It used the services of KPMG to implement the project
Redacción Interempresas12/11/2023
Carbon reporting has become increasingly important for the equipment rental industry, as various stakeholders expect, or even require, companies to measure their sustainability performance, set targets, and report on their progress. This has become a legal requirement for large companies in Europe, and the EU Directive on corporate sustainability reporting will soon enter into force.
Michel Petitjean, Secretary General of the European Rental Association (ERA).
There is currently no agreed methodology for calculating the carbon footprint of equipment rental companies, which today report their carbon footprint in an uncoordinated way and therefore not comparable between different companies, says Michel Petitjean, Secretary General of the European Leasing Association (ERA). In this context, and against the backdrop of increasing legal and other pressures on companies to report on their sustainability performance, it is important to define a frame of reference for the entire rental sector, which will not only benefit the European industry, but will also set an example. For rental companies around the world.
ERA Carbon Reporting Guide
The ERA’s carbon reporting guide will be based on the CO2 Calculator methodology2 Equipment (https://equipmentcalculator.org/en) includes a list and definitions of the GHG Protocol categories that are essential for the rental sector, a methodology for calculating GHGs and emissions in all Scope 1, 2 and 3 categories (special attention will be paid to Scope 3 categories) and a standard set of Values for elements used in the methodology, including activity data for the rental sector and relevant emission factors.
The guide will focus on specific rental processes, such as:
- Use of equipment: To calculate emissions from the use of equipment, it is necessary to track the duration of the lease, as well as each type and size of equipment rented. This is then used to calculate how much fuel your equipment consumes while renting to customers (fuel and electricity).
- Use of sold products: To calculate emissions from the use of equipment once it is sold and removed from leased fleets, it is necessary to determine a method for summing the number of remaining hours of use and average equipment usage.
- Equipment production: Emissions resulting from the production of equipment by the original equipment manufacturer (OEM).
- Maintenance and repair: Emissions resulting from maintenance and repair of equipment. This includes emissions generated during the repair process.
- Convey: Emissions resulting from transporting equipment to and from rental sites. This includes emissions from the delivery and assembly of equipment from external sources (Scope 3), as well as emissions from the leasing company’s own transportation fleet (Scope 1).
- Waste disposal: Emissions from waste disposal resulting from rental equipment. This includes emissions from the disposal of used oil and filters, as well as the disposal of scrap metal and other waste materials.
The project is led by ERA’s Sustainability Committee and the final report is expected to be published in mid-2024.
