As a key player in world trade, Cargotec secures the delivery of everyday necessities to millions of people and provides sustainable, safe and efficient material flows. Through our global scale and presence in all areas of the logistics chain, we can have a significant impact on individuals and communities globally. We realise that, as a responsible employer, we need to conduct business in an ethical and compliant manner throughout the value chain. By conducting sustainable business and sourcing responsibly, we can contribute to societal stability and fair trade. Our solutions enable the trade the world relies on, and contribute to making logistics processes more efficient, sustainable, and safe on roads, in ports, and on seas around the globe.
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's Business partner Code of Conduct. Freedom of association, abolition of child labour, human rights and forced and compulsory labour are examples of the basic principles Cargotec demands from its suppliers. We perform periodic monitoring and follow-up of third party deliverables and relationships as well as adherence to the Business Partner 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. During 2021 we continued to develop our supplier sustainability program, which focuses on mitigating any risks or violations within our supply chain.
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.
Cargotec is a member of the Responsible Minerals Initiative (RMI), a cross-industry initiative, whose goal is to evolve business practice to support responsible mineral sourcing globally.. Although Cargotec does not directly source minerals from mines or smelters/refiners, we recognise that from our position as a downstream company we are able to play a role in addressing conflicts, human rights abuses, as well as environmental issues related to the mining of minerals only through a strong multi-stakeholder partnership. We intend to use the RMI tools to increase transparency of the origin of so called Conflict Minerals and Cobalt, including a due diligence tool for companies and the Responsible Minerals Assurance Process (RMAP) to audit smelters/ refiners, which are a key element in the supply chain for determining the origin of the relevant minerals.
We also focused our efforts on the management of hazardous substances in our products. We have taken into usage a database that helps us communicate both our legal obligations to the authorities when it comes to REACH, SCIP and other regulations, but also supports us in the communication with our suppliers of different components. During 2022, we plan to continue the dialogue on hazardous substances with our suppliers, having in mind the long-term goal of minimising and eliminating the presence of such substances in our products.
As part of our ongoing sustainable business practices, we will be working to increase our responsible metal sourcing efforts and developing a plan to address the “conflict minerals” reporting rule, as it is commonly referred to.
Although we are not legally obliged to perform due diligence vs conflict minerals, we are setting up this program and currently perform risk assessment of our supply chain. We aim to have a full program established in 2022, which will enable us to disclose countries of origin for 3TG’s materials (Tin, Tantalum, Tungsten and Gold) and safeguard responsible sourcing throughout our supply chain.
You could find our statement on conflict minerals here.