Discovering Sustainable and Practical Tool Hire and Plant Hire Opportunities

Sunbelt’s strategy for sustainability

8 June 2021

Sunbelt’s strategy for sustainability

As the market leader in the UK hire industry, Sunbelt Rentals believes that it has a duty to take the lead in the issue of sustainability. I sat down with CEO Andy Wright for a wide-ranging conversation about some of the initiatives that the company has introduced, measures it is implementing to adapt its operations, and the far-reaching implications that the route towards carbon zero will have throughout the industry, the wider community and future generations. 

When did the organisation first start considering green issues? 

The issue of sustainability has always been ingrained in our make-up, right from the days of our former A-Plant identity. Back in 2009, A-Plant was one of the first rental businesses in Europe to achieve the ISO 14001 international standard for environmental management systems, and was the first rental business in the UK, I believe, to gain the ISO 50001 energy management standard in 2015. But the focus for most organisations then was very much internal: the change in recent years has been the externalisation of awareness, and an acceleration driven by customers, wider society and our determination to lead in this area. 

What’s creating this interest now? 

Contractors are very much aware of their ESG [environmental, social and governance] responsibilities and are looking to us for help in achieving their goals in carbon reduction, reduced emissions and other facets of sustainability. In many ways, this is being driven by the Government: a very high proportion of major contracts are for public sector clients who stipulate that ESG obligations are met. That doesn’t just involve equipment, but also issues like training, supporting local communities and the disadvantaged or needy, through encouraging employment opportunities and training. It really is far-reaching, extending much more widely than simply protecting the environment, and Sunbelt Rentals’ job is to help contractors achieve targets like these, and more. 

And perhaps this awareness will eventually ‘trickle down’ from major contractors throughout the supply chain, like we saw with hand arm vibration (HAV) legislation.

Yes. And what’s also important to recognise is that the younger generation will begin to drive this faster. They understand the ethos of sustainability and are now gaining employment in positions of influence and responsibility. This whole initiative can only grow in pace.  

Tell me about Sunbelt’s Sustainability 2030 strategy. Why 2030? 

It would have been too simplistic to just adopt a target of 2050, the year that the Government has set for the UK becoming carbon neutral. The point is that we all have to act urgently – we can’t wait and there is a long road to follow. 2030 is more tangible and achievable. So we’re not only investing in equipment that can significantly lower carbon emissions, but also improving efficiencies in the way we operate, investing in our people and also actively supporting the communities we serve. We are also investing in low-carbon additions to our vehicle fleet and other operational aspects. 

Sustainability 2030 was launched last July, wasn’t it? 

Yes, just after the launch event to publicly announce our new identity. It followed on from our Project Unify strategy which looked at every part of the A-Plant operation, ways of streamlining it and re-engaging stakeholders in the business, from employees to customers. It quickly became clear that our people are enthused by the issue of sustainability and have a genuine passion for it. It was also vital to understand what everyone thought about it and to plan collaboratively, rather than just imposing a pre-determined strategy. 

This is obviously a huge topic, but what are some of the key challenges? 

We have to consider the whole ‘equipment eco-system’, involving manufacturers and end users, with rental companies right in the middle of the supply chain. What’s important is that they all have to be in balance and working together: if one element is out of equilibrium, the transition to new sustainable technology won’t happen properly. For example, if customers request this equipment but aren’t prepared to pay a sensible rate that reflects the cost of the technology, it will fail. Similarly, if demand for new equipment rises sharply, can manufacturers step up production quickly enough? In some cases suppliers of new-technology equipment are small, ‘boutique’ specialists who might not have the capacity to meet the demand. There are many challenges. 

There’s also the question of whether hirers have the resources to invest in this new equipment straight away.

And it’s ironic that the investment will initially be paid for largely by revenues from hiring out the established, ‘older’ technology equipment in fleets. Again, there’s a careful balancing act between phasing out the old and bringing in the new, changing horses midstream as it were. The issue of the supporting electrical infrastructure will be a major factor in the pace of development too.

A striking feature is the breadth of this technology. How does Sunbelt Rentals keep tabs on all these developments? 

That’s yet another challenge: choosing between them all. Electric and battery products are very popular at the moment, but there are also solar, hybrid, HVO fuel and, in the future, hydrogen driven options. You have to invest wisely, and it’s the same for manufacturers, who have to decide on which R&D paths to pursue. We are doing a lot of work with our supply chain to understand how these technologies work and we have many trial projects in progress with end users. 

In the drive to sustainability, do you think hirers will act even more as advisors and consultants? 

Hirers are trusted partners. Customers will expect us to offer solutions and to deliver value, not just equipment. One important area is the provision of data and ancillary services. We fit telemetry to virtually all new machinery in the fleet now and this enables users to make better, informed decisions. We can provide information on carbon emissions and equipment usage, and can show which assets are under or over-utilised so they can hire the right quantity of them. Telematics can also indicate Health & Safety issues like the wearing of seat belts, and can anticipate service requirements or potential problems such as low fuel levels or the presence of water in fuel tanks. So going green actually brings many additional benefits. 

Is Sunbelt adapting its operations in any way to accommodate this new equipment? 

We have a dedicated team exploring this new technology. Much of the machinery is obviously specialised and has its own servicing and maintenance requirements, such as battery storage units, solar lighting and charging stations for power tools. So it needs to be kept separate from traditional fleets. Sunbelt Rentals is establishing centres of excellence at strategic UK locations to manage this equipment. 

That’s quite a commitment. 

And it brings its own, new challenges. If the fleets of tomorrow are going to comprise battery powered excavators, dumpers, telehandlers and other machines, as well as hybrid equipment, they’ll need charging. It’s like managing electric cars. The national infrastructure required is massive. Indeed, when we look at establishing new locations in the future, the availability of power at a potential site will be a key consideration – one as important as proximity to transport networks. 

Customers’ sites will surely face similar issues. 

Yes. If you have an electric mini excavator on a site, where and how will you recharge it? Will you be able to drive it to a charging point before it runs out of power? This brings new site management challenges and different ways of working. Again, hirers can help. For example, we have a system that can sense exactly where power is required on a site and then direct the flow of power accordingly, again optimising the use of equipment and resources and reducing fuel consumption significantly. 

But are customers receptive? Are they willing to invest in these solutions? 

As I said earlier, much interest is already being driven by contractors who have to meet public sector obligations. We do feel that the procurement culture is changing to a more rounded approach rather than price alone - a more holistic outlook. However, as I also mentioned, there’s a difficult balance. Some new equipment with Stage V engines can be twice the price of Stage III versions. Against a background of new equipment cost inflation, and price deflation on traditional hire rates, that’s not sustainable in itself. 

Sunbelt’s investing in its green fleet, though, isn’t it? 

Absolutely. We’ve already spent approximately £50m this year on sustainable products, from battery powered diggers and dumpers, to solar lights, battery power storage units and eco-friendly welfare cabins. What’s important for a customer to recognise is that equipment like a solar lighting tower may have a higher price tag and command a higher weekly hire rate than the diesel equivalent, but your carbon output is zero and so are your running costs. So the overall outlay decreases, while realising all the environmental and societal benefits. This is the argument that more customers are now realising. 

This is such a broad topic we could talk for hours, but we should probably draw this fascinating conversation to a close. Is there an overriding message you would like to convey? 

One thing I want to stress is the huge importance of hire as perhaps being the ultimate example of the sharing economy. The concept of sharing and maximising the use of resources is a bright light at the end of the tunnel with regard to protecting our environment. If more people hire their equipment instead of buying it, the amount of carbon embedded in producing and disposing of it is minimised, and a machine can be used productively for its entire working life. And again, this is a concept that resonates with the younger generation, who have grown up using services like Netflix and Uber. 

And a final word? 

The most important reason for embracing sustainability is that it is simply the right thing to do. Yes, there are many challenges and solving them will require strong commitments from companies and individuals throughout the supply chain, but if we lead others will follow. Ultimately, we all have to do this. 


Subscribe

I am constantly adding new content. If you subscribe FREE using the form below, I'll send you my weekly bulletin summarising the latest hire industry stories - and I'll also send you a PDF of 10 fascinating interviews with national and independent hirers, giving their views about business and their secrets of success!