Modular solutions for a circular economy
Our 2023 performance
“Welcome to Modulaire’s latest ESGS report, sharing the commitments, actions and progress we have made on our pathway to Zero Harm and Net Zero.
Safety and ESG are the number one pillar in our business strategy, because of their importance to our people and our planet. We continue to action our five year plan for world class safety performance and our Lost Time Accident rate now stands at 0.44, a reduction of 33% since 2022.
We have opened our first low-emissions customer service centre this year, in the UK. It sets a new benchmark across the Group, clearly demonstrating our commitment to act on climate change through electrification, switching over to renewable energy, protecting biodiversity and reusing materials. It is also an exciting time for innovation, as we launch a series of value added products, such as solar-powered lighting and satellite broadband to improve customer connectivity in remote areas.
We continue to reduce risk across our supply chain with ongoing programmes around cybersecurity, responsible sourcing and ESGS awareness. Most recently, we have measured Modulaire’s Scope 3 emissions, creating new opportunities to integrate our circular Loops within Loops strategy across the value chain.
I remain more convinced than ever, after our recent climate risk assessments (TCFD), that Modulaire is making a valuable contribution to building a circular economy. We deliver adaptable and recyclable modular solutions that help our customers respond to changing population and climate needs.
We hope you find the report useful and welcome your feedback.”
I remain more convinced than ever that Modulaire is making a valuable contribution to building a circular economy.
Mark Higson
Group Chief Executive Officer
You can access this Sustainability Report at any time. Download the PDF now
We absolutely support the need for consistent, comparable and transparent ESGS reporting. Our teams are already working to ensure we are CSRD-ready, ahead of reporting on FY2025. We have conducted a double materiality assessment and thank our stakeholders for participating in this important process, which is used to inform our strategy and targets. In 2023, we also introduced a new ESGS Responsible Sourcing Policy and supplier assessment process, which continues to embed ESGS at all stages of our supply chain
James Odom
Group General Counsel
Performance highlights 2023
30.7% reduction vs 2020
- Scope 1 & 2 market-based emissions
SBTi Net Zero commitment
- Scope 3 CO2e assessed, targets to be submitted
67% Renewable energy
55% less water used vs 2020
75% less waste to landfill vs 2020
33% lower LTAFR vs 2022
2% increase
- Overall proportion of female employees
5,145 hours Volunteering
Participated in 3 UN days
- International Day for the Elimination of Racial Discrimination, World Environment Day, Human Rights Day
459 hours
- Cybersecurity training
1,373 hours
- Code of Ethics training, including ABC
Responsible Sourcing
- New policy and supplier assessments
Double Materiality assessment
- CSRD-ready
EcoVadis medals
- 3 Gold, 1 Silver
Investors are seeking out assets that are future-proofed against tightening regulations and the changing climate. We have raised approximately €3 billion in sustainability-linked financing, which incentivises our business to achieve ambitious emissions reduction targets on our path to Net Zero by 2050. We recognise it’s a powerful enabler, helping us to invest in new low-carbon technology at a faster pace. Modulaire is on track to meeting its first milestone in 2025, where we are expecting to achieve a 10% absolute reduction in Scope 1 and 2 emissions.
Emma Mercer
Group Chief Financial Officer
Our ESGS purpose
At Modulaire, we create smart spaces for people to work, learn and live. We work with a purpose; to help generate economic prosperity, do social good and contribute to environmental responsibility. Where we can make a difference, we will, with our products and our people.
Our Group strategy and performance pillars
Modulaire Group works across five key strategy and performance pillars, including Safety and ESGS. We work as one team to achieve Zero Harm and lead on Sustainability. These two headline performance objectives run side by side throughout our business processes and activities.
Strategy and Performance Pillars
Pillar 1:
(SP1)
Safety & ESG
Achieving Zero Harm and leading on Sustainability
Pillar 2:
(SP2)
Growth
Growing organically by providing great customer solutions
Pillar 3:
(SP3)
Operational Excellence
Creating value through excellence in everything we do
Pillar 4:
(SP4)
M&A
Acquiring and integrating great companies that enhance our business
Pillar 5:
(SP5)
People
Enabling highly skilled colleagues to perform at their best
Our ESGS purpose
We seek to reduce or mitigate our environmental and social impacts and to improve governance and our sustainable practices. To achieve our ESGS purpose we maintain a Group policy and objectives that shape our decisions and actions at all levels. We align our ESGS strategy with a number of best practice frameworks and standards, including the United Nations Sustainable Development Goals, the United Nations Global Compact Principles and the Task Force on Climate-related Financial Disclosures.
Environmental
- Provide customers with sustainable and circular solutions using our Loops within Loops approach
- Help to improve the sustainability performance of our supply chain
- Design and deliver safe, energy-efficient, low-carbon solutions to our customers using clean and innovative technology where possible
- Reduce our environmental (energy, carbon, water and waste) impacts on-site and off-site, and work on climate adaption and biodiversity
Social value
- For employees, contractors and visitors, provide a safe, inclusive, diverse and motivating environment
- Promote organisational change management to meet ESGS commitments
- Empower our employees to add value for our customers, suppliers and communities
- For communities, act responsibly and create social value through our group initiatives and focused local programmes
Governance
- Strict compliance with applicable local legislation relating to ESGS
- All Group functions and business units to contribute and report on Modulaire’s ESGS commitments and targets
- Achieve sustainable growth and robust business performance through responsible corporate governance and an open dialogue with all stakeholders
- Meet sustainability objectives
- Support commitments to the UN Sustainable Development Goals (4, 5, 9, 11, 12, 13), the UN Global Compact Principles (Human Rights, Labour, Environment and Anti-Corruption) and the Task Force on Climate-related Financial Disclosures framework to establish the Net Zero and Climate Adaptation plans
Loops within Loops
Loops within Loops is our sustainable circular business model. It simply means we use innovative sustainable design solutions to produce modular units that can stay in service longer, going round and round again. This reduces the use of virgin materials, minimising resources and waste. By designing in sustainability and designing out waste, we produce a circular product that can be reused, refurbished, remade and assembled. We do this to meet the expectations of our stakeholder groups, who want maximum value with minimum impact.
Our sustainable modular solutions contribute to an advancing circular economy. Whilst we are in the early stages of realising the full potential benefits of our activities, the steps that we are taking to better understand the risks and opportunities of the transition to a low carbon economy are bringing measurable benefits to our customers, the environment and the societies in which we operate.
Advancing our Safety culture
Modulaire empowers and engages all our people to put safety first. We provide the appropriate safety knowledge, competence, and confidence for people to perform their roles effectively.
Across the Group, we are implementing our 5 Year Safety Plan with targeted actions to improve safety performance to world class levels. Safety observations have been increased, with Safety Champions across the business delivering internal training. All leaders, managers and supervisors engage in weekly safety conversations to reinforce positive behaviours and discuss areas of improvement. We are working to prevent high risks, with all injuries investigated and reviewed by members of the Executive Committee.
Five Year reduction in Lost Time Accidents Frequency Rate (LTAFR)
1.0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
0.88
2019
0.80
2020
0.66
2021
0.66
2022
0.44
2023
33% reduction in LTAFR vs 2022
Lowest LTAFR since 2019
51,636 safety observations in 2023
656 employees trained by safety champions
This has resulted in the number of potential injuries now being higher than the number of actual injuries across the Group. Our Lost Time Accident Frequency Rate (LTAFR) stands at the lowest level in five years; this includes the number of employees, temporary workers and contractors that have been injured and needed a medical leave, or an adapted working station, during the past year (i.e. # LTA x 100,000/Total hours worked).
Visible, felt leadership
Organisation & safety skills development
Standards & processes
Best practices & innovation
Celebrating Safety success
We recognise safety success across our business and continue to celebrate it together. In France this year, awards were given out to customer service centres reaching 1,000 days without LTAs and for the highest number of cumulative days without LTAs. This outstanding team performance was celebrated with a shared meal for employees and gift vouchers given to the best performers.
It gives me great pride to see how safety is at the core of everything that we do. From achieving thousands of safety observations each month through to brilliant best practices shared across the business. Our safety journey is evolving, it’s a shared commitment to protecting ourselves, our loved ones and all of our colleagues, every day.
Caterina Iannazzo
Group HSE Director
Focus on Operational Excellence
Operational Excellence is a way of working that gives focus to finding and eliminating waste in our daily operations. It helps to improve process flow, safety and customer service, whilst reducing our environmental impacts. To achieve it, we bring together our people in continuous improvement activities.
Our 2023 approach
We use the 5R hierarchy to manage materials efficiently on-site; it encourages everyone to consider five alternative steps before sending materials to landfill, to Refuse; Reduce; Reuse; Repair and Recycle.
This year, we focused on four themes:
- Production planning and productivity tracking;
- Materials management;
- Production workflow; and
- Standard work.
In 2023, we trained over 100 employees and implemented 91 Kaizen process improvement events. Employees valued the collaborative approach, with opportunities for input and teamwork. We saw particular success around improvements to materials management, which resulted in less materials, transport and obsolescence.
Opportunities
Benefits
Achievements
Inventory reduction
Holding less stock increases efficiency, requires less space and less energy e.g. lighting.
30-50% stock reduction when aligned with demand
Recover, Repair, Reuse
Recover, repair and reuse materials required for unit preparation. Less raw materials, energy to manufacture and transport to deliver.
Minimum of 30 items per unit can be regularly reused
Point of use materials
Place what is needed close to point of use. Hold only items required and eliminate obsolete items. Reduced waste disposal.
35% reduction in wasted time due to walking
Kaizen events for improvement
Our Kaizen events begin by mapping the current process flow on-site, so the team can identify improvement opportunities. Each operation and task is considered, both inside and outside of the main production building. The logical flow of a building through the complete operation is plotted over the site layout. Together, the Kaizen team build a plan that allows placement of workstations, materials, equipment and units in a position that is safe, has clear access and removes waste. The team divide into smaller groups to implement the countermeasures identified. A journal is kept throughout to capture data, issues, and ideas. Follow-up actions with improvement targets are shared with the whole team, including training activities to sustain the benefits.
