Chapter 7

Sustainability reporting

  • Introduction
  • Our sustainability strategy
  • Materiality
  • CSR governance
  • Supply chain and clients
  • Highlights

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We have expanded our non-financial disclosure and reporting to provide our stakeholders with greater transparency around non-financial risks and opportunities impacting our business. Further information around how we determine materiality, govern our sustainability activities and report on non-financial risks and opportunities is contained in the following pages and in the risk management section of this report (including our Task force on Climate-related Financial Disclosures statement).

Charting our journey

In 2019, we published our first ever Sustainability Report in which we outline our EV progress and other sustainability goals. Content from that report has been partly added to this Annual Report to provide a more holistic view of our business. It has also helped us prepare the groundwork for further non-financial disclosures, including an overview of non-financial risks and mitigation efforts, including those associated with climate change, based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

We will continue this process in 2020, and work towards fully integrated our financial and non-financial reporting based on the guidelines of the International Integrated Reporting Framework. We will also start applying Global Reporting Initiative standards. To this end we have begun setting up central reporting on topics such as carbon footprint, fleet electrification, diversity and talent development, and to create baseline inventories, define ambition levels and develop action plans on both a central and local level. Our evolving reporting activities are also improving the level and depth of our contributions to the Carbon Disclosure Project (CDP), in which we have participated since 2010. These have in turn, enhanced our disclosures to EcoVadis, the sustainability ratings and scorecard company that helps procurement teams monitor CSR and ESG practices in the supply chain.

It is important to note that in addition to the expectations of our stakeholders, as a licensed bank and Public Interest Entity (PIE), LeasePlan is subject to various regulatory requirements relating to sustainability, such as the EU Banking Reform Package. In addition, the Dutch Central Bank (DNB) and Financial Services Authority (AFM) have included sustainability in their supervisory priorities for disclosure.

Limited assurance on non-financial indicators

As part of the Annual Report 2019, our external auditors have provided, for the first time, limited assurance on four of our non-financial KPIs These indicators are defined below:

New EV orders:

The number represents the percentage of new orders from a client for an Electric Vehicle (EV). An EV is defined as an full-electric vehicle (BEV), a Plugin-Hybrid Vehicle (PHEV) or an Fuel Cell Electric Vehicle (FCEV). No (mild) hybrids are included. A vehicle is defined as a car or a light commercial van.

Average CO2 g/km per vehicle:

This number represents the carbon density of our overall This number represents the carbon density of our overall funded fleet across all our countries. It shows the CO2 tailpipe emissions as communicated by the car manufacturers and as measured during the vehicle testing protocol executed by the vehicle manufacturer. New vehicles registered after September 2018 will have the CO2 value from the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) laboratory test, whereas older vehicles will have values from the previous testing protocol (NEDC).

Employee engagement plus score:

The employee engagement plus score is determined through a weighted average of global employee responses to a 50-question survey about the following topics; joy and pride in work; energy from work and feeling fit in; focus on customer expectations; support for company objectives; and intention to stay and likelihood to recommend LeasePlan as a place to work.

Female employees at top three layers:

This is the percentage of females in the top three management layers at LeasePlan. These are the Managing Board, the layer that reports directly to the Managing Board (Senior Vice Presidents, Managing Directors and Directors, and their direct reports. The 30% target was set in collaboration with the Talent to the Top initiative, a non-profit foundation that provides advice and training on gender and cultural diversity.

Sustainable Development Goals (SDGs)

The UN Sustainable Development Goals address the most important economic, social, environmental and governance challenges of our time. The most significant and relevant SDGs that we can address are shown below. We will chart our journey to implementing these goals in the relevant non-financial disclosures.

Determining materiality

We assess materiality to better understand the topics our stakeholders deem relevant, where we can have the most impact and how we can enhance our existing efforts. In 2018, we conducted a formal materiality exercise with all LeasePlan employees, 70 suppliers and 100 customers to validate our sustainability agenda and ensure we appropriately address the topics our stakeholders deem most relevant.

Materiality matrix LeasePlan

The shaded materiality circle within the matrix above shows the 11 highest scoring topics that are being addressed in our reporting going forward. It should be noted that, as topics are positioned relative to one another, all 19 topics are considered to be highly relevant to LeasePlan and are addressed as such.
The results of LeasePlan’s materiality exercise are being used as part of our adoption of the Global Reporting Initiative (GRI) framework. To that end we are currently assessing the availability and quality of data we are able to source in each area. In 2020, we intend to update our materiality process and broaden our stakeholder groups to include investors.

Governance and management

We have a dedicated Corporate Social Responsibility (CSR) governance structure, which reports to the Managing Board. It is responsible for coordinating the roll-out of our sustainability strategy and for making sure that material topics are adequately addressed. It also supports various business areas in defining action plans, monitors progress and reports on agreed reporting indicators. In addition, the CSR Manager interacts with key stakeholder groups to remain informed about their expectations.

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Sustainability reporting

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