We believe focusing on scope 3 emissions can be an important tool to preserving or creating value by helping to identify opportunities to reduce emissions across a company’s value chain, identify risks, increase transparency, and meet stakeholders’ needs.

Modulaire, Brookfield Private Equity’s modular building leasing services operation, has committed to achieving net zero by 2050 or sooner, with an interim target of reducing scope 1, 2 and 3 GHG emissions by up to 40% by 2030, relative to a 2020 baseline. As a leading provider of modular building leasing services, Modulaire’s overarching goal is to offer modular services that contribute to a circular economy. Within this model, the business operates so that materials are retained in use at their highest value for as long as possible and then reused or recycled, resulting in minimal residual waste. The business model also supports its customers to thrive in the low-carbon transition, as its modular solutions can be integrated into customers’ and communities’ emissions reduction and climate resilience strategies. 

Overall, this business model minimizes embodied carbon, often attributed to construction materials, is an important component of Scope 3 emissions and refers to the GHG emissions associated with the entire lifecycle of a material. This lifecycle includes manufacturing, transportation, installation, maintenance, and disposal. Modulaire’s model also conserves resources, increases efficiency, sources sustainably and eliminates waste where possible to advance the circular economy and reduce emissions, including scope 3. The business’ current approach is 73% less carbon intensive than traditional construction, with units that are up to 96% recyclable and can be reused, on average, 20x or more during their lifecycle.

As part of its climate-related risk assessment, Modulaire observed that carbon pricing could increase the price of raw materials that may have high embodied carbon. However, that transition risk is deemed low as a result of the business’s operating model today and climate transition planning. Modulaire’s commitment to circularity and net zero carbon emissions should enable it to minimize the potential impact of carbon pricing.

As climate change reshapes the modular services and infrastructure industry, we continue to support Modulaire as it endeavors to be a leader in the circular economy.