Climate Change Data

Konecranes Plc

Climate Impact & Sustainability Data (2020, 2021, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Safety
  • Environmental
  • Greenhouse Gas Emissions

Environmental Achievements

  • Reduced energy consumption in own operations (specific figures not provided in this document)
  • Reduced greenhouse gas emissions in own operations (specific figures not provided in this document)

Social Achievements

  • Reduced Total Recordable Incident Rate (TRI) (specific figures not provided in this document)

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Data collection from service network for energy, emissions, waste, and water is challenging.
  • Comprehensive Scope 3 data collection is still in progress.
Mitigation Strategies
  • Excluding service operations' data for energy, emissions, waste, and water from the report due to data collection difficulties.
  • Extrapolating business travel emissions to cover all operations using employee headcount data.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol Corporate Accounting and Reporting Standard

Certifications: Null

Third-party Assurance: Ecobio Oy (limited assurance)

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:5,158,600 tCO2e
Scope 1 Emissions:44,500 tCO2e
Scope 2 Emissions:14,400 tCO2e
Scope 3 Emissions:5,158,600 tCO2e
Renewable Energy Share:20%
Total Energy Consumption:275,000 MWh
Water Consumption:163,000 m3
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate action and resource efficiency
  • Eco-optimized offering and circularity
  • Safe workplace and products
  • Diverse, inclusive and engaging workplace
  • Responsible business conduct

Environmental Achievements

  • 67% of electricity in factories is from renewable sources.
  • Received a Gold rating from EcoVadis supplier sustainability portal.

Social Achievements

  • Updated Konecranes’ Fair Labor Frame.
  • Implemented inclusive recruitment practices and established four internal employee groups.
  • Special focus on supporting our employees’ mental health and adaptation to new ways of working.

Governance Achievements

  • Updated Anti-Corruption Policy and policy on donations and sponsorships.
  • Implemented a new Conflict of Interest Instruction and related declaration process.
  • Received ISO/IEC 27001 certification for customer portal, mobile applications, and remote service products.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce absolute Scope 1, 2 and 3 GHG emissions by 50% by 2030 from a 2019 base year
Short-term Goals:
  • Reduce TRI-rate <3 by the end of 2025
  • 20% year-on-year reduction of SIF exposure by end of 2025
  • Safety observations per year by the end of 2025: 5 per person
  • By the end of 2025, female gender share of total organization 22%
  • By the end of 2025, female share of leadership positions 22%
  • By the end of 2025, female gender share in STEM/Technology area 22%

Environmental Challenges

  • Supply chain disruptions due to COVID-19
  • High percentage of emissions originating from the value chain (98%)
  • Reaching 100% Code of Conduct training completion rate hindered by COVID-19.
Mitigation Strategies
  • Global COVID-19 Response Teams and occupational health services.
  • Science-based targets to reduce GHG emissions by 50% by 2030 (Scope 1, 2, and 3).
  • Continued roll-out of Supplier Code of Conduct and supplier sustainability audits.

Supply Chain Management

Supplier Audits: 27 sustainability audits

Responsible Procurement
  • Supplier Code of Conduct
  • Due diligence and background checks
  • Risk-based Know-Your-Counterparty process

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, SASB

Certifications: ISO 14001, ISO 45001, ISO/IEC 27001, Cyber Essentials

Third-party Assurance: Ecobio Oy

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Generation 6 mobile harbor crane
  • Electric E-VER Lift Trucks
  • Eco-efficient hoists

Awards & Recognition

  • EcoVadis Gold Medal
  • CDP B rating

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:4,693,700 tCO2e/year
Scope 1 Emissions:40,100 tCO2e/year
Scope 2 Emissions:2,900 tCO2e/year
Scope 3 Emissions:4,650,700 tCO2e/year
Renewable Energy Share:22% of total energy use
Total Energy Consumption:251,400 MWh/year
Water Consumption:152,300 m3/year
Waste Generated:15,800 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Action and Circularity
  • Safe Solutions and Operations
  • Inclusive and Fair Working Conditions
  • Responsible Business Conduct

Environmental Achievements

  • Reached target of powering all factories with 100% renewable electricity in 2022
  • Reduced Scope 1 and 2 emissions by 50% compared to 2019
  • Reduced Scope 3 emissions (within defined boundary) by 26% compared to 2019
  • 83% of factories have ISO 14001 certification

Social Achievements

  • Improved TRI rate to 5.6 (from 6.7 in 2021)
  • Reduced SIF Exposure rate by 12% compared to 2021
  • Increased HSE observations to 4.31 per person (from 3.07 in 2021)
  • Published a Human Rights Policy
  • 96% of employees completed performance or development reviews

Governance Achievements

  • 10% weighting on ESG performance in short-term incentive targets for President and CEO, Deputy CEO, and other senior management (starting 2023)
  • Continued ISO 27001 certification process for information security
  • Konecranes Demag UK Ltd awarded Cyber Essentials certification

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce absolute Scope 1 and 2 GHG emissions by 50% by 2030 (from 2019 baseline)
  • Reduce absolute Scope 3 GHG emissions by 50% by 2030 (from 2019 baseline)
  • Female gender share of total organization 22% by 2025
  • Female share of leadership positions 22% by 2025
  • Female gender share in STEM/Technology area 22% by 2025
Short-term Goals:
  • Reduce TRI rate below 3 by 2025
  • 20% year-on-year reduction of SIF exposure by 2025
  • 5 observations per person per year by 2025

Environmental Challenges

  • Supply chain disruptions due to component availability and constraints
  • Data limitations in Scope 3 emissions reporting
  • Lower sales volumes impacting emission reduction progress
Mitigation Strategies
  • Investing in renewable electricity and energy efficiency
  • Improving fuel efficiency of fleet and production processes
  • Electrifying product offerings
  • Developing more energy-efficient products
  • Reducing value chain emissions from steel purchases
  • Improving Scope 3 data quality and collection

Supply Chain Management

Supplier Audits: 29 supplier sustainability audits/year

Responsible Procurement
  • Supplier Code of Conduct
  • Basic background checks for new suppliers
  • Self-assessment for suppliers with high spending and all subcontractors
  • On-site process audits (102 in 2022)
  • On-site supplier sustainability audits (29 in 2022)

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Development of energy-efficient products and low-carbon solutions

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, SASB Standard for Industrial Machinery and Goods (2018-10), TCFD

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO 17025, ISO/IEC 27001 (for yourKONECRANES and TRUCONNECT)

Third-party Assurance: Ecobio Oy (limited assurance for safety, energy, and emission data)

UN Sustainable Development Goals

  • Good health and well-being
  • Gender equality
  • Affordable and clean energy
  • Decent work and economic growth
  • Industry, innovation and infrastructure
  • Reduced inequalities
  • Responsible consumption and production
  • Climate action
  • Peace, justice and strong institutions

Konecranes’ sustainability commitments and targets are aligned with these SDGs.

Sustainable Products & Innovation

  • Electric Generation 6 mobile harbor crane
  • Electric E-VER Lift Trucks
  • Battery power options for RTGs and straddle carriers
  • Lifecycle Care in Real Time solution
  • Agilon® automated storage system

Awards & Recognition

  • CDP A- rating
  • EcoVadis Gold Medal
  • Award for best Finnish Large Cap company promoting diversity
  • DIMECC Prize 2022

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:5,285,900 tCO2e/year
Scope 1 Emissions:37,300 tCO2e/year
Scope 2 Emissions:3,300 tCO2e/year
Scope 3 Emissions:5,245,400 tCO2e/year
Renewable Energy Share:22% of total energy use
Total Energy Consumption:236,000 MWh/year
Water Consumption:144,000 m3/year
Waste Generated:19,400 tons/year
Carbon Intensity:0.16 tCO2e/MWh

ESG Focus Areas

  • Climate change
  • Circular economy
  • Safety
  • Human rights
  • Diversity, Equity, and Inclusion
  • Ethical business conduct
  • Supply chain responsibility

Environmental Achievements

  • Achieved carbon neutral own operations (Scope 1 & 2) in 2022 by powering all factories with 100% renewable electricity.
  • Hämeenlinna factory became the company’s first certified carbon-neutral site.
  • Reduced total emissions by approximately 8% compared to 2019.
  • Reduced Scope 1 & 2 emissions by 53% compared to 2019.
  • Reduced Scope 3 emissions (use of sold products and steel purchases) by 19% compared to 2019.
  • 86% of company factories hold ISO 14001 certification.

Social Achievements

  • Renewed Code of Conduct with more detailed guidance.
  • Launched a new Diversity, Equity and Inclusion (DEI) Policy Statement.
  • Conducted a global Employee Engagement Survey.
  • Improved TRI rate to 4.6 (from 5.6 in 2022).
  • Reduced SIF Exposure rate by 26% compared to 2022.
  • Increased HSE observations to 5.81 per person (from 4.31 in 2022).

Governance Achievements

  • Updated Information Security Management System to ISO 27001:2022.
  • Started IEC 62443 certification project.
  • Konecranes Demag UK Ltd awarded Cyber Essentials certification for the third year.
  • 10% weighting on ESG performance in short-term incentive targets for President and CEO, Deputy CEO, and other senior management.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Carbon neutral own operations by 2030.
  • Reduce absolute Scope 1 and 2 GHG emissions by 50% by 2030 from base year 2019.
  • Reduce absolute Scope 3 GHG emissions by 50% by 2030 from base year 2019.
Short-term Goals:
  • Reduce TRI rate below 3 by 2025.
  • 20% year-on-year reduction of SIF exposure by end of 2025.
  • Observations per year by the end of 2025: 5 per person.

Environmental Challenges

  • Climate change impacts on supply chain and production.
  • Cybersecurity risks in industrial manufacturing.
  • Human rights risks in global supply chains.
  • Data privacy concerns.
Mitigation Strategies
  • Comprehensive climate-related risk and scenario analysis (TCFD aligned).
  • New cybersecurity strategy, governance, and objectives.
  • Human rights risk assessment in the supply chain.
  • Human Rights Policy and due diligence process.
  • Data protection program and policy.

Supply Chain Management

Supplier Audits: 33 external on-site sustainability audits in 2023.

Responsible Procurement
  • Supplier Code of Conduct
  • Supplier relationship management framework
  • Category management procurement model
  • Sustainability aspects embedded in category strategies
  • Conflict Minerals program

Climate-Related Risks & Opportunities

Physical Risks
  • Natural disasters affecting supply chain
Transition Risks
  • Increased local regulation
  • Cost of energy and materials
Opportunities
  • Providing low-carbon solutions to customers
  • Electrification of product portfolio

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, SASB Standard for Industrial Machinery and Goods (2018-10), TCFD

Certifications: ISO 14001, ISO 45001, ISO 27001, CarbonNeutral® (Hämeenlinna factory)

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

UN Sustainable Development Goals

  • Goal 3: Good health and well-being
  • Goal 5: Gender equality
  • Goal 7: Affordable and clean energy
  • Goal 8: Decent work and economic growth
  • Goal 9: Industry, innovation and infrastructure
  • Goal 10: Reduced inequalities
  • Goal 12: Responsible consumption and production
  • Goal 13: Climate action
  • Goal 16: Peace, justice and strong institutions

Konecranes' initiatives contribute to these goals through various programs and actions related to safety, diversity, renewable energy, fair labor practices, innovation, responsible sourcing, emissions reduction, and ethical business conduct.

Sustainable Products & Innovation

  • Electric and hybrid products
  • Eco-optimized product portfolio
  • Predictive Maintenance engine
  • Zero4 research and innovation program

Awards & Recognition

  • EcoVadis Gold rating (3 consecutive years)
  • CDP A- rating (2 consecutive years)