How TIP Group creates value for stakeholders and society
The move to sustainable solutions is an integral part of TIP Group’s value creation process. We are not only looking at the benefits for our stakeholders but also include society as a whole. Our goal is to achieve carbon neutrality in our own operations by 2030, and to work with our value chain partners to attain full carbon neutrality across our supply and downstream networks by 2050. This timeline aligns with the European Union's overall target for carbon neutrality. In this article, we discuss how sustainable solutions, green financing, and digital services are not only shaping our business model but also significantly benefit society at large.
“The move from both customers and suppliers towards sustainable solutions is a paradigm shift that lays the groundwork for the commercial future of all companies operating within logistics supply chains — including TIP Group.” – Bob Fast, President & CEO, TIP Group. Excerpt from ‘Message from our President and CEO’, page 4 of TIP Group Sustainability Report 2022
TIP Group strives to make a positive impact, both for our partners and the wider community. Our customers are at the heart of Europe and Canada’s transport network, instrumental for delivering essential items to millions every day. By offering innovative services and sustainable products, we not only empower our customers to minimize downtime and reduce expenses, but we also support them in their transition to new low- or zero-carbon business models. We are convinced that by collaborating to forge a structured and dedicated response, we can reduce our carbon footprint, minimize waste generation, and foster more inclusive industries.
TIP Group’s measurable impact on society
We specialize in the transport and logistics equipment sector, generating the bulk of our €887 million revenue from the leasing and renting of trucks and trailers. However, the core value we offer to our customers extends beyond just equipment. Our suite of add-on services—including maintenance, repair, refurbishment, roadside assistance, insurance, and cutting-edge digital solutions via TIP Insight—stands at the heart of our value proposition. These offerings are crucial in minimizing unplanned downtime and carbon emissions while also cutting costs. Additionally, the sale of used equipment further underscores our commitment to sustainability and cost efficiency.
Key fact: refurbishing a curtainsider saves an estimated 16 tonnes CO2 emissions
The manufacturing process for a new curtainsider trailer emits an estimated 18,7 tonnes of CO2, while refurbishment emits an estimated 2,7 tonnes. The total number of trailers that have been refurbished by TIP Group in 2022 is 1.100, which results in a considerable emissions saving of 18,000 tonnes of CO2.
The benefits extend beyond financial gains for shareholders. TIP Group disbursed €178 million in wages and benefits, notably reducing the gender pay gap by 2 percentage points. We also allocated €425 million to suppliers and business partners, and paid €76m in interest and dividend to creditors and our shareholder.
In 2022, our commitment to sustainable practices led to securing €75 million in new green financing for zero- and low-emission equipment. This expansion aligns with our dedication to providing vehicles and solutions that contribute to a more sustainable future.
Neutral Assessment of TIP Group's Environmental and Social Responsibility
Our recent recognitions underscore our dedication to ESG values. Sustainalytics assessed us a 'negligible' ESG Risk Rating, ranking us 1 out of 355 in the Transportation industry group. Additionally, EcoVadis granted us a Silver Rating twice in a row, with a score of 62/100, positioning us in the top 20% globally within the renting and leasing of motor vehicles industry. These accomplishments affirm our commitment to sustainability and climate action for two consecutive years.
Moreover, as part of our continuous efforts to enhance our entire value chain, TIP Group is actively investing in the modernization of our own buildings, as seen in two visible projects executed in 2021, with measurable impacts in 2022. LED installations in DE-Recklinghausen and heating modernization in CZ-Klecany resulted in significant reductions in electricity and natural gas consumption (111,912 kWh and 95,520 kWh for electricity and natural gas respectively), showcasing our tangible contributions to a sustainable future.
TIP Group Sustainability Report 2022
For a detailed account of our sustainability initiatives, energy-efficiency projects, and how TIP supports its customer in reducing their carbon emissions, explore our full Sustainability Report 2022 on our website. We invite questions, comments, and suggestions via ESG@tip-group.com as we continue our commitment to creating sustainable value for our customers and society.
