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21 June 2024
Sustainability has become a critical agenda item for business sectors worldwide, and the equipment rental industry is no exception.
Recognising the increasing complexity of sustainability challenges, the European Rental Association (ERA) is actively engaged in various projects through its dedicated working groups.
These groups focus on key areas such as Occupational Safety and Health (OSH), Attraction and Retention of People, and Sustainability, each contributing to the overarching goal of promoting sustainable practices within the industry.
A significant milestone in these efforts is the recent publication of the comprehensive “Handbook on Sustainability” by the ERA.
Developed in conjunction with the National Associations Committee and published in March 2024, this handbook serves as a practical guide to sustainability for beginners, newcomers, and non-specialists within the equipment rental sector.
It provides a broader understanding of what sustainability means in this industry, detailed explanations of relevant concepts, and covers the regulatory framework and requirements.
Additionally, the handbook offers guidance on practical steps for those starting their sustainability journey and provides numerous resources and references for deeper exploration into specific topics.
This article delves into the key insights and practical advice outlined in the ERA’s Handbook, offering a detailed exploration of how the sector can meet its sustainability goals amidst regulatory, technological, and market pressures.
By highlighting the ERA’s initiatives and the collaborative efforts of its working groups, we aim to showcase how the equipment rental industry can navigate the path to sustainability and enhance its overall performance and perception.
Net zero emissions: The aim of achieving Net Zero—eliminating most greenhouse gas emissions and balancing any that remain through carbon sequestration—is a primary driver of sustainability initiatives.
For the equipment rental industry, this means adopting science-based reduction targets, promoting clean electricity generation, and facilitating the electrification of transport. With a goal to limit global warming to 1.5°C above pre-industrial levels by 2050, the pressure to innovate and reduce carbon footprints is immense.
Circular economy and zero waste: The concepts of Circular Economy and Zero Waste are gaining traction as businesses seek to keep materials in use rather than disposing of them. This involves re-using and remanufacturing equipment, thus extending product life cycles and reducing waste.
The EU’s Circular Economy Action Plan supports these initiatives, encouraging the transition to sustainable practices within the rental sector.
Social and workforce sustainability: Workforce issues are particularly pertinent in the rental industry. Attracting and retaining skilled workers is a recurring challenge. Embracing trends such as Equality, Diversity, and Inclusion (EDI) and complying with stringent due diligence legislation on human rights within the supply chain are crucial for building a sustainable workforce.
Regulatory drivers
The European regulatory environment is undergoing significant changes, most notably with the upcoming Corporate Sustainability Reporting Directive (CSRD) and the proposed Corporate Sustainability Due Diligence Directive (CSDDD).
These directives require extensive sustainability data and reporting from companies, covering environmental, social, and governance topics. While larger companies are directly impacted, smaller rental companies will also feel the effects as they form part of the larger supply chains.
Customer requirements: Evolving customer demands present both challenges and opportunities. Larger customers, in particular, require greater transparency and sustainability credentials from their suppliers. Obtaining certifications and demonstrating commitments to sustainability can help rental companies meet these expectations.
Asset purchasing: The decision to purchase new equipment is complicated by the introduction of new technologies such as battery-electric equipment. Factors such as manufacturer transparency, equipment lifecycle, and remanufacturing options are critical in making sustainable purchasing decisions.
Telematics: The use of telematics for remote monitoring offers significant benefits. It helps optimize equipment usage, reduces carbon emissions, and provides valuable data for improving operational efficiency.
Environmental controls: Compliance with environmental regulations is crucial. This includes measures for pollution control, air emissions, and waste management, particularly in sensitive areas or urban settings.
Vehicle and equipment power options: Sustainable power options such as biofuels, hydrogen, and battery-electric solutions are increasingly available. Each option comes with its unique benefits and challenges, necessitating careful consideration by rental companies.
Governance and Anti-Bribery and Corruption (ABC): Adhering to ABC rules is essential, especially for companies operating in regions with less established public institutions. Ensuring cybersecurity is also vital, given the risks associated with remote working and smart machinery.
Workforce engagement: Social sustainability involves creating a positive work environment, ensuring health and safety, and promoting EDI. Improving recruitment and retention through modern facilities and a supportive work culture is crucial for long-term success.
Training and development: Providing continuous training on sustainability, health, and safety ensures that employees are competent and engaged. This also helps meet customer requirements for sustainability credentials.
Certification and standards: Aligning with recognized sustainability standards and certifications such as CDP, SBTi, GRI, and ISO can help rental companies demonstrate their commitment to sustainability. Industry-specific schemes like the Fleet Operators Recognition Scheme and SafeHire further bolster a company’s sustainable credentials.
Find more information on the ERA website: erarental.org
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KHL Group is an information provider for the construction and power industries. We publish 16 magazine titles, hold face to face and online events and produce market research. We operate in markets including construction, power, cranes and specialized transport, aerial platforms and access, equipment rental, and demolition and recycling.
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Crane & Transport Briefing
Construção Latino Americana
Construcción LatinoAmericana
Construction Briefing
Demolition & Recycling International
International Rental News
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Off Highway Research – Market research