2018 Global Environmental Initiatives Report

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1 2018 Global Evirometal Iitiatives Report

2 Summary of Global Approach to Sustaiability As a resposible corporate citize, Avis Budget Group is committed to moitorig, measurig ad maagig our evirometal impact, ad workig to reduce it where practicable o a ogoig basis. We have six primary iitiatives uder way to achieve our evirometal maagemet goals: Operatios: Recyclig ad reducig solid ad liquid waste, icludig motor oil, glass, tires, etc. Fleet: Offerig our customers a wide variety of vehicles that are evirometally friedly, icludig as defied by the U.S. Evirometal Protectio Agecy s SmartWay Certificatio program. Outreach: Parterig with our corporate customers to help them measure ad maage the evirometal impact of Avis ad Budget retal vehicles used by their employees. Compliace: Meetig or volutarily exceedig the requiremets of all federal, state ad local health, safety ad evirometal protectio laws. Reductio: Limitig our use of atural resources; recyclig where practicable, whether water, oil, tire rubber, paper, plastic or other materials. Car Sharig: Through our Zipcar brad, Avis Budget Group operates the world s leadig carsharig etwork, cosidered to be oe of the most evirometally friedly trasportatio alteratives available. Through these iitiatives, we have improved the evirometal profile of our fleet ad reduced our cosumptio of atural resources. Through our cotiuous improvemet approach, we remai committed to further maagig ad reducig our evirometal impact i 2017 ad beyod. Avis Budget Group is committed to moitorig, measurig ad maagig our evirometal impact. 2

3 Operatios Avis Budget Group strives to reduce the Compay s evirometal impact at field operatios i may differet ways, icludig: I North America, used motor oil, oil filters, parts ad brake fluids are collected by Avis Budget Group vedors ad recycled at licesed facilities. New car wash systems istalled at Avis ad Budget facilities recycle ad reuse at least 80% of their wastewater. The remaiig 20% is used i the fial rise to avoid streaks ad spots that could impair driver visibility. Avis Budget Group maiteace facilities at major locatios i the Northeast Uited States are heated by clea-burig furaces built to ru o used motor oil. These facilities o loger have to ship used oil to recyclig facilities, thus avoidig the risk of spills ad also elimiatig the eed to cosume exteral eergy for heatig. I additio, these facilities have bee equipped with high-speed doors to miimize warm air leakage ad ehace the efficiecy of the clea-burig furaces. Our efforts to reduce, reuse ad recycle also exted to our headquarters facilities ad field offices. Examples of recet iitiatives that are reducig our use of atural resources iclude: At the Avis Budget Group World Headquarters i Parsippay, N.J. ad Shared Services Ceter i Virgiia Beach, Va., employees recycle office paper, cas ad bottles. Priter toer cartridges ad obsolete computer hardware are collected ad processed to miimize ladfill cotributio. We elimiated prited promotioal material used i cars ad at retal couters i North America, savig 100 tos of paper ad 1,500 trees per year. Avis Budget Group maages our documet storage eeds through a olie billig repository, givig corporate customers secure access to electroic versios of their billig statemets. This Web-based solutio sigificatly reduces the amout of paper required to geerate thousads of statemets ad ivoices each moth. Avis Budget Group claims processig has likewise bee streamlied to reduce paper use ad speed service to customers. Avis Budget Group World Headquarters i Parsippay, N.J. has received the U.S. Evirometal Protectio Agecy s EergyStar recogitio for superior eergy performace i a sigle buildig. I Europe ad Asia, corporately-owed operatios are focused o developig ad completig a series of iitiatives to improve evirometal performace, icludig: At our headquarter office locatios across EMEA, employees recycle office paper, cas ad bottles. Priter toer cartridges ad obsolete computer hardware are collected ad recycled by a third party to miimize ladfill cotributio. Avis Budget UK has adopted the use of car wash systems that recycle 75% of the water used. Avis Budget Germay is workig toward a paperless office. EMEA employees are beig ecouraged to make better use of resources ad reduce eergy use, icludig the developmet of e-learig tools to replace face-to-face traiig. Avis Budget Italy ad Spai collect ad evirometally dispose of all PCs, keyboards, mouse devices, phoes, batteries ad other office equipmet. They also have a dedicated chael for the collectio ad disposal of priter toer cartridges. Avis Budget Spai istalled ew electric meters i higher electrical cosumptio statios to moitor ad optimize use of eergy. The Busiess Support Ceter i Budapest has bee recogized by Leadership i Eergy ad Evirometal Desig (LEED) ad received Platium certificatio, makig it the greeest office buildig i Hugary. 3

4 Avis Budget Australia istalled six ew automatic car washes, which recycle up to 80% of the water used. New facilities utilize large raiwater collectio taks coected to the roofs to provide water for ladscapig ad toilets. All used oil, tires ad batteries are disposed of through licesed recyclig operators. Avis Budget New Zealad has implemeted the EcoFocus program withi headquarters to reduce use of paper ad electricity, recycle priter cartridges ad computer hardware, ad provide a full rage of food compostig ad recyclig bis for paper ad plastic i cafeterias. Car wash bays also have recyclig bis earby to help divert recyclable material left i cars. Fleet Avis Budget Group strives to provide a rage of vehicles to meet virtually ay retal eed. For those seekig to miimize the evirometal impact from their retal car use, Avis ad Budget offer a variety of optios icludig gas / electric hybrids as well as stadard vehicles rated gree by the Uited States Evirometal Protectio Agecy (EPA). Of the vehicles curretly available i the model-year 2018 Avis Budget fleet i North America, approximately 72% are rated 26 miles per gallo (highway) or better, ad 35.4% have received EPA SmartWay or SmartWay Elite Certificatio uder the EPA s ew ad stricter criteria, idicatig that they are cosidered better evirometal performers compared with other vehicles. Avis Budget Group offers several thousad gas / electric hybrid vehicles icludig the Ford Fusio ad Toyota Prius hybrids, primarily at major airport locatios. EPA SmartWay Certified vehicles are available i the followig car classes, some of which are exclusively populated with SmartWay Certified vehicles: Car Class Percetage of Vehicles SmartWay Certified A (subcompact) 100% B (compact) 59.9% C (itermediate) 88.3% D (stadard) 78.8% E (full-size) 99.2% This esures that a gree vehicle ca be reted from virtually ay Avis or Budget locatio i North America. Maiteace is aother importat aspect i reducig the evirometal impact from retal car use. Newer, wellmaitaied vehicles have bee show to be more eergy-efficiet tha older or poorly maitaied vehicles. Ad most cars i Avis Budget Group s fleet are less tha 14 moths old, meaig that our vehicles have much ewer techology tha the average car o the road. I additio, we coduct regular prevetive maiteace icludig emissios systems, tire pressure ad other measures to help esure that the fleet is ruig at maximum fuel efficiecy. 4

5 Most Avis Budget Group vehicles are disposed of via resale, typically through wholesale auctio, olie auctio, directto-dealer ad direct-to-cosumer sales, all of which ivolve third- party specialists i vehicle remarketig. Vehicles that have sustaied damage, for which repairs are judged to be fiacially excessive, are disposed of through wholesale vehicle auctios specifically for damaged vehicles. Across Europe, Avis offers the Eco collectio, which guaratees customers a fuel-efficiet, low-emissio diesel model every time they ret a car. I additio, Avis Budget Group has itroduced more evirometally-friedly vehicles i more locatios, icludig: Uited Kigdom: Avis UK has begu to deploy a fleet of 100 Lexus NX300H hybrids, i additio to other high-fuelefficiecy vehicles. The average age of the UK fleet is less tha 12 moths ad the average Carbo Dioxide emissios for the fleet is uder 120 grammes. Portugal: Virtually all cars i the Avis Budget Group fleet i Portugal are fuel-efficiet vehicles, from the Volkswage BlueMotio ad Volvo DRIVE models to the BMW EfficietDyamics ad the Mercedes BlueEfficiecy rage. The Netherlads: The fleet i the Netherlads icludes Nissa Leafs, which are 100% electric cars, offerig a extremely low-emissio retal car optio. Spai: More tha half of the vehicles i the Avis Budget Group Spaish fleet are rated at sub-120 g / km CO2 emissios, makig these gree vehicles available at virtually ay locatio i Spai. Frace: Avis Budget Group Frace offers the fuel-efficiet Reault Twigo ad Citroe Eco, amog other gree retal optios. Demark: Avis Demark is the coutry s largest private purchaser of electric vehicles ad also the leadig provider of electric vehicle retals i Demark. Swede: Avis Swede is actively workig o various projects to reduce its climate impact ad, sice sprig 2002, has received SP Certificatio for costat improvemets i sustaiability from SP Techical Research Istitute of Swede, a leadig iteratioal research istitute. Avis Swede also offers customers the opportuity to offset the carbo emissios from retal car use as a optio available whe bookig a reservatio. Australia / New Zealad: Both offer the Toyota Camry Hybrid, ad all fleet vehicles meet curret Euro Fleet Emissios stadards. I additio to offerig gree vehicles, Avis Budget Group expects to reduce our evirometal impact through developmet of a optimizatio system aimed at improvig the efficiecy of our ier- city etworks by miimizig mileage drive by Avis Budget Group shuttlers, who move our vehicles from locatio to locatio to esure that we have the right mix of vehicles o had to fulfill daily reservatios. I North America, a similar effort ivolved a process improvemet project by the Compay s Performace Excellece team, which resulted i a sigificatly streamlied process for vehicle shuttlig that also reduced miles drive ad, therefore, vehicle emissios. Across Europe, Avis offers the Eco collectio, which guaratees customers a fuel efficiet diesel model every time they ret a car. 5

6 Outreach Avis Budget Group is committed to helpig to educate both cosumers ad travel professioals i the ways that the evirometal impact from retal car use ca be reduced. Avis Budget Group also works closely with our corporate customers to help them achieve their evirometal impact reductio targets. GPS devices esure drivers ca take the fastest or shortest route, savig time, fuel expese ad reducig emissios. We have a five-part program to help corporate customers reduce the evirometal impact from their employees retal car use, which icludes the followig: Driver Educatio: Avis Budget Group ad our carbo offset parters have created a list of tips o smart drivig habits that corporate customers ca recommed to their employees to reduce evirometal impact from car retal use. We also provide suggestios o how to commuicate these tips for maximum effectiveess. e-toll: Avis Budget Group offers customers electroic toll collectio services i North America ad parts of Europe. Travelers ca skip cash paymet lies ad use automated toll collectio laes to save valuable time while helpig the eviromet. Studies have foud that payig for tolls electroically sigificatly reduces fuel cosumptio ad emissios due to reduced waitig at toll plazas. It also reduces hydrocarbos ad carbo mooxide emissios by 40% to 63%, ad reduces emissios of itroge oxides by 16%. GPS: Avis s ad Budget s global positioig system (GPS) devices provide tur-by-tur avigatio assistace that esures drivers ca take the fastest or shortest route, savig time, lowerig fuel expese ad reducig emissios. This service ca easily be icluded i travelers Avis Preferred profiles. Carbo Footprit Calculatios: For Avis Budget Group s corporate customers, we utilize a sophisticated set of formulae based upo car classes ad the iformatio stored i our data warehouse that allow us to calculate the greehouse gas emissios for ay customer, for specific locatios, coutries or globally, over ay particular time period. The Calculator ca be used to determie a bechmark ad from that poit, track the corporate customer s progress over time. Oce the customer s aual emissios ad its carbo footprit reductio goal are determied, Avis Budget Group helps the customer reduce their emissios i a umber of ways. May compaies are ow publicly aoucig CO2 ad greehouse gas emissio reductio goals. Avis Budget Group ca help these customers achieve their goals with respect to vehicle retal use. Carbo Offset Credits: All stadard motor vehicles, ad eve hybrids, emit greehouse gases. Through carbo offset credits, Avis Budget Group ca help ay customer make its car retal program 100% carbo eutral. Carbo offset credits are created through projects that remove or reduce greehouse gas emissios i various ways such as reewable eergy geeratio, eergy efficiecy ad reforestatio programs. Avis Budget Group ca determie a customer s aual emissios ad their carbo footprit, ad the help them reduce their emissios i a umber of ways. Avis Budget Group has alliaces with several leadig global offset providers icludig Carbofud.org, a leadig U.S.-based o-profit provider of carbo offset solutios; NextEra Eergy Resources, the largest geerator of wid ad solar power i North America; ad The CarboNeutral Compay, a world leadig provider of carbo reductio solutios offerig carbo offset iclusive programs for compaies i 32 coutries. Through these providers, retail ad corporate customers ca ivest i sustaiable eergy projects that offset, or eutralize, their emissios. I Australia, customers ca offset their retal vehicle emissios by purchasig offset credits that fud greehouse gas reductio projects approved uder the Natioal Carbo Offset Stadard of the Australia Govermet. We parter with the Air New Zealad Eviromet Trust to help offset the carbo footprit from our operatios ad ecourage customers to doate towards the rage of evirometal projects the Trust rus each year 6

7 Compliace Avis Budget Group operatios are maaged to esure that we comply with or exceed all federal, state ad local regulatios relatig to health, safety ad evirometal impact. Examples of measures we have take to esure regulatory compliace ad employee safety iclude: Operatios are maaged to esure that we comply with or exceed all regulatios relatig to health, safety ad evirometal impact. Spill Prevetio Cotrol ad Coutermeasure (SPCC) plas that have bee developed to prevet fuel spills from storage ad durig fuel loadig evets at Avis ad Budget locatios. Staff are traied i SPCC plas ad procedures as well as the use of spill kits with absorbet pads, which are cospicuously placed by fuelig islads to maage spills. I the Uited States, a special spill hotlie is staffed 24 / 7 ad relevat sigage is posted at all facilities. Special techology, equipmet ad systems are used to prevet petroleum products from beig released from storage taks. Car Sharig To prevet spillig or overfillig durig fuel storage tak refillig, double wall or secodary cotaimet overfill protectio is used alog with corrosio-resistat tak materials. Redudat fuel leak detectio methods iclude automatic lie leak detectors, ivetory cotrol ad recociliatio procedures ad remote leak detectio systems. Vapor recovery cotrols, uder-dispeser pas ad ivetory cotrols to miimize air emissios, which were all istalled prior to beig required by law, are also used. Zipcar is the world s leadig car sharig etwork, with operatios i urba areas ad college campuses throughout the Uited States, Caada, the Uited Kigdom, Spai, Frace, Germay, Austria ad Turkey. Zipcar offers more tha 50 makes ad models of self-service vehicles by the hour or day to residets ad busiesses lookig for smart, simple ad coveiet solutios to their urba ad campus trasportatio eeds. Zipcar s core missio has remaied costat durig its 18 years of operatio: to eable simple ad resposible urba livig. Today, over 1 millio Zipcar members share approximately 14,000 cars worldwide ad ejoy substatial evirometal beefits: Reductio i persoal vehicle owership: Zipcar s primary beefit is the elimiatio of the eed for may households to ow a car. For some households, this meas they ca get by with oe car istead of two; for others, it removes the eed for vehicle owership etirely. Studies coducted by Dr. Susa Shahee of the Uiversity of Califoria, Berkeley Trasportatio Sustaiability Research Ceter, have foud that each North America car sharig vehicle takes approximately 9 to 13 vehicles off the road. 1 Frost & Sulliva study foud that over 40% of Zipcar members have give up owership of their persoal vehicles. 2 This remais true for Zipcar for Busiess members, as 40% report sellig or avoidig buyig a car due to membership. 3 Reductios i persoal vehicle owership decreases overall cogestio i areas where Zipcar operates, supports evirometal sustaiability ad greehouse gas emissio reductio, ad reduces the cost ad impact of vehicle productio ad maiteace. Reductio i evirometal footprit for idividual members: Car sharig members report otable reductios i their ow drivig behavior after joiig. Members report reducig their vehicle miles traveled by a average of 40% per moth 4, resultig i a reductio i greehouse gas emissios by 34% to 41%, or a average of.58 to.84 metric tos per household. 5 Car sharig members also report that they walk more ofte. 6 1 Marti, E. & Shahee, S. Greehouse Gas Emissio Impacts of Carsharig i North America. Mieta Trasportatio Istitute College of Busiess, Sa José State Uiversity (2011). Available here 2 Sigh, S. & Mubarak, M. Iorgaic growth seems to be the way-out for the retal compaies to eter carsharig busiess. Frost & Sulliva (2013). Available here 3 Stocker, A. & Shahee, S. Iformatio Brief: Carsharig for Busiess Zipcar Case Study & Impact Aalysis. Trasportatio Sustaiability Research Ceter, Uiversity of Califoria, Berkeley (2015) 4 Zipcar North America Trasportatio survey ,341 respodets 5 Marti, E. & Shahee, S. Greehouse Gas Emissio Impacts of Carsharig i North America. Mieta Trasportatio Istitute College of Busiess, Sa José State Uiversity (2011). Available here 6 Marti, E., & Shahee, S. (2011) The Impact Of Carsharig O Public Trasit Ad No-Motorized Travel: A Exploratio Of North America Carsharig Survey Data. Eergies

8 Substatial total evirometal beefit: I total, the impact of behavioral chages by car sharig members amouts to a sigificat evirometal beefit. A study by the Mieta Trasportatio Istitute foud i 2009 that the car sharig idustry i North America prevets betwee 160,000 to 225,000 metric tos of greehouse gas emissios per year,3 a figure which we believe has icreased i recet years as Zipcar has expaded rapidly. I Lodo, a city cofrotig sigificat urba trasportatio challeges, research foud that car sharig could help the city achieve up to a 6% reductio i CO2 emissios from cars, with approximately 120,000 cars take off the road by Dedicated parkig model reduces cogestio: Zipcar s model etails providig cars that are parked at dedicated parkig spaces throughout desely populated urba areas. Zipcar s roud-trip vehicles must ultimately be retured to their origial parkig space at the ed of each reservatio (or i a oe-way reservatio, to a desigated Zipcar parkig space elsewhere). Zipcar members therefore avoid the excess drivig etailed i searchig for parkig i cities where it ca be scarce, which further cotributes to the overall reductio i greehouse gas emissios. Research shows that drivers cruisig i search of parkig accout for a average of 30% of all urba cogestio. 8 Reductio i vehicle maiteace ad productio: I additio to reducig emissios of carbo dioxide ad other GHG, the reductio i vehicles eeded to fulfill the mobility eeds of early 1 millio people worldwide also reduces cosumptio of maiteace-related products such as motor oil, ad reduces the pressure o urba parkig ifrastructure. Supports access to etwork of sustaiable shared trasport: Zipcar s model is well suited to ehace the sustaiability goals of major muicipalities, ad Zipcar works closely with civic leaders to itegrate car sharig offerigs ito trasportatio systems. Zipcars thus exted the ability of urba residets to travel throughout their regio by combiig public trasit travel with Zipcar parked at rail statios i major cities icludig Bosto, Chicago, Dallas ad Toroto. 7 Briggs, M. Car-sharig i Lodo Visio Frost & Sulliva (2014). Available: 8 Shoup, Doald Cruisig for Parkig, Uiversity of Califoria, Los Ageles (2007) 8

9 A task force i Lodo is icludig car sharig i its blueprit to reduce cogestio, pollutio ad parkig pressures ad icrease walkig, cyclig ad public trasport, to make the most efficiet use of the city s road etwork. Research commissioed by this task force foud that i Lodo, oe Zipcar effectively removes aroud 17 privately owed cars from the streets; Zipcar members drive oe-seveth the umber of short joureys (less tha 5 miles) that car owers do; ad Zipsters ted ot to commute by car or drive durig rush hour it simply does ot make sese to pay for a car that is parked at the office all day. Zipcar offers a wide rage of vehicles from luxury cars to passeger vas, ad much of its fleet is comprised of fuel-efficiet vehicles icludig the Cooper Mii Clubma, which is rated at 35 miles per gallo (highway), as well as the Mazda 2 (35 mpg) Volkswage Golf (43 mpg), gas / electric hybrids icludig the Hoda Isight Hybrid (44 mpg) ad the Toyota Prius (48 mpg), ad all-electric vehicles such as the Hoda Fit EV (105 mpg). After just 18 years sice its foudig, Zipcar has prove to be a viable alterative to car owership ad is makig a sigificat cotributio to the sustaiability objectives of cosumers ad muicipalities alike. With a aggressive global growth strategy, Zipcar will be expadig to provide these beefits to more people i more cities i the moths ad years to come. 9

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