Nov 26, 2024
In this instalment of Pragmatic Sustainability Chat with CEOs, we sit down with Kristina Meidė, CEO of LTG Link, Lithuania's leading rail transport company and a pioneer in sustainable travel. Under her leadership, LTG Link has transformed train travel into a cornerstone of Lithuania's greener future. This year, the company was named the most sustainable brand among transport and travel organisations in Lithuania by the Sustainable Brand Index 2024. From innovative initiatives like the Sustainable Travel Club to ambitious electrification projects, Kristina shares her insights into redefining travel, balancing sustainability with convenience, and how investing in green practices drives business growth.
How do you define sustainability at LTG Link and what are the main sustainability challenges for the transport industry?
This year, LTG Link was recognized as the most sustainable brand among transport and travel companies in Lithuania (Sustainable Brand Index 2024). Trains are one of the most sustainable means of travel, as compared to cars, they emit 77% less CO2. This is not just a value that can be reported in sustainability reports, but a real concern for our planet.
In Lithuania, we are creating a new culture of traveling by train. Today, we already have an active and large community of regular train travelers.
The mission of LTG Link and the entire LTG Group is to connect people and businesses for a more sustainable future. Reducing the impact on the environment and encouraging passengers to choose more sustainable modes of travel is one of the strategic goals of LTG Link. The more passengers choose to travel by train, the more we will grow the company and move closer to achieving our strategic goals.
The main competitor to rail travel is travel by car. Therefore, today, our main task is to offer an alternative to those who drive cars and convince them that traveling by train is convenient. We have both short-term and long-term goals, as well as the tools to achieve them. For passengers, comfort and speed are important when traveling, and these factors may sometimes lead them to sacrifice sustainability values. However, we do everything we can to convince them and meet their expectations.
For example, a year and a half ago, we established the Sustainable Travel Club. For every kilogram of CO2 saved by a club member traveling by train, virtual points are awarded, which can be converted into discounts. Since the launch of the program, participants who have chosen trains as a sustainable transport option have saved approximately 5,300 tons of CO2 emissions.
Another example: this summer, for the two Ed Sheeran concerts in Kaunas, we organized additional train services from the capital and late-night trains after the concerts from Kaunas back to Vilnius. That weekend, nearly 12,000 people traveled on the Vilnius–Kaunas route, and on Sunday, the number of passengers was nearly 50% higher than on a typical weekend day. We estimate that there could have been about 4,500 more cars on the roads, assuming people traveled round-trip and that, on average, 1.3 people travel in a car in Lithuania. That weekend, people who chose sustainable train travel saved about 32 tons of CO2.
Can you give an example of how improving sustainability has led to better business results for your company?
The LTG Group is implementing one of the largest projects in railway history – electrifying the busiest railway section in the country, from Vilnius to Klaipėda.
The transport sector in Lithuania is responsible for the largest share of airborne pollutants. Once the project is completed, air pollution will be reduced by 150,000 tons per year. It is estimated that over the entire operational period, the social and economic benefits of the electrification project will exceed 700 million euros due to the reduction in pollution levels.
Thanks to lower energy and rolling stock maintenance costs, carriers operating on the Lithuanian railway network will potentially save around 505 million euros, and the project is expected to pay for itself in 19 years. Electrifying the railway will have a significant impact on the competitiveness of the Lithuanian transport sector.
The benefits of electrification will be felt not only by our group of companies but also by all railway transport users, as the maintenance and operation of electric trains are significantly cheaper than those of diesel trains. The maintenance of electric engines is much less expensive than that of internal combustion engines, and many processes that involve oils and lubricants will be avoided. These savings will allow us to invest even more in both infrastructure development and the quality of services for passengers and freight carriers.
Are there specific sustainability KPIs that your management monitors regularly?
Already, across the entire LTG Group, we have been rated above average by the International Union of Railways (UIC) for our sustainability progress in the railway sector. LTG’s score is 57.7%, while the overall average is 42.4%.
The Rail Sustainability Index compares LTG’s achievements with the average performance of other railways in implementing seven selected United Nations Sustainable Development Goals (SDGs). In the UIC index, LTG stands out for its use of renewable energy, creation of good working conditions, and waste recycling.
LTG has identified priority areas in environmental protection, social partnerships, and good governance. The company discloses key impact and performance indicators, as well as objectives, in line with the new European Sustainability Reporting Standards (ESRS) and submits annual sustainability reports. Among the most important environmental topics, each with multiple or even dozens of evaluation indicators, are greenhouse gas (GHG) reduction, improving energy efficiency, managing the risks of climate-related physical factors, pollution management, waste management, and water usage. Social priorities focus on ensuring human rights (the right to rest, fair working conditions, freedom of expression), diversity and non-discrimination, contributing to community well-being, health and safety (including for contractors and subcontractors), data security and privacy, enabling consumers and end-users to access quality information and services, and responsible marketing. Key governance priorities include preventing corruption and bribery, as well as protecting whistleblowers.
What is your role as CEO in managing sustainability?
It would be difficult to implement a positive transformation in the company if the top leader does not believe in it – everything begins with the leader's belief and involvement. I believe that sustainability is already a strategic priority today, and it is highly relevant to the entire transport sector, not only in Lithuania but globally. Railways are one of the greenest means of transport, yet there is still room for improvement. We are actively working on this, not only by planning to renew our fleet of trains and electrify routes soon but also by fostering innovation. Sustainability drives us to seek and test innovations that will help us achieve sustainable results, not just due to legal requirements, but for the benefit of our passengers.
What would you recommend to companies that are still skeptical about the importance of sustainability in business?
Sustainability must be a key focus in the agenda of every company's strategy. It should not be a forced approach dictated by directives, but rather a continuous effort to find solutions that benefit the business and meet the expectations of employees, customers, and partners. Another piece of advice is to seek, test, and implement innovations, which often help achieve sustainability goals. Within our group of companies, we are open to innovation, some of which we have already implemented in our operations.