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Cargotec’s business requires natural resources, and an environmental footprint is created in all steps of our value chain. But we see these challenges as an opportunity to improve our own business and the entire industry.
Cargotec’s biggest environmental impacts are related to climate change and circularity. We also monitor, address and report on other environmental impacts and emissions.
Cargotec is committed to doing its share to limit global warming to 1.5°C. We will do this by capturing profitable growth from the business opportunities that climate action brings.
Cargotec has signed the United Nations Global Compact’s Business Ambition for 1.5°C, where leading companies promise to pursue science-based measures to limit global temperature rise to 1.5°C. Our science-based target for greenhouse gas emission reduction, which has been validated by the Science Based Targets initiative (SBTi), is in line with this ambition.
Our impacts
The use phase of Cargotec products by customers is where the large majority of our greenhouse gas emissions are generated, mostly due to emissions from diesel-powered machinery. Similarly, CO2 emissions from our supply chain, specifically from the extraction and manufacturing of our raw materials and components (mostly steel) are significant. And while emissions from our own operations represent only a very small share of our total emissions (approximately 1%), they do have an impact on the climate.
Cargotec impacts the climate but climate change also impacts Cargotec. We have tested the resilience of our climate strategy in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) for disclosing climate-related risks and opportunities. More information about this analysis can be found here and in the Board of Directors' report in our Annual report.
Our targets and progress
Cargotec’s science-based climate target, validated by the SBTi, is to reduce absolute scope 1, 2 and 3 greenhouse gas emissions by 50% by 2030, compared to a 2019 baseline. With an absolute reduction target, we need to be able to reduce our emissions even with increasing sales volumes. The target boundary includes biogenic emissions and removals from bioenergy feedstocks. We do not count offsets as emission reductions towards our target.
In our own operations, we aim to go beyond our science-based target and be carbon neutral by 2030.
In 2024, the total greenhouse gas emissions of Cargotec's continuing operations reduced by 21% compared to 2023. The decrease was mainly due to reduced sales. The total emission intensity also improved.
How we will get there
Cargotec’s strategic climate programme guides us in achieving our science-based target and future-proofing our business through, for example, electrification. The programme has three focus areas: 1) decarbonising the supply chain, 2) decarbonising our own operations and 3) boosting our sustainable offering.
To tackle emissions generated in our supply chain, we must find better alternatives to the components we buy and work closely with our suppliers. We have, for example, partnered with the steel manufacturer SSAB to introduce fossil-free steel to the cargo and load handling industry in Cargotec’s equipment. For more information about Cargotec's steel use, read this article about the benefits and challenges of steel use as well as potential solutions.
While only approximately 1 percent of our emissions come from our own operations, they do have an impact on the climate. To reduce these emissions, we focus on electricity use and fuel usage by our service fleet. Overall, we achieved a 19% emission reduction in he own operations of Cargotec's continuing operations in 2024 compared to 2023.
As the majority of our footprint comes from the use phase of our products, it is crucial that we develop low and zero-emission products and services that our customers are willing to buy. Our eco portfolio is our most important tool in this work.
For more details on our progress, see our Annual Report 2024.
