Discovering Sustainable and Practical Tool Hire and Plant Hire Opportunities

Scope this out

7 September 2021

Scope this out

For most organisations, going green is not yet mandatory. But it is regarded as something they ought to do, just as each individual should examine the ways in which their actions affect the environment. 

Indeed, introducing sustainability measures can bring efficiencies and achieve cost savings. It also shows stakeholders that the business is acting responsibly and, above all else, helps to protect the planet. 

However, as has been reported elsewhere on the blog, having a sustainability strategy is indeed compulsory for some organisations – and this in turn affects those in their supply chain. 

New measures that come into effect this month apply to prospective suppliers bidding for major public sector contracts above £5m a year. These businesses must commit to be net carbon zero by 2050 and must publish clear and credible carbon reduction plans before they can bid.

The requirement applies to projects for all central government departments and arms length bodies, including organisations like Network Rail and National Highways (the new name for Highways England). It also affects other companies in a bidding contractor’s supply chain, who will need to provide data about their own emissions. 

A carbon reduction plan sets out where an organisation’s emissions come from and the environmental management measures they have in place. Some large companies already self-report some of their emissions, known as Scope 1 (direct) and Scope 2 (indirect owned). 

Scope 1 refers to direct emissions from organisation-owned or controlled resources, such as emissions from fuel used in on-site manufacturing and in company vehicles. Scope 2 covers indirect emissions arising from the generation of purchased electricity, heat, and steam used by the company.

The new public sector bidding regulation requires the reporting of some Scope 3 emissions, which are indirect emissions occurring in a company’s supply chain. This includes purchased goods and services, the supplier’s business travel, employee commuting, waste disposal, transportation, distribution and leased assets. 

For a hire company, Scope 3 emissions represent a significant proportion of its carbon footprint. So while not compulsory at the moment, going green could well be in the commercial interests of many more businesses who will be asked for such information by customers bidding for larger contracts. 

Let's look at Speedy as an example. As a large company listed on the Stock Exchange, Speedy is obliged to control its Scope 1, 2 and 3 emissions as part of its ESG (environmental, social and governance) responsibilities.

Andy Connor, the hirer’s Group Product Innovation & Supply Chain Director, tells me that to do this obviously requires relevant emissions data about equipment and services from suppliers in order to calculate the Scope 3 element of Speedy's carbon footprint. 

“We need suppliers to tell us what their products’ carbon footprints are, typically in terms of how many kilograms of CO2e [carbon dioxide equivalent – a standard unit for measuring total carbon footprints] and the different proportions arising from the raw materials used, the manufacturing processes, distribution, delivery and so on, as well as the emissions at the tailpipe or point of use. 

“When we ask for this Scope 3 information, some suppliers just don’t know what it means, or haven’t done the assessment yet. However, unless we have this information, we cannot accurately report our emissions to prove the impact they have on our customers and how it affects their carbon reporting.

"Also, who is to say that the Government won’t place tighter emission targets on the wider construction industry as it has with the automotive sector?" says Andy. 

“The industry needs to take a lead now so that if the government says, ‘You will,’ we can reply, ‘We are’.” 

As previously reported, Speedy has been investing steadily in green solutions for its fleet. One example is the Milwaukee MX Fuel lighting tower (pictured below). It is powered by batteries that can be used to drive other related products. 

Speedy is also working with contractors who need to reduce their carbon footprint. One trial comparing the use of HVO (hydrotreated vegetable oil) fuel in site equipment instead of diesel showed a 94.6% CO2 emissions reduction with negligible cost increase. 

“For many hirers, Scope 3 emissions will be the biggest factor in assessing sustainability,” says Andy. “Most of these are factors outside a company’s direct control and so the industry needs to work closely at what we buy and how we buy it in terms of raw materials, packaging, distribution and so on. 

“Like any organisation we can calculate our carbon footprint per capita, but we need the Scope 3 data. Then we can work with suppliers to get the figure down, if needs be, in terms of design, delivery and other factors. In this way the whole industry will benefit.” 

Under guidelines established by the Science Based Targets organisation, an in-scope business whose Scope 3 figure is 40% or more of their overall emissions is required to have a plan in place to reduce it. 

“This would involve reducing overall carbon emissions or trying to remove them – perhaps, say, using an aluminium tower instead of a battery or diesel powered lift where it is practical to do so," says Andy. "Practices like offsetting emissions by buying carbon credits should only be a last resort.” 

Obviously, taking action to reduce carbon footprints requires planning, partnerships and budgeting, so the path towards net zero in hire needs to be evaluated carefully. 

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