Sustainability is an enormous business prospect for Cargotec.
Cargotec’s sustainability work is based on a holistic and balanced approach, taking into account the aspects of environment, people and society, and governance. By being a 1.5 degree company, we strive to create value for all stakeholders. We sense the urgency of climate action and consider the transformation towards a sustainable world as a major phenomenon that will change the whole industry.
We support transformation into a fair and prosperous society. With our purpose – smarter cargo flow for a better everyday – we drive resource efficiency in our industry, in order to reach a low-carbon economy and thus turn environmental challenges into opportunities. Our climate ambition can only be achieved via inclusive cooperation with all the participants in the value chain. Making the transition just and inclusive for all ties the social and good governance aspects into our climate ambition.
The consequences of climate change are not only environmental, but there are also significant financial and social impacts. To ensure financial stability and global wellbeing also for future generations, it is our obligation to act on climate now.
Cargotec is committed to the principles of the UN Global Compact, OECD´s guidelines for multinational enterprises, the UN Universal Declaration of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work. These commitments are reflected in the Cargotec Code of Conduct that describes the general requirements, guidelines, ethical principles and defines the way of working. The practical implementation of the Code of Conduct is ensured through topic area-specific policies, processes and training.
Cargotec’s Board of Directors has the overall responsibility for the non-financial matters. Since sustainability is an integral part of Cargotec’s business strategy, the Board reviews the non-financial related issues twice a year as a separate topic and as part of strategy review. The Board confirms Cargotec’s strategy and monitors its implementation. This means that the Board is also responsible for confirming Cargotec’s management approach to the non-financial matters, approving the targets and monitoring progress towards these targets. The Board is also responsible for setting the ambition level on non-financial initiatives and cascading the responsibilities to the CEO and Cargotec Leadership Team.
Cargotec Leadership Team and the business area management teams review the non-financial matters according to predefined reporting schedules set for each specific non-financial theme. The central corporate functions supporting the target setting and implementation of the targets of non-financial issues are sustainability (including environment and safety management), HR, ethics and compliance, legal, sourcing, as well as R&D and strategy. Cargotec’s Leadership Team conducts bi-annual sustainability reviews and approves corporate level sustainability targets. The annual objectives and targets are approved by Cargotec’s Leadership Team while the key long-term sustainability targets are approved by Cargotec’s Board of Directors. The CEO, together with Cargotec’s Leadership Team, are responsible for the implementation of the targets and business plans set by the Board. More details on the management principles of non-financial matters can be found in the Corporate Governance Statement 2021 and in Cargotec’s Annual Report 2021.
Cargotec’s Sustainability Board consists of the Senior Vice President Communications, Vice President Sustainability and the Business Area Presidents. The Sustainability Board acts as a steering group for sustainability initiatives and holds the responsibility for sustainability target realisation. The Sustainability Board reviews the Sustainability Innovation teams’ activities, aligns and agrees on resourcing and actions taken regarding the development, implementation and follow-up of sustainability targets and policies. The Sustainability Innovation Team is the operative level - managing, coordinating and executing Cargotec’s sustainability objectives and targets and ensures they are in line with Cargotec’s international commitments. The Sustainability Innovation Team consists of sustainability expertise roles, as well as representatives from business areas and corporate functions. The responsibility for the implementation of the key sustainability principles and practises lies with the business areas, while the corporate functions provide expert assistance and strategic guidance. The Sustainability Innovation Team is driving cross-group collaboration, initiative benefit management and risk recognition. The Sustainability Innovation team reports to the Sustainability Board.
Cargotec’s Ethics & Compliance function reports directly to the CEO and the Audit and Risk Committee of the Cargotec Board of Directors. Cargotec Board of Directors receives an annual update from the Ethics and Compliance (E&C) team. In addition, the Audit and Risk Committee of the Board receives periodic updates about anti-corruption activities and other Code of Conduct matters during the year. The Cargotec Leadership Team also has a monthly Code of Conduct Panel where the topics are communicated and discussed.
Cargotec’s sustainability policy sets company-wide global objectives and guidelines for sustainability management, including environmental and occupational health & safety (EHS) management. Our sustainability work is based on the balance between social, environmental and economic objectives as represented in our Sustainability policy. We work continuously towards achieving these objectives considering the complete life cycle of our products and services, and strive for continuous improvement in all our operations.
Cargotec’s economic responsibility principles are prepared in accordance with the International Financial Reporting Standards (IFRS) as endorsed by the European Union.
Environment, Health and Safety (EHS) matters covered in our integrated management systems, including processes described in the EHS and Quality management standards ISO 9001, ISO 14001 and ISO 45001 (OHSAS18001). The EHS matters are also integrated into the R&D processes in each business area to ensure that the environmental, health and safety aspects are taken into account in product development at a reasonable level within each individual product type.