Electric Scooters Industry ESG Thematic Report, 2023

Environmental, Social, and Governance (ESG) in the Electric Scooters Industry

The environment, social and governance aspects provide a comprehensive picture that helps stakeholders understand how an organization manages its risks in relation to all three criteria.

It has been observed from our research that electric scooters are somehow related to environmental, social, and governance issues, with the environment being the major aspect. As the e-scooters run on batteries it helps in reducing emissions and traffic and is more environmentally friendly than cars because they are more sustainable. Moreover, the material used in manufacturing an electric scooter, steel, comes in small quantities and can also be recycled as aluminum.

The demand for electric scooters has grown for a variety of reasons, including safety, emissions reduction, and sustainability. Further, other significant benefits of electric scooters include portability as folding bikes assist in convenient transportation, eco-friendliness as electricity is minimal and does not produce emissions, and noise pollution is also eradicated when using electric scooters.

ESG Trends

Electric scooters have become increasingly popular around the world as diesel and petrol prices have always been on the rise, which is also contributing to climate change. As it is a valuable option to help create an environmentally friendly technology that is low in emissions. The significant growth of the market is also aided by favorable government initiatives and rising energy costs to the consumers. Moreover, one of the world's leading electric vehicle companies has also disclosed its investment plan for about USD 320 million to set up the world's largest electric scooter factory.

ESG Challenges

The electric scooter is a more sustainable option and has a positive impact on the environment, but it also faces several challenges which cannot be ignored. It is well known that electric scooters produce fewer emissions, but manufacturing also contributes significantly to those emissions. The recharging process alone releases 43% of emissions.  To be manufactured, lithium-ion batteries require enormous amounts of energy.  The production of these batteries causes manufacturing pollution. Electric scooters also cause safety concerns when they catch fire. An online survey conducted in the year (2022) also revealed that consumers are concerned about e-scooters' safety. Additionally, the percentage of people who are not convinced about the safety and performance of e-scooters has risen to 32% in August, compared to just 2% one year earlier.

The manufacturing sector faces numerous challenges when it comes to fleet renewal since replacing existing e-scooters with new ones requires an abundance of scrapping and replacing procedures. This may result in significantly high, product end-of-life waste leading to assess the United Nations’ Sustainable Development Goal – Responsible Consumption. A high level of dependency has been observed in the importation of electric two-wheelers components, including batteries, motors, and controllers. This includes 50% of the key components presently imported into the country for production.

Growth of The Electric Scooter Market 

As of 2021, the global electric scooter market is expected to grow 7.8% annually at a compound annual growth rate (CAGR) of 7.8% between 2022 and 2030. Over the planned period, the adoption of electric scooters (e-scooters) is projected to grow due to an increasing need for fuel-efficient vehicles and rising concerns about greenhouse gas emissions. In addition, the research also considers electric scooters from both perspectives, which are both beneficial and have some disadvantages to some degree. 

Key Companies in this theme

    • Hero Electric

    • Yadea Technology Group Co., Ltd.

    • Gogoro Inc.

    • Vmoto Limited

    • BMW Motorrad International

Scope of the Electric Scooter 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 Electric Scooter Industry ESG Thematic Report:

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

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

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

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