ERA to offer carbon reporting guidance

8 December 2023

The European Rental Association (ERA) is creating what is described as the first ever carbon reporting guidance for the equipment rental industry, with global professional services provider KPMG contracted to carry out the project.

Reporting on carbon emissions is increasingly important for the hire industry, with different ‎‎stakeholders expecting or requiring companies to measure their sustainability performance, ‎set ‎targets and report on their progress. 

This is becoming a legal requirement for bigger ‎companies in ‎Europe, with the EU’s Corporate Sustainability Reporting Directive legislation coming into ‎effect soon.‎ ‎

‎Michel Petitjean, Secretary General of ERA, said: "There is currently no agreed methodology available for calculating the carbon footprint of equipment ‎rental companies, who are today reporting on their carbon footprint in a way that is not harmonised ‎and, therefore, not comparable between different companies. 

“‎‎With this in mind, and in the context of the increasing legal and other pressures for companies to report on their sustainability performance, it is important to define a reference framework for the entire rental sector. This will not only be of benefit to the European industry, but will also set an example for equipment ‎rental companies worldwide.‎"

The guidance will build on the methodology of the ERA’s Equipment CO2 Calculator and will include a list and definitions of greenhouse gas (GHG) protocol categories that are key for the hire sector, a methodology for calculating GHG emissions in all ‎categories of scopes 1, 2 and 3 with particular attention paid to scope 3 categories, and a standard set of values for elements used in the methodology, including rental sector specific ‎activity data and relevant emission factors.

The initiative will focus on hire industry-specific operations, such as: equipment use to determine emissions and the fuel and electricity consumed; use of sold products taken out of rental fleets with a method for collecting the number of hours of use remaining; the emissions generated during the production of equipment by a manufacturer; emissions generated by the maintenance and repair of equipment; transportation of equipment; and waste disposal. 

The project is being steered by the ERA Sustainability Committee with the final report expected to be released by the middle of 2024.