Edenred : Brazil on the road to sustainable mobility

The Brazilian government has recently announced a series of major incentives and regulatory changes in favor of a low carbon mobility:

• The launch of the "Mover Program", through which the government has made 19 billion available over the next 5 years (2024 to 2028) for companies to invest in sustainable technologies. The program will increase sustainability requirements by applying measurement of emissions across the entire automotive chain, include minimum recycling limits in vehicle manufacturing and expand investments in energy efficiency with lines of incentive for the local production of vehicles with lower carbon emissions.
  The "Mover Program" will also reduce the tax rate on vehicles that emit less, encouraging hybrid vehicles and with a special incentive to ethanol, and charge more for a combustion car.
• Regulation of the carbon market: companies that emit more than 10,000 tons of CO₂ equivalent per year will be now regulated, with an obligation to submit an emissions report to the responsible body and provide an emissions reduction plan.
• Increase of the mixture of biodiesel in diesel: from April 2023, the regulatory rate jumped from 10% to 12%; in 2024, it will go to 14% and it is estimated that it will reach 15% by 2026.

To fully transition to low-carbon mobility, it will be necessary to reindustrialize the country, which gives rise to the opportunity to expand industry's participation in the economy in line with trends and demands for sustainability in the context of the energy transition. Incentives are also needed in research, development, innovation, and professional qualification, notably to support the development of electric vehicles (EV) - a domain which Edenred is actively committed to monitoring. Luckily, Brazil can rely on its advance in terms of renewable energy.

Interestingly enough, according to a study by KPMG, 85% of the biggest companies in Brazil publish an ESG report, and 65% of these companies included climate change in their risk analysis. As reducing carbon emissions become more pressing, it is small wonder that Brazilian companies look for ways to implement greener mobility.

Taking mobility toward a greener future

A clear path to sustainable mobility involves utilizing alternative energy sources that are powered by renewable energy.

The country is notably the world's second larger producer of ethanol, one of the most promising fuels for solutions for lights fleets and reducing environmental impacts. Second generation ethanol (produced in Brazil from sugar cane waste) thus emits up to 93% less greenhouse gases (GHG) than gasoline. Also, it is also widely available at 82% of gas stations in Brazil.

Other than combining biodiesel with diesel and increasing this percentage - as the government is pushing, heavy fleets do not have renewable fuel alternatives at this stage. However, it presents an opportunity to help companies reduce diesel consumption through better fleet management.

One approach to this is to monitor drivers' behavior, using telematics, GPS, and fuel consumption data. This visibility will enable managers to improve fuel use by implementing innovative policies.

The use of routers presents another solution to help reduce the fuel consumption of corporate fleets. Advanced, AI-based mapping systems can optimize driving distances by selecting routes that will save time and avoid tolls.

Easing the transition

With our global sustainability program Move for Good, Edenred supports businesses in transitioning to low-carbon mobility. We aim to help them identify their maximum reduction potential and give them the tools to do it.

Primarily, we guide businesses toward decarbonization by encouraging them to monitor their GHG emissions and take actions to reduce them. These notably include the adoption of bioethanol or better fleet management to reduce fuel consumption. When businesses want to make these changes, we analyze the financial and operational factors that will go into the process.

Secondly, we help businesses to improve their impact by compensating their remaining GHG emissions. To implement these offsets, we provide solutions for investing in certified third-party projects to generate a socioenvironmental positive impact. These include biodiversity preservation, efforts toward developing renewable energy, and methane capture projects. Between 2023 and 2024, we supported the reforestation of 10,000 trees in the Atlantic Forest. This area is considered one of the most biodiverse in the world, despite only about 10% of the original forest remaining.

Our final objective is to increase awareness about the potential and impact of sustainability. This means fostering a culture that supports the adoption of low-carbon mobility.

Currently, over 4,100 businesses in Latin America and Europe have joined Move for Good. These organizations are contributing to drive the evolution towards more sustainable mobility.

In the future, we hope to see more countries and regions joining this low carbon mobility transformation.

Greener pastures ahead

With its abundance renewable energy, Brazil has excellent potential to be the protagonist in the global energy transition. While better infrastructure gradually emerges to accommodate low-carbon mobility, consumers can accelerate this shift by leveraging their available resources. We're here to empower businesses to make that leap to sustainable mobility. So, let's Move for Good!

• Copy to clipboard
• Share by mail
• Share by facebook
• Share by twitter
• Share by linkedin