ERA Launches Sustainability KPI Framework 3.0 Aligned with EU Reporting Standards

The European Rental Association (ERA) has published Version 3.0 of its Sustainability KPI Framework to support rental companies in their sustainability reporting according to the European Union's Corporate Sustainability Reporting Directive (CSRD). This extensive update was developed with the help of epi Consulting and gives rental companies valuable tools to respond to current EU requirements and expectations regarding sustainability.

Initially launched in 2021 and last updated in 2023, the KPI Framework has been created to be especially applicable to the rent industry. Version 3.0 incorporates such main regulatory updates as the European Sustainability Reporting Standards (ESRS) and the Voluntary Standard for Micro-Enterprises (VSME) to make it relevant and actionable. The latest updates are intended to assist companies of varying sizes and maturity to adopt ESG (Environmental, Social, and Governance) reporting guidelines.

The guideline establishes four different reporting tracks for distinct categories of businesses. These are Basic KPIs for Small and Medium-Sized Enterprises (SMEs), Comprehensive KPIs for SMEs, Basic KPIs for Large Rental Businesses, and Comprehensive KPIs for Large Rental Businesses. Organizations are advised to choose the most suitable list depending on their size, current reporting practice, and sustainability targets.

Essential lists prioritize essential metrics, such as Scope 1 and Scope 2 greenhouse gas emissions, headcounts, and waste generation that are appropriate for companies at the initial stages of ESG reporting. The advanced lists feature a deeper analysis of sustainability performance, such as Scope 3 emissions, supply chain reporting, and advanced workforce metrics.

To facilitate implementation, ERA has initiated an Excel KPI tool broken into three ESG pillars: Environmental, Social, and Governance. The template is structured to enable rental companies to easily track applicable areas like climate footprint, circular economy projects, managing pollution, and the welfare of employees.

Supporting documents are in the form of a PowerPoint presentation guide, the background description of how the framework progressed from Version 2.0 to 3.0, why the specific indicators have been selected and grouped, and the best way to choose the most appropriate set of KPIs. It also has opinions on how in the future the requirements for sustainability disclosure are likely to shift and how the framework keeps pace with evolving standards.

The ERA worked closely with large rental companies in Europe during the process of their upgrading. Their comments were essential to us for the sake of determining significant sustainability issues facing the industry, as well as for constructing indicators promoting transparency and comparability of reporting.

This action is being taken at a time when sustainability reporting is gaining more importance. Investors, customers, and regulatory authorities are all seeking rental companies to provide steady and predictable environmental and social performance information. This approach, in this manner, is anticipated to make available to the rental sector a formal, flexible framework of supplying good disclosure and long-term sustainability advantages.

The tools are available for use, and rental firms are encouraged to begin leveraging the selected KPIs within their operations and reporting cycles. As environmental and social governance continue to affect business practice and investment decisions, adopting ERA's KPI Framework 3.0 supports organizations in being competitive and compliant.

The entire set and more information are available on the European Rental Association. The move demonstrates the ERA's intention to empower the rental sector with the tools required to respond to regulatory strain as well as to improve sustainability performance.

Source: International Rental News