Protecting the environment
The Modulaire ESGS strategy represents our intent to establish ESGS commitments uniformly across the Group. It is built on our stakeholder engagement process and double materiality assessment, addressing the material topics, risks and opportunities identified for our business.
Climate adaptation and biodiversity
This year, we implemented Group Protocols for Biodiversity and Climate Change Adaptation Plans at all SBUs. They signpost key considerations for decision-making to reduce our impacts, enhance biodiversity and build climate change resilience. Where sites have been assessed as high priority for climate adaptation, SBUs are investigating adaptation opportunities. At some sites, mitigation measures are already in place, such as sustainable drainage in Germany and rainwater harvesting in the UK, Spain and Australia.
Emissions reduction
Modulaire is pleased to report a 30.7% absolute reduction of our Scope 1 & Scope 2 market-based emissions (vs 2020). In January 2023, we completed the preliminary measurement of our Scope 3 CO2 emissions (1.3 million tCO2e ). It shows that 74% of our CO2 emissions take place during the Scope 3 downstream phase of our modular solutions. We are in the process of submitting our science-based Net Zero target to SBTi for their independent validation.
Electrification
Our Electrification policy is now embedded across the Group, enabling SBUs to replace existing technologies and processes with electric-powered equivalents where appropriate. Significant progress has been made in switching our diesel forklifts to electric; approx. 33% (SBU/Total) are now electric, as we replace old vehicles or change lease agreements.
Reducing waste and water
Today, we send over four times less waste to landfill than in 2020 (2023: 3,318 tonnes waste vs 2020: 13,458 tonnes waste incl. both hazardous and non-hazardous). We issued our Policy on Waste Management, and are working with Operational Excellence across our SBUs to continue reducing waste. Over 90 Kaizen process improvement events were implemented.
We are now using over two times less water for our operations than in 2020 (2023: 101,175 m3 water vs 2020: 224,674 m3 water). Our newly issued Policy on Sustainable Use of Water promotes initiatives that raise awareness of sustainable water management.
Progress on our environmental KPIs
Of our four environmental 2023 KPIs, we have achieved three. One further KPI is ongoing in 2024.
| KPI | Progress | Status |
|---|---|---|
| Reduce Group total gross Scope 1 and 2 market-based emissions in metric tonnes CO2e by 5% (vs baseline 2020) | Achieved |  |
| Initiate Group Operational Carbon baseline tonnes of annual Scope 3 | Achieved | |
| Source 100% Renewable Electricity for the Group where available and applicable | Achieved | |
| Design and build new Frankfurt branch using Best Available Technology for outstanding accreditation | Ongoing |  |
Achieved
Ongoing
Not achieved
Switching to renewable energy
Switching to renewable energy We want to power our business using 100% renewable energy wherever it’s available and applicable. We have concluded the purchase of renewables for all SBUs and the Group has secured 67% renewable electricity.
As demand increases for renewable energy, we continue to invest in self-sufficient electricity generation. We have identified sites that can benefit from solar power and are installing Photovoltaic panels (PV) to generate and supply our own energy needs. Where panels produce more renewable electricity than we need, we sell the excess back to the grid for use in our local communities.
In 2023, in the SBU ENSE region, we installed solar panels on the roof at three key locations: Madrid in Spain, Castanheira in Portugal, and Warsaw in Poland. They yield an annual production of 170 megawatt-hours, providing 20-40% of the electricity necessary to power the three customer service centres. PV panel installations have made significant reductions in energy at Adelaide (33%) and Melbourne (28%). Moreover, approx. 70% of ENSE’s electricity consumption is via Renewable Energy Certificates, another approach to integrating clean energy into our operations.
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Measuring our Carbon Footprint
We measure the carbon footprint of our operations and a typical product to identify our impacts. It helps determine opportunities for cost and carbon savings on our path to Net Zero emissions.
We engaged PricewaterhouseCoopers LLP (‘PwC’) to provide Independent Limited Assurance over our 2023 greenhouse gas emissions data and our 2020 restated greenhouse gas emissions data, in accordance with the ISAE3000 and ISAE3410 standards. The numbers subject to assurance are shown by the symbol in the table, 2020 and 2022 figures are included for comparison. The PwC Independent Limited Assurance Report and our detailed reporting criteria can be viewed on the Modulaire website.
GHG emissions data for the reporting period of 1st January 2023 to 31st December 2023
As the Directors of BCP V Modular Services Holdings III Limited we confirm that we are solely responsible for the preparation of the ESGS Report including this Directors’ Statement and for reporting the ESG performance metrics in accordance with the reporting criteria set out within this document.
We confirm, to the best of our knowledge and belief, that we have:
- designed, implemented and maintained internal controls and processes over information relevant to the measurement, evaluation and preparation of ESG performance metrics that is free from material misstatement, whether due to fraud or error;
- established objective reporting criteria for preparing and presenting the ESG performance metrics, including clear definition of the entity’s organisational boundaries, and applied them consistently;
- presented information, including the reporting criteria, in a manner that provides relevant, complete, reliable, unbiased/ neutral, comparable and understandable information;
- reported the ESG performance metrics in accordance with the reporting criteria.
For and on behalf of the Board of Directors of BCP V Modular Services Holdings III Limited
James Odom
Group General Counsel
2020
2020 Restated**
2022
2022 Restated**
2023
Scope 1 Greenhouse Gas Emissions (TCO2e)*
15,345
19,529
15,559
19,443
18,865
Scope 2 Greenhouse Gas Emissions -
location based method (TCO2e)
10,927
11,834
10,844
12,533
10,151
Scope 2 Greenhouse Gas Emissions -
market based method (TCO2e)
12,801
13,995
5,193
7,132
4,360
Total (Market Based)
28,146
33,524
20,752
26,575
23,225
* Scope 1 emissions reported excludes fugitive emissions, due to a lack of available data and methodology.
** Figures updated as a result of an acquisition, in line with our restatement policy within our methodology statement - see our website.
The Corporate GHG footprint calculated in accordance with the WRI/WBCSD GHG Protocol Corporate Accounting and Reporting Standard.
2020 has been presented as this is Modulaire’s baseline.
Reducing our environmental impacts
Safety with Biodiversity
In Unterschleissheim, South Germany, our site coordinator received a safety requirement to install physical barriers to separate the walkway and road. He decided to use raised planters as the barriers, with repurposed foundation plates as weights to prevent tipping. Together, the local team have planted the raised beds with salad, berries, and insect-friendly flowers and shrubs to promote biodiversity. It’s a great initiative, that is enjoyed and maintained by everyone in the team.
Switchover to electric forklifts
We’re making the switch to electric forklifts, replacing old vehicles or changing lease agreements to go electric. It reduces diesel emissions, along with noise and pollution, which is especially beneficial when working in enclosed spaces. In the UK, Algeco has switched over 25% of diesel-powered counterbalance trucks to electric vehicles, saving around 543t of CO2e per year. Across Spain, the team are replacing nine diesel forklifts and instead leasing reconditioned electric vehicles, saving 12k litres of diesel and 30t CO2e each year.
European Waste Reduction Week
At Algeco France, during European Waste Reduction Week, the team launched awareness-raising activities to reduce waste and optimise sorting. Working with their supplier Paprec, Algeco employees in Rouen, Nantes and Paris Est were offered the opportunity to visit a waste sorting centre. Over in Vitrolles, employees participated in a practical workshop to prevent waste at source and 10 ideas were selected for action. In La Défense, the team expanded waste sorting at their office and attended workshops with tips for a zero-waste life.
Measuring our performance against sustainability-linked finance targets
By linking finance to our sustainability performance, we are delivering meaningful change in partnership with our investors.
We have put in place sustainability-linked finance GHG emissions reduction targets with a clear set of actions to drive continuous improvement. The targets are set at intervals to 2028 (vs 2020) and are publicly shared for transparency with our stakeholders.
The key ESGS metric we use across our operations is total market-based GHG emissions. We measure our progress against reduction targets using Key Performance Indicators (KPIs) and review performance each month at a Group and local level. We learn from the results, understanding more about where to best employ our resources and the training our people may need to succeed.