Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Safety
• Employee well-being
• Diversity & Inclusion
• Ethical conduct
• Good governance

Environmental Achievements

• Increased share of renewable electricity in own operations to 44% (target 50% by 2021)
• Eco portfolio sales constituted 24 percent of total sales in 2020 (2019: 21%)
• Committed to the UN Global Compact Business Ambition for 1.5°C campaign
• Emission reduction targets validated by the Science Based Targets initiative

Social Achievements

• Achieved IIFR target of <5.0 for assembly sites (3.4 in 2020, 2019: 7.0)
• Improved Cargotec total IIFR to 5.2 (2019: 6.9)
• Compass employee satisfaction survey showed a 5.7% improvement in 2020 compared to 2019
• Included in Bloomberg’s Gender Equality Index (GEI) 2020

Governance Achievements

• Completed TTS integration with MacGregor
• Established a joint venture with CSSC Nanjing Luzhou Machine Co., Ltd in China
• Initiated the sales process of the Navis software business
• Approved merger with Konecranes

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting business, especially during the first two quarters
• Market uncertainty affecting customer decisions, leading to order postponements
• Supply chain disruptions due to the pandemic
• Decreased demand for certain products
• MacGregor's low profitability

Mitigation Strategies

• Initiated temporary cost savings (approx. EUR 10 million monthly savings)
• Shifted focus to structural savings, reducing headcount by approximately 1,000
• Increased cooperation with suppliers to mitigate delivery risks
• Developed a self-sustainability audit and online review process for suppliers
• Implemented restructuring programs in MacGregor and Kalmar

Supply Chain Management

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

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting suppliers
• Sea level rise and increasing temperatures impacting operations

Transition Risks

• Changes in regulation
• Market shifts impacting demand for low-carbon solutions
• High demand for materials increasing costs

Opportunities

• Increased demand for low-carbon products and services
• Development of energy-efficient products
• Digitalisation, electrification, robotics, renewables, and circular economy

Reporting Standards

Frameworks Used: GRI, UNGC, TCFD, CDSB, SASB

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Electrically powered forklift trucks
• G-Generation top loaders
• MULTILIFT Optima hooklifts
• MOFFETT E4 NX electric forklift

Environmental Metrics

ESG Focus Areas

• Climate change
• Energy management
• Circularity
• Human rights
• Employee health & safety
• Diversity, equity and inclusion
• Compliance
• Sustainable finance
• Materials sourcing
• Responsible sourcing and sales

Environmental Achievements

• Reduced energy intensity by 28% compared to 2019.
• 57% of Cargotec’s electricity consumption came from renewable energy sources.

Social Achievements

• Implemented ISO 45001:2018 Occupational Health and Safety Management Systems across the organization.
• 90% of Cargotec white-collar employees received performance and development plans.

Governance Achievements

• Implemented remuneration incentives linked to sustainable development progress.
• Strengthened third-party risk management system.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic and the conflict in Ukraine.
• Data limitations for some non-assembly sites.

Mitigation Strategies

• Focused on mitigating delivery risks and ensuring supply continuity.
• Improved data collection processes for scope 3 emissions.

Supply Chain Management

Responsible Procurement

• Supplier sustainability requirements
• Compliance with laws and regulations
• Respect for international human rights

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, SASB Industrial Machinery and Goods Standard

Certifications: ISO 45001:2018

Third-party Assurance: Ernst & Young

Sustainable Products & Innovation

• Eco portfolio products

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Workforce
• Value Chain
• Business Conduct

Environmental Achievements

• Decreased total scope 1 and scope 2 (market-based) GHG emissions by approximately 6 percent compared to 2022. Scope 1 emissions decreased by 2 percent and scope 2 (market-based) emissions by 16 percent.
• Approximately 57 percent of electricity used was renewable in 2023.
• 100 percent of assembly sites, service sites and offices in Finland were powered by renewable electricity in 2023.

Social Achievements

• Cargotec’s employee satisfaction survey, Compass, is arranged on a yearly basis, regular Pulse surveys are conducted on a monthly basis.
• Cargotec’s Learning Transformation Programme supports the transformation journey to reach our vision. As part of the programme, a global learning experience platform LEARN has been implemented.

Governance Achievements

• Cargotec’s Board of Directors has agreed on implementing remuneration incentives, to ensure that the targets set for the sustainable development progress are achieved. Consequently, eco portfolio order intake and climate programme roadmaps are included in performance share programme evaluation criteria.

Climate Goals & Targets

Environmental Challenges

• Some sites were not able to provide data, resulting in missing reports. However, the missing reports were from offices with light operation, having a non-material impact on the consolidated figures.
• Due to certain lag in supplier invoicing, estimates were used for Q4/2023 for the following environmental indicators: energy, emissions (scope 1, scope 2), air pollutants, water, and waste.

Mitigation Strategies

• Estimates are based on corresponding data from Q4/2022, as no significant changes related to the reporting scope or production lines occurred during the year.
• Missing reports were from offices with light operation, having a non-material impact on the consolidated figures.

Supply Chain Management

Responsible Procurement

• Cargotec’s Business Partner Code of Conduct
• Respect for human rights
• Setting climate requirements to suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI 2021 Standards, UN Global Compact, OECD Guidelines for Multinational Enterprises, International Labour Organization, United Nations Guiding Principles on Business and Human Rights

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Ernst & Young Oy

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Our requirements often go beyond what is required by local regulation. Supplier compliance with our Business Partner Code of Conduct is mandatory and a prerequisite for cooperation with any potential supplier.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, OECD’s guidelines for multinational enterprises, UN Guiding Principles on Business and Human Rights, International Bill of Human Rights, ILO Declaration on Fundamental Principles and Rights at Work

Certifications: ISO 14001