The Modulaire ESGS strategy represents our comprehensive, group-wide commitment to addressing environmental, social, governance, and sustainability impacts. It provides a clear and consistent framework for communicating our policy positions, objectives, and actions to stakeholders. Guided by a double materiality assessment and extensive stakeholder engagement (see page 28), this strategy targets key material topics and impacts with transparency and accountability.
ESGS objectives:
Target Net Zero by 2050 using our Loops within Loops business model
- Be part of the circular economy by leasing, redeployment and end of life reuse
- Drive sustainable design and manufacturing
- Act on climate-related risks and opportunities
Measure and deliver social value
- Place safety at the top of our agenda, supported by wellbeing programmes and training
- Create smart places for people to work, learn & live
- Ensure diversity & inclusion remain key values in every aspect of our business
Continuously improve governance
- Maintain strong compliance around ethics, anti-bribery & corruption, suppliers, data protection, Cybersecurity & speaking up
- Active ESGS oversight by the Board & Executive Committee
- Achieve best practice EMS certification
Modulaire ESGS Report 2025
Sustainable product portfolio
Our sustainable product portfolio is central to the implementation of our Loops within Loops strategy, driving sustainability across our operations.
Its expansion is powered by research and development-based innovation, ensuring continuous improvement and adaptability. Our quality management system assures safety across our products.
We focus on developing products that contribute to the Sustainable Development Goals, circular economy principles, and a low carbon future, reinforcing our commitment to responsible growth.
For our clients, this results in access to cutting-edge, low carbon solutions that align with global sustainability standards, helping them to achieve their own ESG and business objectives.
c.73%
c.73% less carbon emissions vs traditional construction1.
Our circular business model delivers modular builds with a lower carbon footprint than traditional construction.
c.20x
Units can be reused up to 20 times or more during their average lifecycle1.
Our units provide flexibility, because they are reconfigurable and reusable, they are helping customers adapt to changing climate demands and shifting demographics.
96%
Units are up to 96% recyclable1.
By leasing out assets, they remain under our control for their full lifecycle, enabling us to minimise their impacts and manage their recycling.
Climate Control
Digital heater
Electric vehicle charger
Solar motion sensor
PV panels
Solar lighting
Lighting tower
Electric door closer
Recycling bins
Satellite broadband
Fire extinguishers
Water dispensers
- 2020 Product footprint analysis of a typical Modulaire unit based on:
- Stage A1-A5 (sourcing, manufacturing and transporting to site) approximately 200 (kgCO2e/m2) v 700-800 (kgCO2e/m2) for a traditional build. This equates to approximately 73% less carbon emissions compared to a traditional build.
- In use (B1-B6) and end of life (C1-C4) emissions total 210 kgCO2e/m2.
- This equates to approximately 65% less carbon emissions compared to a traditional build
- For the whole life footprint (410 kgCO2e/m2), details for an equivalent traditional build are difficult to ascertain due to the lack of benchmarks which include B6 data
- Product footprint calculated in accordance with EN 15978:2011. Modulaire typical unit based on Advance 8000 two classroom unit assembled in France. Typical benchmarks for education buildings based on Whole Life-Cycle Carbon Assessments Guidance (Mayor of London, October 2020). Whole life figure provided in this guidance exclude any allowance for energy consumed during the in-use phase
Sustainability assessment of products
- Evaluate existing and new products with a focus on sustainability.
- Align the product portfolio with circular economy Net-zero goals
Customer benefits: products meet high sustainability standards, providing confidence in their environmental impacts.
Our approach
- Identify changes in market, innovation, and regulatory environments.
- Integrate into product portfolio decisions and corporate governance.
- Pilot test internally with external expert review.
- Focus on AI and digitalisation.
Customer benefits: Proactive adaptation to market trends and regulatory requirements, ensuring reliable and compliant products.
Product stewardship & safety
- Certification and LCA approach.
- Integrated into Quality, Safety, Health, and Environment management systems for compliance with standards.
- Customer benefits: assurance of product safety and compliance, reducing risks and enhancing brand reputation.
Customer benefits: assurance of product safety and compliance, reducing risks and enhancing brand reputation.
Loops within Loops business model
- Offers low carbon products aligned with circular economy principles.
- Based on alternative low carbon raw materials, energy sources and recycling.
- Targets at least 25% recycled or alternative materials.
Customer benefits: reduced carbon footprint, supports circular economy, benefiting client’s sustainability performance and brand reputation.
Impacts, Risks, and Opportunities
Type
Sustainable solutions
IRO
Positive
Strategy
ESGS
Policy
Design guidelines
ESGS
Action
Increasing the resource efficiency, recyclability of our materials; market design for circular products
Target
25% reduction Scope 3 by 2030
Global frameworks and standards
We are delivering social good and economic prosperity locally, whilst contributing to the global community and taking action on climate change.
We align our ESGS strategy with a number of best practice frameworks and standards, including the United Nations Sustainable Development Goals, the United Nations Global Compact Principles and the Task Force on Climate-related Financial Disclosures. We do this so our investors, customers, suppliers and society at large can understand our approach to sustainability and assess our progress. We communicate our ESGS performance transparently through these external organisations, on our website and in this report.
We act on six UN SDGs that complement our business purpose, vision and operations. We have integrated the goals into our everyday activities through our services, projects and customer portfolio.
To achieve long-term success, we are transitioning to a sustainability strategy with circularity at its core, providing modular space for people to work, learn and live.
We work in collaboration with our stakeholders to create and develop shared value for people and the planet. We create products that make a positive difference to society while contributing to our ongoing success.
We conduct business with a focus on ethical, environmental and community goals, whilst being a good employer and fostering a diverse and inclusive culture.
We became signatories to the UNGC in April 2021. We report annually on our progress against its ten Principles through a Communication on Progress report.
A number of our SBUs are participating in the independent sustainability rating system, EcoVadis. It makes an independent assessment of our ESG performance in four key areas: Environment, Ethics, Labour & Human Rights, and Sustainable Procurement (page 53).
We became signatories to TCFD in May 2021 and based our roadmap to Net Zero on their recommendations. We share our progress in this report, a non-financial declaration that combines aspects and reporting on key issues including: stakeholder concerns in the materiality matrix, environmental, social and governance factors, including business ethics and compliance, anti-corruption and bribery.
Modulaire became a signatory to SBTi in January 2023 and uses SBTi criteria when setting our absolute CO2e reduction targets, including for Scope 3. In 2025, SBTi validated our near-term emissions reduction goals and long-term Net-Zero commitments.
Building for Net Zero
Our low-carbon Service Centre at Karlstein in Germany, is being prepared for future Net-Zero operations.
Electrification plays a crucial role in achieving future Net-Zero operations. At Algeco’s Rhein-Main Service Centre, a solar PV system supplies the majority of electricity needs, including a large repurposed gantry crane. All company cars and forklifts are electric, and additional heating is provided using locally sourced wood chips made from waste material.
Energy efficiency
We use automatic meters to monitor energy efficiency closely onsite; it tracks around 90% of total energy use. Other measures include heating controllers, automatic door closers, adjustable LED lighting intensity controls, and sensor-activated taps which all help to reduce emissions, whilst keeping energy use front of mind.
Designing with purpose
Modulaire employs a circular business model that delivers modular builds with a carbon footprint that is 73% lower than traditional building methods. The Rhein-Main Service Centre at Karlstein incorporates 18 Algeco modular units designed for business meetings, offices, and social spaces.
Health and wellbeing
Outside, the 2,000m² site features seating areas for inspiration and relaxation, whilst natural pathways encourage physical activity. A biodiversity action plan supports native planting, with nesting habitats for birds, bats and lizards, rainwater harvesting, an attenuation pond and protection of an established orchard area.
Leading from the front
We continue to lead from the front, aligning our ESGS strategy with best practice standards and at Rhein-Main, we are participating in BREEAM certification, the global benchmark for sustainable building. The insights gained are already being applied to projects in the UK and Sweden.
Sharing knowledge
Our Rhein-Main Service Centre acts as a beacon for the Group, sharing our latest thinking on energy efficiency, climate resilience and low carbon modular build solutions. It demonstrates how our operational sites can be prepared for Net-Zero.
“We set ambitious targets and our site demonstrates our commitment to excellence in materials management, stakeholder engagement, and environmental responsibility throughout a building’s life cycle. We want to show how Algeco can help build resilience into the supply chain.”
Janin Wascinski, ESG Manager
Algeco Dachs
Net Zero: our pathway and progress
2023
ACHIEVED
- Low Carbon Solutions
- 5% absolute reduction in Scope 1 and 2 emissions (vs 2020)
- Source 100% Renewable Energy for the Group where available and applicable
- Initiate Group Operational Carbon baseline tonnes of annual Scope 3 for 2022
2024
ACHIEVED
- 7.5% absolute reduction in Scope 1 and 2 emissions (vs 2020)
- Roll out our strategy to reduce or mitigate Scope 3 emissions
- Continuous innovation of low carbon solutions for customers
2025
ACHIEVED
- 10% absolute reduction in Scope 1 and 2 emissions (vs 2020)
- Reduce waste to landfill by 50% per typical unit (vs 2020)
- Reduce our water use by 10% per typical unit (vs 2020)
- Life Cycle Analysis of typical manufactured Modular Space Units
2028
- Sustainability-Linked Finance
- 15.8% reduction in Scope 1 and 2 emissions (vs 2020)
2030
- Innovation & Scale
- Reduce Scope 1 & 2 GHG emissions by 55.5%
- Reduce Scope 3 emissions by 25%
- Progress towards total circularity of units
- 100% renewable energy where available and applicable
- Transform new product portfolio to Net Zero carbon
2050
Net Zero
Net Zero carbon of our end-to-end supply chain by 2050 to meet the Paris Agreement goal of 1.5°C.
Our commitment for environmental responsibility and climate action is to minimise carbon emissions for our company and customers and manage our material risks and opportunities.
Enhancing site welfare through solar innovation
Modulaire Group’s solar solutions are helping customers to improve site welfare and reduce costs, whilst ensuring a reliable supply of renewable power.
Our subsidiary, Advanté, is at the forefront of modular welfare unit innovation and between 2023 and 2025, customer Willmott Dixon incorporated Advanté Oasis EcoLogic Solar welfare units into 146 construction projects throughout the UK. The impact has been remarkable: reducing their carbon footprint by approx. a third compared to traditional diesel-powered welfare units, whilst improving facilities for site workers.
Oasis Ecologic Solar units provide a complete solution for construction sites, including canteens, offices, toilets, and drying rooms, primarily powered by renewable energy. Each unit is equipped with roof-mounted solar panels, advanced battery storage, and a low-carbon LPG backup system for dependable year-round power.
Over two years, the solar fleet operated on renewable energy for almost 90% of the time, even during winter months. Their use resulted in cost savings for Willmott Dixon of £450,000, 1,000+ less tonnes of carbon, less business interruption from refuelling and a noticeable reduction in air and noise pollution.
The partnership between Modulaire Group and Willmott Dixon underscores how innovative renewable energy solutions can facilitate reduced reliance on fossil fuels while promoting leadership in sustainable construction practices.
146sites
using solar-powered Oasis units
1000+tonnescarbon saved by eliminating diesel
50%total electricitydirectly from solar power
Decarbonisation
We are working to decarbonise our operations on the path to Net Zero by 2050.
SBTi validated carbon reduction targets
We believe the Science-based Targets initiative (SBTi) sets the global standard for corporate climate action, guiding companies in aligning their emissions targets with the latest scientific research. In 2025, the SBTi validated Modulaire Group’s near-term emissions reduction goals and long-term Net-Zero commitments, a significant step on our path to Net Zero.
Our baseline year and target ambitions
Our Scope 1 and 2 emissions reduction target covers 100% of Modulaire Group’s emissions and follows a 1.5°C pathway. By 2030, we aim to reduce Scope 1 and 2 emissions by 55.5% from a 2020 base year. Our Scope 3 emissions reduction target covers 99% of Modulaire’s emissions and follows a well-below 2°C pathway. Business travel, employee commuting and upstream leased asset emissions have been excluded on the basis that Modulaire has limited control in reducing associated emissions. However, we will review these regularly to ensure these emissions do not become material in future. By 2030, we aim to reduce Scope 3 emissions by 25% from a 2022 baseline.
Preparing for the Net-Zero economy
The target-setting exercise has helped to inform our business strategy and assisted us in detecting relevant environmental, societal, technological, market and policy related developments. We will continue to monitor them and adapt our business strategy as necessary.
Investment for emissions reduction
Scope
Key actions
Decarbonisation lever
Investment type (CAPEX/ OPEX)
Timeframe
Reduction targets
Scope 1&2
Electrification policy
Forklifts and on-site machinery
CAPEX/OPEX
2030
Electrification
Electrification/Substitutes of Fleet
Fossil Fuel for Cars/Vans and HGs
CAPEX/OPEX
2030
55.5% emissions reduction vs 2020
Scope 3
Lower carbon solutions
Innovation and LCA tools
Low carbon value added products
CAPEX
2030
25% emissions reduction vs 2022
Decarbonisation levers for Scope 1 and 2 to reach 55.5% target by 2030
Opportunity lever
Priority
By
Comment
Electrification of transport
High
2030
Switch to EV for cars/vans and forklifts
Renewable electricity (RE)
High
2030
Increase renewable certificates/onsite coverage
Energy efficiency (EE)
Medium
2030
Onsite efficiency strategy
HVO switch (HVO)
Low
2030
HVO where appropriate and available
Decarbonisation levers for Scope 3 to reach 25% target by 2030
Opportunity lever
Priority
By
Comment
Energy efficiency
High
2030
Increase energy efficiency of unit/build e.g. insulation, LED, VAPs
Unit embodied emissions reduction
High
2030
Procure low carbon materials and lightweighting
Reduction in downstream transport emissions
Medium
2030
Partnership with suppliers/3rd party providers
Waste reduction
Low
2030
Reduce waste e.g. less packaging, increased recycling
Sustainability-linked finance
By directly connecting finance to our sustainability performance, we are driving meaningful change in partnership with our investors. We have established sustainability-linked finance targets for reducing GHG emissions, supported by a robust set of actions designed to deliver continuous improvement. Our performance against these targets, set against a 2020 baseline and extending to 2028, is subject to a limited assurance audit to provide confidence in our progress.
Our principal metric for measuring CO2 impact is total absolute market-based GHG emissions. Progress is tracked quarterly against Key Performance Indicators at both Group and SBU levels. These results inform how we allocate resources most effectively and identify the policies and interventions required to succeed. In this way, finance and ESG metrics are aligned to reinforce accountability, accelerate progress, and strengthen long-term resilience.
- Achieved7.5%reduction Scope 1 & 2 absolute market-based emissions
- Achieved10%reductionScope 1 & 2 absolute market-based emissions
- By 202815.8%reductionScope 1 & 2 absolute market-based emissions
“ESG is not simply an add-on to our investor dialogue, it’s embedded at the core of our relationships. By consistently providing transparent, reliable and comprehensive information, we build trust and demonstrate Modulaire Group’s unwavering commitment to sustainable and ethical practices. You will find ESG considerations integrated into our governance structure, our reporting, and our long-term strategic planning.”
Rosie Jones, Corporate Treasurer