Regulations on CO2 emissions and sustainability are being systematically tightened across Europe in various sectors. A reporting obligation should serve as a starting point to gain more insight into the ecological footprint of companies. Rental companies will also need to report on their fleet, vehicles, and buildings. But where to begin?
Reporting on the CO2 footprint is a complex—and for many rental companies, overwhelming—task. However, it is clear that everything starts with smooth data collection: those who want to outline their emissions next year and evaluate the effectiveness of this year's sustainability initiatives must rely on the necessary measurements.
Reporting Obligation under CSRD (Corporate Sustainability Reporting Directive)
Smaller companies still get some respite from Europe. For large listed companies, however, the reporting obligation is rapidly approaching. Starting in 2026, companies that meet two of the following three conditions will be required to report: a turnover of more than 50 million euros, a total balance sheet of more than 25 million euros, or a workforce of more than 250 employees (source: De Tijd). These companies must start collecting data by January.
Nevertheless, this also means that smaller (rental) companies must start making changes now. Large players often work with them and increasingly expect project-based reports on emissions and energy consumption to incorporate into their own statistics. We already see this happening in the rental sector for major events and construction projects. Especially with tender assignments, the ability to report can be decisive.
Simplification of a complex task
Many rental companies are therefore already preparing as best they can for the upcoming reporting obligation. However, they are often currently relying on estimates due to a lack of precise data. Even if some measured parameters are available, they are often spread across different systems used to monitor their fleet and buildings. The information must be consolidated, or further calculations are made through Excel files. But there is another way.
The data collection process can be significantly simplified by a simple digitization with telematics. By attaching a small device to the control panel of machines, various parameters are continuously read and sent to a central digital platform. All data is accessible in one place, serving as a starting point for the most comprehensive analysis or reporting possible.
Generators, fuel tanks, and energy flows
The quick wins are mainly found in the digitization of generators and fuel tanks. Typically, they are the largest consumers within a machine fleet, and their CO2 emissions can be relatively easily calculated.
It is also valuable to map energy flows in projects. This is especially beneficial when energy comes from multiple sources. A smart distribution box keeps track of exactly how much energy is generated by solar panels, a generator, or a wind turbine and which machines use that energy.
How does digitized data collection work?
Digitization consists of a triptych of hardware, software, and integration. The hardware includes small devices that can be easily placed in machines, vehicles, or buildings. These gateways read information from various parameters, such as the fuel level of a tank, the running hours of a mobile heater, or the amount of energy generated by solar panels.
Through integration with software, the read data is transmitted to a digital platform. This usually happens over a mobile network. On the platform, the data is then clearly displayed in tables and graphs.
Within the software portal of Calculus, there is already an option to generate a simple report from the data. Soon, it will also be possible to create reports on CO2 emissions based on the measured data. However, English Within the software portal of Calculus, there is already an option to generate a simple report from the data. Soon, it will also be possible to create reports on CO2 emissions based on the measured data. However, data collection remains a crucial first step. Rental companies would do well to start with telematics now to prepare.
Curious what Calculus can do for your rental company? Contact our experts at hello@calculus.group.
This article was written in the context of European Rental Week 2024, which this year chose the theme ‘Working in Rental for a Sustainable Future’.
It was previously published in a shorter form on the website of Verhurend Nederland.
