We see firsthand how our customers are responding to climate change and population growth; they want agile and low-carbon solutions faster than ever before. We meet these demands using our circular business model, Loops within Loops, which delivers modular builds with a 73% lower carbon footprint than traditional construction. We continue to improve our energy, water and waste efficiency; understanding their contribution to wider sustainable growth.
Modulaire ESGS Report 2024
Action on climate change
We understand the risks and opportunities that Climate Change brings to our business. We take action on climate-related impacts with programmes to reduce our emissions, increase our operational efficiency, promote biodiversity and deliver low carbon customer solutions.
Reducing our impacts
We are committed to reducing our environmental impacts and to improving biodiversity, recognising the importance of natural resources and the urgency of climate change.
The decarbonisation roadmap requires action through multiple levers and electrification forms a significant part of our toolkit. We use renewable electricity where accessible and appropriate, currently securing 78%. Our electrification policy is supporting the transition of our fleet to electric, helping to reduce emissions and deliver a cleaner and safer environment by minimising noise, air pollutants, and diesel storage.
We believe it is vital for stakeholders to understand and trust emissions reduction targets and achievements. It is why our interval targets on the path to Net Zero by 2050 are science-based, our performance is independently audited and we do not offset emissions to achieve our results. We report the absolute reduction of our market-based GHG emissions.
We continue to mitigate climate-related risk. Where sites have been assessed as high priority for climate adaptation, our SBUs are investigating mitigation opportunities. At some sites, mitigation is already in place, such as sustainable drainage and rainwater harvesting in Germany, UK, Spain, Italy and Australia.
Electrification
Our Electrification policy is now embedded across the Group, enabling SBUs to replace existing technologies and processes with resource efficient equivalents where appropriate (page 29). Significant progress has been made in transitioning to electric transport, with 35% of our forklift fleet now electric and 22% of our cars and vans following suit (page 14).
Progress on our environmental KPIs
We have achieved three of our environmental 2024 KPIs, with one ongoing.
KPI
Progress
Status
Reduce Group total gross Scope 1 and 2 market-based emissions in metric tonnes CO2e by 7.5% (vs baseline 2020)
Achieved
Rollout a group-wide strategy to reduce or mitigate Scope 3 emissions
Achieved
Establish carbon emissions reduction plans for transport
Achieved
Design and build new Frankfurt branch using Best Available Technology for outstanding accreditation
Ongoing
Key
Achieved
Ongoing
Not achieved
Emissions reduction
In 2024, Modulaire is pleased to report a 41% absolute reduction of our Scope 1 & Scope 2 market-based emissions (vs 2020). This year, we have also developed a Group strategy to reduce or mitigate our Scope 3 emissions. Recognising that 44% of our carbon emissions are upstream and 54% downstream. The reduction strategy focuses on key areas:
- Providing more low carbon and circular customer solutions
- Supplier engagement
- Reducing our environmental impacts on and off-site
- Electrification across SBUs
We are continuing to develop this strategy as part of our wider Climate Transition Plan (page 13).
Modulaire Group GHG emissions
Upstream 44%
Scope 3
2% Scope 1 and Scope 2 (market-based)
2%
Downstream 54%
Scope 3
0
20
40
60
80
100
Reducing waste and water use
Working with operations teams across our SBUs, we have achieved substantial waste reduction. Our efforts have primarily focused on minimising waste to landfill. Consequently, we now send significantly less waste to landfill compared to 2020 (2024: 3,089 tonnes vs. 2020: 13,458 tonnes, including both hazardous and non-hazardous waste) - see page 28.
Our Policy on Sustainable Use of Water encourages initiatives that raise awareness about sustainable water management. As a result, we have significantly reduced our water usage, using over two times less water for our operations compared to 2020 (2024: 101,175m3 vs. 2020: 224,674m3).
Promoting biodiversity
Our ESGS Committee leads on integrating Modulaire’s Biodiversity Policy across our group decision-making. We focus on legal compliance, biodiversity management, awareness raising, stakeholder partnerships and communication of the policy to employees, contractors, and suppliers, whilst influencing our value chain to adopt best practices.
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 2024 greenhouse gas emissions data, in accordance with the ISAE3410 standards.
The numbers subject to assurance are shown by the symbol in the table, 2020, 2022 and 2023 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 2024 to 31st December 2024
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 specified ESG performance metrics in accordance with the specific reporting criteria set out within this document.
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 specified ESG performance metrics in accordance with the specific 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 specified ESG performance metrics that is free from material misstatement, whether due to fraud or error;
- established objective reporting criteria for preparing and presenting the specified 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 specified 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 Restated**
2022 Restated**
2023
2024
Scope 1 Greenhouse Gas Emissions (TCO2e)*
19,529
19,443
18,865
16,965
Scope 2 Greenhouse Gas Emissions - location based method (TCO2e)
11,834
12,533
10,151
9,722
Scope 2 Greenhouse Gas Emissions - market based method (TCO2e)
13,995
7,132
4,360
2,851
Total (Market Based)
33,524
26,575
23,225
19,816
*
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 is based on the principles outlined in the WRI/WBCSD GHG Protocol Corporate Accounting and Reporting Standard. 2020 has been presented as this is Modulaire’s baseline.
Resource use for a circular economy
Our Loops in Loops business model embraces circular economy principles, focusing on efficient resource use, recycling, and sustainability. By integrating these values into decision-making, the company reduces reliance on virgin materials and fosters innovation. Waste management is a key priority, with strict handling procedures for hazardous and non-hazardous substances to minimise environmental risks. Sites follow a prevention, reduction, reuse, and recycling approach, ensuring compliance with regulations. Through continuous improvement, we increase resource efficiency and reduce environmental impacts.
“We support the integration of Environmental, Social and Governance criteria in manufacturing through the choices we make, building awareness and taking even the smallest opportunity for marginal gains”
Lara Cassim, National Manufacturing Operations Manager, Ausco
Impacts, Risks, and Opportunities
Type
Resource use and Circular economy
IRO
Opportunity
Strategy
Loops within Loops
LCA
Policy
ESGS Policy
Waste and Water Policy
Electrification Policy
Local compliance
Action
Operation Excellence
Waste management
Electrification
Target
Reduce waste to landfill by 50% by 2025 vs 2020
Establish targets for 2025
Policies and actions
- Focus on circular economy and electrification driving actions.
- Compliance with local and EU waste regulations.
Investment and cost considerations
- Investment in operational excellence, sustainable products and waste reduction methods.
Use of alternative raw materials
- Developing innovative processes for sustainable production.
- Procurement of circular raw materials.
- Assessing nature-based solutions.
Enhancing recyclability
- Life Cycle Analysis (LCA) to measure and track sustainability impacts.
Market design and strategic collaborations
- Partnerships with reuse companies (page 42).
- Promoting design for recycling across upcoming product development.
Waste management and efficiency
- Implementing safe disposal methods for hazardous and non-hazardous waste.
- Maximising efficiency in material use and reducing waste through internal reuse.
Resource inflows
- Prioritising procurement of alternative raw materials.
- Develop methodologies to utilise LCA in our supply chain.
Resource outflows (products and waste)
- Generated mainly from production processes e.g. TDI, BPA residue.
- Waste from assembly sites
- Hazardous waste (see below)
Future targets
- Expand sustainability goals to further integrate circular economy principles.
- Implement climate change mitigation strategies that support circular economy.
- We continue to improve data around waste and processes to refine accuracy.
Waste Generation 2024
kt
Total amount of waste generated
15.0
Total amount diverted from disposal
6.5
Preparation for reuse
Hazardous waste
Non-hazardous waste
0.0
0.0
0.0
Recycling
Hazardous waste
Non-hazardous waste
6.5
0.1
6.4
Other recovery operations
0.0
Total amount directed to disposal
8.6
Incineration (energy recovery)
Hazardous waste
Non-hazardous waste
5.5
0.1
5.4
Landfill
Hazardous waste
Non-hazardous waste
3.1
0.5
2.6
Other disposal method
0.0