User:Mshea22/Uber

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Uber may be impacted by environmental and social regulations, particularly in the realm of climate policies. For instance, California implemented regulations in May 2021 requiring that 90% of vehicle miles traveled by ride-share fleets in the state be in zero-emission vehicles by 2030, with interim targets set to begin in 2023. The electrification of ride-hailing fleets in Chicago could lead to a significant reduction in lifetime greenhouse gas emissions, estimated at 40-45% compared to gasoline-powered vehicles. Moreover, New York has ceased issuing licenses to new Uber drivers with gas-driven cars as part of their goal to transition to a fully electric fleet by 2030.

However, a recent study from researchers at the University of Michigan and Carnegie Mellon University suggests that the overall societal benefits of transitioning ride-hailing vehicles from gasoline to electric would be modest, with an estimated average gain of only 3% per trip once other societal costs are considered. The study highlights that health impacts from local air pollution could actually increase by 6-11% per trip, on average, due to higher concentrations of pollutants from fossil fuel-burning power plants.

Uber acknowledges in its 10-K filing that it is exposed to various risks associated with climate change, both in terms of physical impacts and transition risks. Failure to effectively manage these risks could have adverse effects on its business operations. The company notes that there is an increasing focus on environmental, social, and governance (ESG) matters, as well as sustainability, which could impact its reputation, liabilities, and overall business. Additionally, Uber recognizes that catastrophic events, such as disease outbreaks, weather events, war, or terrorist attacks, could negatively affect its financial condition and results of operations. These events could be worsened by the effects of climate change, further highlighting the importance of managing climate-related risks for the company.