Cargotec

Cargotec operates a Finnish two-tier governance model. The Board of Directors (BoD) has seven non-executive members, all (100 percent) independent of the company and six (86 percent) independent of significant shareholders; three (43 percent) are women and four (57 percent) are men, a female-to-male ratio of 0.75. When selecting members, emphasis was placed on sustainability-specific expertise, with two members holding specific business conduct expertise through legal, compliance and auditing roles. Employees and other workers are not represented on the Board or the Cargotec Leadership Team (CLT). Under the Board Charter, the BoD integrates sustainability into strategy and risk management and nominates one member to oversee sustainability and ensure environmental and social due diligence in decision making. The BoD approves sustainability targets and cascades them to the CEO and CLT. The Nomination and Compensation Committee ensures member competences. The Audit and Risk Management Committee (ARC), three members meeting at least four times a year, reviews financial and sustainability statements and sustainability-related risks. The CLT, chaired by the CEO, implements plans, supported by the SVP Sustainable Business Development, a Sustainability Management Team and Sustainability Team.

The Board of Directors reviews material sustainability matters as a separate topic four times a year, with additional sessions as needed. These quarterly meetings follow an annual clock that sets the overall theme (environment, social, governance or reporting) and focus on one or more material IROs, expanding the BoD's understanding of sustainability. The BoD is briefed by Cargotec's Senior Sustainability Manager or a relevant leadership team member, and receives updates on due diligence and the effectiveness of policies, actions, metrics and targets. During 2024, sustainability reviews focused on setting climate targets for Hiab and Kalmar as standalone companies, human rights due diligence, upcoming regulatory requirements, and the status of 2024 sustainability reporting. The BoD also receives monthly business updates on strategy deployment and financial performance, including sustainability KPIs such as safety (IIFR), eco portfolio order intake and greenhouse gas emissions. The Audit and Risk Committee reviewed sustainability matters four times in 2024, focusing on CSRD compliance, and receives quarterly anti-corruption and Code of Conduct updates. The CLT reviews sustainability matters quarterly. The BoD, CLT and business area leadership teams continued a training programme on material sustainability matters, with four new BoD members trained in H2.

Cargotec's Remuneration Policy provides guidance on setting non-financial performance measures of strategic importance, which can include environmental, social and governance measures in both short-term and long-term incentive schemes. Incentive schemes do not apply to members of the Board of Directors. For short-term incentives, group and business-area financial performance measures are decided by the BoD and apply to the Cargotec Leadership Team and business area and functional leadership teams, and may be cascaded further; ESG measures can be included based on business or line manager decisions. For example, Hiab set a mandatory safety-related target for all Hiab employees. For long-term incentives, performance measures are decided by the BoD. In 2024, the long-term share-based incentive programmes for the CLT and other senior leadership contained a climate-related performance criterion: the share of eco portfolio order intake of total order intake, where eco portfolio products and services reduce emissions as proven by third-party-verified life cycle assessment. This criterion applied to all members of the Performance Share Programme 2022-2024 for its final measurement period, financial year 2024, and the maximum reward earnable under the criterion represents 32 percent of the total maximum reward for the programme period.

Cargotec conducts due diligence to identify, address and track its impacts on people and the environment, with related processes and actions explained throughout the sustainability statement. The statement includes a mapping table linking the core elements of due diligence to their locations. Embedding due diligence in governance, strategy and business model is covered under Sustainability governance, Sustainability-related incentive schemes, material impacts, risks and opportunities, and Policies. Engaging with affected stakeholders is covered under Sustainability governance, Interests and views of stakeholders, the Process to identify IROs, engagement with own workforce, and value-chain worker engagement and grievance channels. Identifying and assessing adverse impacts maps to Cargotec's material impacts, risks and opportunities and the process to identify IROs. Taking action to address adverse impacts maps to actions related to climate change, resource use and circular economy, own workforce, and remedy and grievance channels for own workforce and value chain workers. Tracking the effectiveness of actions maps to targets and metrics for climate change and own workforce, non-compliance incidents, and the supplier relationship management target. Regarding human rights, the company describes its high-level approach including remedy, and is further developing its human rights due diligence processes ahead of upcoming EU requirements.

Cargotec's Sustainability Team is responsible for compiling the annual sustainability statement, collecting data through various information management systems, with subject matter experts from functions such as Human Resources, Health and Safety, and Ethics and Compliance providing information and reviewing content for accuracy. During 2024, the team reviewed its reporting processes for key performance indicators and harmonised documentation, concluding the processes work well and have sufficient internal controls. Examples of internal controls include automatic system controls, segregation of duties, access controls, reviews and approvals, and documented processes and responsibilities. The reporting processes were also evaluated by Cargotec's Internal Controls function, with no major issues identified. The company identified areas for improvement and prioritised two risks: data accuracy, especially human error when entering data into information management systems (mitigated by system controls requiring business-area then group-level approval, with the system detecting significant deviations); and the dependency of certain parts of the reporting process on one person (addressed by defining roles and responsibilities more clearly). The Sustainability Team gave monthly updates to the CSRD Steering Group, consisting of the CFO, the SVP Sustainable Business Development and business area sustainability leaders, and quarterly updates to the Board's Audit and Risk Committee.

Cargotec announced in 2023 the separation of its core businesses Hiab and Kalmar into two standalone companies. The partial demerger completed on 1 July 2024 with Kalmar's listing on Nasdaq Helsinki, and in May 2024 Cargotec started the sales process for MacGregor, with the agreement to sell it to funds managed by Triton signed in November 2024. The continuing business is Hiab, referred to as standalone Hiab, and the Board planned to propose renaming the company from Cargotec to Hiab. Hiab provides smart and sustainable on-road load handling solutions for logistics, construction, waste and recycling, forestry, transport and delivery industries; typical customers include transportation companies, fleet operators, single truck owners, rental companies, truck manufacturers, municipalities and governments. The business model is asset-light and assembly-only, making it highly dependent on suppliers. Continuing operations span 21 countries with 16 assembly sites, 37 non-assembly sites and one competence centre, employing 4,137 people (3,083 in EMEA, 151 in Asia and Pacific, 903 in the Americas), with representation in over 60 countries. In 2024 Hiab sales totalled EUR 1,647 million, of which eco portfolio sales were EUR 476 million (29 percent); significant markets were EMEA (49 percent) and North America (42 percent). The value chain spans upstream suppliers of steel structures, hydraulics and electric components, own operations, and downstream customers and dealers.

The purpose of Cargotec's stakeholder engagement is to understand stakeholders' needs and expectations, which enables the company to identify value creation opportunities and adjust its strategy and business model. Engagement includes responding to information requests and proactively providing information via its website, meetings, exhibitions, social media and direct communication. Cargotec's key stakeholders are its employees, customers and their employees, investors, and suppliers and their employees, identified based on both their potential influence on Cargotec and Cargotec's potential impact on them. Other important groups include authorities, research and educational institutions, industry associations, local communities and the media. The existing understanding of key stakeholders was confirmed during the 2023 double materiality assessment, with two specifications made: customer employees (end-users as value chain workers) and supplier employees (value chain workers). Local communities were not identified as a key stakeholder group. Engagement examples include, for employees, manager-team discussions, townhalls, engagement surveys and reporting channels; for customers, feedback collection, meetings and screenings; for investors, financial communication and events; and for suppliers, self-assessments, audits with employee interviews, and responsible sourcing engagement. The Cargotec Leadership Team and Board of Directors approved the assessment results, which included stakeholder information and views, and are informed of affected stakeholders' sustainability-related views and interests as needed.

Cargotec discloses the material topics identified in its 2023 double materiality assessment and reviewed in 2024, with related impacts, risks and opportunities (IROs). The material topical standards are E1 Climate change, E4 Biodiversity and ecosystems, E5 Resource use and circular economy, S1 Own workforce, S2 Workers in the value chain, S4 Consumers and end-users, and G1 Business conduct. Under E1, energy and fossil fuels are used across the value chain (negative impact) while low-emission solutions help reduce customer emissions and meet demand (positive impact and opportunity), with transition risks only including missed emission targets, scarce and costly decarbonisation materials, uncertain willingness to pay, and increased competition. E4 covers direct exploitation from mining raw materials and minerals, land use change and dependency on extracted materials. E5 addresses material-intensive assembly requiring finite resources such as steel, and waste. S1 covers health and safety, equal treatment, harassment, diversity and training. S2 and S4 cover health and safety impacts on value chain workers and end-users, with a financial risk of recurring pandemics. G1 covers corporate culture, prevention and detection of corruption and bribery, whistleblower protection and supplier relationship management. IROs are located in own operations, upstream, downstream or all parts of the value chain, over short, continuous or long-term horizons.

Cargotec conducted a double materiality assessment in 2023 to verify its material impacts, risks and opportunities for 2024 reporting. The assessment was conducted individually for each business area, then consolidated at group level, supported and evaluated by an external expert organisation, with results approved by the Cargotec Leadership Team and Board of Directors. It covered the entire value chain over short, medium and long-term horizons from both impact and financial perspectives. The assessment had four phases: understanding the context for impacts, identifying IROs, assessing the identified IROs, and setting thresholds. The company evaluated its business model, global presence, products and services (including materials used), value chain and business relationships through desktop research and value chain mapping. For impact materiality, it used prior assessments and interviews with 21 internal stakeholders (own employees) and one external stakeholder (a financial institution), evaluating impacts on severity (scale, scope, irremediability) and likelihood. For financial materiality, risks and opportunities were assessed on magnitude of impact on operating profit (nominal to catastrophic) and likelihood, integrated with the enterprise risk management (ERM) process. Results were consolidated and given thresholds; the financial materiality threshold was set lower than the impact threshold. New material topics (biodiversity, business ethics) were added and Sustainable finance was removed. During 2024 the company reviewed results, considering the Kalmar separation and MacGregor sale, and determined E2 Pollution was no longer material.

Cargotec provides a table of ESRS disclosure requirements and their location in the statement, including data points derived from other EU legislation. For General information, it maps BP-1 and BP-2 to General information; GOV-1 (paragraphs 21(d) and (e)) and GOV-2 to Sustainability governance; GOV-3 to Sustainability-related incentive schemes; GOV-4 (paragraph 30) to Statement on due diligence; GOV-5 to Risk management and internal controls over sustainability reporting; SBM-1 (paragraphs 40(d) i-iv) to Strategy, Business model and value chain; SBM-2 to Interests and views of stakeholders; SBM-3 to Cargotec's material impacts, risks and opportunities; IRO-1 to Process to identify material impacts, risks and opportunities; and IRO-2 to the Table of disclosure requirements. The table confirms which topical standards are material (E1 Climate change, E4 Biodiversity and ecosystems, E5 Resource use and circular economy, S1 Own workforce, S2 Workers in the value chain, S4 Consumers and end-users, and G1 Business conduct) and which are not. E2 Pollution, E3 Water and marine resources (E3-1 through E3-4 marked Not material), and S3 Affected communities were assessed as non-material. Cargotec estimated its E2 own-operations pollution impact is very small and lowered its scale score in 2024; water consumption in asset-light assembly operations is minimal; and impacts on communities near mines were not found material.

Cargotec's decarbonisation roadmaps are integrated into the company's overall business strategy and financial planning, including targets for eco portfolio order intake and sales. The roadmaps were completed for the core businesses (Kalmar and Hiab) in 2023 and include ambitious climate targets compatible with limiting global warming to 1.5C, in line with the Paris Agreement. They set out concrete actions to reach the climate targets, including promotion of the eco portfolio and further investment in research, development and innovation. Cargotec's science-based greenhouse gas reduction target was validated by the Science Based Targets initiative (SBTi) in 2020; after the planned separation, standalone Hiab will apply for SBTi validation during 2025. The company has identified some potential locked-in GHG emissions related to its physical sites, diesel-driven equipment and the steel used in its equipment, but does not foresee these jeopardising its climate targets, as they are addressed in the roadmaps. The roadmaps were approved by business area leadership and reviewed by the Cargotec Leadership Team and the Board of Directors. Cargotec is not excluded from the EU Paris-aligned Benchmarks.

Cargotec's Sustainability Policy lays out objectives for mitigating adverse impacts on the environment and promoting energy efficiency throughout the value chain. It communicates the ambition to mitigate climate change through energy efficient and low-emission solutions and includes commitments to promote renewable energy in operations and to set emission reduction targets throughout the value chain. It covers the entire value chain, applying to all employees, suppliers and other business partners, and is approved by the Cargotec Leadership Team; the SVP Sustainable Business Development is the most senior role accountable for implementation. Cargotec's Code of Conduct (CoC) reinforces the commitment to act on climate change mitigation and reduce GHG emissions to limit global warming to 1.5C. It is approved by the Board of Directors, applies to all employees, business areas and subsidiaries, and the Chief Compliance Officer is the most senior role responsible for implementation; it is publicly available in 20 languages. The Business Partner Code of Conduct (BPCoC) covers partners across the value chain with a focus on the supply chain, encouraging partners to monitor, report, set targets for and reduce GHG emissions. It was benchmarked against the Responsible Business Alliance code and is approved by the Cargotec Leadership Team.

To drive emission reductions, Cargotec takes action across its value chain. Decarbonisation levers include improving energy efficiency (own operations, downstream), electrification (own operations, downstream), fuel switching (own operations), use of renewable energy (upstream, own operations), product development (downstream), and alternative materials used in manufacturing (upstream). Upstream, steel structure manufacturing is the biggest single source of emissions; Cargotec aims to secure early access to low-emission steel and re-engineer products, partnering with steel maker SSAB to introduce fossil-free steel. In own operations, which are assembly-only and relatively minor, the company plans to improve facility energy efficiency, increase renewable electricity and transition to low-emission vehicles; in 2024 the Eksjo and Vallentuna sites in Sweden switched to non-fossil electricity, with Eksjo expected to cut scope 2 emissions by roughly 110 tonnes CO2e annually. Downstream, the use phase of sold equipment holds the biggest mitigation potential. In 2024 Hiab offered a MULTILIFT ULTIMA hooklift built with low-emission steel (about 25 percent of steel structure), launched the MULTILIFT eULTIMA (first hooklift designed for electric trucks), and introduced iX HiDuo and eX HiPro loader cranes delivering up to 52 percent energy efficiency improvement and a 47 percent life cycle emission reduction.

Cargotec's GHG emission reduction target is set in line with the Paris Agreement and validated by the Science Based Targets initiative (SBTi): to reduce greenhouse gas emissions across all three scopes by at least 50 percent by 2030 compared to a 2019 baseline. The target covers scope 1 and scope 2 (market-based) emissions plus scope 3 emissions from purchased goods and services (excluding indirect procurement) and use of sold products; the scope 3 emissions in the boundary cover more than 95 percent of total scope 3 emissions, and the boundary includes biogenic emissions and removals. The methodology used SBTi criteria version 4.1; the target was set during 2020. Within its own operations (scopes 1 and 2), Cargotec aims to go beyond the science-based target with a target of carbon neutrality by 2030, including increasing renewable electricity to 100 percent by 2030 (2024 interim target of 60 percent). At year-end, renewable electricity reached 74 percent for continuing operations, and continuing operations achieved a 19 percent reduction in scope 1 and 2 emissions versus 2023. Cargotec does not offset emissions, use carbon credits, engage in GHG removals or apply internal carbon pricing. Targets were approved by the Board of Directors.

Total energy consumption for continuing operations was 64,773 MWh in 2024 (76,507 MWh in 2023), and 100,166 MWh for Cargotec total in 2024. For continuing operations in 2024, fossil sources totalled 44,125 MWh, including petroleum products (diesel, gasoline, kerosene, LFO, LPG) 23,692 MWh and natural gas 12,731 MWh, plus acquired non-renewable electricity 6,174 MWh and non-renewable heat 1,529 MWh; coal was 0. Nuclear sources totalled 2,463 MWh and renewable sources 18,185 MWh (biofuels 281 MWh, self-generated solar 420 MWh, acquired renewable electricity 14,280 MWh, acquired renewable heat 3,204 MWh). Energy intensity was 39.3 MWh/MEUR for continuing operations (42.8 in 2023; 30.4 for Cargotec total). The share of renewable sources in total energy consumption was 28.1 percent for continuing operations (23.0 percent in 2023; 27.1 percent Cargotec total), and the share of renewable electricity of total electricity consumption was 73.5 percent (64.6 percent in 2023; 69.4 percent Cargotec total). The share from nuclear sources was 3.8 percent. Due to supplier invoicing delays, estimates based on Q4 2023 data were used for the last quarter of 2024.

For continuing operations in 2024 (tonnes CO2-eq.), gross Scope 1 emissions were 8,837 (down 19.0 percent from 10,906 in 2023). Scope 2 emissions were 4,823 location-based (down 17.2 percent) and 2,051 market-based (down 18.0 percent). Gross Scope 3 emissions were 1,089,942 (down 20.6 percent), comprising use of sold products 692,050, purchased goods 349,668, transportation and distribution 40,918, business travel 2,026, and fuel- and energy-related activities 5,279. Total emissions were 1,103,602 location-based and 1,100,830 market-based (both down 20.6 percent). Total emissions on the science-based target scope were 1,013,059 (down 21.5 percent versus 2023). Emission intensity was 670 tCO2e/MEUR location-based and 668 market-based. For Cargotec total in 2024, Scope 1 was 13,627, Scope 2 was 9,834 (location-based) and 4,719 (market-based), Scope 3 was 3,402,350, and total emissions were 3,425,811 (location-based). The 2019 SBTi-validated base year (Cargotec total) was Scope 1 22,000, Scope 2 28,200, Scope 3 5,682,546, total 5,732,746. Emissions are calculated using the operational control method under the GHG Protocol.

Cargotec does not have a transition plan related to biodiversity, but developed a preliminary understanding of its biodiversity-related impacts, risks and opportunities through its double materiality assessment and a biodiversity screening commissioned in 2024. Because its business model is asset-light and assembly-only, the company's local impact on biodiversity is considered relatively minor; the ISO 14001 environmental management system guides site-level management of the local environment, and in 2024 ISO 14001 coverage of Hiab's assembly sites reached 82 percent based on headcount. Cargotec considers its strategy and business model resilient to physical, transition and systemic biodiversity risks because it is not dependent on renewable materials, though it is aware of risks related to mining and that establishing new mines may become more difficult due to stricter regulation. Identified direct impact drivers include direct exploitation via mining for raw materials and minerals, which modifies landscapes, contributes to land use change and destroys species habitats; electrification drives high dependency on raw materials extracted from the ground. After the planned business separation, standalone Hiab will re-evaluate materiality and decide on action plans and targets.

Cargotec's Sustainability Policy addresses topics related to biodiversity loss, and the company commits in it to protect biodiversity and ecosystem services in its value chain and to protect the local environment where it operates, while supporting a transition to a circular economy. The Sustainability Policy's responsible sourcing section includes a commitment to source critical minerals responsibly. Cargotec's Code of Conduct reinforces the commitment to mitigate adverse impacts on the environment and to operate within planetary boundaries. However, due to an insufficient understanding of its impacts on biodiversity, Cargotec's policies do not include specific commitments related to its material impacts, risks or opportunities, its direct impact drivers, the traceability of purchased goods, biodiversity-enhancing ecosystems in the value chain, nor the social consequences of such impacts. For the same reason, Cargotec does not have policies covering operational sites in or near biodiversity-sensitive areas, sustainable land or sea practices, or deforestation. Standalone Hiab will determine which, if any, of these are relevant for its policies.

In 2024, Cargotec commissioned a biodiversity impact screening to better understand its impacts, risks and opportunities related to biodiversity and ecosystems throughout the value chain. An external expert organisation screened industry-specific characteristics and geographical aspects on a high level to identify biodiversity-related impacts. The findings aligned with Cargotec's 2023 double materiality assessment and confirmed that the impact of the company's own operations on local biodiversity is very limited and that the biggest impacts exist in the value chain, especially in mining operations. Cargotec's collaboration with its steel manufacturers provides opportunities to increase the amount of recycled steel in the production of its equipment. Increasing the share of recycled steel leads to less need for virgin steel and, consequently, less need for mining operations, where some of the biggest negative impacts on biodiversity take place (further detail is given under actions related to resource use and circular economy). Cargotec does not directly source minerals from mines, smelters or refiners, but engages through multi-stakeholder partnerships such as the Responsible Minerals Initiative (RMI).

Due to its insufficient understanding of its impacts on biodiversity, Cargotec has not determined action plans or targets for the topic. The company therefore reports no measurable biodiversity targets for 2024. It notes, however, that its collaboration with steel manufacturers offers opportunities to increase the share of recycled steel used in producing its equipment, which reduces the need for virgin steel and mining operations where some of the biggest negative biodiversity impacts occur; related recycled-steel metrics are reported under resource use and circular economy. After the planned separation of Cargotec's business areas is complete, standalone Hiab will re-evaluate the materiality of biodiversity-related impacts, risks and opportunities to its business and decide on relevant action plans and targets.

Cargotec's Sustainability Policy addresses the transition to a circular economy by promoting resource efficiency, rethinking material flows and giving preference to materials that are better for the environment. It includes a commitment to seek ways to minimise waste production and pollution in the value chain and to promote resource efficiency in the supply chain. Transitioning away from virgin materials and the use of renewable materials are not specifically mentioned in the policy, but Cargotec is committed to increasing the use of recycled steel in the assembly of its equipment and has already taken steps to do so; renewable materials are not currently relevant. Cargotec's Code of Conduct reinforces the commitment to mitigate adverse environmental impacts and to improve the environmental performance of its offering, operations and raw material sourcing. The Business Partner Code of Conduct requires suppliers and business partners to monitor, control and appropriately treat solid waste generated in their operations and encourages them to reduce waste generation and use of natural resources; Cargotec tracks these topics through supplier self-assessments. Policy implementation is monitored by tracking progress on various analyses and actions.

Cargotec's commitment to rethink material flows and prefer materials better for the environment is exemplified by its collaboration with steel manufacturer SSAB. In 2024, Hiab announced that customers can have their MULTILIFT ULTIMA hooklift built with low-emission steel made from recycled steel produced using fossil-free electricity; with this option approximately 25 percent of the hooklift's steel structure is made with low-emission steel. Hiab introduced its Exchange Parts Programme in 2024, offering customers a discount on Hiab-approved exchange components when used components are returned; in its initial phase the programme focuses on cylinders, with returned parts recycled, remanufactured or properly disposed of and backed by a 12-month warranty. It launched in most of Hiab's European markets and in the United States in Q4. During the year, Hiab's Eksjo assembly site in Sweden introduced a briquetting process for scrap metal from its small foundry; about 14 percent of raw material weight is removed as scrap during processing, and all this scrap will be collected, stored and reused, creating a closed loop. Cargotec also organised business-area workshops to identify new circular economy business opportunities.

Due to an insufficient understanding of its opportunities related to circularity, Cargotec has not set a target for resource use and circular economy. However, Hiab monitors and seeks to increase the share of recycled steel in the manufacturing of its equipment as part of its decarbonisation roadmap (linked to actions related to climate change). Reported metrics for 2024 include the share of recycled materials (steel) of total purchased steel: 7.0 percent at Hiab, 5.6 percent at MacGregor and 4.8 percent at Kalmar (H1/2024). Standalone Hiab will decide on setting circular economy-related targets for itself after the planned business separation.

The most important raw material sourced by Cargotec is steel, used in manufacturing all the company's equipment including structures and hydraulics (valves and cylinders). Other significant resource inflows include electric components, and many of these materials are linked to the extraction of critical minerals such as cobalt, tin and gold. Total purchased steel in 2024 was 58,413 tonnes at Hiab, 91,104 tonnes at MacGregor and 30,947 tonnes at Kalmar (H1/2024). Recycled materials (steel, in tonnes) were 4,179 at Hiab, 5,131 at MacGregor and 1,483 at Kalmar (H1/2024), giving a share of recycled materials (steel) of total purchased steel of 7.0 percent (Hiab), 5.6 percent (MacGregor) and 4.8 percent (Kalmar H1/2024). At Hiab the total amount of materials includes steel only, calculated from divisional average weights. At MacGregor the figure covers the total weight of steel from suppliers of steel structures and fittings, based on volume data from 23 top suppliers representing about 95 percent of total weight; other materials besides steel are minor. Kalmar's figure is based on the weights of sold products, with estimates used for unknown weights.

Cargotec's products are designed to support circular principles such as durability and repairability, with equipment designed to stay in use for years, even decades, through durable materials, regular repairs and upgrades. A typical Cargotec machine is made with roughly 70 percent steel; based on product specifications Cargotec estimates the share of steel in its equipment is approximately 70 percent. Steel can be recycled almost indefinitely, and the global recycling rate of available steel is approximately 90 percent, making steel a highly recyclable and widely recycled material. Cargotec offers maintenance and other services (inspections, repairs, upgrades, take-back programmes, automation and digitalisation) that keep equipment in operation longer, improve energy efficiency and optimise performance. Renting out equipment and selling second-hand goods contribute to a sharing economy where customers are not required to own all their assets. Cargotec does not currently have an adequate understanding of the industry average for product durability, established repairability rating systems, nor full visibility into the share of total recyclable content in its products. The quantity of resource outflow is noted to be similar to the resource inflow.

Waste data is based on records received from contractor companies; due to delays in supplier invoicing, Cargotec used estimates for waste indicators for the last quarter of 2024, based on corresponding Q4 2023 data. For continuing operations in 2024 (2023 comparative in parentheses), hazardous waste was 480 tonnes (550) and non-hazardous waste 4,880 tonnes (5,220). The total amount of waste generated was 5,360 tonnes (5,770), the amount of non-recycled waste 1,660 tonnes (1,850), and the share of non-recycled waste of total waste 31.0 percent (32.1 percent). Of hazardous waste, 100 tonnes were recycled (diverted from disposal), while directed to disposal totalled 370 tonnes (200 landfilled, 150 incinerated, 20 other). Of non-hazardous waste, 3,590 tonnes were recycled and 1,300 tonnes directed to disposal (760 landfilled, 480 incinerated, 60 other). Cargotec total (including discontinued operations) for 2024 was: hazardous waste 630 tonnes, non-hazardous waste 7,630 tonnes, total waste generated 8,260 tonnes, non-recycled waste 1,950 tonnes, and share of non-recycled waste 23.6 percent. Cargotec's own waste composition includes hazardous liquids and solids, aluminium, bio waste, cardboard, construction waste, electronic waste (WEEE), glass, paper, plastics, rubber, wood, metal scrap, mixed and unspecified non-hazardous waste.

The social section of Cargotec's Code of Conduct (CoC) covers human trafficking, child and forced labour, health and safety, diversity and anti-discrimination. The CoC states Cargotec does not tolerate discrimination based on gender, gender identity, sexual orientation, race, religion, nationality, age, physical ability or any other similar characteristic. The Sustainability Policy covers material social topics on human rights, health and safety and diversity, equity and inclusion, and describes Cargotec's approach to human rights due diligence, including remedy for adverse impacts and engagement with affected stakeholders. The policy confirms commitments to the UN Global Compact, the OECD guidelines for multinational enterprises, the UN Guiding Principles on Business and Human Rights, the International Bill of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work; human rights sections were reviewed by BSR. The Employment Policy complements the CoC, is approved by the Cargotec Leadership Team and covers anti-harassment, anti-discrimination and DE&I. The SVP Human Resources is the most senior role accountable for implementing HR-related policies. Cargotec has no specific policy commitment on inclusion or positive action for vulnerable groups. Employees and their representatives were not involved in updating the policies.

Cargotec promotes dialogue between management and personnel, organised at group and country level based on local legislation. All employees have the right to join a trade union of their choice and to bargain collectively, and employee representatives are protected from discrimination. Direct engagement occurs through annual and monthly employee engagement surveys and the performance and development plan (PDP) process. The annual survey, Compass, reaches all employees through email, kiosks and site support, while the monthly survey is accessible to those with a company email address. Managers follow up on findings in team sessions and set action plans. Cargotec engages employee representatives through national and local trade unions, personnel representatives and works councils; local representatives and works councils are kept informed of significant projects or changes. The Cargotec Personnel Meeting corresponds to the European Works Council and meets face-to-face annually. During 2024, Cargotec held negotiations with employee representatives in several operating countries due to the planned separation of its business areas. The SVP Human Resources and heads of HR in the business areas have ultimate operational responsibility for engagement; at Hiab this is the SVP Demountables and Defence. The company has not identified vulnerable groups requiring specific engagement.

Cargotec employees can report concerns and potential misconduct through several channels, including their own manager, local or group-level Human Resources, the Ethics and Compliance function, or the company's SpeakUp line. The SpeakUp line is an externally hosted reporting tool for anonymous reporting accessible to both internal and external stakeholders, managed by the Ethics and Compliance function. Cargotec does not require firm evidence of misconduct to file a report, but reports must be made in good faith, and the company never imposes sanctions or retaliation on people who report in good faith. Annual mandatory Code of Conduct training raises awareness of the SpeakUp line and other grievance channels, and the annual employee engagement survey measures how comfortable employees feel reporting concerns (Code of Conduct Index, 85 percent for continuing operations in 2024). Effectiveness is evaluated based on trends in reporting volumes. Health and safety incidents follow a separate reporting and remedy process managed by the business areas and individual sites; all employees and external employees can report safety concerns through digital and in-person channels, and employees have the right and obligation to stop hazardous work without fear of retaliation.

During 2024, Cargotec created a guideline to help its business areas plan and execute human rights due diligence, with standalone Hiab to conduct a human rights impact assessment ahead of the EU CSDDD. The human rights-related target for 2024 was a 100 percent completion rate on human rights training within mandatory Code of Conduct training; completion reached 97 percent for continuing operations and 95 percent for Cargotec total. For health and safety, the ISO 45001 management system provides guidance, with certification coverage at Hiab's assembly sites of 71 percent based on headcount. Hiab launched a one-month Step Challenge, a one-week positive reporting campaign, and piloted a "Dare to care" concept, and improved conditions through a "model factory" project applying LEAN principles at three sites (Dundalk, Ireland; Raisio, Finland; Minerbio, Italy). On equal treatment, DE&I initiatives became the responsibility of the business areas in 2024, with Cargotec sharing learnings and materials with Hiab. Hiab introduced a new learning space, @HiabLearns. In four substantiated cases of harassment and discrimination reported through SpeakUp in 2024, Cargotec implemented remedy through, for example, discussions, disciplinary action and even termination of employment for the wrongdoer.

Cargotec's externally disclosed target related to its own workforce is the Integrity Index, calculated from selected questions in the annual employee engagement survey covering employee perceptions of sustainability (code of conduct, fair treatment, safety, environmental sustainability), employer-related pride and hope, and quality of leadership. The target for 2024 was to maintain the Integrity Index above 77 percent, which was achieved, as the index was 78 percent for continuing operations (2023: 78). The target is set primarily by Human Resources leadership; employees or their representatives were not included in setting it. Cargotec has not set targets for its material impacts, risks and opportunities related to equal treatment and opportunities for all, with standalone Hiab to decide on potential targets. Health and safety targets are covered separately. The unit used for personnel-related KPIs is headcount as reported on 31 December 2024; HR figures include permanent and temporary employees and supervised workers unless otherwise stated. Unless otherwise stated, Cargotec total does not include Kalmar's figures for H1/2024 in own-workforce KPIs due to headcount calculation challenges.

Cargotec's continuing operations employed 4,137 people at the end of 2024 (31 Dec 2023: 4,311); Cargotec total was 6,095. For continuing operations in 2024, this comprised 869 women and 3,268 men. By age: 543 aged under 30, 2,168 aged 30 to 50, and 1,426 aged over 50. By contract type (continuing operations): 3,941 permanent employees (807 women, 3,134 men), 196 temporary employees (62 women, 134 men), 583 non-guaranteed hours employees (77 women, 506 men), 3,995 full-time employees and 142 part-time employees. By region for total own employees (continuing operations): AMER 903, APAC 151, EMEA 3,083. Employee turnover for continuing operations: 607 permanent employees left the company (2023: 641), a turnover rate of 15 percent (2023: 16 percent); Cargotec total was 866 leavers and 15 percent. Countries with at least 10 percent of total workforce included the United States (799 continuing operations employees), Poland (526), Finland (508) and Sweden (427). Headcount is reported as of 31 December 2024.

In addition to its own employees, Cargotec has an external workforce that includes temporary employees, consultants and agency temps, typically on temporary full-time contracts. The external workforce does not include subcontractors where Cargotec only purchases predefined deliverables such as products, or an ongoing service solely managed by the supplier with no Cargotec line manager appointed. For continuing operations in 2024, the external workforce numbered 121 (2023: 178), comprising 24 women and 97 men; the Cargotec total external workforce was 192 (41 women, 151 men). Combining own employees and external workforce, the total workforce was 4,258 for continuing operations in 2024 (2023: 4,489) and 6,287 for Cargotec total. The most senior role responsible for the workforce is the SVP Human Resources.

Cargotec discloses the composition of governance bodies and employees by gender and age group. For continuing operations in 2024, the Board of Directors comprised 4 men (57 percent) and 3 women (43 percent); all seven members were over 50 years old. The Cargotec Leadership Team comprised 6 men (75 percent) and 2 women (25 percent); all eight members were over 50 years old. Among employees for continuing operations in 2024, there were 3,268 men (79 percent) and 869 women (21 percent); for Cargotec total, 4,655 men (76 percent) and 1,440 women (24 percent). By age group for continuing operations employees in 2024: under 30 years old 543 (13 percent), 30 to 50 years old 2,168 (52 percent), and over 50 years old 1,426 (34 percent). There were no changes to the composition of the Board of Directors or the Cargotec Leadership Team after Kalmar's separation and MacGregor's sale announcement.

For continuing operations in 2024, 93 percent of employees received regular performance and career development reviews (2023: 92 percent), split into 92 percent of female employees and 93 percent of male employees; the Cargotec total figure was 91 percent. Employees without access to the company's human resource information system (mainly workers at production and service sites) are covered by a local performance and development plan process. The average number of training hours per employee (LEARN) was 7.22 for continuing operations in 2024 (2023: 9.75), comprising 5.20 hours for female and 7.79 hours for male employees; the Cargotec total was 5.85 hours (female 4.43, male 6.31). The average training hours figure only includes e-learning courses completed on Cargotec's learning platform LEARN, calculated based on estimated completion time for each course rather than actual time spent, and excludes training completed on other platforms or in person. During 2024, Hiab introduced a new learning space, @HiabLearns, to help employees find relevant learning opportunities within its learning management system.

In daily operations the ISO 45001 health and safety management system provides guidance. Cargotec's safety target for 2024 was replaced with business area-specific targets in Q1/2024; Hiab's target was an industrial injury frequency rate (IIFR, injuries per million hours worked) below 3.2, which was achieved as Hiab's IIFR was 3.2 (2023: 3.2). For continuing operations in 2024, the IIFR across all operations was 2.8 (2023: 2.8) and Cargotec total was 3.0. The total recordable injury frequency rate (TRIF), covering fatalities, lost time injuries, medical treatment injuries and restricted work cases, was 7.6 for continuing operations (2023: 8.4) and 6.3 for Cargotec total. The number of recordable work-related accidents was 57 (2023: 67), with a Cargotec total of 98. Own workers covered by a health and safety management system based on legal requirements or recognised standards was 71 percent (2023: 71 percent), Cargotec total 87 percent. There were 0 fatalities from work-related injuries and ill health (2023: 0). Recordable work-related ill health cases numbered 10 (2023: 5), Cargotec total 14. Days lost to injuries, accidents, fatalities and work-related ill health were 652 (2023: 318), Cargotec total 2,665. Health and safety figures include Kalmar's performance for H1/2024.

For continuing operations in 2024, Cargotec's gender pay gap, based on average gross hourly pay level, was 8.3 percent (2023: 7.6 percent); the Cargotec total figure was 16.4 percent. The company notes this figure indicates the situation at a high level and that its data is not currently sufficiently granular to account for how gender might affect pay within certain roles, with standalone Hiab responsible for improving the methodology going forward. The total remuneration ratio, the ratio of the highest paid individual (CEO) annual base salary to the median annual base salary for all employees excluding the CEO, was 16.76 for continuing operations in 2024 (2023: 18.01) and 15.95 for Cargotec total. The total remuneration ratio is calculated using base salary rather than total remuneration due to data collection challenges brought by the separation of Kalmar in H1/2024.

Cargotec recorded no cases related to severe human rights incidents in 2024. Discrimination incidents, including harassment, are collected through the central grievance channel SpeakUp; as incidents may also be reported through other channels such as local Human Resources representatives, Hiab is developing a process to collect all incidents through SpeakUp in future. For continuing operations in 2024, reported discrimination complaints including harassment (reports filed through SpeakUp only) numbered 5, of which 4 were partly or fully substantiated; severe human rights incidents were 0. For Cargotec total, reported discrimination complaints including harassment were 7, partly or fully substantiated were 4, and severe human rights incidents were 0. The 2023 comparative for complaints was not available (N/A) as Cargotec's systems did not track this information in a reportable format prior to January 2024. Cargotec defines direct discrimination as treating an individual less favourably based on characteristics such as gender, gender identity, sexual orientation, race, religion, nationality, age or physical ability, and harassment as any unwanted behaviour that makes someone feel uncomfortable.

Cargotec's Business Partner Code of Conduct (BPCoC) covers partners in all parts of the value chain, with more focus on the supply chain. It sets requirements for partners on human rights such as health and safety and freedom of association, and explicitly prohibits all forms of modern slavery, including forced and child labour and human trafficking. It expects partners to treat employees with fairness, dignity and respect, to provide employees the opportunity to report concerns, and to take needed steps to provide remedy for any non-compliance. The BPCoC is founded on the UN Universal Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the UN Convention against Corruption, and it strengthens Cargotec's commitment to the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. Cargotec's Sustainability Policy commits to respecting internationally recognised human rights throughout the value chain and to engaging with impacted people to ensure adequate remedy.

Cargotec engages with value chain workers mainly through supplier self-assessments and third-party audits. The BPCoC expects partners to give employees the opportunity to report concerns. Supplier employees are interviewed as part of audits conducted on Cargotec's behalf by a third party; suppliers are selected using a risk-based approach targeting low or missing self-assessment scores or high-risk countries, and because all new suppliers complete the self-assessment during onboarding, selection is on-going. The third-party audits function as a form of engagement with supply chain workers, helping the company understand how people are impacted and evaluate whether supplier employees are aware of and trust the reporting channels. The sourcing and sustainability functions, and their representatives in each business area's leadership team, are responsible for ensuring engagement happens. Effectiveness is evaluated by, for example, following the progress of supplier sustainability self-assessment scores. Workers can also raise concerns and observations directly with their Cargotec contact.

Cargotec's own channel, SpeakUp, is available to all value chain workers for reporting concerns and potential misconduct. It is promoted to sales third parties such as dealers and agents through onboarding and monitoring training and through the BPCoC, and it is also promoted to suppliers as an option. In its BPCoC, Cargotec requires suppliers and other partners to maintain a reporting mechanism giving their employees and stakeholders an opportunity to raise concerns, to have appropriate procedures to handle such cases, and to commit to correcting non-compliance; the existence of a grievance channel is requested in supplier self-assessments and checked during onsite audits. Workers can also report directly to their Cargotec contact. If Cargotec caused or contributed to a human rights violation, it would apply a case-specific approach to remedy, determined by the details of the case, the needs of impacted persons and local legislation, while committing not to hinder access to other forms of remedy such as legal proceedings and cooperating with others where relevant. Non-retaliation protections apply to those who report.

Health and safety impacts on supply chain workers are managed through the business areas' responsible sourcing programmes, aiming to avoid causing or contributing to material negative impacts. During 2024 Cargotec commissioned 19 third-party onsite supplier audits focused on human rights, including health and safety. Non-compliance was found in all these audits and each supplier received a tailored corrective action plan; approximately 40 percent of incidents found were related to health and safety, with examples including missing building or fire safety permits, insufficient number of or blocked emergency exits, accessibility of fire safety equipment, and missing emergency lighting. Cargotec also documented 69 labour rights-related incidents during on-site audits in 2024, mostly with Tier 2 suppliers in high-risk countries, related to topics such as missing employment contracts, inaccurate payment records, mandatory recruitment fees, non-compliance with minimum wages and excessive overtime; all affected suppliers received corrective action plans and those with the lowest scores will be re-audited. Cargotec also followed up on findings from its 2023 audits. No severe human rights issues or incidents connected to its upstream and downstream value chain were reported during the year.

Cargotec's target for responsible sourcing is to improve the overall score in supplier sustainability self-assessments. Human rights, including the health and safety and working conditions of supplier employees, are included in the self-assessment. Improved scores are treated as an indicator of a supplier's improved performance and actions taken, and before a new score is granted the third party hosting the self-assessment platform validates all evidence provided by the supplier. These score improvements form the basis for Cargotec's responsible sourcing target. Further details on the target are provided under Management of relationships with suppliers within Business Conduct. Following the planned separation of Cargotec's business areas, standalone Hiab will be responsible for planned actions for the future.

The end-users of Cargotec's products are the operators of its equipment, who are either employees of Cargotec's customers or, in the case of small business owners, the customers themselves. As this simultaneously makes them workers in Cargotec's value chain, reporting requirements for end-users are mostly covered under Workers in the value chain, and general value chain worker policies apply to them. Cargotec does not have policies that specifically address end-users. However, its Sustainability Policy states that Cargotec designs its solutions to ensure the safety of those who operate its equipment, and that Cargotec collaborates with customers to improve safety throughout the value chain. The company has identified that the only material impact on its end-users relates to health and safety, arising from operating and servicing load handling equipment.

Engagement with end-users is described under Workers in the value chain. Cargotec gains insight into health and safety impacts on customer employees through customer engagement and feedback, but typically not directly from the employees who operate its equipment. Customer feedback also helps Cargotec evaluate the effectiveness of the engagement. Ensuring engagement takes place is the responsibility of the company's sales function and its representatives in each business area's leadership team, and the frequency of engagement varies depending on the specific customer relationship. In interactions with customers the goal is to build a comprehensive understanding of the customer's business and priorities; safety is a highly valued topic for many customers, although the manner in which the sales organisation interacts with customers on safety varies between individuals. Cargotec also offers basic product training for customer employees when equipment is delivered, and can provide more in-depth safety training for equipment operators if separately requested by the customer.

End-users' access to grievance channels and remedy is described under Workers in the value chain, since end-users are also workers in Cargotec's value chain. The SpeakUp channel is available to all value chain workers, including operators, for reporting concerns and potential misconduct. Cargotec also has an internal channel for reporting serious incidents related to its equipment that have occurred at customer sites and that the customer has shared with Cargotec. If a case were identified where Cargotec caused or contributed to a human rights violation, the company would apply a case-specific approach to remedy and corrective action, determined by the details of the case, the needs of the impacted persons and local legislation, while committing not to hinder access to other forms of remedy such as legal proceedings and cooperating with others where relevant. The effectiveness of remedy may be evaluated based on feedback from impacted persons or third-party expert organisations.

Actions related to the safety of end-users are taken mainly through product development. Cargotec's research and development function, together with the company's health and safety function, continuously evaluates and improves the safety of its equipment. Examples include the operator compartment of Hiab's MOFFETT truck-mounted forklift, designed for excellent field of vision and checking that the operator has fastened their seatbelt, and Hiab's MULTILIFT hooklifts with safety interlocks, audio and visual warnings and autonomous features that help less experienced operators; Hiab's HiSkill simulator lets operators practise safely in a virtual environment. In 2024 Hiab launched L2 Driver Support for MULTILIFT demountables, which automatically reverses and aligns the truck with the container while the driver monitors safety from the cabin, reducing the need to leave the cabin. Also in 2024 Hiab launched the MULTILIFT Talon hooklift for its Defence product line, featuring automated container lift and locking so the truck driver can remain in the cabin, and an automatic sensor that warns the driver if people are within a dangerous distance of the equipment.

Cargotec has an internal channel for reporting serious incidents related to its equipment that have occurred at customer sites and that the customer has shared with Cargotec. However, overall the company does not currently have enough visibility into the health and safety of the end-users of its products to set a target for the topic. Nevertheless, customer feedback on safety features or on incidents related to Cargotec's equipment is used to identify potential improvement areas in, for example, product design. Standalone Hiab will determine the needed next steps to increase this visibility. Targets related to value chain workers in general, such as the responsible sourcing self-assessment score target, are described under Workers in the value chain.

Cargotec's Code of Conduct (CoC) is the main instrument for setting and implementing an ethical corporate culture. It is developed and kept up to date by a cross-functional team spanning Human Resources, Ethics and Compliance, Legal, Internal Audit, Sustainability and Finance, and is updated to reflect regulatory changes, company transformations and evolving risks. The CoC includes an extensive anti-corruption and anti-bribery section that is consistent with the UN Convention against Corruption, and it expects leaders to ensure their teams are trained to handle ethical dilemmas. Employees and external stakeholders can raise concerns about suspected non-compliance through the SpeakUp line, an externally hosted tool allowing anonymous reporting. The Non-Retaliation instruction states Cargotec never imposes sanctions or retaliation on anyone reporting in good faith, and protection also covers those who refused to act unethically even at loss of business. Further governance is provided by the Anti-Corruption Policy, Business Partner Code of Conduct, Export Controls Policy, Trade Sanctions Policy, Third Party Policy, and instructions on gifts, hospitality and conflicts of interest, all approved by top leadership (CEO, CLT or BoD). The Sustainability Policy documents zero tolerance for corrupt practices and retaliation.

Cargotec manages supplier relationships through a responsible sourcing programme built on its Business Partner Code of Conduct (BPCoC), supplier approval and contracting, supplier engagement and audits, and the SpeakUp line for internal and external stakeholders. The BPCoC covers partners across the value chain and is founded on the UN Universal Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the UN Convention against Corruption. New suppliers must meet pre-requirements and pass an audit before approval, including committing to the BPCoC, an integrity assessment, and a supplier sustainability self-assessment on a third-party platform. Roughly 20 percent of audit checklist questions relate to labour and human rights, anti-corruption and the environment. The self-assessment is mandatory for all new suppliers; strategic direct suppliers take it annually if they have a low score or the assessment is updated. If BPCoC non-compliance is found, corrective measures and timeframes are agreed with the supplier, and Cargotec may decline or terminate the relationship if the supplier is unwilling. The 2024 responsible sourcing target (90 percent of strategic suppliers completing the self-assessment with a combined average score of at least 60 percent) reached 95 percent supplier coverage and 66 percent average score for continuing operations, and 93 percent coverage and 64 percent average score for Cargotec total.

Cargotec bases its approach on detecting, preventing and responding to potential misconduct. Employees can report concerns through their manager, local or group-level Human Resources, the Ethics and Compliance (E&C) function, or the SpeakUp line. All suspected misconduct, including corruption and bribery, is subject to review and potential investigation assessed by E&C experts, conducted objectively by people with no connection to the case. Remedy is case-by-case; confirmed cases may lead to improved controls, training, disciplinary action or termination of third-party relationships. For prevention, the E&C function provides proactive advice, information, training and internal investigations, and trains employees on ethics and compliance topics including corruption and bribery through e-learning, with onsite workshops for those without email or intranet access. Anti-corruption was a core component of the mandatory annual Code of Conduct e-learning in 2024. Functions considered most at risk are Sales, Marketing, Sourcing, Human Resources, General Management, Finance and Risk Management. In 2024 the percentage of functions-at-risk covered by training programmes was 97 percent for continuing operations (86 percent in 2023) and 98 percent for Cargotec total; Code of Conduct training completion was 95 percent for both continuing operations and Cargotec total. Cargotec also organised targeted export controls training for 102 Hiab employees. The Board receives an annual compliance update and the Leadership Team an update every two months.

In 2024 Cargotec's continuing operations recorded 38 reports filed (30 in 2023; 63 for Cargotec total 2024). The Ethics and Compliance function initiated 7 investigations for continuing operations (3 in 2023; 17 total), broken down into conflict of interest (0), workplace environment (2), export controls or sanctions (0), and unethical business conduct, financial integrity and other policy violations (5). E&C completed 8 investigations for continuing operations (6 in 2023; 22 total), of which 5 were partly or fully substantiated (4 in 2023; 5 total). Human Resources initiated 11 investigations for continuing operations (6 in 2023; 15 total). Cargotec did not receive any convictions or fines for violation of anti-corruption and anti-bribery laws during 2024, and there were no breaches of anti-corruption or anti-bribery procedures and standards needing to be addressed. Separately, a suspected aggravated fraud connected to the MacGregor business area, reported to Finland's National Bureau of Investigation in June 2019 and detected by Cargotec in an internal review, resulted in a March 8, 2022 District Court of Turku verdict. Following appeals, the Supreme Court denied leave to appeal in November 2024 and the case is now closed for Cargotec; neither MacGregor nor Cargotec were suspected of criminal actions.

Cargotec does not use one standard set of payment terms, applying multiple terms with payment time varying between 0 and 150 days, so it cannot describe standard payment terms or aligned KPIs. For direct procurement the target payment term is 90 days, which is the default in standard purchasing agreements; for indirect procurement the target is 60 days net for Hiab, though terms are always negotiated individually with suppliers. In 2024 the average time to pay an invoice from when the contractual or statutory term starts to be calculated was 54 days for continuing operations (58 days in 2023) and 55 days for Cargotec total. The payment-on-time ratio (share of invoices paid before or on the due date) was 76 percent for continuing operations (72 percent in 2023) and 75 percent for Cargotec total. Legal proceedings outstanding for late payments numbered 0 in all periods. Payment terms not held in master data are set as due immediately and excluded from the calculation, representing approximately eight percent of the total number of invoices. Cargotec has no specific policy for preventing late payments but aims to keep improving its payment-on-time ratio, having set a strategic objective in 2022 that has produced double-digit year-over-year improvement since; standalone Hiab will continue these efforts.