Sustainability is an enormous business prospect for Cargotec. Climate change and greenhouse gas emissions are our key focus areas within the environment theme. The logistics industry is causing a significant share of the global emissions. At Cargotec, this challenge is actually perceived as a business opportunity. Manufacturing products and technologies that enable avoiding or reducing greenhouse gas emissions in other sectors (the logistics sector, for example) is pivotal in the transition towards a low-carbon economy.
Our eco portfolio draws attention to solutions with potential to help our customers become low-carbon in their operations. The portfolio was established in 2017 and contains the equipment, service and software that enhance our customers’ sustainability. The share of the eco portfolio sales is closely monitored and in 2021, it accounted for 19 percent (2020: 24%) of our total sales.
Besides electrification, automation and connectivity are also considered as very promising measures to improve the efficiency of our customers’ operations. We believe that utilising software and digitalisation in the business will enable making cargo and load handling more efficient. We also foresee an increasing demand for efficient solutions in the future. This will also be a major enabler in the transition towards a circular economy. Data sharing, common platforms, and collaboration act as key drivers in achieving these targets and connecting industries. Our modernisation and maintenance services ensure optimised maintenance cycles which can then support our customers to maximise the life-cycle of their products, thereby saving resources.
The solutions included in the eco portfolio have passed an external review process. During the year, as our focus was mainly on revising the eco portfolio criteria to align with the upcoming EU Taxonomy regulation, no new products were added to the portfolio. The EU Taxonomy regulation establishes a classification system to define which economic activities are environmentally sustainable.
Cargotec can contribute to at least two of the environmental objectives of the EU Taxonomy: the climate change mitigation and the transition to a circular economy. To support the EU Taxonomy alignment, the eco portfolio is primarily being revised into two categories: climate solutions and circular solutions. The climate solutions contribute to significant emission reductions, aligned with the 1.5C climate ambition, whereas the circular solutions are considered contributing to the transition to a circular economy.
During 2021, Cargotec’s EU Taxonomy alignment work was initialised by revising the eco portfolio criteria for the climate solution category. The target for 2022 is to enable taxonomy-aligned reporting by finalising the development of the eco portfolio criteria for the climate solution category, developing the eco portfolio criteria for the circular solutions category, and by conducting product life-cycle assessments to prove their life-cycle GHG emissions savings against the revised criteria. Cargotec’s eco portfolio sales figure 2021, is still reported according to the old criteria.