Transport companies share best practices to meet sustainability challenges

Ardian’s Infrastructure and Sustainability teams have launched a working group that brings together portfolio companies in the transport sector to share insights and experience, and increase resilience.

“The initiative aims to identify ways to improve the long-run performance of a sector that provides essential economic infrastructure but faces significant challenges, notably in reducing its carbon intensity. Although the idea for the working group came up before the pandemic began, the rapid spread of Covid-19 only increased the need for portfolio companies to compare their experiences and learn from each other,” says Mathias Burghardt, Member of the Executive Committee and Head of Ardian Infrastructure.

Candice Brenet, Head of Sustainability at Ardian, says “the idea of forming the Transport Working Group illustrates Ardian’s approach to addressing global challenges. We engage with management in the field and together create roadmaps for positive change. We are very pleased with the way our companies have actively participated and openly shared best practices.”

The group held its first online meeting in July 2020, gathering operational leaders from six portfolio companies including the motorway operators Ascendi from Portugal, ASTM, based in Italy, and Vespucio Norte from Chile, along with SEA, which operates the two airports in Milan, and Lisea, which manages the 300-km high-speed rail link between Tours and Bordeaux in France. 

In addition, French car park operator Indigo, a former Ardian portfolio company, accepted an invitation to join the group, having made significant progress with its sustainability initiatives during Ardian’s holding period. 

How working group members tackled the Covid-19 crisis

Discussion during the first online meeting centred on the companies’ experiences of managing through the first wave of Covid-19 infections, which hit Europe from March onwards. The teams shared their experiences and challenges in activating and adapting their business continuity plans, and the steps they had taken to ensure employees could work safely.  

Giorgio Medici, Environment and Airport Safety Manager at Milan airports operator SEA, said the discussions highlighted the importance of agility and flexibility in how businesses operate. “Our ability to adapt to drastic changes has, for example, allowed us to move quickly and efficiently to offset huge declines in passenger traffic with an unexpected increase in cargo flights.”

Raphaëlle Muhlmann-Eytan, Director of Asset Management in the Infrastructure team, said the Ardian team had three goals for the session: to encourage knowledge-sharing, enhance long-term thinking and help participants keep pace with a rapidly changing environment. “Everyone was very frank about the issues and difficulties they had faced, including the mistakes they made and what they learned from them,” she says. 

The value of sharing experiences and knowledge

“This working group creates networking opportunities between companies that do not normally interact,” says Pierre Klemas, Sustainability Director at Ardian. “Our role as responsible investors also involves bringing together diverse teams to enable knowledge-sharing and innovation.”

Hervé Le Caignec, President of Lisea, said: “The crisis taught us that good communication and the ability to adapt quickly are vital to maintain employee safety and engagement, as well as business performance.”

One immediate sign of success for the working group came the day after it was held, when Enrique Méndez Velasco, CEO of Vespucio Norte in Chile, contacted fellow motorway operators ASTM and Ascendi for advice on crisis-management measures to handle Covid-19, which had reached Chile later than Europe. 

“Given that Covid-19 had been progressing in Europe about three months ahead of Latin America, it was particularly useful to share experiences with our colleagues who have faced the effects before us,” he said. 

Muhlmann-Eytan adds: “This was a great example of what we were trying to achieve, and now they speak on a regular basis. The fact that they can reach out to each other is a big differentiator for us. They have a lot to discuss.” 

The feedback following the first webinar was universally positive. The verdict of Miguel Martin, Chief Business Development Officer of Ascendi, was typical: “This group provided Ascendi with unique insights into best practices and risk management, as well as innovative ideas that we can adopt for the benefit of our stakeholders.”

Raphaël Senicourt, Sustainable Development Director at Indigo, agreed: “Ardian's structured approach allowed everyone to express their views on how their company managed the health crisis and lockdown. This made it easy to compare our actions and draw inspiration from other people’s ideas as we prepared for a possible second wave of the epidemic and another lockdown.”

Following the initial meeting and the positive feedback from the companies that took part, preparations began immediately for a second session on how members of the working group will make progress towards carbon neutrality. Future meetings are also being planned with issues such as biodiversity likely to feature on the agenda.