Climate Change Data

Cargotec Corporation

Climate Impact & Sustainability Data (2020, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:46,600 tCO2e (Scope 1 & 2 location-based); 5,654,000 tCO2e (Scope 3)
Scope 1 Emissions:22,700 tCO2e/year
Scope 2 Emissions:23,900 tCO2e/year (location-based); 21,000 tCO2e/year (market-based)
Scope 3 Emissions:5,654,000 tCO2e/year
Renewable Energy Share:14% of total energy consumption; 44% of electricity consumption
Total Energy Consumption:157,500 MWh/year
Water Consumption:76,300 m3/year (assembly sites and competence centers)
Waste Generated:12,900 tons/year (assembly sites and competence centers)
Carbon Intensity:104 (GHG emissions intensity index in 2020, based on 2019 as the base year).

ESG Focus Areas

  • Climate Change
  • Occupational Health and Safety
  • Supplier Sustainability
  • Diversity and Equal Opportunity
  • Ethics and Compliance

Environmental Achievements

  • Reduced Scope 1 and 2 (location-based) GHG emissions by 10% compared to 2019.
  • Reduced Scope 1 GHG emissions by 23% and Scope 2 (location-based) GHG emissions by 21% at assembly sites compared to 2019.
  • Reduced GHG emissions related to electricity use by 3,800 tCO2e compared to 2019.
  • Approximately 44% of Cargotec’s electricity consumption was renewable.

Social Achievements

  • Launched a new social intranet to boost employee experience and strengthen cross-organizational collaboration.
  • Implemented a global learning experience platform LEARN to support effective learning opportunities for all employees.
  • 100% of new direct material suppliers were audited against labor practice, human rights, and environmental management criteria.

Governance Achievements

  • Implemented a new comprehensive Third Party Risk Management System.
  • Code of Conduct e-learning completed by 82% of Cargotec employees (2019: 68%).
  • 65 reports of alleged misconduct were made to the Ethics and Compliance (E&C) team, with investigations opened in 32 cases.

Climate Goals & Targets

Medium-term Goals:
  • Reduce absolute Scope 1, 2, and 3 GHG emissions by 50% by 2030 from a 2019 base year.
  • Achieve carbon neutrality in own operations (Scope 1 and 2 market-based) by 2030.
Short-term Goals:
  • Achieve double sales growth compared to traditional products (achieved ahead of schedule).

Environmental Challenges

  • COVID-19 pandemic impacting workforce and operations.
  • Reduced workweek implemented to minimize negative financial impact.
  • Supply chain disruptions due to the COVID-19 crisis.
Mitigation Strategies
  • Implemented remote auditing and assessments to enable smooth and efficient production flows.
  • Developed improved supplier communication and forecasting processes.
  • Regular Coronavirus Action Group and Corona Task Force managed company-level COVID-19 mitigation actions.

Supply Chain Management

Supplier Audits: 100% of new direct material suppliers audited in 2020.

Responsible Procurement
  • Supplier Code of Conduct focusing on human rights and other sustainability risks.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Industrial Machinery & Goods Standard

Certifications: ISO 45001:2018 (OSHAS 18001:2007) at most assembly sites

Third-party Assurance: KPMG Oy Ab

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 13 (Climate Action)

Cargotec's initiatives contribute to these goals through renewable energy use, emission reductions, and sustainable supply chain practices.

Sustainable Products & Innovation

  • Hiab Waltco Solar Charger

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:5,882,300 tCO2e (value chain)
Scope 1 Emissions:24,400 tCO2e
Scope 2 Emissions:9,500 tCO2e
Scope 3 Emissions:5,848,400 tCO2e
Renewable Energy Share:57%
Total Energy Consumption:156,000 MWh
Carbon Intensity:1,427 tCO2e/MEUR

ESG Focus Areas

  • Climate change mitigation
  • Circularity
  • Human rights
  • Health & safety
  • Diversity, equity & inclusion
  • Sustainable finance
  • Responsible sourcing

Environmental Achievements

  • Reached a 32 percent reduction in scope 1 and 2 emissions compared to a 2019 baseline.
  • Eco portfolio sales totalled EUR 1,515 million in 2023, representing 33 percent of total sales.
  • Kalmar introduced the Electric Straddle Carrier Charge Family.
  • Hiab pioneered the use of recycled steel made with an electric furnace powered by renewable electricity in the MULTILIFT Ultima ZERO hooklifts.

Social Achievements

  • Achieved an IIFR of 3.8, below the target of 4.0.
  • Overall favourability score in employee engagement survey remained high at 76 percent.
  • Integrity index improved to 78 percent, exceeding the target of 77 percent.
  • Hiab launched the HiSkill™ training simulator.

Governance Achievements

  • Completed its first human rights impact assessment.
  • 90% of strategic suppliers completed sustainability self-assessment, achieving an overall score of 57%.
  • Cargotec’s Board of Directors approved a demerger plan concerning the separation of Kalmar into an independent listed company.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality in our own operations by 2030
Medium-term Goals:
  • Reduce CO2 emissions in Cargotec’s value chain by 50% by 2030
  • Achieve carbon neutrality in our own operations by 2030
  • Increase the share of renewable electricity to 75 percent by 2026 and to 100 percent by 2030
Short-term Goals:
  • Reduce CO2 emissions in Cargotec’s value chain by 25% by 2025

Environmental Challenges

  • Increased uncertainty and regional weakness in the global economy.
  • High interest rates and inflation.
  • Supply chain disruptions.
  • Geopolitical tensions.
  • Challenges with MacGregor’s offshore business due to unprofitable projects.
  • Development of offshore wind-related new technologies has been challenging and caused additional costs.
Mitigation Strategies
  • MacGregor ran a restructuring programme within its offshore business.
  • Cargotec initiated cost saving actions in the Cargotec group, Kalmar and Hiab, with the objective to achieve EUR 50 million annual fixed cost savings in 2024.
  • Investing in sustainable innovation
  • Driving increasing recurring revenues
  • Seeking organic and inorganic growth
  • Aiming for the highest sustainability standards in our industry.

Supply Chain Management

Supplier Audits: 15 onsite audits in 2023

Responsible Procurement
  • Business Partner Code of Conduct
  • Supplier approvals and contracting
  • Supplier engagement and audits
  • SpeakUp line

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Supply chain disruptions
Transition Risks
  • Regulatory changes
  • Market shifts
  • Increased costs of low-emission alternatives
Opportunities
  • Development of energy-efficient products
  • Increased demand for low-carbon solutions
  • New markets for sustainable technologies

Reporting Standards

Frameworks Used: GRI, TCFD, EU Taxonomy, UN Global Compact

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Ernst & Young Oy (limited assurance for GRI Index)

UN Sustainable Development Goals

  • Not disclosed

Sustainable Products & Innovation

  • Electric equipment
  • Electric Straddle Carrier Charge Family
  • MULTILIFT Ultima ZERO hooklifts
  • Horizon walk-to-work gangways
  • MOFFETT eSeries