Konecranes expert article: The alphabet soup of climate action
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The alphabet soup of climate action

The climate crisis requires action now: from governments, NGOs, companies, and individuals alike. Businesses must be ambitious and innovative in reducing its greenhouse gas emissions – and do it fast. Konecranes is committed to being part of the solution.

“Either business goes big on climate action, or there is no business. This is the only planet we have,” says Anniina Virta-Toikka, Head of Sustainability at Konecranes. “Konecranes welcomes the outside pressure. While we have been serious about climate action for a long time, we want to keep raising our ambition level.”

Companies, including Konecranes, are setting targets, taking action, and sharing their work through climate reporting. But the alphabet soup of this field can be overwhelming. What does it mean to report according to TCFD, set SBTs, or be acknowledged by CDP?

Climate targets founded on science

Climate targets founded on science

Being serious about improving climate impact includes setting ambitious targets. But what is ambitious enough? The world class method of climate-related target setting is the Science Based Targets initiative (STBi).

In January 2022, Konecranes announced new Science Based climate targets that have been validated by SBTi. The new targets drive Konecranes’ efforts to minimize emissions by developing its low-carbon and circular portfolio and investing in energy efficiency. Konecranes commits to reduce its Scope 1 and 2 emissions by 50 % until 2030. For Scope 3, Konecranes aims to reduce absolute carbon emissions by 50 % until 2030, encompassing the use of sold products and steel-related purchases. The target covers over 70 % of Konecranes’ value chain emissions.  

“Targets approved by the SBTi are proof that the targets are in line with the latest climate science in terms of limiting global warming to 1.5°C above pre-industrial levels, as stated in the Paris Agreement,” Virta-Toikka explains. “One aspect that makes these targets so ambitious is that all SBTi-approved targets must cover so-called Scope 3 emissions. This means that it’s not enough to reduce emissions in your own operations; you need to do so in the entire value chain, from raw material sourcing to product end-of-life.” Value chain emissions are currently more than 99% from Konecranes emissions screening. 

“We did massive calculations to ensure that we have all the required data,” says Virta-Toikka. “We will continue to focus on providing eco-efficient solutions for our customers to support them in reaching their climate targets and to decarbonize material handling.” 

Regarding Scope 1 and 2 emissions, Konecranes has already reached the science-based emission reduction target, but will further continue to decarbonize its own operations by investing in renewable energy and improving the fuel and energy efficiency of its fleet and production processes. Currently, all Konecranes factories operate with 100% renewable electricity and during 2022, also the first electric vehicles in service operations were taken into use.

A task force for climate reporting

“The Task Force on Climate-Related Financial Disclosures better known as TCFD, has made global recommendations for what information companies should publish to help investors and lenders evaluate climate-related risks and opportunities,” says Virta-Toikka. “But following the TCFD framework also means you must evaluate and potentially change the way you manage climate topics. Based on the recommendations, we at Konecranes have done comprehensive risk and scenario analyses on climate impacts. We looked at both how climate change could impact our business and how our operations impact the climate. All this information is publicly available in our Sustainability Report.” 

The TCFD recommendations are just that: recommendations. But while following them may be voluntary today, they are being integrated into EU regulation for corporate sustainability reporting. This will help the financial sector to compare companies to each other and to identify those that are truly committed to long-term climate action.  

CDP: Ranking corporate climate action

 

CDP is a not-for-profit that runs a global disclosure system for managing environmental impacts. CDP’s annual ranking of climate disclosure by companies and cities is considered the gold standard of climate-related transparency.  

“To calculate the scores, CDP collects data from participating organizations to evaluate climate-related commitment and actions,” says Virta-Toikka. “Konecranes received an A- rating for its climate work in 2022. We are proud of our achievement and look forward to improving our score further.” 

One of CDP’s goals is to raise awareness among top management on how important hard data is to measure and manage climate risks. Understanding where you are helps you see where you need to be, and to commit to meaningful action. In the 2022 ranking, Konecranes received excellent scoring on governance, which highlights the commitment level of top management. 

“We are not done, by any means,” says Virta-Toikka. “Konecranes is making real changes to its product portfolio and business models to make sure we truly contribute to decarbonizing the material handling. We will not cut corners.”

 

For more information on Konecranes’ climate work and targets, see our Sustainability Report.
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