Areas of impact
Road safety: Road safety is one of the main causes of death in several Latin American countries. Cabify puts significant resources in training drivers and certifying them. Furthermore, the Company monitors their activities, controlling parameters such as the number of hours they drive per day. Because of this, riders are less exposed to road accidents by using Cabify.
Access to transport: In Latin American cities, some neighborhoods lack access to public transport. Cabify can provide this type of access to people living in these neighborhoods. Cabify thus makes this service a complement to public transport, rather than a substitute to it.
Employment generation: Ride hailing services increase employment in large metropolitan areas, and therefore, favors financial inclusion. Moreover, driver remuneration is attractive with respect to the minimum wage of some of the countries the Company operates in.
Gender: Many women in Latin America suffer harassment and other forms of intimidation when using public transport. Cabify provides a safe transportation alternative for them by providing information about the ride and the driver. Cabify also increases employment among women by increasing the number of women drivers.
Climate change: Through the use of technology, ride hailing promotes higher capacity utilization, innovation and data transparency. This can, in turn, reduce the CO2 emissions. Furthermore, the age of the car fleet used by Cabify is considerably lower, which contributes to reduce emissions.
Carbon Neutrality: Since 2018, Cabify is the first mobility app in Europe and Latin America to be 100% carbon neutral. Their partnership with First Climate ensures a strict annual measurement of their carbon footprint, taking into account not only the CO2 generated by the vehicles using the Cabify platform but also by their app servers, their office spaces, and even their employees’ commutes. In order to offset their emissions, they chose to fund the gold level Madre de Dios REDD++ project in the Peruvian Amazon rainforest. The program employs local communities to prevent deforestation in a part of the Amazon where illegal logging is rife and covers an area of land the size of Portugal. Cabify’s support enabled to protect over 5.3 million trees.
Increasing use of renewable energy: Cabify is working on increasing the number of electric vehicles in their fleet and developing sustainable mobility options such as MOVO. MOVO is a start-up that rents electric mopeds and foot scooters in Madrid, Santiago de Chile, Bogota, Mexico City and Lima. MOVO can be reserved via the Cabify app.
Governance: Cabify is also a UN Global Compact signatory and uses governance best practices.
Environmental and Social Action Plan
Cabify “Shadow SDG Indicators” and “Reach Target” Monitoring
The transaction is expected to support the Sustainable Development Goals 3, 5, 8, 9 and 11.
The legal documents of the transaction include the following list of “Shadow SDG indicators” that will be monitored annually and compared to their baseline level :
Direct Employment (8.2.1, 8.5.1)
CO2 emissions ((9.a.1 ,9.1.1, 9.1.2, 9.4.1)
Average age of the fleet of vehicles ((9.a.1 ,9.1.1, 9.1.2, 9.4.1)
Number of underserved people reached (11.2.1)
Road accident rate (3.6.1)
Death rate due to road traffic injuries (3.6.1)
Number of Women Drivers (5.4.1, 8.5.1)
Number of Drivers (8.2.1, 8.5.1)
The “Shadow SDG indicators” are linked to the Sustainable Development Goals at the Indicator level. The numbers in brackets indicate the numbers of the Sustainable Development Goal Indicators approved by the UN Statistical Commission.
Blue like an Orange will also be able to follow the transaction’s contribution to Blue like an Orange’s “Reach Target” on infrastructure: “Number of people with access to new or upgraded infrastructure”.
IDB Invest developed an Environmental and Social Action Plan based on a series of actions that the company will perform to reach some established performance standards. The plan involves an assessment and management of environmental and social risks and impacts; the implementation of procedures to improve labor and working conditions, including promoting gender equality; the creation of a country specific emission standard for resource efficiency and pollution prevention; development a traffic safety plan promoting adherence to best standards.