During the year, we updated our sustainability strategy to align with our new business strategy Cramo NXT. It enables us to take the lead in advancing sustainability in the rental industry and to move towards circularity.
Sustainability as a foundation for our business
Rental is a sustainable business model for managing assets. It enables more efficient use of equipment and, at the same time, reduces the demand for non-renewable resources. Our sustainability strategy is in line with and mutually supportive of our business strategy, which is aimed at strengthening our long-term focus from the perspective of all our stakeholders. Our ambition is to lead the way in advancing sustainability in the rental industry and to meet the requirements of our stakeholders and of internationally agreed standards.
Sustainability has a direct impact on our internal value creation through growth, return on capital and risk management. It also generates value for our customers and other stakeholders, leading to greater cost-effectiveness, improved access to products with the highest safety and environmental standards, and a reduced environmental impact.
We have assured our position as a sustainability frontrunner in our industry. Through our updated sustainability strategy, we will further increase the focus on sustainable customer use, transports and logistics as well as sustainable sourcing in parallel with improving internal operations.
Vice President, Sustainability, Cramo
The key elements of our sustainability strategy:
|1. Moving towards circularity|
|Responsible sharing of resources is the core of our business. Our ambition is to work together with our customers and other stakeholders to further decrease the environmental and social footprint of rental equipment and to meet customer demands by focusing on sustainable customer use, transports and logistics and sustainable sourcing. Cramo NXT enables us to take the lead in advancing sustainability in the rental industry, as the digital leader and a leading partner for services. Through Cramo NXT, we are moving towards circularity.|
|2. Cramo Care – our model for responsible business|
|Cramo Care is our model for responsible business, integrating sustainability into all parts of our organisation. We have a strong focus on business ethics, occupational health and safety, mitigating our environmental impact and taking an active role in the communities we operate in.|
The enablers of our sustainability strategy:
|1. Value-creating targets include both financial and non-financial objectives|
|Our key performance indicators and value-creating targets allow us to monitor and continuously improve our performance and to meet the requirements of our customers, investors, employees and other stakeholders.|
|2. Overall responsibility lies with Group Management, whereas operational responsibility and employee engagement lie with country managers|
|Cramo Group Management has overall responsibility for the strategy and policies. Country managers are responsible for their implementation and integration at the country level.|
|3. Relevance and continuous improvement are strengthened through an active dialogue with all stakeholder groups and partnership development initiatives with front-line actors|
|Strategic partnerships with leading experts and our stakeholders put us at the forefront in developing sustainable rental solutions.|
Cramo and circularity
|1. Replacing the concept of a consumer with that of a user|
|Responsible sharing of resources is the core of our business. Rental replaces the concept of a consumer with that of a user, which enables more efficient use of equipment and reduces the demand for non-renewable resources.
|2. Replacing non-renewable fuels|
|Cramo’s ambition is to step-by-step increase the use of renewable energy internally as well as among customers. Our target is to have 90% electric-powered units within the energy-powered fleet by 2023 and >90% renewable electricity at our depots.
|3. Sustainable sourcing|
|Sustainable sourcing is an area where we have identified potential improvements. Our ambition is to work with Original Equipment Manufacturers to further decrease the environmental and social footprint of rental equipment.
|4. Increasing the life span of rental units|
|Periodic maintenance of our equipment as well as refurbishing or renewing our site huts is part of our business model, and it increases the life span of our rental units.
Cramo Care material aspects
|Strategic target||Target||Outcome 2019||Outcome 2018||Outcome 2017||Outcome 2016||Status1|
|Customer Care||Most satisfied customers in the industry||CSI2 steady over 75||75||75||73||72|
|Share of units powered by electricity within the energy powered fleet: 90% by 20233||85%||n/a||n/a||n/a|
|Employee Care||Zero accidents||LTIR4 0 by 2023||9.7||8.85||9.9||13.7|
|Environmental Care||Zero emissions||Emissions6 (tonnes/MEUR sales) <15 tonnes/MEUR by 2023||19.47 tonnes/MEUR||15.6 tonnes/MEUR||17.5 tonnes/MEUR||18.4 tonnes/MEUR|
|Social Care||Top ranking in business ethics||0 legal proceedings (human rights, corruption, environment)||0||18||0||0|
1 On-going – excellent progress or target achieved On-going – on track On-going – not on track
2 Weighted average. Hungary and Slovakia are for statistical reasons excluded from the survey
3 New KPI since 2019
4 Number of work-related accidents with at least one full day of absence / million working hours
5 The result from 2018 is adjusted from 9.5 to 8.8 due to adjusted numbers of working hours
6 CO2e emissions, scope 1 and 2 (relative to sales). A market-based method is used to calculate the CO2e emissions from electricity
7 The increase in CO2e emissions scope 1 and 2 (relative to sales) is due to the demerger of Adapteo in 2019 and the acquisition of KBS Infra in 2018. KBS is included for the first time in the reporting for 2019
8 In 2018, there was one case of sexual harassment reported in Cramo’s operations. The case was investigated by the company, which took actions, and was also heard in a court of law. The company was not a party in the legal proceeding
Aiming to exceed stakeholder expectations
The foundation of our sustainability strategy is a materiality study that identified our stakeholders’ top priorities and our major impacts throughout the value chain. Our ambition is to exceed our stakeholders’ requirements.
The Sustainable Development Goals have also been part of the materiality study. We have identified three goals where our actions have the highest impact:
These, as well as all the other goals, are taken into consideration throughout the strategy development process.
Our biggest impacts occur beyond our direct control. Therefore, we have to work in partnership with suppliers, customers and other stakeholders to tackle these challenges and seize opportunities throughout the value chain.
|Impacts throughout our value chain|
|Major negative impacts||Major positive impacts|
|1. Supply chain||
|4. Customer use||
|5. End of life||
Since 2009, Cramo has been a signatory to the UN Global Compact, supporting the ten principles with respect to human rights, labour, environment and anti-corruption.
Efficient internal operations
Our sustainability platform establishes clear targets and ways to monitor performance and priorities. To uphold our commitment, and to ensure the quality and relevance of our solutions, we work for continuous improvement.
We have established a Group-wide structure of Cramo Care managers in every country. Together with the country managers and local specialist functions, Cramo Care managers work to develop and implement local action plans based on our sustainability strategy. Local target setting and action plan development are part of the business planning and budgeting process, and follow-up is conducted on a regular basis.
Internal organisation, roles and responsibilities
Cramo aspires to lead the way in advancing sustainability in the rental industry and to continuously mitigate our impact across the value chain. Our rental solutions provide safe, resource-efficient options for our customers, enabling them to excel in meeting their stakeholders’ requirements and expectations.
from the Cramo Care Policy
Aiming for ISO certification in all markets
We aim to have the most satisfied customers in the industry and a leading market position in our chosen markets. In 2017, we made the decision that all our markets should be certified according to ISO 9001, ISO 14001 and ISO 45001, or similar standards.
In 2019, we continued the work to establish and implement common Group policies, targets and processes with a focus on quality, environmental improvements, and health and safety. During the year, Estonia and Poland finalised their certification processes for ISO 9001 and became two of five Cramo markets that are certified. Estonia also finalised its certification process for ISO 14001 and ISO 45001. A decision was made during the year to extend the deadline for when all markets need to be certified, from 2020 to 2023.
Advancing sustainability in the rental industry
The rental industry experiences the same kind of sustainability challenges that Cramo does, and cooperation is sometimes needed to meet those challenges. The European Rental Association’s (ERA) Sustainability Committee was established in 2013 with Cramo as an active member. We are also an active member of the ERA’s Technical Committee, which has a strong focus on product safety. Through our membership and together with other rental companies, we are advancing sustainability in our industry.
In 2019, the ERA conducted a study on the carbon footprint of rental equipment. Depending on specific user practices, it’s estimated that renting instead of owning can lead to significant reductions in CO2 emissions, in the range of 30% and sometimes over 50%. The parameters with the most influence on the carbon footprint of equipment are intensity of use, using the right equipment for the job, transportation and maintenance.
During the year, the ERA also initiated a Sustainable Supplier Assessment project. The aim of the project is to develop an industry-wide approach to sustainability assessment that can be completed once by the supplier and then used to meet multiple requests from rental companies.
Nasdaq ESG Transparency Partner
It is vital that our customers, investors, employees, suppliers and other stakeholders trust that we conduct business in an ethical, transparent and lawful manner. During the strategy period, we have increased our focus on sustainability reporting, and, in 2019, Cramo became a Nasdaq ESG Transparency Partner. We will annually report environmental, social and governance data to the Nasdaq ESG Disclosure Portal, further improving our transparency.
Reporting to the CDP
Cramo is focused on being the most climate- and resource-efficient rental solutions company. We have been reporting to the CDP since 2013; in 2019, we received a score C (D in 2018). The improved result shows greater awareness and ability to report on our progress. We are continuously improving our way of managing and following up on our carbon footprint.
Moving towards circularity
Sustainability is embedded in our strategy, and we have assured our position as a sustainability frontrunner in our industry. During the year, we updated our sustainability strategy, in line with our Cramo NXT business strategy. In the upcoming years, we will increase our focus on sustainable customer use, transports and logistics as well as sustainable sourcing. Our aim is to have the most satisfied customers in the industry and to work together with our customers, suppliers and other stakeholders to further decrease the environmental and social footprint of rental equipment.
We will also continue to improve our internal operations, integrating sustainability into all parts of our organisation. We will maintain our sharp focus on business ethics, occupational health and safety, mitigating our environmental impact and taking an active role in the communities we operate in.
Cramo NXT enables us to take the lead in advancing sustainability in the rental industry and to move towards circularity.
Implementation of the new sustainability strategy will start in 2020. We will continue the work to establish and implement common Group policies, targets and processes with a focus on quality, environmental improvements, and health and safety. We will also continue to raise issues concerning sustainability and responsible sharing in the European Rental Association and other forums.