hardware components, complete
hardware product), while also ensuring that the quality of the inputs
meets the company’s high standards. The team also works to develop
long-term relationships with suppliers, in order to ensure a reliable
supply of inputs.
Inbound
Logistics
of EROAD’s business, and it allows customers to track their vehicles,
manage their fleets, and comply with regulations. The data centers
are used to store and process data, and the network of partners
allows EROAD to develop & manufacture hardware components,
integrate additional SaaS services to our core offering and extend our
sales network.
Operations
The operational process for EROAD includes hardware and software
product development, testing, and deployment. This includes
designing and developing software and hardware, testing and
refining it, and deploying/installing the products and services to
customers. EROAD’s software development process includes agile
development methodologies to quickly iterate on new features and
functionality. EROAD also has a customer support team that provides
ongoing support to its customers.
DisclosureDescription
Report
Section
FY23
DisclosureDescription
Report
Section
FY23
Inbound
Logistics
Operations
Outbound
Logistics
Marketing & Sales
GRI INDEX |EROAD 2023 SUSTAINABILITY REPORT
PAGE 66 PAGE 67
Outbound
Logistics
The outbound logistics for EROAD involve delivering its products and
services to customers. This includes deploying hardware and software
to customers, as well as providing ongoing support and maintenance.
EROAD’s software products are primarily delivered through a
SaaS model, which enables the company to deliver its services to
customers via the cloud. Hardware is delivered and installed to
customers either direct or through resellers and installer networks.
Marke
ting &
Sales
EROAD’s marketing and sales efforts are focused on driving
customer acquisition and retention. This includes creating marketing
campaigns, developing sales channels, and establishing partnerships
with other companies in the industry. EROAD’s marketing efforts are
primarily digital, using online advertising, social media, and content
marketing to attract new customers. Sales activities are a mix of
inhouse sales teams and channel partners.
Service
EROAD’s service offerings include customer support, maintenance,
and upgrades. The company has a dedicated customer support team
that provides ongoing support to its customers. EROAD also offers
maintenance and upgrade services to ensure that its products and
services are up-to-date and functioning properly.
i) Operations are defined as a corporate office or warehouse facility
exclusively utilised for EROAD business purposes.
• New Z
ealand corporate offices – Albany, Newmarket, Christchurch
•
New Zealand warehouse facilities – Penrose
•
Australia – Corporate - Sydney
• Australia – Warehousing - Sydney
• USA – Corporate offices – San Diego and New Jersey
• USA - Warehousing - San Diego
• 7 Total operation centres.
EROAD serves New Zealand, Australian, American and Canadian
markets in Reefer, Heavy Transport, Light vehicle fleets, Civils, and
Construction.
ii) EROAD employs the services of a diverse set of suppliers that are
located across Indonesia, Singapore, Philippines, Taiwan, Australia,
Fiji, New Zealand, China and North America. The Company’s supplier
base is continually evolving as EROAD executes on the supply chain
strategy. We currently engage with contractors, brokers, distributors,
wholesalers, contract manufacturers, 3rd party logistics providers
andretailers. The Company currently has approximately 6 Tier 1
suppliers and 10 Tier 2 suppliers, as well as a myriad of other lower
volume suppliers.
The types of services consumed by EROAD relate specifically to
contract manufacturing, brokered sales of electrical components,
contracted product design, contracted mechanical design,
contracted warehousing, freight, logistics and consulting services.
The nature of our business means that most suppliers are long-term
partners, however there are instances where the Company employs
external services for short-term and/or project based work.
iii) Downstream entities to EROAD include our customers in the regions
we serve with 227,149 contracted units across approximately 10,260
number of customers.
EROAD serves New Zealand, Australian, American and Canadian
markets in Reefer, Heavy Transport, Light vehicle fleets, Civils, and
Construction.
The nature of the business relationships are in general longer-term
and contract driven.
c) Other relevant business relationships include the dealer network who
assist with sales of our products and services in North America and
installation providers who assist with the install of our products into
customer vehicles across New Zealand and Australia.
d)
There have been no significant changes in disclosures 2-6 a to c during
FY23, other than changes as a result in growth in contracted units,
number of customers and the opening of office presence in New Jersey.
2-7EmployeesOur People a)
NZ - total 382, female 141, male 235, not declared 6.
AU - total 17, female 5, male 12
US - total 85, female 24, male 60, not declared 1.
b)
i)
NZ - female 139, male 232, not declared 5.
AU - female 5, male 12.
US - female 24, male 60, not declared 1.
ii)
NZ - female 2, male 3, not declared 1
AU - female 0, male 0
US - female 0, male 0
iii)
NZ 0, AU 0, US 0
iv)
NZ - female 133, male 232, not declared 6.
AU - female 4, male 12
US - female 23, male 59 and not declared 1.
v)
NZ - female 8, male 3, not declared 0
AU - female 1, male, 0.
US - female 1, male 1, not declared 0.
f)
i) reported in headcount.
ii)
at the end of the r
eporting period.
2-8Workers
who are not
employees
Our People
a) 45
i) Contract for services and vendors
ii) Software engineers, operations manager, customer support,
development partner, network specialist, BI engineer, business manager,
executives, product lead, IT admin, warehouse technicians, credit
controller.
b)
i) Reported in headcount.
ii) At the end of the r
eporting period.
c)
Not applicable.
DisclosureDescription
Report
Section
FY23
DisclosureDescription
Report
Section
FY23
GRI INDEX |EROAD 2023 SUSTAINABILITY REPORT
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2-9Governance
Structure and
composition
a) EROAD is governed by our Board of Directors. There are four committees
that sit under the Board. These are: Finance, Risk and Audit Committee;
Remuneration, Talent and Nomination Committee; Technology
Committee; Continuous Disclosure Committee. The Executive Team
sit under the Board Committees and this filters down to the Senior
Leadership Team, Business Leaders and Business Units.
b)
Finance, Risk and Audit Committee, Remuneration, Talent and
Nomination Committee, and internal Sustainability Committee.
c)
i) Board:
Non-executive membersExecutive members
60
FRAC:
Non-executive membersExecutive members
30
RTNC
Non-executive membersExecutive members
50
TC
Non-executive membersExecutive members
30
ii) EROAD’s Board is primarily made up of Non-Executive, independent
directors. The Board is chaired by an independent director and there is
a clear division of responsibility between the Board and the Executive
Team.
iii)
MemberMember sinceLast elected
Graham Stuart (Chair)January 2018July 2021
Anthony GibsonOctober 2009July 2020
Susan PatersonMarch 2019July 2022
Barry EinsigJanuary 2020July 2020
Selwyn PellettDecember 2021July 2022
Sara GiffordApril 2022July 2022
iv) Please see EROAD’s Annual Report, Regulatory Disclosures
section
v)
MaleFemale
52
vi) -
vii) Please see the Board Skills Matrix in our FY23 Annual Report.
viii) The Boar
d are responsible for the strategic direction of the
company and are accountable to shareholders accordingly.
2-10Nomination and
selection of the
highest governance
body
Corporate
Governance
Statement
a) EROAD has a Director Nomination Policy that sets out the process for the
nomination and selection of board members.
b) Stakeholder views are sought via governance roadshows, alongside
independence, expertise and experience. The Board is particularly
focused on ensuring diversity within group and is delighted with the
appointment of Sara Gifford at the beginning of FY23.
i) Stakeholder views are sought as above and are factored into
the decision outcomes.
ii) The Board is particularly focused on ensuring diversity within
the group. Our current board displays both gender and
geographical diversity and it is something we continue to turn
our minds to with regard to succession planning strategies.
iii) EROAD is focused on complying with applicable laws, listing
rules, governance codes and best practice standards. The
majority of our board members are independent directors
and we feel this is is vital to ensuring our board has the ability
to lead the company in a manner that is free of any external
influence or any conflicts of interest.
iv)
Please see our Board Skills Matrix in the FY23 Annual Report.
2-11
Chair of the highest
governance body
Corporate
Governance
Statement
a)
The Board Chair is not a senior executive - the Chair is an non-
executive, independent director.
b)
Not applicable - the Chair is not a senior executive so no conflicts of
interest arise in this way.
2-12
Role of the highest
governance body
in overseeing the
management of
impacts
Corporate
Governance
Statement
a) EROAD’s Board and Executive Team are responsible for setting the
strategic direction of the company and implementing this respectively.
As a purpose lead organisation, the Board and Executive Team are
responsible for developing and approving EROAD’s purpose and
ensuring that we are on track to achieve this. EROAD’s Executive Team
ensure that our values, strategies, policies and goals are aligned with
our purpose so that our business is set to flourish in a sustainable way.
Sustainabilit
y is a core element of our purpose and we work hard to
achieve sustainable development and outcomes.
b) The Board receive regular updates on our processes and progress
with regard to identifying and managing our impact on the economy,
environment and people.
i) EROAD conducted and disclosed our most recent Materiality
Matrix in FY21. This remains unchanged for FY23. Members of
EROAD’s internal Sustainability Committee collaborate with
customers and outside parties and report on these collaborations.
The market leaders, CFO and General Counsel share this progress
with the Board.
ii)
EROAD’
s Board carefully considers the outcomes of these
processes and adopts a sharp and critical view to ensure the
company’s actions continue to be in alignment with our purpose.
c) The Board reviews the Materiality Matrix and considers whether
our actions support the identified outcomes. Where there may be a
discrepancy, the Board will direct management to focus on rectifying this.
DisclosureDescription
Report
Section
FY23
DisclosureDescription
Report
Section
FY23
GRI INDEX |EROAD 2023 SUSTAINABILITY REPORT
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2-13Delegation of
responsibility for
managing impacts
Sustainability
Governance
a) The Board delegates the oversight of ESG matters to the Finance, Risk
and Audit Committee and handling of these matters to Executive Team
Members. This delegation is filtered down to the Senior Leadership Group
and particularly the Sustainability Committee (formerly Net Zero Steering
Group).
Finance, Risk and Audit Committee makes recommendations to
the Board.
i) EROAD’s CEO and CFO are ultimately responsible for
economic impacts, and EROAD’s Chief People Officer is
naturally responsible for people related impacts. We are all
responsible for our environmental impact, however this is
primarily managed by the Chief Sustainability Officer, General
Counsel and Supply Chain Team.
ii) The management of impacts has been delegated to other
employees where relevant. the Executive Team rely on the
expertise of their team members to understand and manage
our impacts.
b) ESG matters are considered at every meeting of the Finance, Risk and
Audit Committee and, where required, the Board. Executive Team
members provide updates to the Committee and the Board on our
impacts - including any progress or issues that have been identified.
2-14Role of the highest
governance body
in sustainability
reporting
Sustainability
Governance
a) The Board reviews and approves EROAD’s reported information. The
suggested messaging is proposed by our Investor Relations Team with
significant input from the Executive Team and the Chair. The Board is
consulted once the materials have been drafted and all feedback is taken
into account and actioned where appropriate.
b)
Not applicable - the Board is responsible for reviewing and approving
EROAD’s reported information, including our material topics.
2-15 Key impacts, risks
and opportunities
Corporate
Governance
Statement and
Regulatory
Disclosures
a) EROAD maintains a comprehensive interest register detailing the
interests, holdings and relevant personal relationships for all Board and
Senior Executive Team Members. Directors of EROAD’s subsidiaries are
also included in the register.
b)
Yes - c
onflicts of interests are disclosed to shareholders.
i) Yes - positions held by board members are included in the
Regulatory Disclosures Section of our Annual Report
ii) EROAD does not curr
ently record director shareholdings
in companies other than EROAD. We do however require
directors to disclose any potential conflicts of interest which
would include any cross-shareholding with suppliers and other
stakeholders
iii)
Yes - please see our Regulatory Disclosures Section in our
Annual Report.
iv)
EROAD has a Related Party Transactions Policy which is
available via our investor website.
2-16Communication of
critical concerns
Corporate
Governance
Statement
a) EROAD has a clear process outlined for communicating critical concerns.
Critical concerns can be raised in accordance with our Whistle-blower
Policy, or by communicating directly with Executive Team Members
who are obligated to pass this up to the Board. EROAD’s Whistle-blower
Policy is available via our investor website.
b) No critical concerns were communicated to the Board in FY23.
2-17Collective
knowledge of the
highest governance
body
Corporate
Governance
Statement
a) EROAD is committed to ensuring our directors remain up to date with
company. This includes ensuring that directors are able to advance their
knowledge, skills and experience on sustainable development. Board
papers provide advice and recommendations to the Board.
2-18Evaluation of the
performance of the
highest governance
body
Corporate
Governance
Statement
a) The Board strives to undergo independent review of their on a biennial
basis. The Board has committed to an evaluation of its performance after
the onboarding of an additional director.
b)
Ev
aluations are independent and the Board strives for these to occur
biennially.
c)
EROAD s
trives to adhere to best practice corporate governance. We
take any recommendations/suggestions/criticisms seriously and are
committed to evolving our Board and management teams in line with
best practice recommendations.
2-19Remuneration
Policies
Remuneration
Report
a) The RTNC has responsibility for overseeing remuneration and
organisational matters at EROAD, including making recommendations to
the Board regarding company wide remuneration, benefits and policies,
together with overseeing the senior management team’s performance
objectives, remuneration packages, succession planning and manager
development programmes. Fundamental to the senior management
team’s achievement of success is strong alignment to the Company’s
purpose and values.
2-20Process to
determine
remuneration
Remuneration
Report
a) EROAD’s Director and Executive Remuneration Policy is set by the
RTNC with guidance from our People and Capability Team and external
advisors. The RTNC oversees the overall human resources strategy
and its implementation. It also oversees remuneration policies and
practices relating to independent remuneration consultants being
engaged, director remuneration and senior management remuneration
and financial and other reporting as it relates to remuneration. More
information can be found in EROAD’s Remuneration Report.
i) The RTNC is an independent governance body responsible
for overseeing remuneration and organisational matters at
EROAD, including making recommendations to the board
regarding company-wide remuneration, benefits and policies,
together with overseeing the senior management team’s
performance objectives, remuneration packages, succession
planning and manager development programmes.
ii)
EROAD is always willing and open to engaging with our
stakeholders. We are also committed to ensuring best practice
governance and strive to be transparent and accountable.
In line with this approach, EROAD has elected to voluntarily
comply with the Australian legislation which directs a ASX
listed entities to include a non-binding resolution enabling
shareholders to vote on the adoption of the company’s annual
remuneration report. This piece of legislation is known as
the ’Say on Pay’ regime. From FY22 EROAD has adopted
the Australian Say on Pay regime by offering shareholders
the opportunity to vote on EROADs Remuneration Report
and to call a spill meeting in accordance with that regime (if
necessary). The outcome of the voting will be non-binding.
2-21Annual total
compensation ratio
GRI Index
a)
NZ - NZD 53 : 980
Australia - AUD 67 : 416
US - USD 1053 : 25000
b)
0% ; 5.5%
c)
The above data is generated using remuneration data for employees who
were at EROAD as at FY23 year end. Due to changes in our executive
team, current executives, were not engaged for the whole financial year.
Due to a change in our HR reporting systems, we cannot access
historical remuneration data to determine % increases for these
applicable date periods
2-22Statement on
sustainable
development
strategy
Chair/CEO/
CSO letters
a) Sustainability is key to EROAD’s success. As a purpose lead organisation,
sustainability is at the forefront of our minds as we seek to deliver
intelligence you can trust, for a better world tomorrow.
EROAD’s Sustainability Policy sets out our company approach to
sustainability. This is broken down under the headings “E”, “S” and
“G” and outlines the Company’s commitment to sustainable strategy
and sustainable development.
EROAD is aiming to measure and reduce our internal carbon
emissions and is dedicated to providing customers with the insights
they need to support global sustainability initiatives.
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FY23
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2-23Policy Commitments Corporate
Governance
Statement and
GRI Index
a) EROAD has key policies in place which outline our commitments to
responsible business conduct. EROAD’s purpose is delivering intelligence
you can trust for a better world tomorrow and our company values are
key to achieving this purpose. EROAD’s values are:
• We do what’s right;
•
We pla
y as a team;
•
We learn & grow; and
• We get it done.
EROAD’s values reflect our commitment to delivering the best
outcomes for our team, our customers, shareholders and wider
stakeholder group.
EROAD’s Code of Ethics and Sustainability Policy provide
guidance on behaviours that will enable the directors, employees,
independent contractors and advisors of EROAD to align their
conduct, actions and decisions with EROAD’s purpose and values.
EROAD’s Board, Legal and People & Capability Team were all
involved in setting our Code of Ethics and Sustainability Policy.
These core policies also had input from the wider Executive Team to
ensure alignment across the company.
i)
The c
ommitments do not specifically reference any
intergovernmental instruments however this Index is linked
to the UN Sustainable Development Goals and naturally, we
follow all applicable laws in our areas of operation.
ii)
EROAD’
s commitments do not explicitly refer to conducting
due diligence, however EROAD maintains internal registers to
ensure unknown conflicts of interest do not arise. EROAD also
conducts due diligence prior to engaging with suppliers.
iii)
The pr
ecautionary principle is set out in Principle 15 of the UN
Rio Declaration on Environment and Development. It states
“where there are threats of serious or irreversible damage,
lack of full scientific certainty shall not be used as a reason for
postponing cost-effective measures to prevent environmental
degradation”. EROAD is committed to sustainable operations
and development as outlined in our Sustainability Policy.
EROAD is working towards a full report against the NZ climate
related disclosure standards and as such, will be looking at
ways we can manage the inevitable environmental risks. The
level of risk EROAD is willing to take on is captured in the Risk
Appetite Statement (RAS). Key business risks are identified,
reviewed and agreed by the Executive Team and the Board
on an annual basis (and more regularly where required).
Performance against these risk limits is monitored continuously
and reported to the Executive Team and Board on a monthly
basis. EROAD adapts its risk universe to factor in emerging
risks such as climate, geo-policies and so on.
From FY24, EROAD has been operating under a renewed Risk
Appetite Statement which includes a specific statement on
management of ESG reporting risk.
iv)
EROAD Sustainability policy includes a commitment to social
sustainability and this is reinforced by our company Modern
Slavery Policy. We are committed to upholding human rights
practices in all our business-related activities.
b) EROAD is committed to respecting and upholding human rights across
all our business practices.
i) EROAD has not specifically aligned ourselves to any particular
internationally recognised human rights framework. We do
however comply with the Australian modern slavery legislation
with respect to our obligation to produce and file an annual
Modern Slavery Statement with Australian Border Force.
ii) EROAD stakeholders include our EROADers, customers,
suppliers, partners, contractors, shareholders, investor groups,
policy makers and industry regulators and associations.
EROAD does not favour any particular stakeholder group over
another as we understand and value the importance of all our
stakeholder relationships. This is key to our success.
EROAD’s
Code of Ethics, Sustainability and Modern Slavery Statement are
accessible via https://www.eroadglobal.com/global/investors/
c) All public facing EROAD policies are approved by the Board of Directors
and these commitments are reviewed at least on an annual basis.
d) Our policy commitments apply to all of our business related activities
and relationships equally. We are committed to ethical business practices
throughout our operations.
e) All employees are required to adhere to the EROAD Code of Ethics, and
we are actively implementing regular training sessions to ensure that all
staff members are familiar with this policy document and our Code of
Ethics. Our internal web platform “EHUB” documents our key policies
for internal staff and our investor website details our policies for external
parties. Business partners are made aware of our policies through our
public reports, contractual terms and declarations as applicable.
EROAD does not offer information in any other languages, English is
the primary language for all our business communications.
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2-24Embedding policy
commitments
Corporate
Governance
Statement and
GRI Index
a) As a purpose-led organisation, all members of the EROAD team
understand the importance of living our values and adhering and
implementing our commitments to responsible business conduct.
i) The Board of Directors is ultimately responsible for the
oversight of EROAD’s policy commitments. This responsibility
requires implementation and accountability on the part
of EROAD’s Executive Team. We are all responsible for
ensuring we live up to our commitments. This starts with the
Chief Executive Officer who leads EROAD by example and
receives reports from key Executive Team members. The
Chief People Officer is responsible for ensuring internal staff
do not contravene our Code of Ethics or Code of Conduct.
The General Counsel manages legal commitments and risks,
and the Chief Financial Officer is responsible for financial
commitments and risks. EROAD’s Supply Chain Officer is
responsible for supply chain commitments. Everyone has a
part to play. EROAD has a clear process for reporting breaches
of our policies. This process is articulated in our Whistleblower
Policy, available via our investor website.
ii)
EROAD aligns our policy commitments with our broader risk
management policies. Each business unit is responsible for
managing their own risk within their area in accordance with
our broader Risk Appetite Statement which sets out how much
risk we are willing to take on as a business and in what areas.
Our Risk Appetite is specifically designed to align with and
help us deliver on our strategic goals.
EROAD undertakes a supplier sustainability questionnaire to
assess any potential impacts on human rights and social working
conditions. We also assess the environmental footprint through
our carbon emissions reporting work with Toitū Envirocare.
EROAD’s Supplier Selection template requires all prospective
parties to self-declare on a wide range of ESR factors including
human rights, child labor, environmental sustainability and more.
Once a short list of proposed suppliers is decided, and based on
the Tier by which the service being sought aligns, EROAD will
then chose to visit and further audit the larger value suppliers.
Smaller value suppliers will be accepted based on the business’s
acceptance of self-declaration data.
A part of our monthly risk reporting, stakeholders across the
business are required to update the Board on any events that
may exceed EROAD’s Risk Appetite as they become aware of
anything.
iii)
EROAD c
ommunicates our policies to suppliers via our supplier
questionnaires and contact information pages. We always look
to partner with reputable companies with good standing in
their industry.
iv)
EROAD provides training on all our key company
commitments.
Our North American EROADers complete compliance training
on sexual harassment, and health & safety for employee
wellbeing which is in accordance with federal, state, city, and
county laws.
Mandatory training is provided on data privacy, cyber security,
health and safety, office safety, legal learnings, working for a
listed business, and road user charges.
2-25Processes to
remediate negative
impacts
GRI Index a) We maintain open and honest relationships with our stakeholders and are
open to hearing any concerns they may have regarding our practices and
we will aim to resolve any concerns in good faith.
EROAD is committed to corporate responsibility. We are accordingly
committed to engaging in any remediation process that may be
required to address any negative impacts that are identified. EROAD
has not identified any negative impacts requiring remediation for
the FY23 reporting period.
b) Stakeholders are able to raise any grievances they have with EROAD
and we do what’s right by addressing these. EROAD does not have any
collective bargaining arrangements. We comply with local laws and
regulations in each jurisdiction we operate and are prepared to engage
with any mediation services, governing agencies, regulatory bodies or
judicial processes where this is necessary. EROAD manages a specific
email hotline for investors to raise concerns. We also offer a dedicated
email hotline for any privacy related concerns. Any grievances raised
are escalated and investigated where appropriate before a response
can be formulated. EROAD manages these hotlines and Executive Team
owners are responsible for determining whether an issue warrants Board
involvement (usually reserved for serious issues). Where necessary,
EROAD will treat concerns confidentially and may engage independent
experts as part of the investigative process.
c)
No actions iden
tified in FY23.
d)
EROAD r
egularly engages with our stakeholders. We do this through
customer and supplier surveys, sustainability reports, investor calls,
shareholder meetings, materiality matrix surveys and local transport /
road events. We welcome feedback from stakeholders and implement
suggestions where these align with our understanding of the
expectations on us.
e)
Ac
cording to UN Guiding Principle 31, effective grievance mechanisms
are considered as those that are legitimate, accessible, predictable,
equitable, transparent, rights-compatible, and a source of continuous
learning. Effective operational-level grievance mechanisms are also
based on engagement and dialogue. EROAD strives to ensure effective
grievance mechanisms are offered and followed. We act equitably
and reasonably in all our dealings and we are focused on legitimate,
lawful and transparent practices. We engage experts where required
and are always willing to engage, understand and learn. We support
our staff in doing the right thing. Our Whistle-blower Policy supports
EROAD’s commitment to human rights and fair dealing by including a
non-retaliation clause. This Policy has been updated in FY23 to include a
truly anonymous third party reporting mechanism to engender trust and
confidence in the grievance reporting process. No grievances have been
noted in the FY23 reporting period.
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2-26Mechanisms for
seeking advice and
raising concerns
Corporate
Governance
Statement
+ GRI Index
a) EROAD has a number of mechanisms for individuals to seek advice and
raise concerns about our policies and practices in relation to professional
business conduct.
i) EROAD maintains an internal platform “EHUB” where
EROADers can view our company policies. We also maintain
other internal platforms with key information in an easily
digestible form for EROADers to view. The Executive Team,
Senior Leadership Team and Legal Team all operate with
an ’open door policy’. This means that individuals can and
should feel comfortable discussing any thoughts, questions
or concerns with their manager or Executive Team member
or by approaching our in-house Legal Team. This is the fastest
way to seek advice on EROAD’s policies and practices for
responsible business conduct. EROAD has also been running
weekly meetings (which have now moved to fortnightly
meetings) where EROADers can ask Executive Team Members
questions on an anonymous basis and these are answered in a
live Q&A.
ii)
If any EROADer has a concern about our business conduct,
they can raise this by discussing the concern with their
manager or trusted Executive Team Member. EROAD
also offers an independent whistleblower service which is
explained in our Whistleblower Policy. EROAD’s independent
whistleblower service is managed by Deloitte and offers
potential whistleblowers mechanisms to report raise concerns
via a toll free number, email or web form. All reports are made
on a confidential basis and can be made anonymously if
using the Deloitte web form offering. Deloitte will work with
EROAD to deal with any concerns in a fair manner. The Deloitte
service is available on a 27/4 basis in all countries we operate
in. EROAD’s Whistleblower Policy is available via our investor
website an internally via our platform ’EHUB’ which is used to
communicate key company information.
There was no advice sought, nor any concerns raised for the FY23
reporting period.
2-27Compliance
with laws and
regulations
GRI Index
a) EROAD has not identified any significant issues of non-compliance with
laws and regulations for the reporting period.
2-28Membership
Associations
GRI Index New Zealand
Bus and Coach Association
Civil Contractors New Zealand
Ia Ara Aotearoa Transporting New Zealand
Intelligent Transport Systems New Zealand
New Zealand Rally Championship
New Zealand Trucking Association
WasteMINZ
Australia
Australian Furniture Removers Association
Australia Rally Championship
Civil Contractors Federation New South Wales
Civil Contractors Federation Victoria
Roads Australia
United States of America
American Trucking Association
Arkansas Trucking Association
Californian Trucking Association (CTA)
Colorado Trucking Association
Commercial Vehicle Safety Association
Florida Trucking Association
Georgia Trucking Association
Indiana Motor Trucking Association
International Food Distribution Association
Louisiana Trucking Association
Mileage Based User Fee Alliance
National Private Truck Council
National Ready Mix Concrete Association
New York Trucking Association
North American Transportation Services Association
North Carolina Trucking Association
Oklahoma Trucking Association
Oregon Trucking Association
Oregon Concrete & Aggregate Producers (OCAPA)
Tennessee Trucking Association
Texas Trucking Association
Texas Aggregate & Concrete Association
Tennessee Trucking Association
Truckload Carriers Association
Trucking Association of New York
Truckers Against Trafficking
Washington Trucking Association
Women in Trucking
Global
International Bridge Tunnel and Turnpike Association
International Road Federation (Global)
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2-29Approach to
stakeholder
engagement
GRI Indexa) EROAD adopts a proactive and transparent approach to stakeholder
engagement.
i) EROAD engages with all our key stakeholders which we identity
through our business operations. We engage with investors and
shareholders, market leaders, industry regulators, governmental
organisations, local communities, consultants and independent
experts, suppliers, customers, drivers, staff members and other
people/groups/organisations that we come across.
ii)
The purpose of stakeholder engagement is often contextual
and multi-faceted. EROAD engages with investors and
shareholders on an annual basis at our Annual Shareholder’s
Meeting. We also engage with investors and shareholders as
part of the market announcements we prepare for each half
year. We adopt an approachable and transparent approach to
shareholder engagement and are responsive to emails where
investors reach out to us. We engage with industry regulators,
governmental organisations, local communities, customers
and drivers to share our offerings, gain feedback and insight
and create long term partnerships where we feel we can
add value. We view our suppliers as key business partners
and we engage with suppliers on a regular basis. External
consultants and independent experts are consulted from time
to time as needed. We view these relationships as key to our
success. We view our staff members as part of our company
family and we offer regular - both formal and informal - staff
engagement opportunities. It is our view that staff who feel
understood, valued and appreciated naturally have a more
positive approach to their work. Our goal is to ensure everyone
understands their role in EROAD’s story and feels supported in
the journey forwards. We are transparent and approachable in
our engagement with staff members across the globe.
i)
Meaningful engagement is characterised by clear
communication and understanding by all parties. EROAD seeks
to achieve and maintain meaningful engagement by engaging
openly, regularly and in good faith. By keeping communication
channels open and welcoming feedback and discussion, EROAD
is able to integrate stakeholder feedback into decision-making
(where appropriate) and provide further guidance where this
may not be deemed to be appropriate. This engenders trust and
confidence in our approach to stakeholder engagement which in
turns strengthens our relationships long-term.
2-30
Remuneration
policies
Annual Report:
Corporate
Governance
Report
a) 0% - EROAD does not have any employees covered by collective
bargaining agreements.
b)
EROAD employees are not covered by a collective bargaining agreement,
therefore this information is not applicable.
GRI-3 MATERIAL TOPICS
3-1Process to
determine material
topics
GRI Index
a) Our business plan and materiality matrix are key starting points for
assessing our material topics. Our risk reviews and papers also highlight
EROAD’s material topics.
i) EROAD has identified the actual and potential, negative and
positive impacts on the economy, environment, and people
(including human rights impacts) across our activities and
business relationships. We recently underwent a ’strategy
refresh’ with external support from McKinsey & Company.
Part of this work involved an in-depth analysis of our actual
and potential impacts, and how we might best harness these.
We are in a unique position and have the ability to have a
real positive impact on the societies in which we operate.
Our impacts on the economy are identified through financial
and business forecasting and investor analyst reviews within
the market context. Our impacts on the environment are
measured in part through our work with Toitū Envirocare and
as part of our climate risk reporting under the new Climate-
related non-financial disclosure obligations. We identify our
impact on people through multi-stakeholder engagement.
This includes employee engagement, customer engagement,
supplier engagement, engagement with policy makers, industry
regulators and associations, engagement with our drivers and
our investor community. Our engagement with suppliers helps
us identify the potential for any negative impacts, particularly
with respect to human rights practices and people safety
practices. Our purpose directs us to operate in an intelligent
way that leads to a better world for tomorrow. This purpose
underpins all our company actions. Our company purpose,
reinforced by our values, set the framework for our operations as
a responsible entity.
ii)
This will be assessed as part of our climate-related disclosure
work in FY23 .
b) EROAD’s material topics have been determined following a multi-faceted
approach to information gathering. Our IR consultants facilitated the
Materiality Matrix, McKinsey & Company worked closely with EROAD’s
Board of Directors and Executive Team to establish key focus points for
the years ahead. Various departments, groups and committees provide
advice and recommendations in relation to specific topics including our
net zero strategy, supply chain management and the like.
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3-2List of material
topics
GRI Indexa)
Our Communities
Safer communities
Health & safety
Contribution to public
policy
Our People
Occupational health &
safety
Training & development
Diversity & equality
Talent acquisition &
retention
Our Environment
Carbon emissions
Environmental impact /
natural resources
Responsible use of
materials
Our Commercial
Approach
Data integrity/reliability
Customer relationships
Sustainable financial
returns
Data privacy & security
Ethical business practices
b) Our material topics have remained the same however we have a much
stronger focus on environmental sustainability. Although environmental
sustainability has always been important to EROAD, climate change and
new regulatory and legislative requirements mean that the company has
really sharpened our focus in this area. As indicated in the company’s
FY23 Annual Report we are also focused on becoming free cash flow
positive and delivering sustainable returns to shareholders. Sustainable
operations are the core of our focus as we implement and deliver on our
new purpose to create a better world for tomorrow.
3-3Management of
material topics
GRI Indexa) A topic is material because of its importance to EROAD and our wider
stakeholder group. Within each topic, there is the potential for positive or
negative impacts depending on how they are managed. EROAD regularly
reviews our material topics and how we operate within them.
b)
No significant negative impacts have been identified in FY23.
c) Our commitment to manage each material topic is based our
commitment to our company purpose and driving sustainable growth
for our shareholders.
d)
Each material topic is managed by the relevant business unit and any
significant impacts are reported to the Board as part of our general risk
reporting process.
i) EROAD takes action to prevent or mitigate potential negative
effects. We visited a prospective supplier during FY23 and chose
not to engage with them due to concerns around worker health
and safety.
GRI-201 ECONOMIC PERFORMANCE
201-1
Percentage increase
in annual total
compensation ratio
Financial
statements
i) Total revenue $174.9m
ii) Operating expenses $72.2m
Personnel expenses $74.5m
Payments to providers of capital: Nil dividends were paid in the year,
interest was paid of $4.9m in the year.
Payments to Government in the form of taxes such as GST, FBT and
income taxes of $2.2m in NZ, $1.9m in NA and $0.8m in AU.
iii)
Economic value retained: $18.4m.
201-2
List of stakeholder
groups
Materiality
Matrix
EROAD will disclose this information in our FY24 Sustainability Report
in accordance with our obligations under the NZ climate-related
disclosure framework.
201-3Defined benefit
plan obligations and
other retirement
plans
Corporate
Governance
Statement +
GRI Index
Remuneration for US based employees, EROAD has a 401k Plan in
place which staff may opt in to.
North American EROADers may subscribe to paid medical, dental,
vision, short term disability (STD), long term disability (LTD), life
insurance available to all employees. There are buy up options for
medical, STD, LTD, and life insurance as well as additional option such
as critical care insurance.
EROAD offers kiwisaver contributions for New Zealand based
employees in line with legislative requirements, which is currently 3%.
EROAD also offers superannuation contributions for Australian based
employees in line with legislative requirements, which is currently
10.5%.
201-4Financial assistance
received from the
government
Materiality
Matrix
EROAD has a multitude of stakeholders including regulatory
bodies, suppliers and customers. EROAD has a desire to work with
organizations who share EROAD's values and goals.
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GRI-202 MARKET PRESENCE
202-1Ratios of standard
entry level wage by
gender compared
to local minimum
wage
GRI IndexCurrently no employees are on minimum wage.
202-2Portion of senior
management hired
from the local
community
GRI Indexa) The percentages below show the percentage of senior management
at significant locations of operation that were hired from the local
community
US: 100%
NZ: 100%
AU: No senior managers were hired in Australia during the FY23
period.
b) Senior management includes all executive team members, as well as
those managers who report directly to an executive member.
c) EROAD’s definition of ’local’ is within the country.
d) EROAD’
s definition for ’significant locations of operation’ are the three
markets we operate in - New Zealand, Australia and the United States
of America.
GRI-204 MARKET PRESENCE
204-1Proportion of
spending on local
suppliers
GRI Index
a) Domestic NZ manufacturing, including refurbishment of products, makes
up a small proportion of total manufacturing spend. The bulk of EROAD’s
manufacturing is being conducted by our network of international
suppliers which are not local to EROAD. This is primarily driven by cost
considerations, the proximity to larger electronic component supply
chains as well as freight networks.
b)
EROAD’s definition of ’local’ is within the country.
c) EROAD’s definition for ’significant locations of operation’ are the
three markets we operate in - New Zealand, Australia and the United
Sta
tes of America.
GRI-206 ANTI-COMPETITIVE BEHAVIOUR
206-1Legal actions taken
for anti-competitive
behaviour, antirust,
and monopoly
practices
GRI Index No legal actions have been taken for anti-competitive behaviour,
antitrust or monopoly practices.
GRI-207 TAX
207-1Approach to tax
Financial
statements
and GRI Index
There is no formal tax strategy currently in place. EROAD takes a
conservative position in regards to tax to ensure we meet all our
obligations in each of the jurisdictions we operate in.
207-2Tax governance,
control, and risk
management
Corporate
Governance
Statement,
Financial
statements
and GRI Index
EROAD has external advisors to support us with our tax governance
and risk management. EROAD takes a conservative position in regard
to tax to ensure we meet all our obligations in each of the jurisdictions
we operate in. Any changes in our approach to tax would require sign
off by the Board of Directors. The taxation calculations included in the
annual financial statements are subject to audit review.
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207-3Stakeholder
engagement and
management of
concerns related
to tax
Corporate
Governance
Statement and
GRI Index
As noted above, EROAD has external advisors globally who prepare
our tax returns and transfer pricing documentation, they act as our
agent with Tax
Authorities in each jurisdiction and would manage any concerns
arising.
207-4Country-by-country
reporting
GRI Index a) Tax is reported at a group level in the audited annual financial statements.
Individual tax returns are prepared for each tax jurisdiction within which
we operate.
The tax jurisdictions for each of the trading entities in the EROAD
Group are as follows:
b)
i / ii / iii / iv / v / vi / vii / viii / ix / x
Tax j
urisdictionNZNAAU
Entities and their
primary activities
EROAD Limited:
Transport technology
& SaaS. Parent entity
of the Group.
EROAD Financial
Services Limited:
Financing activities
within the Group
EROAD LTI Trustee
Limited: LTI scheme
trustee
Coretex NZ Limited:
Transport technology
& SaaS
EROAD Incorporated:
Transport technology
& SaaS
Coretex USA
Incorporated:
Transport technology
& SaaS
Coretex Telematics
Limited: Transport
technology & SaaS
EROAD (Australia)
Pty Limited:
Transport technology
& SaaS
Coretex Australia Pty
Limited: Transport
technology & SaaS
No. of employees
(permanent employees
as at 31 March 2023)
376 8517
Revenues from third-
party sales
94.071.69
Revenues from intra-
group transactions with
other tax jurisdictions
39.30.90
Profit/(loss) before tax-33.826.91.7
Tangible assets other
than cash and cash
equivalents
81.451.48.0
Corporate income tax
paid on a cash basis
0.00.00.0
Corporate income tax
accrued on profit/loss
4.9-3.50.7
Tax due if the statutory
tax rate is applied to
profit/loss before tax
-9
.57. 00.5
Reasons for the
difference between
corporate income tax
accrued on profit/loss
and the tax due if the
statutory tax rate is
applied to profit/loss
before tax
Differences relate
to non-deductibles
and utilisation of tax
losses
Differences relate
to non-deductibles
and utilisation of tax
losses
Differences relate
to non-deductibles
and utilisation of tax
losses
c) The information reported above is for the period 1 April 2022 to
31 March 2023.
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GRI-301 MATERIALS
301-1Materials used by
weight or volume
GRI Index Not recorded at this stage.
301-2Recycled input
materials used
GRI IndexWe do not use recycled electronic components in our products due to
the potential for early life failure. We do refurbish our products.
301-3Reclaimed products
and their packaging
material
GRI IndexWhen EROAD refurbishes its main product approximately 70% of the
product by value is reused, with the remaining 30% replaced with new
components.
GRI-302: ENERGY
302-1Energy
Consumption within
the organisation
GRI Index a)
TypeNZNAAU
Total fuel consumption within the
organisation from non-renewable
sources, in joules or multiples, and
including fuel types used
17,527Not available12,657
Unleaded petrol (litres)
Diesel (litres)30,893-3,851
b)
TypeNZNAAU
Total fuel consumption within the
organisation from renewable sources,
in joules or multiples, and including
fuel types used
---
c)
TypeNZNAAU
Electricity consumption (kWh)318,044122,18414,296
d) Not applicable
e)
TypeNZNAAU
Total energy consumption (tCO2e)1484955
f) Fuel consumption for NZ and AU has been derived from supplier
reporting on litres purchased.
Electricity consumption for the regions has been determined from the
monthly elec
tricity bills. Where this is unavailable an estimate of usage
has been determined based on number of employees and the average
usage determined on the other sites.
g)
Energy consumption within the organisation has been converted to
tonnes of CO2e using the Toitū Envirocare eManage tool as part of the
organisation’s Toitū carbonreduce certification for FY23.
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302-2Energy
consumption
outside the
organisation
GRI Index The following categories and activities from the GHG Protocol
Corporate Value Chain (Scope 3) Accounting and Reporting Standard
have been identified as relevant energy consumption outside of the
organisation sources:
Upstream categories
• Purchased goods and services
• Upstream transportation and distribution4
• Business travel
• Employ
ee commuting
•
Other: employ
ee working from home
Downstream categories
• Downstream transportation and distribution
• Use of sold products5
• End-of-life treatment of sold products
Energy typeNZNAAU
Upstream1
Purchased goods and services219,0756,894721
Business travel2679743
Employee commuting367413424
Employee working from home327824
Total upstream energy consumption20,0437,133812
Downstream1
Downstream transportation and
distribution4
62282-
Total downstream energy consumption62282-
Total energy consumption outside of the
organisation
20,1057, 41 5812
1. Upstream and downstream categories emissions data in tCO2e has been
extracted from the Toitū carbonreduce eManage tool and the audited
results for FY23. Reasonable assurance was obtained for FY23, except
for category 3 employee commute and category 4 purchased goods
and services which limited assurance was obtained due to the level of
estimation required for that category.
2.
2. Emissions from purchased goods and services (except for waste,
electricity distributed losses and paper use) have been estimated based
on $ spend in FY23. We will continue to work with our suppliers in the
quest for better quality data in future periods.
3.
3. Emissions from employee commuting and working from home were
estimated based on employee surveys conducted as part of the data
gathering for the Toitū carbonreduce certification.
4. 4. For FY23 do
wnstream transportation and distribution emissions have
all been allocated to the regions where the split is available. Where this
is not the case the emissions have been calculated at the Group level and
therefore allocated to New Zealand. In future periods we hope to be able
to disaggregate this data further into the region to which it relates. These
emissions also include upstream transportation and distribution where
EROAD were responsible for the organisation of the freight cartage.
5.
5. The energy consumption of our downstream categories use of sold
products and end-of-life treatment of sold products was not calculated
for our FY23 Toitū carbonreduce certification due to the difficulty in
obtaining this information and forming appropriate estimates for. This
is an area that we would like to work on and consider including in future
periods as they are areas expected to contribute significantly to the
organisations total energy consumption outside of the organisation and
through the development of our products we can somewhat influence
potential reductions in these emissions. These are also areas that our
customers would value having emissions data available for.
302-3 Energy Intensity GRI Index EROAD became certified under the Toitū carbonreduce programme
in FY22. The company reset our base year emissions to capture
operations of the entire EROAD Group following the acquisition of
Coretex in December 2021.
The following inventory summary has been taken from the Toitū
carbonreduce certification:
Category ScopetCO2e
Category 1: Direct emissionsScope 1167
Category 2: Indirect emissions from imported energyScope 285
Category 3: Indirect emissions from transportationScope 31,641
Category 4: Indirect emissions from products used by
the organisation
Scope 326,718
Total direct emissions167
Total indirect emissions28,443
Total emissions28,611
Energy included in the reported emissions figures are: fuel and
electricity. All energy consumption within the organisation is included
and a subset of energy consumption outside of the organisation as
identified in 302-2.
Under the Toitū carbonreduce programme total revenues is a
mandatory intensity measure. EROAD have also specifically chosen
total contracted units at the end of the period as a second intensity
measure due to the units influence on the revenues of the business as
well as the catalyst for the majority of our emissions.
Emissions intensityTotal emissions
Total revenues (total emissions tCO2e/$ million of revenue)175.10
Per unit (total emissions tCO2e/number of contracted units)0.13
302-4Reduction of energy
consumption
GRI Index EROAD became certified under the Toitū carbonreduce programme
in FY22. The company reset our base year emissions to capture
operations of the entire EROAD Group following the acquisition of
Coretex in December 2021. Due to the change in the base year there is
no reduction in energy consumption to report.
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302-5Reductions
in energy
requirements of
products and
services
GRI Index EROAD became certified under the Toitū carbonreduce programme
in FY22. The company reset our base year emissions to capture
operations of the entire EROAD Group following the acquisition of
Coretex in December 2021. Due to the change in the base year there is
no reduction in energy requirements to report.
GRI-304 BIODIVERSITY
304-1Operational sites
owned, leased,
managed in,
or adjacent to,
protected areas of
high biodiversity
value outside
protected areas
GRI IndexNo organisational sites managed in or adjacent to protected areas and/
or areas of high biodiversity value.
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304-2Significant impacts
of activities,
products and
services on
biodiversity
GRI Index No significant direct and/or indirect impacts on diversity identified.
304-3Habitats protected
or restored
GRI Index No habitat areas have been identified.
304-4IUCN Red List
species and national
conservation
list species with
habitats in areas
affected by
operations
GRI Index No activities identified that would post a threat to endangered plant/or
animal species.
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GRI-305 EMISSIONS
305-1Direct (Scope 1)
GHG emissions
GRI Indexa) Gross direct (Scope 1) GHG emissions was 167.4 tCO2e for the year to 31
March 2023.
b) The gross direct (Scope 1) GHG emissions are made up of CO2 (162.8
tCO2e), CH4 (0.9 tCO2e) and N2O (3.7 tCO2e) gases.
c)
Ther
e were no CO2 biogenic emissions reported for 31 March 2023 in
EROAD’s gross direct (Scope 1) GHG emissions.
d)
i) With the acquisition of the Coretex entities on 1 December 2021,
the base year for the calculation was revised to 1 April 2022 to
31 March 2023. EROAD first calculated it’s emissions and the
year that EROAD joined the Toitū carbonreduce programme was
during FY22.
ii) Gross direct (Scope 1) GHG emissions for the revised base year
was 167.4 tCO2e. Total emissions were calculated for category 1
with reasonable assurance obtained for the Toitū carbonreduce
certification.
e) All emissions were calculated using Toitū emanage with emissions factors
and Global Warming Potentials provided by the Programme.
f) Opera
tional control consolidation approach was used to account
for emissions. EROAD acquired control over Coretex Limited and its
subsidiaries on 1 December 2021. Due to the timing of the control (8
months into our period) and our ability to influence changes and obtain
information during this critical integration time Coretex operations
were excluded for FY22. Coretex operations was included in FY23 and
presented in this report.
g)
All emissions w
ere calculated using Toitū emanage with emissions factors
and Global Warming Potentials provided by the Programme.
305-2Energy indirect
(Scope 2) GHG
emissions
GRI Index a) and
b) Gross indirect emissions from imported energy (Scope 2) GHG emissions
was 84.8 tCO2e for the year to 31 March 2023. These emissions are
calculated under market-based methodology.
c)
The gases included in the calculation were unavailable.
d)
i) With the acquisition of the Coretex entities on 1 December 2021, the
base year for the calculation was revised to 1 April 2022 to 31 March
2023. EROAD first calculated it’s emissions in the year that EROAD
joined the Toitū carbonreduce programme which was during FY22.
ii)
Gross indirect emissions from imported energy (Scope 2) GHG
emissions for the revised base year were 84.8 tCO2e. Total emissions
were calculated for category 2 with reasonable assurance obtained
for the Toitū carbonreduce certification.
e)
All emissions w
ere calculated using Toitū emanage with emissions factors
and Global Warming Potentials provided by the Programme.
f)
Operational control consolidation approach was used to account
for emissions. EROAD acquired control over Coretex Limited and its
subsidiaries on 1 December 2021. Due to the timing of the control (8
months into our period) and our ability to influence changes and obtain
information during this critical integration time Coretex operations
were excluded for FY22. Coretex operations was included in FY23 and
presented in this report.
g) All emissions were calculated using Toitū emanage with emissions factors
and Global Warming Potentials provided by the Programme.
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305-3Other indirect
(Scope 3) GHG
emissions
GRI Index a) Gross indirect (Scope 3) GHG emissions was 28,358.7 tCO2e for the year
to 31 March 2023
b) The gases included in the calculation were unavailable.
c)
There were no CO2 biogenic emissions reported for 31 March 2023 in
EROAD’s gross indirect (Scope 3) GHG emissions.
d) Other indirect (Scope 3) GHG emissions categories and activities
included in the calculation were:
• Category 3: Indirect emissions from transportation - business travel
(air travel, taxis, employee mileage claims), downstream distribution
for goods paid by the organisation (freight by air, rail, road and sea),
emissions from employee commuting and emissions from working
from home.
• Category 4: Indirect emissions from products used by the organisation
- emissions from purchased fuel and energy related activities
(electricity distributed T&D losses), emissions from purchased goods
and services, disposal of solid waste landfilled.
e)
i) With the acquisition of the Coretex entities on 1 December 2021, the
base year for the calculation was revised to 1 April 2022 to 31 March
2023. EROAD first calculated it’s emissions and the year that EROAD
joined the Toitū carbonreduce programme was during FY22.
ii)
ii. Gros
s indirect (Scope 3) GHG emissions for the revised base year
was 28,358.7 tCO2e. Total emissions were calculated for categories
3 and 4 with reasonable assurance obtained except for category 3
employee commute and category 4 purchased goods and services
which limited assurance was obtained due to the level of estimation
required for that category in the Toitū carbonreduce certification.
f)
All emissions were calculated using Toitū emanage with emissions factors
and Global Warming Potentials provided by the Programme.
g) Operational control consolidation approach was used to account
for emissions. EROAD acquired control over Coretex Limited and its
subsidiaries on 1 December 2021. Due to the timing of the control (8
months into our period) and our ability to influence changes and obtain
information during this critical integration time Coretex operations
were excluded for FY22. Coretex operations was included in FY23 and
presented in this report.
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305-4GHG emissions
intensity
GRI Index a), b) and c) EROAD became certified under the Toitū carbonreduce
programme in FY22. The company reset our base year emissions
to capture operations of the entire EROAD Group following the
acquisition of Coretex in December 2021.
The following inventory summary has been taken from the Toitū
carbonreduce certification:
Category ScopetCO2e
Category 1: Direct emissionsScope 1167
Category 2: Indirect emissions from imported energyScope 285
Category 3: Indirect emissions from transportationScope 31,641
Category 4: Indirect emissions from products used by
the organisation
Scope 326,718
Total direct emissions167
Total indirect emissions28,443
Total emissions28,611
Energy included in the reported emissions figures are: fuel and
electricity. All energy consumption within the organisation is included
and a subset of energy consumption outside of the organisation as
identified in 302-2.
Under the Toitū carbonreduce programme total revenues is a
mandatory intensity measure. EROAD have also specifically chosen
total contracted units at the end of the period as a second intensity
measure due to the units influence on the revenues of the business as
well as the catalyst for the majority of our emissions.
Emissions intensityTotal emissions
Total revenues (total emissions tCO2e/$ million of revenue)175.10
Per unit (total emissions tCO2e/number of contracted units)0.13
The split of the emissions intensity ratio has only been determined at
the Group level for FY23 as the focus is on reductions at this level.
d) The gross direct (Scope 1) GHG emissions are made up of CO2 (162.8
tCO2e), CH4 (0.9 tCO2e) and N2O (3.7 tCO2e) gases. Gases information
is not available for the other scopes.
305-5Reduction of GHG
emissions
GRI Index EROAD became a Toitū carbonreduce certified organisation for the
first time in FY22. With the acquisition of the Coretex entities on 1
December 2021 their operations have been included for the first time in
FY23, as such FY23 forms our new base year. Due to the change in the
base year there is no reduction in GHG emissions to report.
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305-6Emissions of ozone-
depleting
GRI IndexInformation on emissions of ozone-depleting substances is not
currently available.
305-7Nitrogen oxides
(NOx), sulfur
oxides, (SOx), and
other significant air
emissions
GRI IndexInformation on nitrogen oxides (NOX), sulfur oxides (SOX), and other
significant air emissions is not currently available.
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GRI-306 WASTE
306-1Waste
GRI IndexEROAD currently collects and discloses data for waste generated as
a result of operations in New Zealand, North America and Australia.
The waste data collected is for landfilled waste from each of the
EROAD offices as well as the warehouse premises in New Zealand
for the distribution of EROAD products to customers and product
refurbishment activities. EROAD’s reporting of waste is currently on
waste generated by our own activities and none that are generated
upstream or downstream in our value chain. Reported waste data is
based on information provided by our waste disposal vendors where
available.
The following areas have been identified as significant actual and
potential waste impacts in the EROAD value chain:
Inputs, activities
and outputs
Waste genera-
tionActual and potential waste impacts
Materials and
production
Upstream in
value chain
Solid waste disposal and recycling produced from the
sourcing of raw materials and component products to
manufacture EROAD products including the packaging
to transport the materials to be manufactured.
Product
components
Upstream in
value chain
Solid waste disposal and recycling produced from the
sourcing of raw materials and component products to
manufacture EROAD products including the packaging
to transport the materials to be manufactured.
Products and
packaging
Own activities
Solid waste disposal and recycling from supplier
packaging, pallets, scrap metal, office paper, plastics
and mixed recycling, as well as generated waste from
own warehouse operations to distribute products to our
customers.
Consumption
Downstream in
value chain
Solid waste disposal and recycling from EROAD
packaging, consumables associated with installation of
the products and retirement of the product at end of life.
Product
refurbishment
Own activities
Solid waste disposal and recycling from the
refurbishment and repair of EROAD products including
that generated from spare parts and componentry
and the packaging of those. Solid waste disposal and
recycling of returned products at end of life.
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306-2Management of
significant waste-
related impacts
GRI Index a) To prevent waste generation and to manage significant impacts
from waste generated in EROAD’s own activities, upstream and
downstream in our value chain the three R’s from the waste
hierarchy: Reduce, Reuse, Recycle are considered.
To strengthen EROAD’s focus on generating less waste, EROAD
is continuing to focus on a more circular economy. This includes
designing out waste from our products and packaging, extending the
life of products and materials and reducing consumption across the
value chain. Working with our suppliers to share this same goal of
waste minimisation is an important step in this process.
b) Waste generated by the organisation is managed by third-parties at each
of our sites. As far as we are aware the waste is managed in line with
legislative obligations as no breaches have been bought to our attention.
c) Our largest two waste generating sites, being our head office in Albany
and our warehouse in Penrose the waste taken away is measured by
general waste and cardboard using weight scales on their trucks. The
third-party supplier then undertakes further separation of the general
waste at their own facilities to identify and remove any other recyclable
materials to divert these from landfill. For our other sites being
Christchurch, Portland, New Jersey, San Diego and Sydney, the waste
removal is managed by the landlord of the leased offices. Limited data is
available on the waste removed at these other sites but we will work with
our landlords to improve the data and to better understand the processes
undertaken.
306-3Waste generatedGRI Index
2023 (metric tonnes)
Solid waste disposal total32.0
Solid waste recycling total19.3
Total waste41.3
1 Current available data relates to recycled cardboard at our Albany and
Penrose sites in NZ only.
Our largest two waste generating sites, being our head office in Albany
and our warehouse in Penrose the waste taken away is measured by
general waste and cardboard using weight scales on their trucks. The
third-party supplier then undertakes further separation of the general
waste at their own facilities to identify and remove any other recyclable
materials to divert these from landfill. For our other sites being
Christchurch, Portland, New Jersey, San Diego and Sydney, the waste
removal is managed by the landlord of the leased offices. Limited data
is available on the waste removed at these other sites but we will work
with our landlords to improve the data and to better understand the
processes undertaken.
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306-4Waste diverted
from disposal
GRI Index Further breakdowns of our waste are not currently available. We will
work with our third-party providers to improve our data quality as well
as look at ways to reduce our waste and for what we cannot reduce,
improve the amount that can be recycled.
306-5Waste directed to
disposal
GRI IndexFurther breakdowns of our waste are not currently available. We will
work with our third-party providers to improve our data quality as well
as look at ways to reduce our waste and for what we cannot reduce,
improve the amount that can be recycled.
GRI-308 SUPPLIER ENVIRONMENTAL ASSESSMENT
308-1New suppliers that
were screened
using environmental
criteria
GRI Index 2 new suppliers were screened using environmental criteria.
308-2Negative
environmental
impacts in the
supply chain
GRI Index No negative impacts identified. If major breach to EROAD policies,
we would cease the arrangement. Our policy is to work with suppliers
where possible to remedy any negative environmental impacts.
GRI-401 EMPLOYMENT
401-1New employee
hires and employee
turnover
GRI Index a)
NEW HIRES
BY AGEAustraliaNew ZealandUnited StatesTotal
20 and under13610
21 - 3028432
31 - 40529539
41 - 5015621
51 - 608614
61 - 6411
65 and over11
Total68428118
NEW HIRES BY
GENDERAustraliaNew ZealandUnited StatesTotal
Male5421461
Female1401051
Not Declared0246
Total68428118
23% based on number of permanent employees hired.
b)
LEAVERS BY
AGEAustraliaNew ZealandUnited StatesTotal
20 and under11
21 - 3028634
31 - 40345957
41 - 50319426
51 - 6012719
65 and over11
Total610527138
LEAVERS BY
GENDERAustraliaNew ZealandUnited StatesTotal
Female248959
Male4571677
Not declared22
Total610527138
27% based on resignations from permanent employees.
Please note: EROAD has undertaken restructuring efforts in 2023
which has caused our number of leavers to be higher than usual.
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401-2Benefits provided
to full-time
employees that are
not provided to
temporary or part-
time employees
GRI Index a) United States, Australia, New Zealand,
i) Life insurance: US: Yes, AU: No, NZ: No.
ii) Healthcare: US: Yes, Health insurance: AU: Yes, NZ: Yes.
iii) Yes, N/
A, N/A
iv) Disability and invalidity cover: US: Yes, AU: Yes, NZ: Yes
v) Par
ental leave is available to all employees, Provided to all
eligible employees as per legislation.
vi)
St
ock ownership is provided to senior permanent employees.
Provided to senior permanent employees.
vii) Stock ownership is provided to senior permanent employees.
Provided to senior permanent employees. Provided to senior
permanent employees.
viii) EAP is provided to all, as is volunteer days.
b) United States, Australia, New Zealand.
401-3Parental leave GRI Index All permanent employees who have completed six months service
are eligible for eight weeks paid parental leave in addition to statutory
entitlements. We provide this to primary and secondary carers
regardless of gender.
a) 152 female, 288 males and 4 not declared employees were entitled to
parental leave.
b)
13 females and 18 males.
c) 11 females and 16 males returned to work during FY23. 2 males are still on
leave yet to return.
d) 9 females and 12 males are still employed as at 31 March 2023.
e)
Return to work = female 85% and male 89%
Retention rate = female 82% and male 75%
GRI-402 LABOUR/MANAGEMENT RELATIONS
402-1Minimum notice
periods regarding
operational changes
GRI Index This is determined on a case-by-case basis and within employment
regulations as necessary
GRI-403 OCCUPATIONAL HEALTH AND SAFETY
403-1Occupational
health and safety
management
system
GRI Index a) HSMS implementation has begun in FY23.
i) Updated health safety management systems are being implemented
in all areas of operations.
ii)
Rec
ognised risk management is being implemented.
b)
All work
ers are covered.
403-2Hazard
identification,
risk assessment,
and incident
investigation
GRI Index a) Hazards are reported through the H&S Page on Ehub (EROADs internal
intranet) where EROADers complete documentation which is then sent
to the H&S team for actioning with the appropriate leader(s). Hazards
can also be identified through routine risk review.
i) EROAD’s Group Health & Safety team sits within the EROAD People
& Capability Team. Actions are reported to the Board as appropriate.
ii) Assessment as to the quality of this process cannot yet be made but
is something EROAD is working on and will look to report on this in
future years.
b) The process for workers to report hazardous situations is currently in
progress and EROAD will look to report on this in future years.
c) The policies and processes for workers to remove themselves from work
situations where they believe they could suffer an injury is currently in
progress and EROAD will look to report on this in future years.
d) The processes used to investigate work-related incidents, including
the process to identify hazard and assess risks relating to incidents is
currently in progress and EROAD will look to report on this in future
years.
403-3Occupational health
services
GRI Index Workers medical records are kept in accordance with local legal
requirements.
403-4Worker
participation,
consultation, and
communication on
occupational health
and safety
GRI Index a) Health, Safety and Wellbeing Steering Committee Group meets regularly
to consults on health, safety and wellbeing within the business - including
policies, procedures and training.
b)
The Group HSW Senior leadership Team consults with other operational
members of the business on risk/hazard and identification of those.
c)
HSW Steering Committee is a senior led committee charged with
driving health & safety within the business. This committee is made up
of execs and senior leaders within the business who have influence over
outcomes, and who can provide senior sponsorship of all safety activity.
All EROADers commit to the health, safety and wellbeing of the business
and its people.
403-5Worker training on
occupational health
and safety
GRI Index All EROADers complete mandatory health safety and wellbeing
learning modules.
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403-6Promotion of
worker health
GRI Index All employees are offered Healthcare as part of their employment
package, including 24-hour access to employee assistance
programmes across our global locations, as well as mobile support
through the use of our Being Well ap, so EROADers can access support
no matter where they work or what the time.
403-7Prevention and
mitigation of
occupational
health and safety
impacts directly
linked by business
relationships
GRI IndexInformation not currently available.
403-8Workers covered
by an occupational
health and safety
management
system
GRI Index a) Management system based on Health and Safety at Work Act (2015)
requirements, as well as any other legislative requirements for Australia
and North America.
403-9Work-related
injuries
GRI Index a)
i) No fatalities reported.
ii)
No high-consequence work-related injuries recorded.
iii) One work-related injury was reported during FY23 in Australia but
none in New Zealand and North America.
iv)
Crushed /partially severed finger.
v) -
b)
i) No fatalities recorded.
ii) No high-consequence work-related injuries recorded.
iii) No work-related injuries recorded.
iv) None recorded.
v) -
c)
i)
Determined through auditing and hazard analysis involving key
workers from specific departments
ii) 0
iii) All hazards identified are first attempted to be eliminated, and if
unable to be eliminated, minimisation techniques are used.
d) All hazards iden
tified are first attempted to be eliminated, and if unable
to be eliminated, minimisation techniques are used.
e) Not applicable.
f) No workers excluded.
g) Not applicable.
403-10Work-related ill
health
GRI Index No worker related ill-health recorded.
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GRI-404 TRAINING AND EDUCATION
404-1Average hours of
training per year
per employee
GRI Index a) All employees are required to complete an average of 6 hours of
mandatory training as part of their onboarding.
This includes:
Mandatory Training All Staff (6 + hours)
IT Data Privacy, Cyber Security and Information Security (45mins)
eLearning
Legal Privacy at EROAD Parts 1 and 2 (60mins) EROAD eLearning
Legal Working for a Listed Business (30 mins) EROAD eLearning
Health & Safety Office Safety (23mins) Open Sesame eLearning
Welcome to EROAD New Starter Induction (90mins)(In Person &
Teams)
Hardware Familiarization (60mis) (In Person & Teams)
EROAD MYEROAD (NZ) Fleet Management Portal (60 mins) (In Person
& Teams)
Recommended eLearnings All Staff (not mandatory but assigned to
Learning Dashboards) (3hours 15mins) eLearning
1. Six Steps to Leading Productive Meetings (30mins) Open Sesame
eLearning
2.Unconscious Bias and You (45mins) Open Sesame eLearning
Open Sesame Online Learning Subscription Available to All Staff on
Demand
The Complete Agile Scrum Fundamentals Course + Certification (16
hours)
An Agile Crash Course: Agile Project Management & Agile Delivery (1hr
5 mins)
Safe Driving Distracted Driving (9mins)
Boosting Emotional Intelligence (20mins)
Productivity and Time Management (24mins)
Decision Making Excellence (30 mins)
Dealing with Irate Customers (10mins)
Writing Effective emails (24mins)
Individual Priority Management (50mins)
Microsoft TEAMS Essentials (45mins)
EXCEL 2016: Beginner (4 hrs)
Salesforce Essentials (70 mins)
Change Management Global (10mins)
Microsoft Power BI (2 hrs)
Creating an Environment based on Respect (15mins)
Health & Wellness: Take a Deep Breath (9 mins)
North America learning is via Insperity
i) Female 167 Male 302
ii)
Employ
ee Count 528 (59 Gender not disclosed) .
404-2Programs for
upgrading
employee skills and
transition assistance
programs
GRI IndexNEW ZEALAND
1. Lean Six Sigma Yellow Belt Training
Lean 6 Sigma Yellow Belt yellow belt May 2022 14 attended 4 gained
belt
Lean 6 Sigma Yellow Belt yellow belt June 2022 19 attended 3 gained
belt
2.
Business Intelligence Dashboard in a Day,
3. Dale Carnegie Telephone S
ales Growth Retention,
4. Change Resiliency (In person and Teams 1 hr sessions to all employees
backed up by
5. EROAD eLearning module ’Change Resiliency: Understanding &
Embracing Change’,
6. Chapter Lead Training 4 Half Days of Training “Manager Essentials Course
- Roseann’s Principles” 24 Enrolled
(Courageous Conversations, Goal Setting & Delegation, Feedback Rich
Culture C
oaching & Mentoring)
7. EROAD Leadership Program NA Cohort 6 November Graduates (9 male,
1 female)
8. EROAD Leadership Program NZ Cohort 5 November Graduates (10 male,
8 female)
NORTH AMERICA
Training delivered via Insperity, including orientation and overview of
policies around discrimiation.
Outplacement training provided (including CV review, interview skills
and recruitment process support), focusing on transition assistance
programs to facilitate continued employability and the management of
careers resulting from retirement or termination of employment
404-3Percentage
of employees
receiving regular
performance and
career development
reviews
GRI Index No formal framework was in place for performance reviews in FY23.
Development Plans completed
Female - 68%
Male - 73%
Not declared - 50%
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GRI INDEX |EROAD 2023 SUSTAINABILITY REPORT
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GRI-405 DIVERSITY AND EQUAL OPPORTUNITY
405-1Diversity of
governance bodies
and employees
GRI Index Diversity in North America:
i) 29% Female, 71% Male
ii) 57% 30-50 years, 43% over 50
Data above includes executive team only (as at 31 March 2023).
a)
NEW HIRES
BY AGEAustraliaNew ZealandUnited StatesTotal
20 and under13610
21 - 3028432
31 - 40529539
41 - 5015621
51 - 608614
61 - 6411
65 and over11
Total68428118
NEW HIRES BY
GENDERAustraliaNew ZealandUnited StatesTotal
Male5421461
Female1401051
Not Declared0246
Total68428118
23% based on number of permanent employees hired.
b)
LEAVERS BY
AGEAustraliaNew ZealandUnited StatesTotal
20 and under11
21 - 3028634
31 - 40345957
41 - 50319426
51 - 6012719
65 and over11
Total610527138
LEAVERS BY
GENDERAustraliaNew ZealandUnited StatesTotal
Female248959
Male4571677
Not declared22
Total610527138
27% based on resignations from permanent employees.
405-2Ratio of basic salary
and remuneration
of women to men
GRI Index a) For each employee category
New Zealand - 88/100
Australia - 81/100
US - 94/100
b) New Zealand, Australia, United States
GRI-406 NON-DISCRIMINATION
406-1Incidents of
discrimination and
corrective actions
taken
GRI Index No incidents of discrimination were identified.
GRI-407 FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
407-1Operations and
suppliers in which
the right to freedom
of association
and collective
bargaining may be
at risk
GRI Index EROAD has performed 3 audits of Tier 1 contract manufacturing
suppliers this year. These manufacturers are based in Philippines,
Indonesia and Australia respectively. No concerns were found related
to workers’ rights during these audits.
For all other existing suppliers, no retrospective audits related to
workers’ rights have been undertaken to date. It is anticipated that all
Tier 1 and Tier 2 suppliers will be audited, either by visit or by self-
declaration, over the course of the following financial year.
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PAGE 108 PAGE 109
GRI-408 CHILD LABOUR
408-1Operations and
suppliers at
significant risk for
incidents of child
labour
GRI Index EROAD has performed 3 audits of Tier 1 contract manufacturing
suppliers this year. These manufacturers are based in Philippines,
Indonesia and Australia respectively. No concerns were found related
to child labour during these audits.
For all other existing suppliers, no retrospective audits related to child
labour have been undertaken to date. It is anticipated that all Tier 1 and
Tier 2 suppliers will be audited, either by visit or by self-declaration,
over the course of the following financial year.
GRI-409 FORCED OR COMPULSORY LABOUR
409-1Operations and
suppliers at
significant risk for
incidents of forced
or compulsory
labour
GRI Index EROAD has performed 3 audits of Tier 1 contract manufacturing
suppliers this year. These manufacturers are based in Philippines,
Indonesia and Australia respectively. No concerns were found related
to forced labour during these audits.
For all other existing suppliers, no retrospective audits related to forced
labour have been undertaken to date. It is anticipated that all Tier 1 and
Tier 2 suppliers will be audited, either by visit or by self-declaration,
over the course of the following financial year.
GRI-410 SECURITY PRACTICES
410-1Security personnel
training in human
rights policies or
procedures
GRI Index a) Not applicable.
b) Not applicable.
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GRI-411 RIGHTS OF INDIGENOUS PEOPLES
411-1Incidents of
violations involving
rights of indigenous
peoples
GRI Index No special action outside of discrimination and harassment policies and
national reporting to legal bodies by Insperity. EROAD runs diversity
and inclusion events throughout the year and in hiring practices,
remuneration reviews, benchmarking and so on.
GRI-413 LOCAL COMMUNITIES
413-1Operations with
local community
engagement,
impact
assessments, and
development
programs
GRI Index EROAD does not currently assess suppliers on their engagement with
local communities.
Internally, part of the North American People strategy for the
upcoming year is incorporating hiring initiatives around vulnerable
groups such as veterans, as well as lead community volunteering
programs for our teams.
413-2Operations with
significant actual
and potential
negative impacts on
local communities
GRI Index EROAD does not currently assess suppliers on their engagement with
local communities.
GRI-414 SUPPLIER SOCIAL ASSESSMENT
414-1New suppliers that
were screened
using social criteria
GRI Index EROAD does not yet specifically screen suppliers against social criteria.
Elements of social criteria such as health and safety in the work place
and human rights are reviewed though.
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PAGE 110 PAGE 111
414-2Negative social
impacts in the
supply chain and
actions taken
GRI Index EROAD does not yet specifically screen suppliers against social criteria.
No negative social impacts have been identified.
GRI-415 PUBLIC POLICY
415-1Political
Contributions
GRI IndexNo political donations.
GRI-416 CUSTOMER HEALTH AND SAFETY
416-1Assessment of
the health and
safety impacts of
product and service
categories
GRI Index All EROAD products are risk assessed for potential health and
safety impacts to customers; spanning distribution, installation,
use, maintenance and removal. This risk assessment process begins
at concept stage and is reassessed through subsequent product
development phases up to a post launch retrospective. Where relevant
our product guides highlight HSW requirements our customers should
be aware of.
416-2Incidents of
non-compliance
concerning the
health and safety
impacts of products
and services
GRI Index No incidents of non-compliance were recorded.
GRI-417 MARKETING AND LABELLING
417-1Requirements for
product and service
information and
labelling
GRI Index a)
i) Not disclosed on hardware packaging or software
ii) Not disclosed on hardware packaging or software
iii) Safe use content for hardware contained in user manuals. No safe use
content for software
iv) Limited disclosure for trained installers as part of de-installation
process
v)
Not applicable.
b) All hardware include iii and iv but not i or ii. Software doesn’t include any
of the above. ~25%
417-2Incidents of
non-compliance
concerning product
and service
information and
labelling
GRI Index No incidents of non-compliance recorded.
417-3Incidents of
non-compliance
concerning
marketing
communications
GRI Index No incidents of non-compliance recorded.
GRI-418 CUSTOMER PRIVACY
418-1Substantiated
complaints received
concerning
breaches of
customer privacy
and losses of
customer data
GRI Index EROAD did not have any substantiated complaints (whether from
customers or regulatory bodies) concerning breaches of customer
privacy.
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Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.