TIP Group’s sustainability 7 flagship programs
TIP Group has made sustainability central to its long-term vision through the ESG strategy "for Generations to Come – paving the road to sustainability". This article provides an overview of TIP Group's sustainability efforts and progress towards its 2025 targets, offering a factual look at ongoing work across 7 key programs.
As TIP Group President and CEO Bob Fast expressed, “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.”
Aligning with this ethos, TIP Group has set 5 concrete sustainability targets it aims to achieve by 2025:
- Achieving 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. TIP Group’s first full scope carbon footprint has established a baseline for emissions reduction efforts. The gender pay gap narrowed from 9.9% in 2021 to 8% in 2022 and 5.9% in 2023 illustrating TIP Group’s efforts. In 2022, 1,376 units have been refurbished, 17,550 trailers connected to the TIP Insight telematics system, and LED lighting installed to reach 80% coverage of facilities. On track for achievement of its 2025 sustainability targets.
Now let's explore TIP Group's 7 flagship sustainability programs powering progress across environmental, social, and governance priorities:
Management
In the past two years, TIP Group has established a dedicated Environmental, Social, and Governance (ESG) function, including an ESG Committee. This has driven implementation of new guidelines and policies around waste, labor practices, human rights, and cybersecurity. The Supplier Code of Conduct has also been strengthened to ensure ESG standards in the supply chain. ESG risk management is now seamlessly integrated into TIP's formal risk management processes, and TIP Group is actively exploring relevant ISO certifications. Partnerships with organizations like DSV, Unilever, and DLG exemplify TIP Group’s commitment to sustainability.
Sustainable Products
TIP Group is focused on helping customers reduce their carbon footprints. Efforts in this area include digital services like TIP Insight, sustainable e-reefer initiatives, e-trucks, e-maintenance solutions, and double-deck trailers. TIP Group is investigating further innovations, powering operations with more sustainable products. Establishing an Innovation Committee in 2022 shows TIP Group’s commitment to sustainable innovation.
Carbon Footprint
Like its customers, TIP Group is also committed to reducing its own carbon emissions. To become carbon neutral in its own operations by 2030, the business is modernising its workshops, branches and offices, improving energy efficiency, and increasing renewable energy use through approximately 30 initiatives. TIP Group’s 2022 Sustainability Report also newly includes detailed value chain (scope 3) emissions data.
Circular Economy
This program focuses on evolving waste management based on the reduce, reuse, and recycle philosophy. TIP Group’s goal is to reduce its residual waste by at least 20% by 2025, with the ultimate goal being to reduce waste going to landfill or incineration to zero. Another important initiative is the increased refurbishment of trailers and other equipment in order to extend their lifespan and optimize asset utilization. For example, in 2023, TIP Group extended its 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. Mandatory EHS training, regular inspections and audits, and detailed accident investigations are standard practice. Launched in 2022, TIP Group’s EHS strategy “Ambition Zer0” is a set of initiatives 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 TIP Group as a leading equipment services provider. Even though others may be behind the wheel, the leasing business recognizes the opportunity and responsibility to ensure the safety of those around it, especially children. Consequently, TIP Group has initiated lessons for children about the potential hazards posed by blind spots on trucks and trailer units. Through practical demonstrations, TIP Group has reached over 400 children, sensitizing them to the dangers they may encounter in their daily lives.
Reporting
To support ‘For Generations to Come – pathing the road to sustainability’ TIP Group expanded ESG reporting using platforms like Watershed to improve data collection. This allows the business 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 TIP Group’s vision. Under the Green Financing pillar, the business is aligning financing with ESG performance in two key ways:
First, in 2022 TIP Group extended its 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 the business’ borrowing costs.
Second, TIP Group 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 TIP Group seeks.
By embedding ESG metrics and objectives within financing, TIP Group can unlock capital that accelerates its sustainability vision while benefiting the bottom line.
Deep dive into TIP Group’s Sustainability Report 2022
Curious for details? Refer to TIP Group’s Sustainability Report 2022.
