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.
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.
Our 1.5°C climate ambition is a response to increasing concern about the severe consequences of a failure to limit global warming.
Cargotec is committed to the United Nations Global Compact’s Business Ambition for 1.5°C, along with leading companies in a promise to pursue science-based measures to limit global temperature rise to 1.5°C. By making this commitment, Cargotec strives to mitigate climate change through making the logistics industry more efficient and in developing solutions to enable a low-carbon economy. Our greenhouse gas emission target is validated by the Science Based Targets initiative.
Our emission accounting follows the GHG Protocol’s Corporate Accounting and Reporting Standards. Our carbon footprint comprises all the three emission scopes.
The greenhouse gas emissions inventory showed that the impact of our own operations (Scope 1+2) is minor compared to our value chain emissions. A significant share of our total emissions come from the use of sold products due to long lifetimes and diesel engines, with purchased goods and services as the second largest category. In fact, the use of sold products and purchased goods and services represent more than 95 percent of all of Cargotec’s Scope 3 emissions.
Cargotec’s climate target, validated by the Science Based Targets initiative is to reduce the absolute emissions:
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.
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