Our ESGS strategy
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.
Our ESGS strategy features three key sustainability areas: Environment, Social and Governance (ESG), with circularity, adaptability and leasing at the core. For each area, we set out ambitious ESGS objectives and targets (KPIs). Central to delivery of our ESGS strategy, is Modulaire’s circular business model - Loops within Loops - designed to ensure our materials are retained in use for as long as possible at their highest value. We share our progress transparently in this report.
ESGS strategic objectives: our call to action
Target Net Zero by 2050 using our Loops within Loops model
- Be part of the circular economy by leasing, redeploying and end of life reuse
- Drive sustainable design and manufacturing
- Act on climate risks and opportunities
Measure and deliver on Social value
- Place safety at the top of our agenda, supported by wellbeing programmes and training
- Create smart places for people to work, learn and live
- Ensure diversity and inclusion remain key values in every aspect of our business
Continue to strengthen our approach to governance
- Maintain our strong compliance focus:
- code of ethics, anti-bribery and corruption policy
- policies for suppliers, data protection and cybersecurity
- whistleblowing hotline
- Active oversight by the Board and Executive Committee of ESGS
- Achieve ISO certifications for Environment
You can access this Sustainability Report at any time. Download the PDF now
External accreditations allow us to benchmark against internationally recognised standards and to improve our processes. My work on EcoVadis has given me a great insight into the holistic nature of ESG
Mihir Badhwar
Group ESGS Intern
Aligning with positive frameworks
We are delivering for social good, contributing to the global community and taking action on climate change. 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. We do this so our investors, customers, suppliers and society at large can understand our approach to sustainability and assess our progress. We communicate our ESGS performance transparently through these external organisations, on our own website and in this report.
We act on six UN SDGs that complement our business purpose, vision and operations. We have integrated the goals into our everyday activities through our services, projects and customer portfolio.
- To achieve long-term success, we are transitioning to a sustainability strategy with circularity at its core, providing modular space for people to work, learn and live.
- We work in collaboration with our stakeholders to create and develop shared value for people and the planet. We create products that make a positive difference to society while contributing to our ongoing success.
- We conduct business with a focus on ethical, environmental and community goals, whilst being a good employer and fostering a diverse and inclusive culture.
- We became signatories to the UNGC in April 2021. We report annually on our progress against its ten Principles through a Communication on Progress report.
- A growing number of our SBUs are participating in the independent Sustainability rating system, EcoVadis. It makes an independent assessment of our ESG performance in four key areas: Environment, Ethics, Labour & Human Rights, and Sustainable Procurement (see ‘Demonstrating Responsible Governance’).
- We became signatories to TCFD in May 2021 and based our roadmap to Net Zero on their recommendations. We share our progress in this report, a non-financial declaration that combines aspects and reporting on key issues including: stakeholder concerns in the materiality matrix, environmental, social and governance factors, including business ethics and compliance, anti-corruption and bribery.
- SBTi is a partnership between CDP, the UNGC, World Resources Institute and the World Wide Fund for Nature. Modulaire became a signatory to SBTi in January 2023 and has committed to using SBTi criteria when setting our CO2e reduction targets, including for Scope 3. We are in the process of submitting science-based targets to SBTi.
Pathway to Net Zero
We are decoupling fossil fuels from our operations with the aim of reaching Net Zero emissions by 2050. We are submitting ambitious science-based interval targets to SBTi, backed by credible actions and c.€3 billion in sustainability-linked financing.
At Modulaire, we recognise climate change is a critical global priority, with significant impacts that include more frequent and severe rainfall, droughts and heatwaves. We support the Paris Agreement to achieve Net Zero emissions by 2050 and contribute through our ESGS strategy with interval targets. They are inspiring our people to deliver robust results with purpose, on our pathway to Net Zero.
Modulaire depends on materials and energy to make our units. Key to delivering our targets, are our programmes for resource efficiency, safety, electrification, renewable energy, operational excellence and sustainability awareness. We are confident that when we have completed the actions outlined in our 2028 Climate Action Plan, we may be able to bring our Net Zero target date forward.
Modulaire Group GHG emissions
Upstream 24%
Scope 3
2% Scope 1 and Scope 2 (market-based)
2%
Downstream 74%
Scope 3
0
20
40
60
80
100
Measuring our Scope 3 emissions
Modulaire has disclosed its Scope 1 and 2 emissions since 2020. These emissions have been calculated in line with our Reporting Criteria (‘Measuring Our Carbon Footprint’). In January 2023, we committed to SBTi, forwarding our commitment letter.
In 2023, we measured our Scope 3 emissions using the best practice GHG Protocol Corporate Value Chain (Scope 3) Standard. This extensive programme of work expanded our knowledge of the ESG value generated by our units during the ‘use phase’ of their lifecycle. The resulting data increases our ability to model, understand, and implement emission reduction opportunities going forwards in a value chain. Our Scope 3 emissions represent 98% of Modulaire’s total value chain emissions in 2022. We are in the process of submitting science-based targets to SBTi.
c.73% c.73% less carbon emissions vs traditional construction1.
Our circular business model delivers modular builds with a lower carbon footprint than traditional construction.
20x Units can be reused up to 20x or more during their average lifecycle1.
Our units provide flexibility, because they are reconfigurable and reusable, they are helping customers adapt to changing climate demands and shifting demographics.
96% Units are up to 96% recyclable1.
By leasing out assets, they remain under our control for their full lifecycle, enabling us to minimise their impacts and manage their recycling.
- 2020 Product footprint analysis of a typical Modulaire unit based on:
- Stage A1-A5 (sourcing, manufacturing and transporting to site) approximately 200 (kgCO2e/m2) v 700-800 (kgCO2e/m2) for a traditional build. This equates to approximately 73% less carbon emissions compared to a traditional build.
- In use (B1-B6) and end of life (C1-C4) emissions total 210 kgCO2e/m2. This equates to approximately 65% less carbon emissions compared to a traditional build
- For the whole life footprint (410 kgCO2e/m2), details for an equivalent traditional build are difficult to ascertain due to the lack of benchmarks which include B6 data
- Product footprint calculated in accordance with EN 15978:2011. Modulaire typical unit based on Advance 8000 two classroom unit assembled in France. Typical benchmarks for education buildings based on Whole Life-Cycle Carbon Assessments Guidance (Mayor of London, October 2020). Whole life figure provided in this guidance exclude any allowance for energy consumed during the in-use phase.
Progress on our Net Zero pathway
2023
ACHIEVED
- Low Carbon Solutions
- 5% absolute reduction in Scope 1 and 2 emissions (vs 2020)
- Source 100% Renewable Energy for the Group where available and applicable
- Initiate Group Operational Carbon baseline tonnes of annual Scope 3 for 2022
2024
ON TRACK
- 7.5% absolute reduction in Scope 1 and 2 emissions (vs 2020)
- Roll out our strategy to reduce or mitigate Scope 3 emissions
- Continuous innovation of low carbon solutions for customers
2025
- 10% absolute reduction in Scope 1 and 2 emissions (vs 2020)
- Reduce the embedded carbon footprint (Stage A1-A5) of a typical Modular Space Unit (vs 2020)*
- Reduce waste to landfill by 50% per typical unit (vs 2020)
- Reduce our water use by 10% per typical unit (vs 2020)
- Life Cycle Analysis of typical manufactured Modular Space Units
2028
- Climate Action Plan
- 15.8% reduction in Scope 1 and 2 emissions (vs 2020)
2030
- Innovation & Scale
- Reduce Scope 1 & 2 GHG emissions by 40%
- Reduce Scope 3 emissions by 25%
- Progress towards total circularity of units
- Technology for carbon removal
- 100% renewable energy where available and applicable
- Transform new product portfolio to Net Zero carbon
2050
Net Zero
Net Zero carbon of our end-to-end supply chain by 2050 to meet the Paris Agreement goal of 1.5°C.
Our commitment for environmental responsibility and climate action is to minimise carbon emissions for our company and customers, and manage our material risks and opportunities.
More and more customers are asking for low carbon solutions. We are in a strong position to provide them.
Angélique
Commercial Sales, Algeco
Value creation through innovation
Our VAPs team develops the sustainable low carbon products and services our customers want and need for a circular economy. Using our quality management system, we have established project design and development activities to deliver quality standards that assure safety across our work processes and products. Last year, we significantly boosted our research and development efforts, initiating a series of value added products that reflect the interconnected energy transition and digital transformation. We are collaborating with suppliers at the forefront of innovation, to deliver quality engineering and scale production. Together, we are developing products for our modular units that can help our customers to reduce their ESG impacts. Product launches will take place over the coming year, in appropriate regions
Climate control
Digital heater
Electric vehicle charger
Solar motion sensor
PV panels
Solar lighting
Lighting tower
Electric door closer
Recycling bins
Satellite broadband
Fire extinguishers
Water dispensers
Lower carbon use
Better health & safety
Improving connectivity
‘Plug and Play’ PV solar panels
We introduced a new customer solution, supplying solar panels on a fixed rooftop frame for our modular units. The panels are helping to build climate resilience and reduce energy costs, by reducing reliance on the local electricity grid. Each system is adjustable and programmable according to energy usage needs, with a design that facilitates rainwater flow.
103 kgCO2e approx. savings per month
Modulaire assessment: average data, per month and per panel
Our proactive position in the ESG area takes our partnerships with our key accounts to a new level. We actively support the reduction of our customers’ emissions through product innovations, like PV panels.
Oliver Appel
Head of Key Account Management, Algeco Germany