Bicycle Industry ESG Thematic Report, 2023

Environmental, Social, and Governance (ESG) in the Bicycle Industry

The bicycle industry’s impact is interlinked with environmental and social factors. As a whole, the industry contributes to mitigating the climatic challenges faced around the world in a positive way. Furthermore, our research will assess critical points and impacts on the bicycle industry.

As per our research on the industry, one of the first and foremost points highlighted was the exclusion of demand for oil and petrol as it impacts the environment negatively. Additionally, the gases and pollution which contribute further to climate change are not included. As bicycles do not emit pollution or gases, they are one of the most sustainable modes of transport. Furthermore, it has been shown that cycling only emits five grams of carbon dioxide per kilometer which is ten times less than cars.

Speaking about the benefits, cycling consists of countless benefits that range from personal, economic, environmental, social, and many more. Other than being a sustainable and eco-friendly form of transportation, a large number of people have transitioned towards cycling as their mode of transport. In addition, it has several benefits such as being beneficial to health, environmentally friendly, economically viable, one of the most sustainable alternatives for transportation, helping to minimize air pollution and noise pollution, and last but not least, no nonrenewable fuels are burned.

Growing Transition and Innovations

The global transition towards bicycles has increased because of energy efficiency and sustainability factors. The other mode of transport requires a great deal of energy, but when compared with the energy required for a bicycle, it is nearly optimal. According to 2008 research, the manufacturing of a 7.2 kg bicycle with carbon frames consumes 11,546,658,000 Joules less energy than constructing a car, which uses 118,284,466,000 Joules for construction. This demonstrates that people are becoming more environmentally conscious and have moved to bicycle transport.

Speaking about innovations, one of the most significant revolutions that the world has witnessed in the 21st century is e-bikes/e-bicycles. It is one of the greener modes of transport that comes with an electric motor, which is further beneficial to the environment. As stated, e-bikes do not emit any emissions unlike other modes of transportation such as cars, bikes, and trucks which run on fuel that emits emissions over time, whereas e-bikes do not since they're considered zero-emission vehicles. Air pollution also causes serious health issues in cities where fog is a big concern. E-bikes are by far the most effective mode of transport. In addition, batteries generate less waste, which has a minimal impact on the environment.

ESG Challenges

There are significant challenges associated with the bicycle industry. In particular, companies and brands tend to focus more on the number of quantitative outputs produced by an organization. The critical thing that remains unnoticed here is the sustainable practices embraced by the industries. One of the challenges that the organization faces is a lack of transparency in the materials that are sourced during production and the materials received from the supply chain. The lithium-ion batteries used in electric vehicles are another issue in the e-bike industry. To make lithium-ion batteries, huge amounts of lithium must be mined and a lot of water is consumed in the extraction process.

Further processing occurs when the batteries have to be manufactured and distributed, creating their own carbon footprint. If the batteries are not recycled properly, they can negatively impact the environment. As we dug deeper into the process, we discovered that the production of the e-bike relied on burning coal and fossil fuels, which is certainly not environmentally friendly and poses a risk to the ecosystem.

Initiatives Taken By The Brands

The brands/organizations have understood the importance of sustainability and are acting accordingly. During manufacturing stages, companies are using sustainable steel and vegan leather, aligning themselves with ethical practices and providing safe working conditions, and using sustainable steel frames to further support their efforts towards sustainability.

Growth of the Bicycle Market

During the period between 2022 and 2030, the global bicycle market size is projected to increase at a compound annual growth rate (CAGR) of 8.2%. As more people turn to bicycles as a leisure activity, market growth is expected to accelerate. It is expected that the market will continue to expand as people prefer bicycles as a convenient form of exercise to maintain a healthy lifestyle, free of obesity and other conditions. Furthermore, the research also highlights key points about the Industry.

Key Companies in this theme

    • Accell Group

    • Atlas Cycles (Haryana) Ltd.

    • Avon Cycles Ltd.

    • Cervelo

    • Dorel Industries Inc.

    • Giant Bicycles

    • Merida Industry Co., Ltd.

Scope of the Bicycle Industry ESG Thematic Report: 

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Benefits of the Bicycle Industry ESG Thematic Report

    • Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the market, globally

    • Key insights into Infrastructure developments and ESG issues affecting the theme

    • Identifying ESG risks and opportunities to business among leading players in the bicycle industry

    • Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment