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People and society

Sustainability is an enormous business prospect for Cargotec. We are a knowledge and engineering company, and our employees are an integral part of our competitiveness. We trust our people are the key in creating customer value through innovation, experimentation, learning and adapting new
skills in a complex and ever changing world.

Safety, wellbeing, working conditions, and human rights are seen as the most material topics in terms of social and employee matters. Safety covers employee, supplier and subcontractor safety as well as the safety of our products and services.

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Our climate ambition work helps us and our customers to become more sustainable.

Our governance structure and practices are the foundation for conducting business.

Sourcing is conducted by the direct sourcing functions in each business area and by the centralised indirect procurement function.

Supply chain expertise is an integral part of our business model. Cargotec is committed to conduct business responsibly, to managing and developing our business in a sustainable manner. We address sustainability throughout our value chain, and we expect our suppliers to do the same. All employees within Cargotec and third parties acting on behalf of the company involved in sourcing activities shall adhere to the Cargotec Code of Conduct. Cargotec’s commitment to sustainability covers the whole supply chain where Cargotec’s suppliers are expected to meet the same standards which has been outlined in Cargotec Supplier Code of Conduct. We perform periodic monitoring and follow-up of third party deliverables and relationships as well as adherence to the Supplier Code of Conduct as part of the supplier audit and self assessment processes. All procurement activities are conducted in such a manner that Cargotec meets its ethical, environmental and social sustainability standards across the entire supply chain.

Cargotec appreciates long-term and localised suppliers throughout each business area. We choose our suppliers with care and on the basis of objective factors such as quality, reliability, delivery and price. Compliance with laws and regulations as well as respect for international human rights are required of each supplier. In 2020 we continued to develop our supplier sustainability program, which focuses on mitigating any risks or violations within our supply chain. This year has seen a heavy focus on securing supply chain performance in light of COVID-19, developing improved supplier communication and forecasting processes in addition to remote auditing and assessments to enable smooth and efficient production flows.  

Cargotec’s supplier criteria aim to ensure that our suppliers conduct their business in compliance with international human rights and environmental laws. The criteria include elements to audit the compliance of the supplier regarding the management of labour practices, human rights, anti-corruption and the environment. 20 percent of the questions in the supplier assessment checklist are related to these topics. In 2020 all new direct material suppliers were audited against the labour practice, human rights and environmental management criteria.                                                                                        

Cargotec’s supply chain management consists of Cargotec Sourcing Council, which includes Cargotec’s CEO, business area presidents and sourcing heads. In its annual meetings, the council reviews sourcing development including sustainability. All three business areas have supply management teams that report directly to the business area in order to better support the needs of the business. Teams collaborate closely in, for example, supplier development and sustainability areas to gain synergies across the entire corporation.  If you would like to read more about our sourcing, check out or GRI index here.

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