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Sustainability at Cargotec

Sustainability is an enormous business prospect for Cargotec

Sustainability is an enormous business prospect for Cargotec. The future growth in our business comes from increasing demands for operational efficiency, the proliferation of lifetime solutions and from increasing cargo volumes.

We serve industries that cover the majority of the world's gross domestic product (GDP). This gives us potential to enable increased welfare globally.

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Offering for eco-efficiency
We can promote global eco-efficiency with our offering, as our customers - producing a large share of global GDP and welfare but also global emissions - can limit their emissions with the use of our products.

We have introduced an offering for eco-efficiency. Products within the portfolio can benefit customers’ operational, emissions or resource efficiency. In environmental industries, our products and solutions can enhance the industry efficiency.

Our strategy guides our sustainability work
Services development and digitalisation are at the core of our strategy. As a global forerunner, we can shape the industry by driving higher sustainability standards and promoting the circular economy.

Digitalisation presents optimisation opportunities, which we believe will be vital in increasing eco-efficiency. In our expanding service business, the new business models have been built according to the principles of the circular economy.

Corporate sustainability governance
Sustainability is on the Board of Director’s agenda at Cargotec, and the Board reviews sustainability on an annual basis. The Extended Executive Board conducts bi-annual sustainability reviews and approves corporate level sustainability targets. Cargotec’s Senior Vice President, Communications is responsible for sustainability issues within the Extended Executive Board.

Business area sustainability governance
To ensure that targets match business area operations, the management teams of Kalmar, Hiab and MacGregor hold a sustainability review at least bi-annually for their respective business areas, reviewing and approving possible adjustment needs of the corporate level sustainability targets.

Operational sustainability management
Operationally, sustainability is managed both at a corporate and a business area level over organisational boundaries. Key responsible organisations are units working with strategy, quality, R&D, sourcing, EHS (environment, health and safety), corporate audit, HR and legal issues.The corporate level sustainability targets are proposed, reported on and monitored by Cargotec’s Corporate Responsibility function, and each business area has its own function responsible for coordinating its sustainability work.

In 2017, Cargotec mandates Cargotec Sustainability Council to align and agree actions taken on corporate and business area level related to development, implementation and follow-up of sustainability targets and policies. The Sustainability Council consists of Corporate Responsibility function (SVP Communications and Director CR), as well as corporate strategy and business area management team members responsible on sustainability issues.

Image - Port 2060 Image - Port 2060

Port 2060

The new Port 2060 vision is a result of open collaboration and creativity.

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Our sustainability roadmap and targets support our strategy. They are set to ensure the standard sustainability management level of our operations, but also to keep us as a leading provider of sustainable cargo handling solutions.

Here you can find our annual targets 2018. To read more about Cargotec overall achievements, systems and processes on the area of sustainability, please take a look at the section Contributing to UN sustainable development goals.

Safety continues to be our key focus area in 2018, along with the increased usage of renewable energy and development of supply chain sustainability program.

Cargotec's 2018 sustainability targets

  1. IIFR 4.0 in production sites
  2. 100 percent of Swedish and Finnish sites to use all their electricity from renewable energy sources
  3. Conduct a renewed human rights risk assessment on Cargotec operations
  4. 100 percent of strategic suppliers taken into the sustainability self-assessment tool process; the Supplier Code of Conduct process finalised with suppliers that cover 80 percent of the direct sourcing spend

Our focus is to ensure a sustainable and high supplier base performance on the basis of QDCI (Quality, Delivery, Cost Competitiveness, Innovation). With that, we want to contribute in meeting customer expectations.

We select our suppliers with care and on the basis of objective factors, such as quality, reliability, delivery and price. Each supplier is required to comply with laws and regulations and respect the international human rights.

We have established clear sustainability criteria for our suppliers. Criteria, which include environmental, health, safety and labour practices as well as compliance aspects, are being reviewed continuously. Of the topics in our supplier assessment checklist, about 20% are related to sustainability criteria.

We have clear processes and audit programmes for supplier management and collaboration development. Auditing and managing of sustainability-related issues are currently being integrated to the standard supplier management and audit progress. Of our new suppliers, 90 percent were audited against these criteria in 2016.

Supplier Code of Conduct

Cargotec is a leading provider of cargo and load handling solutions with the goal of becoming the leader in intelligent cargo handling. As a technological leader, we can shape the way goods and materials are transported globally, bringing in various sustainability standards for the whole industry.

UN sustainable development goals are globally agreed targets that are aimed towards ending poverty, protecting the planet and ensuring prosperity for all as part of a new UN sustainable development agenda.

Although no company alone can ensure that the world will achieve the goals, they can show their support by taking small steps towards the targets with developing their operations in line with the UN goals.

Below are the processes, systems and policies, with which Cargotec contributes to the realisation of a more sustainable world. The main UN goals that Cargotec supports are linked to each of the sustainability focus areas at Cargotec.