Is leasing changing its attitude to the energy transition?

We are part of the problem, but we must be part of the solution. To move towards this solution and reduce the carbon footprint, we need to be aligned with the right technology and we need to invest.

You won't find many people in the equipment rental industry who disagree with the above statement made by Olivier Colleau, executive chairman of Kiloutou when asked by IRN if cooperation is key in promoting the use of alternative power devices.

For many, driving the energy transition goes beyond simply investing in alternative energy equipment, with changing customer attitudes just as important as fleet diversification.

And while the amount of electric, solar, hydrogen and hybrid units in circulation may still be relatively low, there are a growing number of companies developing initiatives to encourage customers to move away from conventional models.

In Kiloutou's case, the company has invested heavily in its electric fleet, says Colleau, and will start promoting its electric, hybrid and sub-energy products under the iMPAKT brand in France in 2021.

It recently teamed up with Lyon-based specialist insurer LAuxiliaire to offer its customers its range of carbon-free appliances at a discounted price.

Kiloutou said the move comes as it aims to encourage the sector's transition to a sustainable model and bridge the gap in terms of awareness, information and access to low-carbon equipment between large companies and SMEs.

Part of that move will see it continue to invest in electrics, says Colleau; For this year, approximately 1/3 of the motorized fleet we will be buying will be low carbon, it's quite a large amount and this will include electrical equipment, while we are starting to buy some hydrogen units for generators.

Collective responsibility

Colleau says that for there to be a real push for alternative energy, there needs to be a collective effort to embrace a new way of powering machines; Manufacturers must produce low carbon equipment,

but they must be sure that the leasing companies buy them and the construction company will buy or use them.

In the case of Netherlands-based Boels Rental, the company recently announced that it has partnered with its Scandinavian subsidiary Cramo to launch a digital marketplace for the sale of used machinery.

Through the online channel, the company will sell thousands of units, including electric ones, consisting of various heavier construction machines and construction equipment.

Bart van Son, head of trading, Boels Rental, said: We are very excited about the launch of the digital marketplace: an innovative platform where our customers will be able to get high quality used equipment.

The market will be an extension of our commitment to sustainability. It will promote the circular economy by extending the life of used rental machines.

The market will enable us to take an important step towards a sustainable rental sector.

The company said more units will be added in the future as the partnership with Cramo expands.

Changing biases

Nordic-based Renta Group is another company that is committed to diversifying its fleet by embracing new technology.

The company offers a range of battery-powered construction equipment, from hand tools to earth-moving equipment, including power banks, forklifts, remote controls and wheel loaders.

Although it offers diesel equipment, it is working to encourage its customers to consider alternatives, says fleet director Fredrik Svanestrand. IRN.

The reality is that we are still in the early days of alternative power replacing diesel and other combustion engine machinery in the large machinery categories.

We are already proposing electric alternatives to customers today and are trying to open the eyes of those who may not have considered it before.

He tells IRN that the company is looking to create new product areas specifically for its green appliances, which will help clarify its offering and value proposition and also make it easier for customers to find products.

So far, most business development is done locally, but we are looking to harmonize categories and processes between countries, so that when a customer in Finland is looking for, say, a power bank, we can find it from Norway if available there.

He predicts that as the industry begins to mature, demand for zero-emission cars is likely to increase.

Practical steps to reduce emissions

In April, the European Rental Association (ERA) launched a handbook to help guide rental companies towards greater sustainability practices.

Describing sustainability as a critical topic for the industry, the association said the 49-page Sustainability in Rental Handbook addresses the challenges and opportunities facing the equipment rental sector.

It provides companies with practical knowledge and action steps in three key areas: net zero, circular economy and zero waste, and social and workforce sustainability.

A key focus of the net zero section of the handbook is the energy transition and rents moving towards a more sustainable future.

It provides guidance on sustainable asset procurement, the use of biofuels, hydrogen, battery power, HVO, science-based targets and target setting.

At the same time, the handbook highlights and provides guidance on key social factors affecting leasing companies across Europe, including labor shortages, talent attraction and retention, and diversity and inclusion in leasing.

Another key theme is the use of telematics and the wider digitization of the industry, with the report highlighting how companies can use telematics to compile information about the use, performance or health of equipment.

Elsewhere, the handbook provides guidance on the current regulatory landscape in Europe, including upcoming legislation such as the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).

10 rental firms, OEMs and contractors join forces for new sustainability group Bouygues Construction, Colas, Eiffage, Haulotte, JCB, Kiloutou, Manitou Group, NGI, Salti and Volvo have joined forces to create a new group dedicated to making the sector more sustainable. The group's name is shortened to CAMD (from the French name Communaut des Acteurs du Matriel Durable). It aims to work with construction industry trade federations to accelerate the environmental transformation of the construction equipment industry. CAMD's two vice-presidents, Michel Denis (left) and Patrick NKodia, are respectively president and CEO of Manitou Group and director of transformation at Bouygues Construction. Its five main objectives are: Providing practical solutions and supporting cross-sectoral projects Build a knowledge base and a common decarbonisation trajectory Raising the profile of the materials sector and its role in the transition of the construction industry Defend, alongside trade federations, the beliefs of a sustainable industry Drive a shared vision and ambition for industry decarbonisation. It is established as a non-profit organization. Olivier Colleau, chief executive of Kiloutou will serve as chairman. CAMD's two vice-presidents, Michel Denis and Patrick NKodia, are respectively president and CEO of Manitou Group and director of transformation at Bouygues Construction. An operational committee composed of representatives of the 10 companies will monitor and implement the objectives. They will identify and lead cross-functional projects that focus on technology challenges in industries such as energy, powertrains, carbon footprints and metrics. They will also monitor regulatory developments including the European Corporate Sustainability Reporting Directive (CSRD), the European taxonomy and the Science-Based Targets Initiative (SBTi).