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Environment

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 target, validated by the Science Based Targets initiative (SBTi) is:

Cargotec commits to reduce absolute scope 1, 2 and 3 GHG emissions 50% by 2030 from a 2019 base year. The target boundary includes biogenic emissions and removals from bioenergy feedstocks.

SBTi considers our target ambitious as it exceeds the minimum ambition for the 1.5°C pathway defined by the Absolute Contraction approach. This means our target is consistent with the level of decarbonization required to keep global temperature increase to 1.5°C compared to pre-industrial temperatures. This is the most ambitious designation available through the SBTi process at the moment. We do not count offsets as emission reduction towards these targets.

Cargotec’s internal goal is to become carbon neutral (net zero emissions) in its own operations, which goes beyond the required ambition level of the Science Based Targets initiative. While we strive to mitigate the emissions as far as possible (50% at minimum), we recognise that we might need to offset the remaining emissions that cannot be reduced. 

The scope of our Science Based Targets covers scope 1 and scope 2 (market-based) emissions as well as scope 3 emissions related to categories purchased goods and services (excluding indirect procurement) and use of sold products. The scope 3 emissions included in the target boundary cover more than 90% of total scope 3 emissions.


Emissions (tCO2e)

2020

2019 (base year)

Scope 1 and Scope 2 (market-based)

43,700

50,200

Scope 3, including:

  • Purchased goods and services (direct sourcing only)
  • Use of sold products

5,230,000

5,960,000


We see that intelligent cargo handling is the solution to meeting the targets. As roughly 60% of our footprint comes from the use-phase of our products, it is crucial that we develop low-carbon products and services that our customers are willing to buy. Moreover, our climate target - reducing the CO2 emissions by at least 50% by 2030 - is an absolute reduction target. Even with increasing sales volumes, we need to be able to reduce our emissions by 50% from the 2019 level.

We are tracking our science based targets progress on an annual basis. Compared to the base year 2019, our Scope 1 and 2 (market-based) GHG emissions decreased by 13 percent in 2020. We have set an additional target to achieve carbon neutrality in our own operations (Scope 1 and 2 (market-based)) by 2030, which goes beyond the ambition level of our Science Based Targets. We have set targets to reduce GHG emissions and they are approved by the Science Based Targets initiative (SBTi). Our SBTi approved target is to reduce absolute Scope 1, 2 and 3 GHG emissions 50% by 2030 from a 2019 base year. The target boundary includes biogenic emissions and removals from bioenergy feedstocks. The Scope 3 target covers purchased goods and services (excluding indirect procurement) and use of sold products. Compared to the base year 2019, our total GHG emissions decreased by 14 percent in 2020 due to decrease in net sales. Total Scope 3 GHG emissions (across all reported emissions) decreased by 13 percent compared to 2019.

When calculating the emissions from use of sold products we account for the Scope 1 and 2 GHG emissions (i.e. use of fuels and electricity) over the products’ expected lifetime, based on product specific information and emission factors for diesel and electricity (location-based). Purchased goods and services (including direct and indirect sourcing), and transportation and distribution related emissions are calculated with the Scope 3 Evaluator Tool (GHG Protocol, Quantis). Business travel data originates from our travel agency. Fuel- and energy-related activities cover the upstream emissions for fuel, electricity and heating, and transmission & distribution losses for electricity and heating - DEFRA emissions factors are used to calculate the relevant emissions in this category. Transportation and distribution emissions are restated due to change in calculation method. We have our complete GHG emissions inventory disclosed in our CDP Climate Change response.

About the Science Based Targets initiative

Science Based Targets initiative mobilises companies to set science-based targets and boost their competitive advantage in the transition to the low-carbon economy. It is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF) and one of the We Mean Business Coalition commitments. The initiative defines and promotes best practice in science-based target setting, offers resources and guidance to reduce barriers to adoption, and independently assesses and approves companies’ targets

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