GRI REPORT
2022

CONTENTSSUSTAINABILITY ACCOUNTING PRINCIPLES ANDREPORTING BOUNDARY................................................. 3
GRI CONTENT INDEXGRI 2: GENERAL DISCLOSURE
1. The organisation and its reporting practices.....................5
2. Activities and workers.......................................................6
3. Governance.......................................................................8
4. Strategy, policies and practices......................................10
5. Stakeholder engagement................................................ 11

GRI 3: MATERIAL TOPICS............................................. 14
Disclosures on material topics............................................ 14

GRI 200: ECONOMIC...................................................... 16
GRI 201: Economic performance........................................16
GRI 205: Anti-corruption..................................................... 17

GRI 300: ENVIRONMENTAL.......................................... 18
GRI 302: Energy..................................................................18
GRI 303: Water and Effluents..............................................19
GRI 305: Emissions.............................................................20
GRI 306: Waste...................................................................22

GRI 400: SOCIAL............................................................. 23
GRI 401: Employment..........................................................23
GRI 402: Labor/management relations...............................24
GRI 403: Occupational health and safety...........................24
GRI 404: Training and education.........................................27
GRI 405: Diversity and equal opportunity...........................27
GRI 407: Freedom of association and collective
bargaining............................................................................27
GRI 408: Child labour..........................................................27
GRI 409: Forced or compulsory labour...............................27
GRI 416: Customer health and safety.................................27
INDEPENDENT LIMITED ASSURANCE REPORTTO THE MANAGEMENT OF CARGOTECCORPORATION ............................................................... 28
CONTACT US................................................................... 30

SUSTAINABILITY ACCOUNTING
PRINCIPLES AND REPORTING
BOUNDARYSUSTAINABILITY ACCOUNTING PRINCIPLES AND REPORTING BOUNDARYGRI CONTENT INDEXGRI 2 General disclosure
GRI 3 Material topics
GRI 200 Economic
GRI 300 Environmental
GRI 400 Social

INDEPENDENT LIMITEDASSURANCE REPORTThis GRI index and selected SASB indicators are published as a separate report on our
website, 23 February 2023. Following the GRI reporting requirements, this report presents
the sustainability information in a standardised way and focuses on the disclosures that bestreflect our impacts on these topics. Highlights of our sustainability work and the disclosure of
non financial issues are presented in the Annual Report 2022, and in the Board of Directors’
report in the Financial Review section. More information about our sustainability work can befound on our website cargotec.com/sustainability

Reporting content and boundary
Cargotec aims to report on sustainability topics in a manner that meets the needs of all
our stakeholders - customers, investors and other stakeholders. Cargotec’s sustainability
reporting period is annual and aligned with the financial reporting period: 1 January – 31
December 2022. Our strategy defines our sustainability approach, principles and priorities. We
uphold an open and transparent dialogue with the various stakeholder groups to understandtheir expectations. Our sustainability policy highlights our environmental, social and economic
objectives. Our sustainability work has also been guided by Cargotec’s commitment to
the UN Global Compact, the OECD Guidelines for Multinational Enterprises, International
Labour Organization, the United Nations Guiding principles on business and human rights,
the Business ambition for 1.5°C and other key international commitments and organisations
relating to sustainability. We are reporting on our progress towards the UN Global Compact
principles and towards the Science Based Target initiative in this GRI Index.
Our reporting is prepared in accordance with the GRI Standards. Therefore, our reporting
covers all the general disclosures, as well as the topic-specific standards we deem material.
Cargotec’s material topics are those that contribute to our biggest impacts on people, thesociety and the environment, or that could have a financial impact on the company in the
short, medium and long term. In this online GRI Content Index, we list our disclosures withreference to the GRI Standards, and refer to the locations where these issues are addressedin our annual reporting. From 2010 onwards, Cargotec’s sustainability reporting content has
been approved by senior executive management representatives or the Leadership Team.
The reporting content of this 2022 review has been assessed by executive management
representatives to evaluate its alignment with our strategy and sustainability targets, andto ensure that we report matters that are both internal priorities and of interest to ourstakeholders.

CARGOTEC’S 2022 GRI REPORT

According to Cargotec’s sustainability accounting principles, newly acquired or built sites
are being consolidated in the environmental and safety figures after a reasonable periodof time has passed since the implementation of the Environment, Health and Safety (EHS)
management practice. In most cases, this is completed after the first full operational year.
Divested sites are included in the reporting boundary until the date of closing the transaction.

Site-related information, divestments and acquisitions
Cargotec’s consolidated figures for 2022 cover 15 assembly sites, seven competence centres
and 115 non-assembly sites. Since 2018, the consolidated sustainability information covers
the entire group, unless otherwise specifically stated. During 2022 some changes haveoccurred in the reporting boundary. We discontinued our assembly operations at two of oursites. One of the sites is now being reported as a non-assembly site, whereas the other one
is reported as a competence centre. We also closed down one competence centre. Following
our reporting principles, several non-assembly sites that became operational during 20212022, are now included in the reporting boundary for 2022. These include, a newly opened
Hiab site in Coignières, France and a new Hiab site at Warsaw, Poland which replaced an
existing site at Ożarów Mazowiecki, Poland. We had new operations in Portugal and New
Zealand from 2021, after a full reporting year, those are now added in the 2022 consolidated
data. We also closed down some non-assembly sites including Trappes and Maurapes sites
in Hiab France, Hiab Ukraine, Kalmar Argentina and MacGregor Kuala Lumpur. As in previous
years, some sites were not able to provide data, resulting in missing reports. However, themissing reports were from offices with light operation, having a non-material impact on the
consolidated figures.
Cargotec’s sustainability information presented in the GRI index and related materials
covers the entire reporting boundary, whereas the following indicators have currently been
identified as non material for the non-assembly sites and are therefore published only for
Cargotec’s assembly sites and competence centres: 303, 305-7 and 306. Additionally, twoseparate figures are presented for the following indicators: 302-1, 305-1, 305-2, 403-2, one
for Cargotec total and another for the assembly sites. The figure for Cargotec total includes
all operations while the figure for assembly sites only includes the assembly sites and thecompetence centres. Data for the following personnel-related indicators 2-7, 2-8, 2-30, 402-1,
404-3 and 405-1 is consolidated for the whole group.

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Accounting methodology, conversion factors, discrepancies
Economic indicators

GRI CONTENT INDEXGRI 2 General disclosure
GRI 3 Material topics
GRI 200 Economic
GRI 300 Environmental
GRI 400 Social

INDEPENDENT LIMITEDASSURANCE REPORTThe economic responsibility data presented in this review is based on Cargotec Corporation’s
audited consolidated financial statements. They are collected through Cargotec’s groupreporting system and prepared in accordance with the International Financial ReportingStandards (IFRS) as endorsed by the European Union. Cargotec’s accounting principles forthe consolidated accounts are available in note 1 of the consolidated financial statements.
201-1 Direct economic value generated and distributed is calculated as follows:
1. Revenues include sales from goods and services sold to customers, other operating income,and interest income received. The sales are reported net of sales taxes and discounts.
2. Operating costs include purchases of goods and services from suppliers, as well as otheroperating costs incurred during the financial year, excluding employment-related costs anddepreciation and amortisation costs.
3. Wages and benefits include wages, salaries and bonuses paid and/or accrued to Cargotec
employees during the financial year as well as fringe benefits, pension costs and social costs of
employment for the financial year.
4. Creditors’ share of value added is presented as interests paid and other financing expenses
incurred.
5. The distribution of value added to the public sector includes income taxes. Deferred taxes are
not included in this figure.
6. The distribution of value added to shareholders is the total value of dividends paid toshareholders from the parent company’s distributable funds during the financial year.
7. Donations include contributions to non-profit organisations.

Environmental indicators
Environmental and health and safety (EHS) data is collected through Cargotec’s sustainability
system, which has been implemented across the whole organisation. Unit conversions used
in EHS data consolidation are based on the International System of Units (SI). We apply
the operational control method outlined in the GHG Protocol’s Corporate Accounting andReporting Standard. Energy consumption under 302-1 and water consumption under 303-1
are based on invoices and continuous measurements. Some energy consumption estimates
are made because of delayed figures from the local energy companies. For some locations
in our non-assembly operations, the energy consumption is included in the facility rent andtherefore not reported separately. The energy consumption by suppliers or rental operations
on Cargotec sites is included in total figures when invoicing is not carried out separately.
Energy intensity figures under 302-3 are a relation of gross energy consumption and sales bysites within the reporting boundary. Gross GHG emissions are presented as tonnes of CO2
equivalents. We are using the global warming potential (GWP) values for the 100-year time
horizon and accounting for carbon dioxide (CO2), nitrous oxide (N2O) and methane (CH4).

CARGOTEC’S 2022 GRI REPORT

Direct emission factors are derived from the GHG Protocol version 3. Emission factors forlocation based indirect energy consumption (GHG scope 2) are derived from the International
Energy Agency’s publication series “CO2 Emissions from Fuel Combustion” (2020, 2021,2022). The scope 2 emission factors are updated every year after a new version has been
published. Scope 2 market-based emissions are calculated based on emission factors fromcontractual agreements, the latest update of the European Residual Mixes and average gridemission factors from the International Energy Agency. Greenhouse gas emissions (GHG)
under 305-1 and 305-2 are calculated based on direct and indirect energy consumption
reported from the sites within the reporting boundary. Comprehensive scope 3 GHG emission
calculation according to the GHG Protocol’s Corporate Value Chain (scope 3) Accounting andReporting Standard was initiated during 2019. We have screened all of the scope 3 emission
categories and identified the following emission categories relevant for Cargotec: purchased
goods and services, fuel- and energy related activities, transportation and distribution,business travel and use of sold products. In 2022, we focused on improving the processes
for collecting and reporting the relevant data. In this report we are disclosing information
regarding the purchased goods and use of sold products, covering 2020, 2021 and 2022
along with the already disclosed data for transportation and distribution, business travel, andfuel- and energy-related activities reported under 305-3. We are also reporting on our progress
towards our Science Based Target. The GHG emission intensity figures under 305-4 are a
relation of gross GHG emissions and sales by sites within the reporting boundary. The baseyear for the intensity calculations is 2019.
Nitrogen oxides (NOx), sulfur oxides (SOx) and other significant air emissions under 305-7,
include emissions which are monitored as required by local authorities. Air emissions are
locally regulated and their monitoring and quantification are based on site-specific methods.
Waste data reported under standard 306 is based either on waste records received fromcontractor companies or on estimations in case of missing data.
In the 2022 report, standard 308-1: New suppliers that were screened using environmental
criteria, has been excluded due to missing data.

Social indicators
The personnel-related information unit is head count. The number of Cargotec employees bybusiness area, presented under 2-7, is derived from Cargotec’s legacy HR system. Other HRrelated data is based on data from Cargotec’s online human resources information system.
Unless otherwise stated, HR figures include permanent and temporary employees andsupervised workers.
In the 2022 report, standard 414-1: New suppliers that were screened using social criteria has
been excluded due to missing data.

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BOUNDARYGRI CONTENT INDEXGRI CONTENT INDEXGRI standard / SASB

GRI 2 General disclosure

GRI 2: GENERAL DISCLOSURE

GRI 3 Material topics

1. THE ORGANISATION AND ITS REPORTING PRACTICESGRI 200 Economic
GRI 300 Environmental
GRI 400 Social

INDEPENDENT LIMITEDASSURANCE REPORT

2-1 ORGANIZATIONAL DETAILSAnnual report 2022, pp. 5 Cargotec in brief
Annual report 2022, pp. 36 Corporate governance statement
Financial review 2022, pp. 87 Basis for preparation
Financial review 2022, pp. 130 Group structure
2-2 ENTITIES INCLUDED IN THE ORGANIZATION’S SUSTAINABILITY REPORTING
All sites that Cargotec has operational control over are included in the financial and sustainability reporting. The sustainability data is gathered on a site based level and differences in the data consolidation processes and site
specifications occur between the two reportings. The legal entities are reported in the financial statement.
Please see the following for more information:
GRI 2022, pp. 3 Sustainability accounting principles and boundary
Financial review 2022, pp. 130 Group structure
2-3 REPORTING PERIOD, FREQUENCY AND CONTACT POINT
GRI 2022, pp. 3 Sustainability accounting principles and reporting boundary
GRI 2022, pp. 30 Contact point
2-4 RESTATEMENTS OF INFORMATION
Cargotec follows the Greenhouse Gas protocol (GHG protocol) when calculating CO2 emissions arising from its operations. Based on emissions calculated in previous years, scope 1 and scope 2 emissions form a minor share of allemissions generated. The majority of Cargotec's emissions are generated within its supply chain and from the use of sold products, and fall under scope 3.
As part of our effort to decarbonise, Cargotec has set separate climate targets for reducing scope 1 and 2 emissions apart from scope 3 emissions. Cargotec uses its EHS management system to collect energy and fuel consumption
data (scope 1 and 2) from its own operations. Additionally, we track the usage of renewable energy at our sites and follow up on investments made to decrease the usage of fossil-fuels in our operations.
Scope 3 category 1 (purchased goods and services) and category 11 (use of sold products) have the biggest impact in achieving Cargotec's emission reduction targets. In order to measure CO2 emissions more accurately, we havemade changes to the calculation methodology used for calculating CO2 emissions for category 1, and updated the data sources used for both category 1 and category 11. These changes are described below:
Methodology: Previously, category 1 emissions were calculated based on the amount of money spent on acquiring materials used in our assembly operations. We used this data to calculate CO2 emissions using the 'spend-based'
approach specified in GHG protocol. This approach does not enable us to account our emissions accurately as the databases which provide money-based emission factors are not updated frequently. We have now moved to the'hybrid' approach (GHG protocol), where we use a mixture of methodologies depending on data availability. We use supplier-specific data or weight data of the sourced materials to calculate emissions, and only when these are notavailable we depend on the spend-based approach to calculate emissions.
Data sources: Previously, we used budgeted sourcing amounts to calculate CO2e emissions for scope 3 category 1. We have now connected different ERP systems being used across sites, and use the purchase order and weightdata to calculate emissions. We also depend on primary data collected from suppliers to calculate supplier-specific emissions. For scope 3 category 11, we previously used finance data on number of units sold to calculate emissions.
We now depend on the connected ERP systems to get the number of units sold.
The methodology and data source changes have resulted in improving our scope 3 CO2 emission calculations and the and restatement of the information provided under the following GRI standards: 305-3 and 305-4. Cargotec’s
scope 3 emissions for 2019-2021 were restated, which resulted in a change in the baseline of our science-based target .

CARGOTEC’S 2022 GRI REPORT

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GRI standard / SASB
2-5 EXTERNAL ASSURANCE
Cargotec Corporation commissioned Ernst&Young to conduct a limited assurance engagement over the the Disclosure on non-financial information, part of the Board of Directors’ report 2022, and selected information presented in
the GRI Index 2022, for the reporting period 1st January to 31st December 2022. The Disclosure on non-financial information is approved and signed by Cargotec’s Board of Directors’.
The limited assurance engagement has been conducted in accordance with the International Standard on Assurance Engagements (ISAE) 3000 revised – ‘Assurance Engagements other than Audits and Reviews of Historical Financial
Information’ (revised), issued by the International Auditing and Assurance Standards Board.

GRI 3 Material topics

Please see the following for more information:
GRI 2022, pp. 28 Independent limited assurance report

GRI 200 Economic

2. ACTIVITIES AND WORKERS		GRI 300 Environmental

2-6 ACTIVITIES, VALUE CHAIN AND OTHER BUSINESS RELATIONSHIPSGRI 400 Social

Cargotec is a leading provider of cargo and load handling solutions with the goal of becoming a global leader in sustainable cargo flow. Our solutions and services make global trade smarter, better and more sustainable. Cargotec’s
three business areas Kalmar, Hiab and MacGregor are recognised leaders in their fields around the world. Demand for Cargotec’s products and services is based on world trade and cargo handling needs in land and sea
transportation.

INDEPENDENT LIMITEDASSURANCE REPORT

Kalmar offers container handling equipment, automated terminal solutions, software and support services in ports, terminals, distribution centres and various industries. Hiab provides on-road load handling solutions for customers
operating, for example, in land transport and a variety of industries. MacGregor provides maritime and offshore cargo and load handling solutions, services and equipment.
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, sustainability and price. Compliancewith laws and regulations as well as respect for international human rights are required of each supplier. Our policies and standards include principles of inclusivity, continuous improvement, and supply chain accountability. We engage
with suppliers who are committed to the same principles.
In Kalmar, the total number of direct suppliers was 956 in 2022. Kalmar’s spend was broken down geographically as follows: 33 percent of purchases were from the Americas, 44 percent from Europe and the Middle East, and 23
percent from Asia-Pacific. In 2022, the top 50 suppliers represented 68 percent of the spend, and the top 100 suppliers represented 81 percent of the spend. Hiab had a total of 846 direct suppliers in 2022. Geographical breakdownof Hiab purchases is as follows: Europe and Middle East 89 percent, Americas 5 percent and Asia 6 percent. The top 50 suppliers covered 61 percent and the top 100 suppliers 77 percent of the supply spend. In 2022, MacGregor
had approximately 873 direct suppliers. Approximately 45 percent of the spend was from China and 7 percent from the rest of Asia, about 48 percent from Europe. The top 50 suppliers covered 66% percent of the spend (with top 20
suppliers covering about 48 percent) and the top 100 suppliers represented 79 percent of the spend.
Cargotec is determined to grow its business through strong customer focus. Cargotec has operations in approximately 100 countries and its global network is positioned close to customers, offering extensive services to ensure
continuous, reliable and sustainable performance in accordance with customer’s needs. Our customers include leading global and local players within their industries. Kalmars main customers are ports, terminals and distribution
centres while Hiab´s main customers are transportation companies, fleet operators, single truck owners, rental companies, truck manufacturers as well as municipalities and governments. MacGregors customers are ship owners, ship
and terminal operators, design offices and ship yards in offshore and merchant sectors as well as ports.
Please see the following for more information:
Annual report 2022, pp. 5 Cargotec in brief
Annual report 2022, pp. 6 Business areas in brief
Annual report 2022, pp. 9 Key figuresCARGOTEC’S 2022 GRI REPORT

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BOUNDARYGRI CONTENT INDEXGRI 2 General disclosure

GRI standard and disclosure Response / SASB
2-7 EMPLOYEESCargotec employees

2022

2021

2020

Kalmar

5,012

4,876

5,526

Hiab

3,778

3,585

3,390

MacGregor

1,978

1,909

1,987

758

804

649

11,526

11,174

11,552%

Share offemale %93%

20%

of which permanent employees

91%

20%

of which temporary employees

9%

20%

of which non-guaranteed hours employees*

8%

14%

Share of supervised workers in the total workforce

7%

19%

GRI 3 Material topics

Corporate administration and support functions

GRI 200 Economic

Total

GRI 300 Environmental

Total workforce by employee relationship and gender

GRI 400 Social

INDEPENDENT LIMITEDASSURANCE REPORTUNGC Principle 6

Share of own employees in the total workforce*both permanent and temporary contracts

Permanent employees by employment type and gender%

Share of permanent full-time employees

98%of which female

20%

Share of permanent part-time employees

2%of which female

42%

Total workforce by region and gender

%

AMER

13%

of which female

18%

APAC

17%
of which female

21%

EMEA

70%

of which female

21%

Total workforce

100%of which female20%

2-8 WORKERS WHO ARE NOT EMPLOYEES
Total number of workers who are not employees

2022

2021

2020

External workers

861

979

637

Temporary External Workforce includes rented employees, consultants and agency temps. It does not include external subcontractors where Cargotec is only purchasing predefined deliverables, e.g. product, end result or ongoing
service which is solely managed by the supplier (no Cargotec line manager appointed) and where the work may be performed by anybody provided by the supplier. Most typically these workers are on a temporary, full-time contract
and are engaged in our core business activities.

CARGOTEC’S 2022 GRI REPORT

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3. GOVERNANCE		
2-9 GOVERNANCE STRUCTURE AND COMPOSITIONGRI CONTENT INDEX

Annual report 2022, pp. 36 Corporate governance statement
Annual report 2022, pp. 60 Board of Directors’ report, Governance and management of non-financial matters

GRI 2 General disclosure

2-10 NOMINATION AND SELECTION OF THE HIGHEST GOVERNANCE BODY

GRI 3 Material topics

Annual report 2022, pp. 36 Corporate governance statement
2-11 CHAIR OF THE HIGHEST GOVERNANCE BODY

GRI 200 Economic

The Board elects the Chair and Vice Chair from among its members. Cargotec’s Board Chair is independent of the company and also independent of significant shareholders in the company.

GRI 300 Environmental

Please see the following for more information:
Annual report 2022, pp. 36 Corporate governance statement

GRI 400 Social

INDEPENDENT LIMITEDASSURANCE REPORT

2-12 ROLE OF THE HIGHEST GOVERNANCE BODY IN OVERSEEING THE MANAGEMENT OF IMPACTS

UNGC Principle 10

UNGC Principle 10

Cargotec’s Board of Directors’ (BoD) has overall responsibility in overseeing the management of non-financial matters, including the management of environmental, economic and social impacts. Cargotec’s vision is to become a leader
in sustainable cargo flow and our breakthrough objectives concern sustainability and profitable growth. Since sustainability is an integral part of Cargotec’s business strategy, the BoD reviews the non-financial related issues twice ayear as a separate topic, and as part of the strategy review. The BoD confirms Cargotec’s strategy and monitors its implementation. This means that the BoD is also responsible for confirming Cargotec’s management approach toclimate-related matters, approving the targets and monitoring progress towards these targets.
The BoD is also responsible for setting the ambition level on sustainability and cascading the responsibilities to the CEO and Cargotec Leadership Team. While the BoD has oversight of the strategy execution, risk management,
business plans, related performance objectives and major capital expenditures, the CEO together with Cargotec’s Leadership Team are responsible for the implementation of the targets and business plans
Cargotec’s most material impacts are operated by the Sustainability Management team. The Sustainability Management team reports to the Sustainability Council, chaired by the CEO, who is responsible for reporting to the BoD on
progress and action plans taken. The BoD agrees on the most material topics and their management.
Please see the following for more information:
Annual report 2022, pp. 59 Board of Directors’ report, Disclosure on non-financial information
2-13 DELEGATION OF RESPONSIBILITY FOR MANAGING IMPACTS
Annual report 2022, pp. 60 Board of Directors’ report, Governance and management of non-financial matters2-14 ROLE OF THE HIGHEST GOVERNANCE BODY IN SUSTAINABILITY REPORTING
Cargotec’s disclosure of non-financial information is published in the Cargotec Board of Directors’ report. The Cargotec Board of Directors’ report is approved and signed by the board.
2-15 CONFLICTS OF INTEREST
Annual report 2022, pp. 36 Corporate governance statement
In addition to the information presented in the Corporate governance statement, Cargotec’s instruction for Conflict of Interest provides clarity into different types of conflicts of interests and provides guidance on how to mitigate andmanage related risks. Cargotec’s related party instructions define Cargotec Corporation’s related parties as well as instruct on identifying and assessing transactions they conduct with Cargotec group of companies. The instructions
concern all Cargotec employees, including the Board of Directors’.

CARGOTEC’S 2022 GRI REPORT

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GRI standard and disclosure Response / SASB
2-16 COMMUNICATION OF CRITICAL CONCERNSThe Ethics & Compliance (E&C) function at Cargotec reports directly to the CEO and the Audit and Risk Management Committee of the Cargotec Board of Directors‘ (BoD). The Cargotec BoD receives an annual update from the Chief
Compliance Officer. In addition, the Audit and Risk Management Committee of the BoD receives regular updates on all new investigations, anti-corruption activities and other Code of Conduct matters during the year. In 2022, E&C
decided to open an investigation in 31 cases. The Cargotec Leadership Team also attends a Code of Conduct panel where compliance topics are communicated and discussed regularly. The Panel is chaired by the CEO. In addition,
each Business Area Leadership Team receives regular updates about anti-corruption activities and other Code of Conduct matters during the year.
Annual report 2022, pp. 59 Board of Directors’ report, Disclosure on non-financial information

GRI 3 Material topics

2-17 COLLECTIVE KNOWLEDGE OF THE HIGHEST GOVERNANCE BODY

GRI 200 Economic

Cargotec’s Board of Directors’ is briefed twice a year on sustainability matters, either by the Senior Vice President Strategy or the Vice President Sustainability, depending on the matter. During those meetings, deep dives into specificsustainability topics are organised to increase the awareness of the BoD.

GRI 300 Environmental

2-18 EVALUATION OF THE PERFORMANCE OF THE HIGHEST GOVERNANCE BODY

GRI 400 Social

INDEPENDENT LIMITEDASSURANCE REPORTThe BoD reviews its own performance and procedures once a year through internal self-assessment. Moreover, the BoD conducts an annual assessment of the independence of its members.
Please see the following for more information:
Annual report 2022, pp. 36 Corporate governance statement
2-19 REMUNERATION POLICIESAnnual Report 2022, pp. 45 Remuneration report2-20 PROCESS TO DETERMINE REMUNERATION
Remuneration at Cargotec is managed through clearly defined processes and involves the Annual General Meeting of Shareholders (AGM), the Board of Directors’ (BoD) and the Board’s Nomination and Compensation Committee(NCC). The AGM resolves annually on the remuneration of members of the BoD, based on a proposal made by the BoD’s NCC. In determining such remuneration, the committee takes account of the BoD members’ responsibilities
and obligations towards the company. Furthermore, the committee compares the BoD’s remuneration packages to those paid by other companies of the same size operating in a comparable business environment.
Cargotec’s remuneration policy is applied in determining the total remuneration of the CEO and the Deputy CEO (if any). The remuneration policy is approved by the BoD and the AGM. Based on a proposal by the NCC, the BoD alsodecides on the Leadership Team salaries, as well as their short-term incentive programmes and benefits. In addition, the BoD decides on long-term incentive programmes and on the target group and allocation of such programmes
based on a proposal by the NCC.
During 2022, Cargotec’s BoD agreed on implementing remuneration incentives, to ensure that the targets set for the sustainable development progress are achieved. Consequently, the eco portfolio order intake and the climate
programme roadmaps are included in the 2022 performance share programme evaluation criteria. With these concrete and measurable topics, increasing the offering and sales of solutions that reduce the emissions of Cargotec’s
customers is part of the company remuneration criteria.
Please see the following for more information:
Annual Report 2022, pp. 45 Remuneration report2-21 ANNUAL TOTAL COMPENSATION RATIOAnnual report 2022, pp. 45 Remuneration reportCARGOTEC’S 2022 GRI REPORT

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4. STRATEGY, POLICIES AND PRACTICES		
2-22 STATEMENT ON SUSTAINABLE DEVELOPMENT STRATEGYGRI CONTENT INDEXGRI 2 General disclosure
GRI 3 Material topics
GRI 200 Economic
GRI 300 Environmental
GRI 400 Social

INDEPENDENT LIMITEDASSURANCE REPORT

Annual review 2022, pp. 7 CEO Review
2-23 POLICY COMMITMENTS
Cargotec’s Code of Conduct sets company-wide global objectives and guidelines for ethical business conduct, good corporate governance and the management of environmental, social and economic aspects. As a global policy,
it applies to all employees and locations where Cargotec conducts business. Cargotec is committed to full compliance with all of the applicable national and international laws and regulations and the main international codes that
Cargotec supports are; the United Nations (UN) Universal Declaration of Human Rights, UN Global Compact, International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work, and OECD’s Guidelines
for Multinational Enterprises.
The Code of Conduct is approved by Cargotec’s Board of Directors’ and defines our common way of working. The Code is the foundation of our corporate culture, establishing high standards of integrity on how we do business andhow we behave in our daily work. The Code of Conduct helps us make informed decisions, and it explains where to go for more information and guidance. Complying with the Code of Conduct is expected of all directors, executives
and employees of Cargotec and all companies, business areas, business units and functions within Cargotec regardless of geographical location and legal entity.
As stipulated in Cargotec Code of Conduct, Cargotec’s sustainability work is founded on a holistic and balanced approach, taking into account the aspects of economic, social and environmental objectives. The sustainability work
is based on the principles of systematically identifying and assessing our material impacts, mitigating and preventing adverse impacts, and tracking and monitoring development progress. Cargotec aims to minimise its adverse
impacts, while at the same time optimising its positive impacts. Cargotec values transparency, supports business integrity and recognises that economic, environmental and social performance together form the basis for endorsing
sustainability in its business operations.
Cargotec’s Employment policy, complementing the Code of Conduct, defines the basic employment principles and workplace practices. Environment and Health & Safety (EHS) management is a fundamental element of sustainable
operations, ensuring the commitment to minimise the risk of injury and ill health at the workplace. Cargotec promotes awareness of safe and healthy behaviours and best practices. Cargotec prioritises safety even when there aretiming, cost or customer pressures.
Respecting human rights is an integral part of the Code of Conduct and the human rights work is based on the UN Guiding Principles on Business and Human Rights. Cargotec is committed to respect and assess negative impacts
and address risks related to human rights in its own operation and in its sphere of interests. Cargotec’s human rights programme, focuses on identifying and mitigating any risks for breaching international human rights within the value
chain.
Cargotec’s Code of Conduct can be found on our website.
2-24 EMBEDDING POLICY COMMITMENTS

UNGC Principle 10

The rules stipulated in the Code of Conduct are embedded into the corporate culture and operation through different processes and supportive policies. All Cargotec employees must acknowledge the company Code of Conduct andcomply with its principles .
Please see the section for more information:
Annual Report 2022, pp. 59 Board of Directors’ report, Disclosure on non-financial information
2-25 PROCESSES TO REMEDIATE NEGATIVE IMPACTS

UNGC Principle 10

Cargotec’s processes to remediate negative impacts are operationalised. Depending on the adverse impact and on the complaint made, corrective measures are taken accordingly. The management and remedial process of an
adverse impact is always considered based on the specific case and is subject to local laws. As part of the investigation process, the ethics and compliance team agrees with relevant strategic business unit management teammembers on remedial actions, such as improved controls, training, disciplinary actions or termination of third party relationships.
The Cargotec Leadership Team also has a Code of Conduct panel where compliance topics are discussed regularly and the need for possible remedial measures are reviewed.

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BOUNDARYGRI CONTENT INDEXGRI 2 General disclosure
GRI 3 Material topics
GRI 200 Economic
GRI 300 Environmental
GRI 400 Social

GRI standard and disclosure Response / SASB
2-26 MECHANISMS FOR SEEKING ADVICE AND RAISING CONCERNS
Code of Conduct related concerns and potential misconduct can be reported through a variety of channels, including to line management, HR, our organizational Head of Ethics and Compliance within the ethics and complianceteam or through the Speak-Up line. The Speak-Up line is operated by an external provider and managed by the Ethics and Compliance function. The SpeakUp line is designed for reporting breaches of non-compliance. Anonymous
reporting is also possible through the SpeakUp line, if we are not comfortable to report in person. When reporting in person, Cargotec will do its best to protect an individual’s identity. Each Business Area in Cargotec has an assigned
Head of Ethics and Compliance function, who is responsible for building and promoting the compliance program, including the reporting channels, with the Business Area.
The Ethics and Compliance function promotes a speak-up culture and awareness of the reporting channels, including the Speak-Up line, through a variety of means, including, but not limited to: mandatory annual Code of Conduct
e-learning; employee communications; training and education sessions and meetings by E&C team members to BA leadership teams and high-risk personnel; and Code of Conduct briefings to sales third parties.
2-27 COMPLIANCE WITH LAWS AND REGULATIONS
Cargotec reported one significant instance of compliance with laws and regulations during 2022. The significant instance may result in sanctions and fines as per below. Cargotec and its subsidiary MacGregor USA, Inc. have madea voluntary self-disclosure to US authorities regarding compliance with certain export regulations related to information management in the context of MacGregor’s US Government business. The outcome of this matter cannot be
determined with specificity at this point in time. In order to be prudent, Cargotec has made an about EUR 18 million provision to cover possible consequences. The provision was booked as an item affecting comparability in the third
quarter 2022. The amount of the possible penalty is yet to be confirmed; hence the final costs related to the process may change. The company is committed to cooperating with applicable authorities in resolving the matter and will
make further disclosures as appropriate.
2-28 MEMBERSHIP ASSOCIATIONSINDEPENDENT LIMITEDASSURANCE REPORT• The Association of Lorry Loader Manufacturers and Importers (ALLMI)• Responsible Minerals Initiative (RMI)• Sustainable Industry X• Confederation of Finnish Industries• Digital, Internet, Materials & Engineering Co-Creation (DIMECC)• European Material Handling Federation (FEM)• Finnish Business and Society (FIBS)• Svenskt Marintekniskt forum SMTF
• Forum for Intelligent Machines ry• Global Compact Finnish Network• Svensk Industri Standard (SIS)• Hudiksvall Hydraulik Kluster Innovation AB• Norwegian Offshore & Drilling Engineering (NODE)• The Association of Swedish Engineering Industries (Teknikföretagen)• Port Equipment Manufacturers Association (PEMA)• Technology Industries of Finland• Terminal Industry Committee 4.0 (TIC 4.0)

5. STAKEHOLDER ENGAGEMENT		
2-29 APPROACH TO STAKEHOLDER ENGAGEMENT
Cargotec’s main stakeholders are its customers, suppliers, personnel and investors. Other stakeholder groups include authorities, research and educational institutions, industry associations, local communities and the media.
We uphold an open and transparent dialogue with our various stakeholder groups, actively responding to information requests and queries and pro-actively providing information in social media, in print, and through various forms of
direct communication. Our ongoing dialogue and collaboration with different stakeholders enable us to identify opportunities to create value for our customers and shareholders and provide input for setting our sustainability targets.
Integrity, fairness, confidentiality and compliance with stock exchange rules guide all our communications.
Our vision is to become a leader in sustainable cargo flow and we want to bring visibility to sustainability topics such as circular economy and the climate impact of our industry. By producing stories, articles and other communications
content in Cargotec’s digital channels, including also external thought leaders, we have increased awareness of our industry’s role in the climate challenge both internally and within our key stakeholder groups. Cargotec’s businessareas have also emphasised eco-efficiency in their marketing and communications content. Visit cargotec.com/sustainablility for more information about the topics.
Additionally, we have used social media as a tool for even more transparent, two-way, real-time and effective investor communications. For example, we have opened an account for Cargotec on Instagram to reach a wider audience,
produced video summaries, infographs, timely Q&A’s and shared insights about our interim reports and financial statements. In addition to our group level efforts, our business areas actively use social media especially to communicate
and engage with customers.

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SUSTAINABILITY ACCOUNTING
PRINCIPLES AND REPORTING
BOUNDARYGRI CONTENT INDEXGRI standard and disclosure Response / SASB
Stakeholder group Examples of stakeholder interaction
Customers

Our business areas gather customer feedback regularly and engage in active dialogue with customers through direct meetings, marketing, extranet, newsletters and social media, for example. We use social
media, especially Twitter, Linkedin and Facebook, as a tool to communicate key messages effectively

Personnel

As an employer, Cargotec wants to focus especially on personnel development and creating world-class leadership. This is supported by collaboration & dialogue. Our ways to give voice to employees include
regular personal/group discussions between managers and their team members, as well as townhall and personnel meetings, among others, both locally and globally by offering online participation.

GRI 2 General disclosure

Our Human Resources Information System ZONE and our social intranet, Connect, serve as a platform for distributing relevant information and people processes. The Connect platform enables easy accessand strengthens cross- organisational collaboration. The goal is to build a company culture of inclusion, openness, interaction, knowledge sharing and dialogue at Cargotec. Every year, periodically structured
target and performance discussions are also conducted.

GRI 3 Material topics
GRI 200 Economic

Different employee surveys are also conducted throughout the year, to gather information and listen to our employees. Cargotec’s employee satisfaction survey, Compass, is arranged on a yearly basis, whereas
regular Pulse surveys are conducted on a monthly basis.

GRI 300 Environmental
GRI 400 Social

Cargotec’s Learning Transformation Programme supports the transformation journey to reach our vision. Part of the programme, a global learning experience platform LEARN has been implemented to support
effective learning opportunities and make a great amount of new learning content and training courses available for all employees at Cargotec. Through enhanced collaboration and common ways of working,the platform brings subject-matter experts closer to each other across the organisation, discover synergies and boost innovation. We trust our people are the key in creating customer value through innovation,
experimentation, life-long learning and development, and adapting new skills and competences in a complex and ever changing world. LEARN is a place where employees can all develop and expand theirknowledge on a multitude of topics through comprehensive learning materials.

INDEPENDENT LIMITEDASSURANCE REPORT
Investors

Cargotec´s Investor Relations (IR) aims to ensure that all market participants have correct and sufficient information at all times to support a fair valuation of Cargotec’s shares. In addition to executing financial
communication and processing investor requests, IR organised several events and meetings in 2022.
In 2022, Cargotec IR arranged several road shows in Europe and in North America. Cargotec also actively participated in investor conferences during the year and hosted investors at the company’s
headquarters.The majority of roadshows, conferences and investor meetings were held physically but also virtual meetings and roadshows have become a common way to reach out to investors and analysts.
On 15 November 2022, Cargotec’s IR team arranged a capital markets day for analysts and investors. The event focused on Cargotec’s refocused strategy, its core businesses Hiab and Kalmar, and future
shareholder potential. The hybrid event gathered a large audience of analysts and investors, participating both on location as well as online. The event was also broadcast and recorded and at the end of 2022,
the recording had been viewed 964 times.
Another major investor event was held the following day, when Hiab held a site visit for institutional investors and analysts at its Raisio assembly site. In the event, Hiab’s wide range of product & service offeringand operating models were presented. 15 investors, analysts, and bankers participated in the site visit.
Cargotec also hosted investors at Kalmar’s R&D site in Tampere, Finland as well as at Kalmar’s customer’s intermodal terminal in the Netherlands in November.
Cargotec’s Annual General Meeting was held in Helsinki on Thursday, 17 March 2022.

Local
communities

Cargotec´s sites are actively involved in local stakeholder engagement and goodwill. Traditionally, we engage in charity action, especially during the holiday season. In 2022, Cargotec made two donations to
UNICEF. The first donation totalled 100,000 euros to relief the humanitarian crisis in Ukraine , whereas the second donation totalled 30,000 euros to support the children in Ukraine.

Authorities

We engage with local authorities to ensure regulatory compliance in all our operations.

Suppliers

In 2022, we continued working on the supplier development. Each business area has its own sourcing organisation that manages sourcing related activities. In 2022 the focus of the sourcing organisation has
been on mitigating potential delivery risks due to the COVID-19 pandemic and the conflict in Ukraine. Ensuring supply continuity has been a top priority as well as setting a baseline for responsible sourcing.
Engaging with our suppliers is crucial for us in creating transparency to our “purchased goods and services emissions”. Our supplier engagement model includes identifying emission reduction opportunities andfuture proofing our supply chain by setting climate requirements to our suppliers. We continued engaging with our top emission suppliers in order to define main decarbonisation actions.

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SUSTAINABILITY ACCOUNTING
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BOUNDARYGRI CONTENT INDEXGRI standard and disclosure Response / SASB
Stakeholder group Examples of stakeholder interaction
Research andeducation
institutions

GRI 2 General disclosure

Kalmar holds continuous dialogue and collaboration with academic institutes, including Tampere University, Aalto University, University of Turku and University of Oulu. Kalmar also collaborates with the Finnish
research centre VTT. Kalmar has participated in EU-funded projects and collaborates with different stakeholders to boost digitalisation and automation of port operations and the adoption of Industry 4.0
technologies within the container-handling sector. The EU-funded project will test and evaluate advanced Industry 4.0 pilots.

GRI 3 Material topics
GRI 200 Economic

Hiab is running several research projects and collaborates with several universities. As some examples, project MORE and Provident can be mentioned. MORE is a large-scale EU-project where Machine
Learning is applied on the crane control with input from situation awareness data. This project is done in collaboration with Tampere University and Volvo Construction Equipment as partners. Provident is a
project with Mälardalen University, which is looking at how to utilize 5G in transferring and processing machine data in the cloud in real time for machine control or remote operation.

GRI 300 Environmental

MacGregor holds continuous dialogue with several universities’ business and maritime faculties to improve understanding of the changing industry landscape and develop solutions for that. MacGregor isparticipating in various EU-funded projects, such as AEGIS, MOSES and SEAMLESS. In more detail the focus of the dialogue and projects, in Europe, is aiming to enhance the safe and sustainable waterborne
freight transport. MacGregor’s role in these projects is to act as technology partner and as such MacGregor will be studying, developing and demonstrating safe logistics applications that are digital andconnected. Within these consortiums the cooperation with Universities like National Technical university of Athens, Aalborg university, Technical university of Denmark, Norwegian university of science andtechnology and research institutes like TNO and SINTEF, will increase MacGgregor’s understanding of future requirements in maritime and inland waterway domains.

GRI 400 Social

INDEPENDENT LIMITEDASSURANCE REPORT

Cargotec frequently collaborates with universities and other research institutions around the world. By collaborating with others and sharing knowledge, we stay up to date on new research technology and areable to attract talent. Varying collaborations might also provide business benefits such as improved workforce training, graduate talent pathway development, joint sponsorship initiatives as well as research andinnovation projects.

Media

Cargotec arranges press meetings in connection with trade events and result publications, among others. We issue dozens of press releases every year covering a wide array of topics.

2-30 COLLECTIVE BARGAINING AGREEMENTS
Collective bargaining agreements are applied on a country-specific basis. Complete information on the bargaining agreement coverage is available and confirmed in the human resources information system ZONE only for some of thecountries, while for many others it is maintained in other sources. Therefore a global overview cannot be provided.

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SUSTAINABILITY ACCOUNTING
PRINCIPLES AND REPORTING
BOUNDARYGRI standard and disclosure Response / SASB
GRI 3: MATERIAL TOPICSDISCLOSURES ON MATERIAL TOPICS		GRI CONTENT INDEXGRI 2 General disclosure
GRI 3 Material topics
GRI 200 Economic
GRI 300 Environmental
GRI 400 Social

INDEPENDENT LIMITEDASSURANCE REPORTCARGOTEC’S 2022 GRI REPORT

3-1 PROCESS TO DETERMINE MATERIAL TOPICS
Cargotec’s material topics are the ones that contribute to our biggest impacts on people, the society and the environment or that could have a financial impact on the company in the short, medium and long term.
Cargotecs material topics are carefully assessed through the year and evaluated continuously as a part of our operation. Cargotec’s sustainability work is based on the balance between social, environmental and economic objectives
and we strive for continuous improvement in all our operations. Cargotec strives to minimise its negative impacts while at the same time optimising the positive impacts, and therefore, it is crucial in understanding the context of oursignificant impacts. Cargotec has introduced several processes to determine its material topics and most significant impacts.
Listening to our stakeholders’ is a crucial part when determining, which topics are material, and therefore regular assessments are done via engagement, customer and stakeholder surveys. The previous stakeholder survey was
conducted in 2019 and we are planning on conducting the next one during 2023. To deepen our understanding of Cargotec’s impacts, an internal workshop was organised during 2021, with specialists from different departmentsof the organisation. The workshop was facilitated by a third-party, and during the workshop, a scenario of a world lacking Cargotec’s existence was analysed. The purpose of the workshop was to find clarification of Cargotec’s key
impacts on the surrounding world, how the company impacts its stakeholders, how the the company differentiates from its competitors and what the company’s future vision might look like.
Additionally, to better understand our concrete impacts on our stakeholders and to report more transparently, we have quantified our net impact by utilising the Upright model, which is one way to measure and follow up on theorganisation’s impact and value created. When summarising all the above mentioned processes, Cargotec has a good understanding of our most material topics and impacts. Furthermore, our sustainability work is assured on a yearlybasis and improvements are made according to findings and recommendations.

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SUSTAINABILITY ACCOUNTING
PRINCIPLES AND REPORTING
BOUNDARYGRI CONTENT INDEXGRI 2 General disclosure

GRI standard and disclosure Response / SASB
3-2 LIST OF MATERIAL TOPICS

ThemesMaterial topics

SASB material topics for
Industrial Machinery &Goods

Environment

Climate change- Greenhouse gas emissions in the supply chain- Greenhouse gas emissions from own operations- Low-carbon solutions for customers

Energy management
302 Energy- Total energy consumed
305 Emissions- Percentage grid electricity- Percentage renewable

Circularity- Extended product life cycles

Product design & lifecycle
management

Human rights- Fair working conditions- Human rights in the value chain

Employee health & safety- Total recordable incident
rate (TRIR)- Fatality rate
- Near miss frequency rate
(NMFR)GRI 3 Material topics
GRI 200 Economic
GRI 300 Environmental
GRI 400 Social

SocialINDEPENDENT LIMITEDASSURANCE REPORT

Health and safety- Employee health, safety and wellbeing- Safety of products and services- Supplier and subcontractor safety
Diversity, equity and inclusion- Equal opportunities
Governance

Sustainable finance- Taxonomy aligend product portfolio

Materials sourcing

Responsible sourcing and sales- Sourcing of minerals- Management of hazardous substances

GRI topics

401 Employment
402 Labor/management relations
403 Occupational health and safety
404 Training and education
405 Diversity and equal opportunities
407 Freedom of association and collective
bargaining
408 Child labor
409 Forced or compulsory labor
414 Supplier social assessment
416 Customer health and safety
GRI 2: General disclosures
GRI 3: Material Topics
201 Economic performance
205 Anti-corruption

Suppliers

GRI topic boundaries
Cargotec group/
corporate
Customers

x

x
x

x

x
x
x
x
x
x

x
x
x

x

x
x
x

x

x
x
x
x

x

Compliance- Compliance with legal and ethical standards
3-3 MANAGEMENT OF MATERIAL TOPICS

UNGC Principle 1, 8

Annual report 2022, pp. 18 Our impacts - The foundation for our sustainability work
Annual report 2022, pp. 59 Board of Directors’ report - Disclosure on non-financial information

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SUSTAINABILITY ACCOUNTING
PRINCIPLES AND REPORTING
BOUNDARYGRI standard and disclosure Response / SASB
GRI 200: ECONOMICGRI 201: ECONOMIC PERFORMANCEGRI CONTENT INDEXGRI 2 General disclosure201-1 DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED
Economic value generated and distributed, MEUR

2022

2021

2020

Economic value generated

4,145

3,618

3,314

GRI 3 Material topics

Revenues

4,145

3,618

3,314

GRI 200 Economic

Economic value distributed

3,991

3,327

3,236

Operating costs

3,079

2,384

2,336

Wages and benefits

762

756

767

Interest expenses

21

26

32

Income taxes

58

90

23

Dividends

70

70

78

Donations*

-

-

-

154

290

78

GRI 300 Environmental
GRI 400 Social

INDEPENDENT LIMITEDASSURANCE REPORT

Economic value retained* Donations are paid from the retained earnings according to the decision made in the Annual General Meeting.
201-3 DEFINED BENEFIT PLAN OBLIGATIONS AND OTHER RETIREMENT PLANS
Financial review 2022, pp. 111 Post-employment benefits

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BOUNDARYGRI standard and disclosure Response / SASB
GRI 205: ANTI-CORRUPTION
205-1 OPERATIONS ASSESSED FOR RISKS RELATED TO CORRUPTIONGRI CONTENT INDEXGRI 2 General disclosure
GRI 3 Material topics
GRI 200 Economic
GRI 300 Environmental
GRI 400 Social

INDEPENDENT LIMITEDASSURANCE REPORTUNGC Principle 10

Cargotec conducts business on a global scale and our industry is exposed to compliance risks for example relating to doing business in remote locations, bidding for large projects for customers which are governmentally owned aswell as the use of sales intermediaries in countries where we do not have our own sales offices. The Ethics and Compliance team conducts regular risk assessments to ensure that adequate procedures are put in place to mitigate therisks.
As per our risk based compliance programme, Cargotec continues to conduct annual compliance risk assessments in all of its business areas. Third Party Risk management continued to be our priority in 2022 and we have further
strengthened the scope, processes and procedures related to the topic, with focus on third parties in sales (agents, dealers) and high risk suppliers. In 2022 we have created further awareness and controls around Conflicts of Interest,e.g we have renewed our Conflicts of Interest Instruction to ensure that conflicts are handled in an efficient and transparent manner, and we have introduced Conflicts of Interest as one of the three key areas in our annual Code of
Conduct e-learning for all employees. A key focus area in 2022 has also been to further improve our process around Trade Sanctions screening and our Export Controls compliance programme as well as the continuous effective
handling of compliance cases.*In June 2019, the National Bureau of Investigation in Finland reported that it has been working on a preliminary investigation about a suspected aggravated fraud in connection to the MacGregor business area of Cargotec. The
suspected financial fraud was detected by Cargtec in an internal review and the investigation request was made to the National Bureau of Investigation. In 2020, the District Attorney pressed charges against former employees of
MacGregor. The case hearing took place in early 2021, and the verdict was rendered by the District Court of Turku on March 8, 2022, awarding criminal liability for three defendants and financial compensation for Cargotec and
MacGregor. The case has been appealed and the hearing in the Turku Appellate Court will take place in 2023. Cargotec has a zero tolerance policy for misconduct, and is fully supporting the judicial process. Neither MacGregor nor
Cargotec are suspected of criminal actions.
* We do not collect numerical data for the number/percentage of operations assessed for risks related to corruption. Cargotec is a matrixed organisation with operations split simultaneously among strategic business units, divisions,and geographies. As a result, we do not inventory and specifically assess Cargotec’s operations in a manner that would lend itself to a numerical/percentage completion response. Rather, we have been focused primarily on identifying
and assessing the riskiest activities of the organisation and then addressing those risks across the entirety of each strategic business unit. An example of this is sales third party risk, which has been identified as the highest corruption
risk area within the organisation. In light of this assessment, E&C organisation and management have been focused throughout 2022 on further strengthening the new comprehensive Third Party Risk Management System.
205-2 COMMUNICATION AND TRAINING ABOUT ANTI-CORRUPTION POLICIES AND PROCEDURES

UNGC Principle 10

Our Code of Conduct, the Cargotec Anti-Corruption policy, Gift and Hospitality Instruction, Conflict of Interest instruction, Instruction for Speak-Up and Non-Retaliation, as well as the Third Party Policy provide the policy foundation
against possible unethical or corrupt business practices. The practical implementation of these policies, and related instructions, is guided by our Ethics and Compliance framework, which is based on the main principles to prevent,detect and respond to potential misconduct. The Ethics and Compliance function supports the businesses by providing proactive advice and training and by conducting internal investigations. We have an externally hosted Speak-Up
line to enable confidential and, if needed, anonymous reporting of concerns.
Ethics and Compliance team is focused on training and awareness efforts throughout the company. Based on input from risk assessments and Code of Conduct cases the main focus areas for 2022 have been Third Party
management, Conflicts of Interest, Trade Sanctions and Export Controls. Training efforts are focused on the overall population globally via the new mandatory Code of Conduct e-learning. In addition, anti-corruption training has been
given to stakeholders across the organization that have involvement with third parties (i.e. management, sales, finance), and the sales and project teams themselves. As a continuous focus area, in person and online training sessions
and workshops about third party risks and risk mitigation with key groups have been organised.* In 2022 Cargotec continued providing anti-corruption training to its high risk business partners that have gone through its new Third
Parties in Sales Management process.
The Code of Conduct is a key step towards a more sustainable future and a benchmark for ethical behavior within the company. Therefore, in 2022, Cargotec has introduced an annual interactive e-learning for its employees in 20
languages. The e-learning consists of exercises that help employees with their day-to-day dilemmas around ethics and compliance and in 2022 the focus areas have been Conflicts of Interest, Health and Safety and Workplace
Environment. The target group of the e-learning course includes employees with an individual company email address and access to the intranet. In addition, onsite training workshops have been arranged for employees without anemail address or access to the intranet.*** We do not collect data required for the indicators by percentage or breakdown by employee category and region on a global level.
** The Board of Directors receives an annual update on compliance, including anti-corruption related matters. In addition, Ethics and Compliance is a regular topic in the Audit and Risk Committee meetings.

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BOUNDARYGRI standard and disclosure Response / SASB
GRI 300: ENVIRONMENTAL
GRI 302: ENERGYGRI CONTENT INDEXGRI 2 General disclosure302-1 ENERGY CONSUMPTION WITHIN THE ORGANISATIONUNGC Principle 7, 8

SASB RT-IG-130a.1

GRI 3 Material topics

Energy consumption, MWh*2022 total

2022 assembly2020 total

2020 assembly

GRI 200 Economic

Direct energy consumption

102,000

44,40086,00032,40085,50028,400Non-renewable sources

2021 total 2021 assembly

101,300

43,70085,50031,90084,90027,900

GRI 300 Environmental

Diesel

55,50012,30046,8006,300

48,3006,000

GRI 400 Social

Gasoline, kerosene, LFO

10,2002,200

12,2002,100

12,4001,700

INDEPENDENT LIMITEDASSURANCE REPORT

Liquified petroleum gas

4,600

4,100

4,500

3,700

3,700

3,200

Natural gas

31,00025,10021,90019,70020,50017,000

Renewable sources

700

700

500

500

600

400

Biodiesel

80

80

100

60

-

-

Wood pellets

0

0

0

0

0

0

Solar energy
Indirect energy consumption
Electricity- % renewables
District heat
- % renewables
Total energy consumption

600

600

400

400

600

400

61,00047,60072,30056,50064,20048,00048,70037,70051,90038,80048,80034,700

57

63

47

50

44

50

12,3009,900

20,40017,70015,30013,400

38

47

25

29

26

30

163,000

92,000158,300

88,900149,700

76,400Cargotec’s total energy consumption amounted to 163,000 MWh in 2022. The total energy consumption of the assembly sites increased by approximately three percent compared to 2021. No new assembly sites were added tothe calculation during the year. We discontinued our assembly operation at two of our sites; one assembly site is now classified as a competence centeres and another one as a non-assembly site.
* Solar energy covers energy produced by solar panel installations on Cargotec sites. Our Tampere site has a test field which is mostly powered by solar panels.
** In 2022, 100 percent of assembly sites, service sites and offices in Finland and Sweden were powered by renewable electricity. Additionallly part of our operations in Norway, Spain, Ireland, UK, USA, Netherlands and Italy werepowered by renewable electricity. Approximately 57 percent of Cargotec’s electricity consumpiton descended from renewable energy sources.
302-3 ENERGY INTENSITY
Energy intensity
Energy intensity index

UNGC Principle 8
2022

2021

2020

2019

88

105

105

100

This indicator covers the whole organisation. The energy intensity index is based on the ratio of total energy consumpiton and sales by sites included in the reporting boundary. The base year is 2019, where the index value is100. The reason for choosing 2019 is that it is the general baseline against which we have set out long-term climate targets. In 2022 the intensity decreased compared to the base year.

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SUSTAINABILITY ACCOUNTING
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BOUNDARYGRI CONTENT INDEXGRI 2 General disclosure
GRI 3 Material topics
GRI 200 Economic

GRI standard and disclosure Response / SASB
302-5 REDUCTIONS IN ENERGY REQUIREMENTS OF PRODUCTS AND SERVICESUNGC Principle 8, 9

Cargotecs eco portfolio consists of equipment, services and software that enhance our customers’ sustainability with low-emission technologies, intelligent solutions and services promoting a circular economy. The eco portfolio wasestablished already in 2017, and the criteria was revised during 2022 so that it is structured according to the EU Taxonomy design. The EU Taxonomy regulation establishes a classification system to define which economic activities
are environmentally sustainable. It is in our highest focus to improve the energy efficiency of our products and develop electric versions that contribute to a low carbon economy.
Out of the six environmental objectives of the EU Taxonomy, Cargotec has the potential to substantially contribute to climate change mitigation and transition to a circular economy. Consequently, the eco portfolio consists of two
categories - climate solutions and circular solutions. The climate solutions are compatible with the GHG emission reductions needed in the 1.5°C scenario to reach the net zero by 2050. To prove the substantial contribution to climatechange mitigation, Cargotec has conducted product LCA studies to prove the life cycle GHG emissions savings. The LCA studies follow ISO 14067 standard and have been reviewed by an independent third party. The LCAs are
conducted for the zero-emission and low-emission equipment to prove their GHG emissions saving potential. Zero-emission equipment results in much higher savings than the required threshold (42%) for low-emission equipment.
Cargotec considers zero-emission and low-emission equipment as taxonomy-aligned.

GRI 400 Social

As part of our Science Based target, we have committed to reduce the scope 3 emissions by 50 percent by 2030, from a 2019 base year. The emissions from use of sold products account for the biggest share of the scope 3
emissions. Reducing the energy requirement of sold products and services is crucial in meeting the emissions reduction target. We are collecting real-time data from tens of thousands of pieces of equipment that are connected andoperated by our customers. This data gives us visibility about the actual energy consumption of the equipment and we utilise this data in calculation of the emissions from the use of sold products (see GRI 305-3). We are constantly
working on improving the data collection process and making the data systems more reliable to confirm our baseline.

INDEPENDENT LIMITEDASSURANCE REPORTAs an example of an eco portfolio product, Hiab Waltco Solar Charger can be mentioned. Hiab Waltco Solar Charger is a solar power source used for charging tail lift batteries. The battery is charged with solar panels on the roof of thetruck or trailer that are connected through a state of the art charging controller. The Hiab Waltco Solar Charger eliminates the need to idle the truck while the liftgate is in use, which eliminates unwanted emissions and reduces truck’s
fuel consumption. Additionally, our studies have shown an elimination in battery related failures and battery life to have doubled in length of time.

GRI 300 Environmental

More information about Cargotec’s eco portfolio and the EU Taxonomy can be found in the the Board of Directors’ report - Disclosures pursuant to the EU Taxonomy regulation.

GRI 303: WATER AND EFFLUENTS
303-1 INTERACTIONS WITH WATER AS A SHARED RESOURCEUNGC Principle 7, 8

Cargotec does not use any water for production purposes and our sites are using municipal waters for usage only. Thus, the water sources/withdrawal, recyclability of water and discharge are not material due to our low consumption
and having it for personal usage, not industrial purposes. Water is withdrawn from the municipal systems, consumed for domestic purposes and discharged through the public drainage systems.
303-5 WATER CONSUMPTIONUNGC Principle 7, 8

Water consumption, m³

2022

2021

2020

Municipal water supplies

80,70081,75076,300This indicator covers Cargotec assembly sites and competence centers.

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SUSTAINABILITY ACCOUNTING
PRINCIPLES AND REPORTING
BOUNDARYGRI standard and disclosure Response / SASB
GRI 305: EMISSIONS
305-1 DIRECT (SCOPE 1) GREENHOUSE GAS EMISSIONSUNGC Principle 7, 8

GRI CONTENT INDEX

305-2 ENERGY INDIRECT (SCOPE 2) GREENHOUSE GAS EMISSIONSUNGC Principle 7, 8

GRI 2 General disclosure

GHG emissions, tCO2e

GRI 3 Material topics
GRI 200 Economic
GRI 300 Environmental
GRI 400 Social

INDEPENDENT LIMITEDASSURANCE REPORT

Direct GHG emissions (scope 1)

2022 total

2022 assembly

2021 total

2021 assembly2020 total

2020 assembly

24,9009,900

21,3007,100

21,3006,200

Indirect GHG emissions (scope 2) location-based

15,60012,80024,70017,80023,70019,300Indirect GHG emissions (scope 2) market-based

11,3008,000

20,20016,50021,00014,600Total (scope 1 + scope 2 market-based)

36,20017,90041,50023,60042,30020,800Cargotec’s total scope 1 and scope 2 (market-based) GHG emissions amounted to 36,200 tCO2e in 2022. For assembly sites, scope 1 GHG emissions increased by 40 percent and scope 2 emissions (market-based) decreasedby 52 percent, compared to 2021. The decrease in scope 2 emsissions relates to the increase in renewable electricity and data corrections. The decrease in total GHG emissions was 13 percent compared to 2021.
* The market-based emissions are calculated using contractual emissions factors. Where contractual information is not available we apply residual mix emission factors. Where neither contractual nor residual mix emission factors
are available we apply average grid emission factors published by the International Energy Agency (IEA). In 2022, approximately 57 percent of the electricity used was renewable.
305-3 OTHER INDIRECT (SCOPE 3) GREENHOUSE GAS EMISSIONS
Scope 3 GHG emissions, tCO2e

2022

2021

Use of sold products

4,330,000

3,630,000

3,400,00

Purchased goods

1,860,000

1,900,000

1,630,000

224,000

193,000

144,000

6,000

3,000

4,000

Transportation and distribution
Business travel
Fuel- and energy-related activities
Total

2020

15,00013,00010,0006,435,000

5,739,000

5,188,000

Restatement of 2021 and 2020 figures due to changes in scope 3 calculation methodology. In 2019, a comprehensive calculation of scope 3 emissions was initiated and we have improved the calculation process during 2022. The
use of sold products and purchased goods and services represent more than 95 percent of all scope 3 emissions and more than 95 percent of our total emissions (incl. scope 1 and 2). Despite their minor share of the total scope 3,
we report emissions related to transportation and distribution, business travel, and fuel- and energy-related activities as we consider those relevant due to our possibility to influence those.
For the purchased goods and services category, separate calculation methodologies for direct and indirect purchases are applied. For direct purchases, we apply the ‘hybrid’ approach from GHG protocol, where a mixture of
methodologies are used depending on data availability. Supplier-specific data or weight data of the sourced materials are used to calculate emissions. Only when these are not available, we depend on the spend-based approachto calculate emissions. The emission factors are obtained using GaBi database. For indirect purchases (which accounts for a minor share of all purchases), we use spend data and calculate it with the Scope 3 Evaluator tool (GHG
Protocol/Quantis). For the transportation and distribution category, spend data is used and calculated with the Scope 3 Evaluator tool (GHG Protocol/Quantis). For the use of sold products, product specific information and emission
factors for diesel and electricity (location-based) are used. When calculating emissions from use of sold products we account scope 1 and 2 emissions (i.e. from use of fuels and electricity) over the products’ expected lifetime.
Business travel data originates from our travel agency. Fuel and energy related activities cover the upstream emissions for fuel, electricity and heating, and transmission & distibution losses for electricity and heating - DEFRA emisions
factors are used to calculate the relevant emissions in this category.

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SUSTAINABILITY ACCOUNTING
PRINCIPLES AND REPORTING
BOUNDARYGRI CONTENT INDEXGRI 2 General disclosure
GRI 3 Material topics
GRI 200 Economic
GRI 300 Environmental
GRI 400 Social

INDEPENDENT LIMITEDASSURANCE REPORTGRI standard and disclosure Response / SASB
Progress towards the Science Based Target

2022

2021

2020

2019

Direct GHG emissions (scope 1)

24,90021,30021,30022,000Indirect GHG emissions (scope 2) market-based

11,30020,20021,00028,200Use of sold products

4,330,000

3,630,000

3,400,000

4,050,000

Purchased goods

1,515,200

1,528,000

1,304,200

1,516,700

5,881,400

5,199,400

4,746,500

5,617,00

Upstream and downstream emissions (scope 3)

Total (scope 1 + scope 2 market-based + scope 3)

Our target approved by the Science Based Target initiative is to reduce absolute scope 1, 2 and 3 GHG emissions by 50% by 2030 from a 2019 base year. The scope of our Science Based Target covers scope 1 and scope 2(market-based) emissions as well as scope 3 emissions related to categories purchased goods and services (excluding indirect procurement) and use of sold products. The scope 3 emissions included in the target boundary cover
more than 95% of total scope 3 emissions. The target boundary includes biogenic emissions and removals from bioenergy feedstocks. Due to the minor share of scope 3 relating to transportation and distribution, business travel, andfuel- and energy-related activities, they are excluded from the SBT target scope. Compared to the base year 2019, our GHG emissions increased by five percent in 2022.
305-4 GREENHOUSE GAS (GHG) EMISSIONS INTENSITY
GHG emissions intensity
GHG emissions intensity index

UNGC Principle 8
2022

2021

2020

2019

70

98

100

100

This indicator covers the whole organization. The greenhouse gas intensity index is based on the ratio of own greenhouse gas emisisons (scope 1 and scope 2 ) and sales by sites included in the reporting boundary. The base year is2019 where the index value is 100. The reason for choosing 2019 is that it is the general baseline against which we have set out long-term climate targets.
305-5 REDUCTION OF GHG EMISSIONUNGC Principle 8

Reduction of GHG emissions, tCO2e

2022

2021

2020

2019

Reduction in emissions related to electricity use

7,400

3,400

3,600

3,100

This indicator covers Cargotec assembly sites and competence centers.
305-7 NITROGEN OXIDES (NOX), SULFUR OXIDES (SOX), AND OTHER SIGNIFICANT AIR EMISSIONSUNGC Principle 7, 8

Weight of emissions, t

2022

2021

2020

Nitrogen oxides (NOx)

1.3

2.3

2.3

Particulate Matter (PM)

1.4

1.7

2.3

Sulphur oxides (SOx)

0.3

0.3

0.3

Volatile organic compounds (VOC)

12.0

11

34.4

This indicator covers Cargotec assembly sites and competence centers.

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SUSTAINABILITY ACCOUNTING
PRINCIPLES AND REPORTING
BOUNDARYGRI standard and disclosure Response / SASB
GRI 306: WASTEGRI CONTENT INDEX

306-3 WASTE GENERATED
306-4 WASTE DIVERTED FROM DISPOSAL
306-5 WASTE DIRECTED TO DISPOSALGRI 2 General disclosure

Weight of waste, t

2022

2021

2020

GRI 3 Material topics

Hazardous waste

GRI 200 Economic

910

780

820

diverted from disposal (recycled)

230

170

320

directed to disposal

GRI 300 Environmental
GRI 400 Social

INDEPENDENT LIMITEDASSURANCE REPORTUNGC Principle 8

680

610

500

Landfilled

340

310

130

Incinerated

300

200

280

Method not known

40

100

90

9,190

11,20012,100diverted from disposal (recycled)

7,460

9,400

9,300

directed to disposal

Non-hazardous waste

1,720

1,750

2,800

Landfilled

730

1,130

730

Incinerated

840

510

410

Method not known

150

110

1,700

10,10012,00012,900diverted from disposal (recycled)

7,700

9,600

9,600

directed to disposal

2,400

2,400

3,300

Landfilled

1,060

1,400

690

Incinerated

1,140

700

860

200

200

1,800

Total

Method not known
This indicator covers Cargotec assembly sites and competence centers.

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SUSTAINABILITY ACCOUNTING
PRINCIPLES AND REPORTING
BOUNDARYGRI standard and disclosure Response / SASB
GRI 400: SOCIALGRI 401: EMPLOYMENTGRI CONTENT INDEXGRI 2 General disclosure
GRI 3 Material topics
GRI 200 Economic

401-1 NEW EMPLOYEE HIRES AND EMPLOYEE TURNOVER
Number of
employees%

New employee hires

1,445

14%

Employee turnover

2,234

21%

Voluntary turnover

1,181

11%

Number of
employees% of total

New hire rate %

Male

1,118

77%

13%

Female

327

23%

15%

Under 30 years old

483

33%

38%

30-50 years old

795

55%

13%

Over 50 years old

167

12%

5%

AMER

456

32%

29%

APAC

261

18%

14%

EMEA

728

50%

10%

Number of
employees% of total

Turnover rate %

Male

1,695

76%

20%

Female

539

24%

25%

Rate of new employee hires and employee turnover

GRI 300 Environmental
GRI 400 Social

INDEPENDENT LIMITEDASSURANCE REPORTUNGC Principle 6

New employee hires by gender, age group and region
By gender

By age group

By region

Employee turnover by gender, age group and region
By gender

By age group
Under 30 years old

427

19%

34%

30-50 years old

1,286

58%

21%

Over 50 years old

521

23%

16%

588

26%

38%

By region
AMER
APAC

559

25%

31%

EMEA

1,087

49%

15%

The information about new hires and employee turnover includes only permanent employees.
The rate of new employee hires in the total workforce is the number of new hires divided by the number of all permanent employees at the end of 2022. New hire rates within employee breakdown categories are calculated by
dividing the new hires within the category by the total number of permanent employees within the breakdown category. For example, new hire rate for female employees is the number of new female hires divided by the number ofall permanent female employees at the end of 2022. Turnover rates are calculated on similar basis as new hire rates.

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SUSTAINABILITY ACCOUNTING
PRINCIPLES AND REPORTING
BOUNDARYGRI standard and disclosure Response / SASB
GRI 402: LABOR/MANAGEMENT RELATIONS
402-1 MINIMUM NOTICE PERIODS REGARDING OPERATIONAL CHANGESGRI CONTENT INDEXGRI 2 General disclosure
GRI 3 Material topics
GRI 200 Economic
GRI 300 Environmental
GRI 400 Social

INDEPENDENT LIMITEDASSURANCE REPORTUNGC Principle 3

The minimum notice periods regarding operational changes are defined by national legislation and local collective bargaining agreements. Cargotec operates in various countries and complies with local legislation.

GRI 403: OCCUPATIONAL HEALTH AND SAFETY
403-1 OOCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEM
We have implemented ISO 45001:2018 and Occupational Health and Safety Management Systems across the organisation. The systems cover all employees at the premises, including own personnel, external contractors andsubcontractors. Almost all of our assembly sites have been certified across all business areas. The coverage at Cargotec’s assembly sites based on headcount was 76 percent.
We usually do not have a health and safety management system implemented at our non-assembly sites, since those locations are primarily offices with low risks. All local regulations and requirements are followed at all of our
locations.
403-2 HAZARD IDENTIFICATION, RISK ASSESSMENT AND INCIDENT INVESTIGATION
The description of the processes and disclosures on hazard identification, risk assessment and incident investigation are included and covered according to the requirements in the global management systems. These are implemented
across our locations.
All workers have access to means to report work-related hazards and hazardous situations, and have the right to stop hazardous work without fear of reprisals.
403-3 OCCUPATIONAL HEALTH SERVICES
Occupational health services are dealt with at the local level by fulfilling all legal requirements in the relevant country. The process is decentralised and depending on the local legislation requirements.
Personal health related information is used lawfully, fairly and in a transparent manner. We adhere to GDPR and any other applicable European or local privacy laws. We have a privacy policy and privacy statements as well as training and afunction, supporting privacy-related questions.
403-4 WORKER PARTICIPATION, CONSULTATION AND COMMUNICATION ON OCCUPATIONAL HEALTH AND SAFETY
There are several employee communication and consultation methods in place. These include the PDP process, work councils, town hall meetings, the health and safety committees, leadership training (Lead & Grow), our employee
engagement survey Compass and our Speak-Up line.
82 percent of Cargotec employees have representation in occupational health and safety committees. Employees working at a particular site have representation in their respective committees. As many of the service sites are small,no occupational health and safety committees exist there, which affects the figures. 100 percent of the workers in production sites have representation in occupational health and safety committees.
403-5 WORKER TRAINING ON OCCUPATIONAL HEALTH AND SAFETY
As part of the regular induction process, Occupational Health and Safety training is provided to personnel across the organisation. Moreover, there are e-learning platforms that support continuous training amongst our employees.
Training is provided both on a local and global level. Work-specific training is provided to enable safe and correct performing of tasks.
All employees are also required to carry out the Code of Conduct e-learning, which includes a chapter on health and safety.
403-6 PROMOTION OF WORKER HEALTH
Due to country specifics, worker health topics are covered on a local level and not centrally. Worker health promotion is mostly outsourced and included on the health insurance.
During 2022 the general focus has been on worker well-being and several initiatives continued, amongst others the Wellbeing Community and Hiab’s Employee First programme .
Personal health related information is used lawfully, fairly and in a transparent manner. We adhere to GDPR and any other applicable European or local privacy laws. We have a privacy policy and privacy statements as well as training
and a function, supporting privacy-related questions.
403-7 PREVENTION AND MITIGATION OF OCCUPATIONAL HEALTH AND SAFETY IMPACTS DIRECTLY LINKED BY BUSINESS RELATIONSHIPS
We are preventing and mitigating our occupational health and safety impacts by performing risk identification, analysis and control. The related hazards and risks are addressed via different safety legislations, requirements for the safetyof products, product declarations, and complying with the regulations both on the EU level and other local legislation.

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SUSTAINABILITY ACCOUNTING
PRINCIPLES AND REPORTING
BOUNDARYGRI standard and disclosure Response / SASB
403-9 WORK-RELATED INJURIESSASB RT-IG-320a.1

GRI CONTENT INDEXInternally, we use Lost Time Injuries (LTI), here referred to as injuries and the Industrial Injury Frequency Rate (IIFR), to follow up on our targets on health and safety. Thus, those indicators are shared under this disclosure. We are also
disclosing the SASB Employee Health and Safety indicators deemed material for the industrial machinery and goods industry. Under RT-IG-320a.1 we are providing the Total Recordable Incident Rate (TRIR), which has the samedefinition as the recordable work-related injuries under GRI 403-9, and therefore we consider to cover both of these requirements under it.

GRI 2 General disclosure

Number of injuries by body part

GRI 3 Material topics

Back

2022 total

2022 assembly

2021 total

2021 assembly2020 total

2020 assembly

9

2

17

10

15

2
3

Eyes

3

1

6

5

8

GRI 200 Economic

Feet

10

3

18

7

9

0

GRI 300 Environmental

Hands

51

29

47

18

45

13

Head

6

2

5

1

6

2

Legs

14

6

16

8

9

1

Multiple parts or whole body

2

1

6

0

6

0

Neck

1

0

0

0

4

1

Thorax

3

1

8

2

4

2

Total number of lost time injuries

99

45

123

51

106

24

2022 total

2022 assembly

2021 total

2021 assembly2020 total

2020 assembly

GRI 400 Social

INDEPENDENT LIMITEDASSURANCE REPORT

Number of injuries by typeCARGOTEC’S 2022 GRI REPORT

Abrasion/Cut/scratch

22

9

17

3

20

3

Bone fracture

17

9

20

5

9

3

Burn injury

2

0

1

0

1

0

Chemical Exposure

0

0

0

0

1

0

Concussion

1

0

1

0

0

0

Contusion/Bruise

18

8

18

11

21

2

Electric shock

0

0

0

0

1

1

Eye Injury

1

0

3

2

7

3

Hearing loss

0

0

0

0

0

0

Heatstroke/hypothermia

0

0

0

0

0

0

Loss of consciousness

0

0

1

0

0

0

Loss of limb

0

0

0

0

0

0

Poisoning

0

0

0

0

0

0

Sprain/strain/dislocation

7

5

27

12

17

3

Whiplash injury

0

0

0

0

2

0

Other

13

2

35

18

27

9

Total number of lost time injuries

99

45

123

51

106

24

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SUSTAINABILITY ACCOUNTING
PRINCIPLES AND REPORTING
BOUNDARYGRI CONTENT INDEXGRI standard and disclosure Response / SASB
Number of High-consequence injuries

Number of hours worked

GRI 2 General disclosure
GRI 3 Material topics

Number of lost time injuries by region

GRI 200 Economic

AMER

GRI 300 Environmental
GRI 400 Social

INDEPENDENT LIMITEDASSURANCE REPORT

2022 total

2022 assembly

2021 total

2021 assembly2020 total

2020 assembly

7

3

2

1

3

1

2022 total

2022 assembly

2021 total

2021 assembly2020 total

2020 assembly

20,825,332

7,933,451

20,483,000

6,983,000

20,273,000

7,091,000

2022 total

2022 assembly

2021 total

2021 assembly2020 total

2020 assembly

14

10

22

15

6

6

APAC

8

3

8

1

10

1

EMEA

77

32

93

35

90

17

Frequency Rate of injury (IIFR)*

2022

2021

2020

Assembly sites

5.7

7.3

3.4

Non-assembly and competence centres

4.3

5.3

6.2

Cargotec total

4.8

6.0

5.2

Frequency Rate of injury (HCIR)**

2022

2021

2020

Assembly sites

0.38

0.10

0.14

Non-assembly and competence centers

0.31

0.07

0.15

Cargotec total

0.34

0.09

0.15

* Industrial Injury Frequency Rate (IIFR) is the number of injuries per million hours worked. Injuries include incidents that lead to an absence of at least one day or shift. One work related fatality was reported during 2022. No workrelated fatalities occurred during the reporting periods 2020, 2021. External employees are included in all the figures, however subcontractors are excluded as we do not have a way of collecting their working hours at the moment.
** High-consequence injury rate is the number of high-consequence injuries per million hours worked.
403-10 ILL HEALTH
There have been 60 cases of ill health recorded during the year. No ill health related fatalities have occurred. Mainly ill health has been related to recurring and relapsing muscular strains and back pain.
SASB RT-IG-320A.1
Toral Recordable incident rate, Near missfrequency rate, Fatality rate2022 total

2022 assembly

2021 total

2021 assembly2020 total

2020 assembly

r12m TRIR x 1 000 000

8.6

9.1

9.6

10.3

8.6

6.6

r12m NMFR x 1 000 000

26

35

23

33

27.2

29.8

r12m Fatality rate x 1 000 000

0

0

0

0

0

0

Table RT-IG-320a.1 the data is presented as rolling 12 months. The indicators included are(1) Total recordable incident rate (TRIR) - includes all incidents ocurring in death, days away from work, restricted work or transfer to another job, medical treatment beyond first aid, or loss of consciousness.
(2) Near miss frequency rate (NMFR) - includes work-related near misses.
(3) Fatality rate - includes fatalities.
These have been prepared according to the SASB standard for industrial machinery and goods, that can be found here - https://www.sasb.org/wp-content/uploads/2018/11/Industrial_Machinery_Goods_Standard_2018.pdf

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SUSTAINABILITY ACCOUNTING
PRINCIPLES AND REPORTING
BOUNDARYGRI standard and disclosure Response / SASB
GRI 404: TRAINING AND EDUCATION
404-3 PERCENTAGE OF EMPLOYEES RECEIVING REGULAR PERFORMANCE AND CAREER DEVELOPMENT REVIEWSGRI CONTENT INDEXUNGC Principle 6

Nearly 90 percent of Cargotec white collar employees have received performance and development plan during the reporting period. Blue collar employees with no access to human resource information system ZONE are covered by alocal PDP process and documentation as defined in Cargotec performance and development plan policy.

GRI 2 General disclosure
GRI 3 Material topics
GRI 200 Economic
GRI 300 Environmental
GRI 400 Social

INDEPENDENT LIMITEDASSURANCE REPORTGRI 405: DIVERSITY AND EQUAL OPPORTUNITY
405-1 DIVERSITY OF GOVERNANCE BODIES AND EMPLOYEESComposition of governance bodies and employees by gender and age group, %UNGC Principle 6
Board of Directors

Leadership Team

Employees

Male

63%

70%

80%

Female

38%

30%

20%

By gender

By age group
Under 30 years old

0%

0%

15%

30-50 years old

0%

0%

57%

Over 50 years old

100%

100%

28%

GRI 407: FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
407-1 OPERATIONS AND SUPPLIERS IN WHICH THE RIGHT TO FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING MAY BE AT RISKUNGC Principle 3

Annual report 2022, pp. 26 People, health & safety - Human rights

GRI 408: CHILD LABOUR
408-1 OPERATIONS AND SUPPLIERS AT SIGNIGICANT RISK FOR INCIDENTS OF CHILD LABOUR

UNGC Principle 5

See 407-1

GRI 409: FORCED OR COMPULSORY LABOUR
409-1 OPERATIONS AND SUPPLIERS AT SIGNIFICANT RISK FOR INCIDENTS OF FORCED OR COMPULSORY LABOUR

UNGC Principle 4

See 407-1

GRI 416: CUSTOMER HEALTH AND SAFETY
416-1 ASSESSMENT OF THE HEALTH AND SAFETY IMPACTS OF PRODUCT AND SERVICE CATEGORIES
100%
Customer health and safety is the top priority in Cargotec’s offering. Health and safety impacts are evaluated in all product categories. The scope of health and safety impact evaluation depends on the product type, usage, customer
demands and existing regulatory requirements. The EU Machinery directive and related standards guide the evaluation when applicable. Outside the EU, local regulations and requests are followed.
Products are tested carefully before being delivered to customers. Delivery processes that need special logistic solutions are assessed separately for possible risks to health and safety. The usage of products is tested carefully before
delivery to customers and/or when the final assembly at the customer’s facilities is carried out. Possible hazardous materials used in the components of the equipment are controlled with appropriate safety management practices andsafety data sheets. Product safety is always taken into account in production planning.

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SUSTAINABILITY ACCOUNTING
PRINCIPLES AND REPORTING
BOUNDARYGRI CONTENT INDEXINDEPENDENT ACCOUNTANT’S ASSURANCE REPORT TO THE MANAGEMENT OF CARGOTEC OYJTranslated from the original report in Finnish

GRI 2 General disclosure
GRI 3 Material topics
GRI 200 Economic
GRI 300 Environmental
GRI 400 Social

INDEPENDENT LIMITEDASSURANCE REPORTScope
We have been engaged by Cargotec Oyj (hereafter Cargotec)
to perform a ‘limited assurance engagement,’ as defined byInternational Standards on Assurance Engagements (hereafterreferred to as the engagement), Cargotec’s non-financial
disclosures 2022 (figures and narrative) presented in the
Board of Directors’ Report 2022 and selected indicators in the
GRI-index 2022 presented below (the “Subject Matter”) for
the reporting period 1.1.-31.12.2022.

Selected Indicators
The scope and boundary of our work is restricted to the key
sustainability performance indicators and information included
within the Report (the “Selected Information”), listed below:— Scope 1 emissions (tCO2 e)— Scope 2 emissions, market-based (tCO2 e)— Scope 3 emissions (tCO2 e)— Total emissions (tCO2 e)— Emissions intensity, relative to sales (tCO2 e/MEUR)— Total energy use in own operations (MWh)— Share of renewable energy of total energy use (%)— Industrial injury frequency trend (IIFR)— Compass Employee Engagement survey results:• Engagement index (%)• Sustainability index (%)• Leadership index (%)• Team climate index (%)• Code of Conduct index (%)• Integrity index (%)— Number of reported alleged misconduct cases— Cargotec Code of Conduct training completion (%)— Share of eco portfolio sales of total sales (%)

CARGOTEC’S 2022 GRI REPORT— Cargotec’s taxonomy KPI’s— GRI 302 Energy• GRI 302-1 Energy consumption within the organization(MWh)• GRI 302-3 Energy intensity index— GRI 305 Emissions• GRI 305-1 Direct (scope 1) greenhouse gas emissions(tCO2 e)• GRI 305-2 Energy indirect (scope 2) greenhouse gas
emissions (tCO2 e)• GRI 305-3 Other indirect (scope 3) greenhouse gas
emissions (tCO2 e)• GRI 305-4 Greenhouse gas emissions intensity (%)— GRI 403 Occupational health and safety• GRI 403-9 Work-related injuries— RT-IG-130a.1: Energy Management• Total energy consumed (MWh)• Percentage grid electricity (%)• Percentage renewable (%)— RT-IG-320a.1: Employee Health & Safety• Total recordable incident rate (TRIR)• Fatality rate
• Near miss frequency rate (NMFR)

Criteria applied by Cargotec
In preparing the non-financial disclosures and the selectedindicators, Cargotec applied the Global Reporting
Initiative (GRI) Sustainability Reporting Standards, SASB
Industrial Machinery and Goods Sustainability AccountingStandard and Cargotec’s eco portfolio -criteria (the“Criteria”). As a result, the subject matter information may
not be suitable for another purpose.

Cargotec has applied it’s eco portfolio criteria whenassessing its eco portfolio sales and taxonomy alignment
in climate change mitigation objective. EY has read theeco portfolio version available at 27.1.2023 (updated by
Cargotec 31.12.2022).

Cargotec’s responsibilities
Cargotec’s management is responsible for selecting theCriteria, and for presenting the non-financial disclosuresand the selected indicators in accordance with that Criteria
for the reporting year 2022, in all material respects. This
responsibility includes establishing and maintaining internal
controls, maintaining adequate records and making
estimates that are relevant to the preparation of the subject
matter, such that it is free from material misstatement,
whether due to fraud or error.

Ernst & Young’s responsibilities
Our responsibility is to express a conclusion on thepresentation of the Subject Matter based on the evidence
we have obtained.
We conducted our engagement in accordance with theInternational Standard for Assurance Engagements
Other Than Audits or Reviews of Historical Financial
Information (‘ISAE 3000’), and the terms of reference for thisengagement as agreed with Cargotec on 16.09.2022. Thosestandards require that we plan and perform our engagement
to obtain limited assurance about whether, in all material
respects, the Subject Matter is presented in accordancewith the Criteria, and to issue a report. The nature, timing,and extent of the procedures selected depend on our

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SUSTAINABILITY ACCOUNTING
PRINCIPLES AND REPORTING
BOUNDARYGRI CONTENT INDEXGRI 2 General disclosure
GRI 3 Material topics
GRI 200 Economic
GRI 300 Environmental
GRI 400 Social

INDEPENDENT LIMITEDASSURANCE REPORT

judgment, including an assessment of the risk of material
misstatement, whether due to fraud or error.
We believe that the evidence obtained is sufficient andappropriate to provide a basis for our limited assurance
conclusions.

Our Independence and Quality Control
We have maintained our independence and confirm that
we have met the requirements of the Code of Ethics forProfessional Accountants issued by the International Ethics
Standards Board for Accountants, and have the requiredcompetencies and experience to conduct this assurance
engagement.
Ernst & Young also applies International Standard on Quality
Control 1, Quality Control for Firms that
Perform Audits and Reviews of Financial Statements, andOther Assurance and Related Services Engagements, andaccordingly maintains a comprehensive system of quality
control including documented policies and procedures
regarding compliance with ethical requirements, professional
standards and applicable legal and regulatory requirements.

Description of procedures performed
Procedures performed in a limited assurance engagement
vary in nature and timing from and are less in extent than fora reasonable assurance engagement. Consequently, the levelof assurance obtained in a limited assurance engagement issubstantially lower than the assurance that would have beenobtained had a reasonable assurance engagement been
performed. Our procedures were designed to obtain a limited
level of assurance on which to base our conclusion and do
not provide all the evidence that would be required to provide
a reasonable level of assurance.
Although we considered the effectiveness of management’s
internal controls when determining the nature and extent
of our procedures, our assurance engagement was notdesigned to provide assurance on internal controls. Our

CARGOTEC’S 2022 GRI REPORT

procedures did not include testing controls or performing
procedures relating to checking aggregation or calculation ofdata within IT systems.
EU Taxonomy regulation is currently in nature changing andinterpretation as well as market practice develops constantly.
Therefore, taxonomy reporting is subject to uncertainty andinterpretation, and current assumptions might need to berevised in the following years.
A limited assurance engagement consists of making
enquiries, primarily of persons responsible for preparing thenon-financial disclosures, specific indicators and related
information presented in the Board of Directors Report 2022
and the GRI-Index Report 2022 and applying analytical andother appropriate procedures

Conclusion
Based on our procedures and the evidence obtained, we are
not aware of any material modifications that should be madeto the non-financial disclosures in the Board of Directors’
Report 2022 and the specific indicators in GRI-Index Report
2022 for the period 1.1-31.12.2022, in order for it to be inaccordance with the Criteria.
Helsinki, 13.2.2023
Ernst & Young Oy
Authorized Public Accountant Firm

Heikki Ilkka
Authorized Public Accountant

Our procedures included:a) G athering an understanding of Cargotec’s material nonfinancial reporting topics, organization and activities

Nathalie Clément
Leader of Climate Change and Sustainability Servicesb) Interviews with senior management to understand
Cargotec’s sustainability managementc) Interviews with personnel responsible for gathering andconsolidation of the non-financial information and thespecific indicators to understand the systems, processes
and controls related to gathering and consolidating theinformationd) Assessing non-financial data from internal and externalsources and checking the data to reporting information ona sample basis to check the accuracy of the datae) V irtual visits to Kalmar Stargard FLU, Bromma Malaysia,
Hiab Moffet Dundalk, Macgregor Sweden sites to assess
reporting practices
We also performed other procedures we considerednecessary in the circumstances.

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CONTACT US
Cargotec Corporation

Porkkalankatu 5,
Helsinki, Finland
P.O. Box, 00501 Helsinki
Tel. +358 20 777 4000

Websiteswww.cargotec.com
www.kalmarglobal.com
www.hiab.com
www.macgregor.com

Business identity code 1927402–8
Follow us

Annual Report 2022

Cargotec (Nasdaq Helsinki: CGCBV) enables
smarter cargo flow for a better everyday with its
leading cargo handling solutions and services.
Cargotec’s business areas Kalmar, Hiab and
MacGregor are pioneers in their fields. Throughtheir unique position in ports, at sea and on
roads, they optimise global cargo flows andcreate sustainable customer value. Cargotec hascommitted to the United Nations Global Compact
Business Ambition for 1.5°C. Cargotec’s sales
in 2022 totalled approximately 4 billion and it
employs around 11,500 people.
www.cargotec.com

GRI Index 2022
ANNUAL REPORT2022

GRI REPORT2022

The Annual Report 2022 consists of the annual review, the financial review, the corporate governance statement andthe remuneration report. The Financial review includes the Board of Directors’ report, the financial statements, andthe auditor’s report. All documents are available at the company website www.cargotec.com/2022.