TIP Group’s Sustainability 7 Flagship Programs

Is TIP Group on track to achieve its 2025 sustainability targets? Dive into TIP Group's sustainability journey through the lens of our latest sustainability report. This article provides an overview of our progress toward the 2025 sustainability targets, without overstating achievements, offering a factual representation of our ongoing efforts.

“We have called our strategy for Generations to Come because we genuinely believe that there is an unwritten contract in place between generations. We need to take care of the world’s resources for the benefit of future generations.”

TIP key ambitions to support the sector in its decarbonization. At TIP Group, our sustainability strategy "For Generations to Come" focuses on 7 key programs that we call our flagship initiatives. Before diving into what each entails, we first want to highlight the 5 concrete targets that we are making strides towards achieving by 2025:

• Reaching carbon neutral operations by 2030
• Reducing the company’s gender pay gap
• Refurbishing 5,300 units by 2025
• Equipping at least 35,000 trailers with telematics (TIP Insight) by the end of 2025
• Upgrading 99% of workshops to LED lighting 

Significant steps have already been taken towards realizing our targets: Our first carbon footprint analysis covering scope 1 and 2 emissions has been completed, establishing a baseline to concentrate our reduction efforts. In 2022, we narrowed the gender pay gap to 8% down from 9.9% at the end of 2021. We have refurbished 1,376 units, connected 17,550 trailers to TIP Insight, and installed enough LED lighting at facilities to reach 80% coverage by the end of the year. These results put us on track to meet our 2025 goals. This momentum keeps us on track for full achievement of our 2025 sustainability targets. 

Let’s now deep dive into our 7 Flagship Programmes.

Management 

In the past two years, TIP Group has established a dedicated Environmental, Social, and Governance (ESG) function, including an ESG Committee with the CEO and Executive Management Team. Together, they've implemented new guidelines and policies, such as the TIP Group Environmental Policy aligned with Paris climate objectives, covering waste management, labor, human rights, and cybersecurity. The Supplier Code of Conduct has also been strengthened to ensure ESG standards in the supply chain. ESG risk is now seamlessly integrated into TIP's formal risk management processes, and we are actively exploring new ISO certifications. Our commitment to driving positive change is further exemplified through partnerships with global entities such as DSV, Unilever, DLG and maxwell+spark.

Sustainable Products

Our customers aim to reduce their carbon footprint. This pillar encompasses TIP Group’s efforts to support them, including digital services like TIP Insight, sustainable e-reefers initiatives, e-trucks, e-maintenance solutions, and double-deck trailers. TIP is investigating further innovations, powering operations with more sustainable products.

Carbon Footprint

Like our customers, TIP Group is also committed to reducing carbon emissions. To become carbon neutral by 2030, we are modernising our workshops, branches and offices are becoming more energy efficient and we are increasing our use of renewable energy through approximately 30 initiatives. Our 2022 report also newly includes scope 3 emissions data, a first for us.

Circular Economy

This program focuses on evolving waste management based on the reduce, reuse and recycle philosophy. Our goal is to reduce our residual waste by at least 20% by 2025, with our ultimate goal being to reduce waste going to landfill or incineration to zero. Another important initiative for this pillar is the increased refurbishment of trailers and other equipment in order to extend their lifespan and optimize asset utilization. For example, in 2023, we extended our co-operation with DSV by over 1,100 refurbished trailers for their European operations: https://www.tip-group.com/en/news/dsv-refurbishes-rather-replacing-1100-trailers

Corporate Social Responsibility

Nothing is more important to TIP Group than health and safety. Completing EHS training is mandatory and inspections, audits and detailed accident investigations are regular occurrences. Ambition Zer0 is a name set of initiatives that was started in 2022 which will help align the organisation and raise EHS standards to help TIP Group reach its goal of zero accidents. “We can’t ensure a transition to a greener, safer industry without the right staff who feel their employer meets their expectations of a safe workplace.” Said Bob Fast, President and CEO.

This dedication to safety extends to road safety, a particular focus for us as a leading equipment services provider. Even though we may not be behind the wheel ourselves, we recognize the opportunity and responsibility to ensure the safety of those around us, especially our children. Consequently, we have initiated special lessons to children in European schools, about the potential hazards posed by blind spots on trucks and trailer units. Through practical demonstrations, we have already reached over 400 children, sensitizing them to the dangers they may encounter in their daily lives.

Reporting

To support ‘For Generations to Come’ we expanded ESG reporting using platforms like Watershed to improve data collection.. This allows us to identify possible reporting gaps with respect to the EU’s planned Corporate Sustainability Reporting Directive (CSRD) and the accompanying European Sustainability Reporting Standards (ESRS) and EU taxonomy. 

Green Financing

Accessing capital that accelerates sustainability is pivotal to realizing our vision. Under our Green Financing pillar, we are aligning financing with ESG performance in two key ways:

First, in 2022 we extended our primary credit facility and linked the interest rate to three vital ESG indicators: gender equity, circularity through trailer refurbishment, and sustainable products via connected telematics. Outperforming designated targets on these KPIs will directly reduce our borrowing costs.

Second, we added a new €75 million green revolving credit facility solely to invest in zero and low-emission vehicles. Structured to adhere to Green Loan Principles and EU sustainable finance standards, this exemplifies the targeted green financing we seek.

By embedding ESG metrics and objectives within our financing, we can unlock capital that accelerates our sustainability vision while benefiting our bottom line.

Deep dive into TIP Group Sustainability Report 2022

Curious for details? Refer to our Sustainability Report 2022. Not only do we extensively discuss our strategy and the results we have achieved, but we also share how our efforts are part of TIP Group’s whole value proposition. 

If you have any questions or would like to provide us with comments or suggestions please contacct our team through ESG@tip-group.com.