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.
Traditionally, companies have focused on measuring economic performance (such as revenue and EBIT) but increasingly the expectation is to go beyond measuring turnover growth, margins and profits. We also need to understand the net impact on the environment, health, society and knowledge. In pursuing the mission of providing smarter cargo flow for a better every day, Cargotec creates a range of positive and negative impacts on the surrounding world.
Upright’s data-driven qualification model measures the overall impact a company creates, balancing both positive and negative impacts. The net impact profile is a comprehensive picture of a company’s value creation, and can be interpreted as providing an overall picture of what resources a company uses and what it achieves by using them.
Cargotec’s main positive impact stems from its role in providing essential societal infrastructure. Every day, Cargotec’s products, services and solutions make global trade smarter and keep the essential cargo and logistics processes running.
Cargotec’s continuous efforts to innovate and develop world-class cargo handling practices result in the creation and distribution of knowledge. As a consequence of this, the logistic processes become more efficient, the equipment lasts longer and thus, reduces the environmental strain. However, employing highly skilled professionals results in a negative impact. While people work for Cargotec, they cannot be solving other global issues.
The core business of Cargotec itself has few impacts on people’s health. Small negative impacts however, are created in the value chain of our products. In enabling logistics processes in ports, maritime and truck transport, the quantification allocates Cargotec with a minor negative impact for the accidents created in the industry. Our impact also reflects the negative health impacts of pollutants created in the combustion of diesel-powered machinery.
Cargotec’s biggest negative impact is related to the environment and the greenhouse gas (GHG) emissions that arise from the use of sold products. Also, the use of environmental resources causes emissions throughout Cargotec’s value chain. Steel is widely used in Cargotec’s products and the production of steel components causes GHG emissions. We have addressed this by setting our climate ambition to mitigate global warming to 1.5°C.