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.
Cargotec’s climate programme, Mission Climate, was founded in May 2021. The programme’s ultimate goal is to get Cargotec on the path of achieving a net zero emission value chain in the future. By doing this, we want to future proof our business and ensure that we stay on top of the game when it comes to providing carbon-neutral solutions. Climate is at the heart of our refined strategy and, to test its strategic resilience, we have analysed how climate change may impact our operations and value chain. Part of Mission Climate, is Cargotec’s emission reduction initiative.
The emission reduction initiative focuses on decarbonising the supply chain, decarbonising our own operations and boosting our sustainable offering. To enable this, ongoing work streams are focusing on climate data and systems, funding and partnerships, and sustainable product design through life cycle assessments. These will further support our transformation and emission reduction targets.
By innovating and collaborating across the entire value chain, Cargotec is aiming to have its supply chain decarbonised. This work focuses on finding alternative sustainable materials and solutions, creating transparency in data and capturing innovative ideas from our partners. By innovating together, the joint target is to significantly reduce the emissions of the products we are purchasing from our suppliers. Steel is the main emission contributor from purchased goods and services. We aim to secure early access to low-emission steel when this is available on the market and re-engineer Cargotec products by using alternative green materials.
We have designed a broader supplier engagement model to create transparency to our purchased goods and services emissions, identify emission reduction opportunities and future proof our supply chain by setting climate requirements to our suppliers. Through this engagement we will understand the maturity level of our suppliers and their climate strategies, and the climate impact of their supplied components. To this end, we have started engaging with our top emission suppliers and will gradually roll this out to cover all our strategic suppliers.
With full control over our own operations, we want to be ambitious and make carbon neutrality our target. About 40 percent of the emissions from our own operations are related to electricity use. We are committed to increasing the share of renewable electricity to 75 percent by 2026 and to 100 percent by 2030. At the end of 2021, the share of renewable electricity reached 47 percent in our own operations. The fuel usage by our service fleet is the second largest contributor to the emissions in our own operations. To mitigate those emissions and reach carbon neutrality, we aim to increase remote services and transition to using biofuels or electric vehicles. Reaching carbon neutrality may require compensation for the residual emissions which cannot be mitigated.
Boosting our sustainable offering is at the core of our business. By providing products that enhance our customers’ sustainability with low carbon technologies, intelligent solutions and services promoting a circular economy, we can create a positive impact on the operations of our customers and suppliers. During the year, our work focused on improving our climate data and systems as well as revising the criteria of our eco portfolio so that it is aligned with the upcoming EU Taxonomy regulation. As part of the project, several product life-cycle assessments (LCA) for the equipment have been conducted. The pilot LCA’s confirmed the hypothesis that electric versions of the equipment result in substantial life-cycle GHG savings.