Our stakeholders want agile and low-carbon solutions faster than ever before. We meet these demands using our circular business model, Loops within Loops, keeping resources in motion to improve our energy, water and waste efficiency, whilst supporting sustainable growth.
Modulaire ESGS Report 2025
Actions on Environment
Modulaire Group acknowledges the material risks and opportunities that climate change presents to our business.
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 commit to structured programmes that:
- Reduce greenhouse gas emissions through electrification of operations and a progressive transition away from fossil fuels.
- Increase operational efficiency by systematically improving energy, water, and waste management performance.
- Deliver low-carbon solutions for customers, ensuring resilience to climate impacts while contributing to wider sustainable growth.
- Enhance biodiversity outcomes by embedding nature-based solutions and climate adaptation measures within site planning.
Decarbonisation
Over the past two years, Modulaire Group has prioritised electrification as a central lever for decarbonisation. Our Electrification of Machinery Policy is directing Strategic Business Units (SBUs) to replace existing technologies and processes with resource-efficient alternatives (page 38) and prioritises the use of renewable electricity where appropriate, currently securing 73%.
Substantial progress has been made in our transition to electric transport, with 42% of the forklift fleet now electrified and 32% of cars and vans converted to electric vehicles (page 39). We recognise challenges persist in some SBUs, particularly in relation to infrastructure and heavy-duty vehicles (HDVs). Where electrification is not yet technically or economically feasible, the Group is investigating alternative fuels and pursuing innovative solutions to reduce emissions.
In 2025, Modulaire collaborated with the University of Cambridge on a pilot study employing behavioural workshops to identify effective levers for eco-driving. This initiative has commenced and will continue into 2026, reinforcing the Group’s wider objective of embedding low-carbon practices across all operational areas using academic research to help us advance (page 39).
Progress on our environmental KPIs
We have achieved five out of six of our 2025 environmental KPIs, with one in progress.
KPI
Progress
Status
Reduce Scope 1 & 2 emissions by 10% against the 2020 baseline (sustainability-linked financing)
Achieved
Reduce Scope 1 and 2 market-based emissions intensity ratio tonnes vs 2020 (kgCO2 e per unit)
Achieved
Reduce Group waste to landfill by 50% per typical unit vs 2020 (kg)
Achieved
Reduce water use by 10% per typical unit (vs 2020 baseline)
Achieved
Frankfurt Branch assessment for BREEAM
In progress
Implement the SBTi Net Zero Reduction Plan
Achieved
Key
Achieved
Ongoing
Not achieved
Emissions reduction
In 2025, Modulaire is pleased to report a 47% absolute reduction of our Scope 1 & Scope 2 market-based emissions (vs 2020).
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
Climate mitigation and adaptation measures
The Group implements a combination of physical, operational, and strategic measures to manage climate-related risks:
- Physical adaptations: installation of VAPS, insulation, upgraded windows and doors, passive design improvements for buildings in high-risk locations (page 34). Where sites have been assessed as high priority for climate adaptation, SBUs are investigating mitigation opportunities such as sustainable drainage and rainwater harvesting.
- Operational changes: revised work schedules, hydration protocols, and heat-stress mitigation for staff and contractors.
- Strategic measures: investment in energy-efficient new builds, retrofits, and electrification of fleet assets; installation of onsite renewable energy; supplier engagement for Scope 3 emissions reductions.
- Monitoring: the Group monitors effectiveness over time and updates its risk assessments and controls where emerging climate information, events or regulatory changes indicate that residual risk levels have changed.
Waste and water reduction
Our operations teams continue working hard across the Group to reduce waste to landfill and reduce the amount of water we use to make our products. Our Policy on Sustainable Use of Water encourages initiatives that raise awareness and deliver efficient water management. Over the past five years, we have reduced our total waste to landfill by 81% per typical unit (page 37-38) and we now use 55% less water per typical unit.
- Waste to landfill:
2025: 3,235,053 tonnes vs 2020: 13,458 tonnes - Water purchased:
2025: 124,664m3 vs 2020: 224,507m3
Promoting biodiversity
We issued our Biodiversity Policy in 2025 and subsequently updated our Biodiversity and Climate Adaptation Protocols. The purpose of these protocols is to establish a baseline level of understanding of biodiversity and climate change adaptation, and to provide guidance for projects that can mitigate impacts or enhance biodiversity and climate resilience. The protocols offer an overview of considerations and opportunities for each country in which we operate.
For each country, information on acute and chronic climate-related hazards and key biodiversity characteristics was compiled using sources including Climate-ADAPT, the World Bank, the Integrated Biodiversity Assessment Tool (IBAT), and national disclosures to the United Nations Framework Convention on Climate Change (UNFCCC) and the Convention on Biological Diversity (CBD). In line with Climate-ADAPT assessments, future climate hazards were categorised under wind, temperature, solid mass, and water. Priority was given to nature-based solutions, recognising their dual potential to enhance climate resilience and support local biodiversity.
As part of this update, a locational screening exercise was undertaken across Modulaire Group’s global sites to assess proximity to important biodiversity areas and exposure to potential climate hazards, using globally applicable datasets.
Measuring our carbon footprint
We measure the carbon footprint of our operations and a typical product to identify and monitor our impacts. It helps us 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 2025 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 2024 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 2025 to 31st December 2025
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 and ensuring that the reported information is supported by appropriate books and records.
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**
2024
2025
Scope 1 Greenhouse Gas Emissions (tCO2e)*
19,529
19,443
16,965
15,247
Scope 2 Greenhouse Gas Emissions - location based method (tCO2e)
11,834
12,533
9,722
8,658
Scope 2 Greenhouse Gas Emissions - market based method (tCO2e)
13,995
7,132
2,851
2,625
Total (Market Based)
33,524
26,575
19,816
17,872
*
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 in motion for a circular economy
Modulaire Group applies its Loops within Loops circular business model to maximise the retention of resources in use, maintaining their value for society and reducing environmental impact. By embedding efficient resource use, recycling, and sustainability into decision-making, the Group actively reduces reliance on virgin materials and drives innovation across operations.
Waste Generation 2025
kt
Total amount of waste generated
23.44
Total amount diverted from disposal
14.52
Preparation for reuse
Hazardous waste
Non-hazardous waste
0.68
0.00027
0.68
Recycling
Hazardous waste
Non-hazardous waste
13.85
0.21
13.64
Other recovery operations
0.0
Total amount directed to disposal
8.91
Incineration
Hazardous waste
Non-hazardous waste
5.68
0.05
5.63
Landfill
Hazardous waste
Non-hazardous waste
3.24
0.42
2.81
Other disposal method
0.0
Operationalisation of Loops within Loops
- Waste management is governed locally by Strategic Business Units (SBUs) and Operating Business Units (OBUs) by strict protocols for hazardous and non-hazardous substances, designed to minimise environmental risks and ensure compliance with applicable regulations.
- SBUs and OBUs adopt a structured Loops within Loops hierarchy - an approach which includes prevention, reduction, reuse, and recycling.
- Continuous improvement programmes are implemented to increase resource efficiency and reduce environmental impacts.
Our process
We use the 5R waste hierarchy to manage materials efficiently on-site; it encourages everyone to consider five alternative steps before sending materials to landfill, to Refuse; Reduce; Reuse; Repair and Recycle. Our Operational efficiency programme has focused on four themes: 1. Production planning and productivity tracking; 2. Materials management; 3. Production workflow; and 4. Standard work.
This Loops within Loops methodology transforms waste management into a driver of innovation, cost efficiency, and sustainability. By cascading resources through multiple loops of value, SBUs and OBUs ensure that environmental impact is minimised, regulatory compliance is maintained, and the Group’s broader ambition of advancing a circular economy is realised.
Our policies and actions support the transition to a circular economy through continued investment and focus in sustainable products, operational excellence, and waste-reduction initiatives, while maintaining full compliance with relevant waste regulations. We are advancing our production processes, including the use of alternative and circular raw materials, the application of Life Cycle Analysis and collaboration with reuse partners to enhance recyclability and strengthen product design. Waste is managed responsibly through safe disposal of hazardous and non-hazardous materials, improved material efficiency and increased internal reuse. We are also enhancing methodologies for assessing resource inflows and outflows and improving data quality to support more accurate reporting. Looking ahead, we will further integrate circular economy principles and climate-change mitigation strategies across our operations.
Impacts, Risks, and Opportunities
Type
Resource use and circular economy
IRO
Opportunity
Strategy
Loops within Loops
LCA
Policy
ESGS
Waste and Water
Electrification
Local compliance
Action
Operation Excellence
Waste management
Electrification
Target
Reduce waste to landfill by 85% by 2026 vs 2020