2024 highlights
Report of the Board of Directors
Sustainability statement
Konecranes Group 2020–2024
Calculation of key figures
Financial Statements
Consolidated statement of income – IFRS
Consolidated balance sheet – IFRS
Consolidated statement of changes in equity – IFRS
Consolidated cash flow statement – IFRS
Notes to the consolidated financial statements
Parent company statement of income – FAS
Parent company balance sheet – FAS
Parent company cash flow – FAS
Notes to the parent company’s Financial Statement
Board of Directors’ proposal to the Annual General Meeting
Auditor’s report
Assurance report on the Sustainability Statement
Independent Auditor’s Report on Konecranes Plc’s
ESEF Consolidated Financial Statements
Company information for ESEF reporting
Shares and shareholders
FINANCIAL REVIEW 2024
Contents
34
36
48
136
137
139
140
141
142
143
193
194
195
196
198
199
203
205
207
208
33
Sales & order intake, MEUR
Comparable EBITA by Segment, 2024
Comparable EBITA, MEUR & Comparable EBITA margin, %
Personnel by Segment, 2024
Earnings & dividend per share, EUR
56%
Service
331.5 MEUR
24%
Port Solutions
142.2 MEUR
20%
Industrial Equipment
116.5 MEUR
48%
Service
8,020
20%
Port Solutions
3,420
32%
Industrial Equipment
5,289
2020 2021 2022 2023 2024
Sales Order intake
0
1,000
2,000
3,000
4,000
5,000
3,364.8
4,227.9
3,966.3
4,161.4
4,227.0
3,999.6
3,185.7
3,446.9
3,178.9
2,994.2
36%
Service
1,574.7 MEUR
35%
Port Solutions
1,521.7 MEUR
29%
Industrial Equipment
1,289.3 MEUR
Sales by Business Area, 2020
0
100
200
300
400
500
600
2020 2021 2022 2023 2024
Comparable EBITA
Comparable EBITA margin
0
8
4
12
16
20
24
312.2
318.4
450.7
551.6
260.8
0.0
1.0
2.0
3.0
4.0
5.0
Earnings & dividend per share, EUR
2020 2021 2022 2023 2024
Earnings per share, basic Dividend per share
1.86
1.77
1.25
1.25
3.48
1.35
4.65
1.65*
1.54
0.88
*The Board's proposal to the AGM
Sales by Segment, 2024
2024 highlights
Percentages have been rounded and may not total to 100%.
34
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Return on equity, %
Order book, MEUR
ROCE, % & Comparable ROCE, %
Year-end net working capital, MEUR
Year-end market capitalization*, MEUR
Year-end net debt, MEUR & Gearing, %
0
100
200
300
400
500
2020 2021 2022 2023 2024
227.1
490.2
353.6
378.6
350.6
0
200
400
600
800
1,000
2020 2021 2022 2023 2024
Net debt
577.1
541.6
688.3
365.8
183.5
100
80
60
40
20
0
Gearing
0
5
10
15
20
25
2020 2021
2022
2023 2024
Return on capital employed, %
Comparable return on capital employed, %
8.3
11.1
9.3
13.4
9.0
13.4
16.4
17.7
20.3
20.8
0
1,000
2,000
3,000
4,000
2020 2021 2022 2023 2024
2,036.8
2,901.7
3,040.8
2,888.4
1,715.5
0
5
10
15
20
25
2020 2021 2022 2023 2024
9.8
11.3
9.9
18.2
21.3
0
1,000
2,000
3,000
4,000
5,000
2020 2021 2022 2023 2024
2,277.5
2,782.4
2,276.8
3,229.9
4,847.6
* Excluding treasury shares
35
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Report of the Board of Directors
Konecranes’ strategy
Konecranes’ purpose is to shape next-generation material
handling for a smarter, safer and better world.
The world is facing the challenge of providing materials and
goods that are essential for people, while preserving scarce
resources and limiting emissions. As an industry leader,
Konecranes is perfectly placed to meet this challenge: the
company supports its customers’ operations with innovative
solutions that enhance their productivity, lower their
emissions and drive their business forward.
Konecranes is a global leader in material handling
solutions, serving a broad range of customers across
multiple industries. The company consistently sets the
industry benchmark, from everyday improvements to the
breakthroughs at moments that matter most, and is trusted
every day to lift, handle and move what the world needs.
Konecranes owns the largest patent portfolio in its industry
and provides value for customers during the material
handling solutions’ whole lifetime.
Service provides industry-leading maintenance services
for all types and makes of industrial cranes and hoists.
Konecranes has an unparalleled global service network,
with an objective to improve the safety, productivity and
sustainability of customers’ operations. Konecranes takes
a comprehensive, systematic and collaborative approach
to managing customer assets through Lifecycle Services;
connecting data, machines and people to deliver a digitally
enabled customer experience in real time and to maximize
uptime and minimize downtime.
Industrial Equipment provides hoists, cranes and material
handling solutions from general manufacturing to various
kinds of process industries, and Konecranes is a global
leader in sustainable lifting solutions covering a full range
of industrial applications. The company’s deep industry
knowledge is built into every Konecranes product which has
quality at the core. Konecranes designs and manufactures
the key crane components (“core of lifting”) in-house, to
function flawlessly in the specific lifting applications of
customers’ industries.
Port Solutions provides lifting equipment and solutions,
as well as services, to container terminals, intermodal
terminals, shipyards and bulk terminals. Konecranes’
container handling offering is the widest and deepest in the
industry, and Port Solutions offers a full range of manned
and fully automated container yard cranes and automated
guided vehicles, mobile harbor cranes, manned and fully
automated straddle carriers, and heavy-duty lift trucks.
It also provides a complete array of shipyard cranes and
Terminal Operating System (TOS) and Equipment Control
System (ECS) software, optimizing the operations of entire
container terminals.
Global demand driving Konecranes’ growth and
innovation
Demand for Konecranes’ products and services is influenced
by market conditions in the manufacturing and container
handling industries. Customers typically invest in new
equipment to expand capacity or replace old machinery.
Investment can be cyclical and varies across different
industries, depending on the economic environment.
Konecranes sees growth opportunities arising from the
demand for higher productivity, safety and environmental
sustainability.
The vast majority of Konecranes’ customers are in industrial
production sectors, including general manufacturing, metals,
power generation, petrochemicals, and pulp and paper. In
general, their need for services and new equipment is tied to
production volume and capacity utilization. The remaining
are container ports and terminals, where investments are
linked to global trade and container volumes.
36
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Konecranes’ organic growth has been healthy,
complemented by a strong acquisition track record. As
Konecranes has expanded, its operations have become
increasingly international, with products manufactured in
the Americas, EMEA, and APAC, and sold worldwide. Today,
Konecranes’ operations span across the world with presence
in over 50 countries. The global reach allows Konecranes
to offer the benefits of an industry leader while delivering
extensive local presence and service capabilities.
Megatrends driving Konecranes’ business
Konecranes has identified three megatrends that shape its
markets and provide business opportunities: Sustainability,
Digitalization and automation, and Geopolitics.
In Konecranes’ customer industries, companies and
regulators alike have increased their ambitions to
decarbonize operations. Konecranes supports this
development through its own ambitious climate targets
and offering and the company’s products are designed to
combine productivity with eco-efficiency. The extensive
service offering lengthens the lifecycle of the equipment
and supports circular economy. Safety is incorporated
into the design, construction, maintenance and service of
Konecranes’ products.
Digitalization is accelerating within the industries
Konecranes provides solutions to, and customers
increasingly explore digital solutions to enhance
productivity, safety and sustainability. Konecranes is a
technology leader in material handling, developing smart,
connected products and autonomous solutions, and
harnessing the advantages of the company’s purpose-
built componentry, technical knowledge and digitalization.
The extensive digital offering supports Konecranes’
position as the supplier of choice, while also providing data
that supports in perfecting offerings such as predictive
maintenance. Konecranes applies industry best practices
within cybersecurity to provide safe and secure digital
solutions to customers.
Geopolitical events such as the war in Ukraine do not
only bring human suffering – they create disruptions in
companies’ operating environment as seen in supply chain
challenges, rising energy costs and inflation. In addition, the
increased protectionism over the past few years is reflected
in Konecranes and its customers’ operating environment.
Konecranes’ diversified business portfolio and industry-
leading position also help protect the company from
regional and segment volatility. On the other hand, changing
supply chains and trade routes may increase the global
demand for material handling solutions and services.
Business targets
Konecranes’ ambition is to become the world leader in
material handling solutions, creating value for everyone.
Reflecting the growing global demand for material handling
solutions and services that sustainably meet people’s needs,
Konecranes has established the following financial targets:
• sales growth faster than the market
1
, and
• a comparable EBITA margin of 12-15% as soon as possible
but no later than in 2027
2
.
Growth is expected to be mainly organic.
The financial targets for the Business Segments are the
following:
Service:
• Sales growth clearly faster than the market
• Comparable EBITA margin of 20-24%
Industrial Equipment:
• Sales growth in line with the market
• Comparable EBITA margin of 8-10%
Port Solutions:
• Sales growth clearly faster than the market
• Comparable EBITA margin of 9-11%
In addition to financial targets, Konecranes has set ambitious
climate targets, and aims to have carbon neutral own
operations by 2030 and continues the work to reach its
science-based targets, in line with limiting global warming
to 1.5°C. For Scope 3 emissions, Konecranes is committed
to reduce absolute GHG emissions by 50% by 2030 from
base year 2019, encompassing the use of sold products
and steel related purchases. The target covers over 70% of
Konecranes’ value chain emissions.
The decarbonization levers in Konecranes’ climate roadmap
are electrified product offering and customer industries’
electrification, steel industry decarbonization, energy market
decarbonization, material handling optimization and carbon
neutral own operations.
Strategy
In order to become the global leader in material handling
solutions, Konecranes has a clear strategy to execute in all its
Business Segments.
In Service, Konecranes targets at topline growth, whereas
Industrial Equipment focuses mainly on profitability
improvement. In Port Solutions, focus is both on sales growth
and profitability improvement.
On both Group and Business Segment level, Konecranes
focuses on
• Profitable and high growth offerings and geographies
• Leveraging technology leadership through automated and
digital solutions
• Markets and segments that appreciate the added value of
the company’s offering
• Pricing, cost management and internal efficiency
• Operating model with clear authorization and
accountability
1) nominal world GDP growth, IMF World Economic Outlook
2) profitability range, depending on the cycle
37
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
In order to generate growth and improve profitability,
Konecranes has outlined five strategic enablers that are
critical for the company’s future success. These are:
• Deepening customer focus – Konecranes places the
needs and expectations of customers at the heart of the
decision-making every day.
• Accelerating efficiency - Konecranes continuously
optimizes operations and its go-to-market model, building
resilience, driving efficiency and enhancing productivity.
• Scaling technology innovation – Konecranes is a
technology leader in material handling, developing
smart, connected products and autonomous solutions,
leveraging the advantages of its purpose-built
componentry, technical knowledge and digitalization.
• Advancing responsible business – Konecranes is enabling
a decarbonized and circular world by embedding
sustainability across its business and supporting
customers in reaching their targets. Konecranes is creating
a fair, inclusive and diverse working environment where
everyone is treated with respect and expects the highest
ethical standards of its employees and business partners.
• Enhancing our winning culture – Konecranes is creating an
organization where working together comes naturally and
people are inspired to be the best they can be.
Key intangible resources supporting Konecranes’
business model
Konecranes is an industry leader, with over 100 years of
experience in producing and servicing material handling
solutions. Key intangible resources supporting Konecranes’
business model include for example patents and trademarks,
software, technology and customer lists, as well as
experience in the industry.
Konecranes has a dual go-to-market model and sells
products to customers under different brands and
trademarks. Within industrial customer segments,
Konecranes-branded products are sold to end-customers,
whereas Demag, SWF, Verlinde, R&M and Donati branded
products are sold to distributors and Original Equipment
Manufacturers. Within port customers, Konecranes sells
products with the Konecranes, Konecranes Gottwald,
Konecranes Noell and Konecranes Liftace brands.
The diverse trademark and brand portfolio results from
Konecranes’ active M&A history. As the acquired brands
have had established and strong positions among
customers in certain products, geographies and regions,
Konecranes has decided to maintain the multi-brand
approach, and dual go-to-market model. The strong brand
portfolio supports demand for Konecranes’ offering,
although the product platforms for different brands have
been largely harmonized.
Technology leadership is key to Konecranes’ success, and
the company owns the largest patent portfolio in its industry.
Konecranes designs and produces its key components
largely in-house, and they are specifically designed and
optimized for lifting and material-handling purposes. The
patented technology provides a competitive advantage,
as Konecranes’ products and solutions are known for their
durability and optimized performance.
Throughout its history, Konecranes has invested in
technology and software development. When designing
new products, or upgrading the current ones, usability,
productivity, sustainability and serviceability are key
elements. The company’s service capability builds on
decades of experience and know-how, and millions of hours
of utilization data.
One of the cornerstones of Konecranes’ maintenance
ecosystem is TRUCONNECT, a remote monitoring system
that provides important real-time data about material
handling equipment’s and solutions’ condition, usage and
operation. TRUCONNECT uses sensors on various crane
components to gather critical data, including running
time, lifted loads, emergency stops and brake condition.
The data is sent to a real-time IoT and analytics platform
from which insights can be gathered. These insights
enable Konecranes experts and crane owners to foresee
maintenance needs so the performance of equipment can
be optimized and its lifespan prolonged. Monitoring with
TRUCONNECT is not limited to only Konecranes assets, it
can be added to cranes made by other manufacturers when
possible.
TRUCONNECT data can be utilized when the equipment
is being serviced and maintained. Based on advanced
predictive maintenance models, Konecranes receives
forecasts on potential faults and replacement needs, and
sales teams can then contact the customer to discuss
recommended actions. TRUCONNECT provides also
valuable data on how actively Konecranes’ products in
different customer segments and regions are being used,
giving good insight to equipment utilization and demand
environment.
Another example of software supporting Konecranes’
business model includes the SLIM application, which
Konecranes service technicians use while performing their
work. SLIM, which stands for Siebel Light In Mobile, is a
mobility tool developed for Konecranes field operatives.
It is an application which works online, or offline with
synchronization, that allows field operatives - service
technicians or certified inspectors - to review service
requests and then record their work on their smartphone
and review it with the customer. Their daily schedule and
customer information is also available in the SLIM app, and
implementing the app has saved hours of back-office work
and increased field operatives’ productivity.
One of the key success elements for Konecranes’ service
business is access to installed base, i.e. data of industrial
crane and material handling solution fleet at customer
sites. When acquiring crane service companies, access to
customer lists and potential legacy equipment drawings
are usually some of the key deal logics. The installed
base data allows Konecranes to target customers more
38
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
effectively. Information about the installed base is not only
limited to service opportunity, as equipment sales also
benefit from it.
Market review
Konecranes’ operating environment in Service and Industrial
Equipment is mainly driven by industrial production.
Manufacturing Purchasing Managers’ Index (PMI) and
manufacturing capacity utilization rates are the macro-
indicators that best describe the operating conditions
in Konecranes’ two industrial Business Segments. In Port
Solutions, the operating environment is mainly driven by
global container traffic.
The world’s manufacturing sector’s operating conditions,
according to the global manufacturing PMI, were in
contraction at the end of the fourth quarter, even though
December’s PMI reading (49.6) was higher than the previous
quarter (48.8).
In the eurozone, the manufacturing PMI continued
to signal a downturn in the manufacturing sector.
December PMI (45.1) was on a similar level compared to
the previous quarter. In the US, the manufacturing PMI
was in contraction in December (49.4), but on a higher
level compared to the previous quarter. In the emerging
markets, December’s manufacturing PMI signaled
improving operating conditions in India, Brazil and China,
albeit at a slowing rate.
The manufacturing industry capacity utilization rate in
the European Union continued to decrease in the fourth
quarter. The capacity utilization rate was at a lower level on
a year-on-year basis, and it was below the pre-COVID-19
pandemic levels. The manufacturing industry capacity
utilization rate in the US was on a similar level in the fourth
quarter versus the third quarter and it was lower on a year-
on-year basis.
Global container throughput, according to the RWI/ISL
Container Throughput Index, continued at a strong level
in the fourth quarter compared to the historical readings.
At the end of December, global container throughput was
approximately three percent higher than the year before.
Regarding raw material prices, at the end of the fourth
quarter steel prices were below previous year’s levels while
copper prices were on a slightly higher level than a year ago.
The average EUR/USD exchange rate was approximately on
the same level compared to the year-ago period.
Financial performance
Unless otherwise stated, the figures in brackets in the
sections below refer to the same period in the previous year.
Konecranes has made changes in reporting Industrial
Equipment’s order intake and net sales. The change also
impacts Industrial Equipment’s profitability. The previous
year’s figures presented in this report have been restated
and are fully comparable with the current year figures.
39
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Orders received
In full year 2024, orders received totaled EUR 3,999.6 million
(4,161.4), representing a decrease of 3.9 percent. On a
comparable currency basis, order intake decreased 3.6
percent. Orders received increased in EMEA but decreased
in APAC and in the Americas.
In Service, order intake increased 4.6 percent on a reported
basis and 5.1 percent on a comparable currency basis.
In Industrial Equipment, orders received decreased
6.7 percent on a reported basis and 6.3 percent on a
comparable currency basis. External orders received in
Industrial Equipment decreased 7.6 percent on a reported
basis and 7.2 percent on a comparable currency basis. In Port
Solutions, order intake decreased 8.0 percent on a reported
basis and 8.1 percent on a comparable currency basis.
Order book
At the end of December, the value of the order book totaled
EUR 2,888.4 million (3,040.8), which was 5.0 percent lower
compared to previous year. On a comparable currency
basis, the order book decreased 6.1 percent. The order book
decreased 1.7 percent in Service, stayed approximately on
the same level in Industrial Equipment and decreased 8.6
percent in Port Solutions.
Sales
In full year 2024, Group sales totaled EUR 4,227.0 million
(3,966.3), representing an increase of 6.6 percent. On a
comparable currency basis, sales increased 6.9 percent.
Sales increased 5.7 percent in Service, 2.7 percent in
Industrial Equipment and 11.0 percent in Port Solutions.
Industrial Equipment’s external sales increased 2.7 percent.
At the end of December, the regional breakdown of sales,
calculated on a rolling 12-month basis, was as follows: EMEA
47 (47), Americas 40 (38) and APAC 13 (14) percent.
Financial result
In full year 2024, the Group comparable EBITA increased
to EUR 551.6 million (450.7). The comparable EBITA margin
increased to 13.1 percent (11.4). The comparable EBITA
margin increased in Service to 21.0 percent (19.9), in Industrial
Equipment to 9.0 percent (7.0) and in Port Solutions to 9.3
percent (7.5). The increase in the Group comparable EBITA
margin was mainly attributable to higher sales due to pricing
and volume growth, and good strategy execution.
In full year 2024, the consolidated comparable operating
profit increased to EUR 520.7 million (419.7). The comparable
operating margin increased to 12.3 percent (10.6).
In full year 2024, the consolidated operating profit totaled
EUR 511.4 million (402.5). The operating profit includes
items affecting comparability of EUR 9.3 million (17.2), which
mainly comprised of restructuring costs. Year-on-year,
the operating margin increased in Service to 20.0 percent
(18.6), increased in Industrial Equipment to 8.1 percent (5.3)
and increased in Port Solutions to 8.8 percent (6.9).
In full year 2024, depreciation and impairments totaled EUR
120.5 million (114.9). The impact arising from the purchase
price allocation amortization and goodwill impairment
represented EUR 30.7 million (30.4) of the depreciation and
impairments.
In full year 2024, the share of the result in associated
companies and joint ventures was EUR 0.6 million (0.8).
In full year 2024, financial income and expenses totaled
EUR -26.7 million (-35.7). Net interest expenses accounted
for EUR 23.1 million (29.6) of the sum and the remainder was
mainly attributable to other financing expenses and realized
and unrealized exchange rate differences related to the
hedging of future cash flows, which are not included in the
hedge accounting.
In full year 2024, profit before taxes was EUR 485.3 million
(367.6).
Orders received and net sales
1-12/2024 1-12/2023 Change %
Change % at
comparable
currency rates
Orders received, MEUR 3,999.6 4,161.4 -3.9 -3.6
Net sales, MEUR 4,227.0 3,966.3 6.6 6.9
40
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
In full year 2024, income tax was EUR 116.9 million (92.0). The
Group’s effective tax rate was 24.1 percent (25.0).
In full year 2024, net profit was EUR 368.4 million (275.6).
In full year 2024, the basic earnings per share were EUR 4.65
(3.48) and the diluted earnings per share were EUR 4.63
(3.46).
On a rolling 12-month basis, the return on capital employed
was 20.3 percent (16.4) and the return on equity 21.3
percent (18.2). The comparable return on capital employed
was 20.8 percent (17.7).
Balance sheet
At the end of December, the consolidated balance sheet
amounted to EUR 4,788.3 million (4,552.4). The total equity
at the end of the reporting period was EUR 1,857.7 million
(1,594.8). The total equity attributable to the equity holders of
the parent company was EUR 1,857.7 million (1,594.8) or EUR
23.45 per share (20.14).
Net working capital totaled EUR 378.6 million (353.6).
Sequentially, net working capital decreased by EUR 21.2
million.
Cash flow and financing
In full year 2024, net cash from operating activities was
EUR 491.6 million (557.3). The decrease in net cash from
operating activities was mainly due to change in net working
capital. Cash flow before financing activities was EUR 380.6
million (481.9), which included cash inflows of EUR 4.8 million
(6.5) related to sale of property, plant and equipment. It
included cash outflows of EUR 69.2 million (52.4) related to
capital expenditures, and EUR 46.7 million (39.0) related to
acquisition of Group companies.
At the end of December, interest-bearing net debt was EUR
183.5 million (365.8). Net debt decreased mainly due to strong
cash flow from operating activities. The equity to asset ratio
was 44.4 percent (41.1) and gearing 9.9 percent (22.9).
At the end of December, cash and cash equivalents
amounted to EUR 710.0 million (586.6). None of the Group’s
committed EUR 350 million back-up financing facility was in
use at the end of the period.
In April 2024, Konecranes paid dividends, amounting to EUR
106.9 million or EUR 1.35 per share, to its shareholders.
Capital expenditure
In full year 2024, capital expenditure excluding acquisitions
and joint arrangements amounted to EUR 65.7 million (54.4).
The amount consisted mainly of investments in machinery
and equipment, buildings, office equipment and information
technology.
Acquisitions and divestments
In full year 2024, the cash impact of capital expenditure for
acquisitions and joint arrangements was EUR -46.7 million
(-39.0). The cash impact of divestment of Businesses and
disposal of associated companies was EUR 0.1 million (9.5).
In April 2024, Konecranes acquired the business of German
crane and service supplier Kocks Kranbau.
In July 2024, Konecranes acquired the service business of
Dungs Kran- und Anlagentechnik GmbH, a specialist in crane
system services based in Voerde, Lower Rhine region in
Germany.
In December 2024, Konecranes acquired Rotterdam-based
Peinemann Port Services BV, a significant port services
provider in the Netherlands, and Peinemann Container
Handling BV, a business that sells, rents and services lift
trucks in Rotterdam area.
Personnel
In full year 2024, the Group had an average of 16,656
employees (16,503). On December 31, 2024, the number
of personnel was 16,842 (16,586). In January-December, the
Group’s personnel increased by 256 people net.
At the end of December, the number of personnel by
operating segment was as follows: Service 8,020 employees
(8,010), Industrial Equipment 5,289 employees (5,253),
Port Solutions 3,420 employees (3,222) and Group staff 113
employees (101).
The Group had 10,066 (9,785) employees working in EMEA,
3,415 (3,335) in the Americas and 3,361 (3,466) in APAC.
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Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
In full year 2024, orders received totaled EUR 1,559.0 million
(1,490.7), corresponding to an increase of 4.6 percent. On a
comparable currency basis, orders received increased 5.1
percent.
Sales increased 5.7 percent to EUR 1,574.7 million (1,490.4).
On a comparable currency basis, sales increased 6.2
percent. Sales increased in field service and parts.
1-12/2024 1-12/2023 Change %
Change %
at comparable
currency rates
Orders received, MEUR 1,559.0 1,490.7 4.6 5.1
Order book, MEUR 435.9 443.5 -1.7 -4.2
Agreement base value, MEUR 342.5 318.3 7.6 6.3
Net sales, MEUR 1,574.7 1,490.4 5.7 6.2
Comparable EBITA, MEUR
1
331.5 296.2 11.9
Comparable EBITA, %
1
21.0% 19.9%
Purchase price allocation amortization, MEUR -16.6 -17.4 -4.8
Items affecting comparability, MEUR -0.7 -1.9
Operating profit (EBIT), MEUR 314.2 276.9 13.5
Operating profit (EBIT), % 20.0% 18.6%
Personnel at the end of period 8,020 8,010 0.1
Business segments
Service
The comparable EBITA was EUR 331.5 million (296.2) and
the comparable EBITA margin was 21.0 percent (19.9).
The increase in the comparable EBITA margin was mainly
attributable to pricing and higher volumes. The operating
profit was EUR 314.2 million (276.9) and the operating margin
20.0 percent (18.6).
1
Excluding items affecting comparability and purchase price allocation amortization.
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Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
1-12/2024 1-12/2023 Change %
Change %
at comparable
currency rates
Orders received, MEUR
1
1,263.5 1,354.4 -6.7 -6.3
of which external, MEUR 1,165.6 1,261.8 -7.6 -7.2
Order book, MEUR 893.3 892.3 0.1 -2.5
Net Sales, MEUR
1
1,289.3 1,255.8 2.7 3.1
of which external, MEUR 1,205.5 1,173.8 2.7 3.1
Comparable EBITA, MEUR
2
116.5 87.4 33.2
Comparable EBITA, %
1,2
9.0% 7.0%
Purchase price allocation amortization, MEUR -7.0 -7.0 -1.2
Items affecting comparability, MEUR -4.9 -13.5
Operating profit (EBIT), MEUR 104.6 66.9 56.3
Operating Profit (EBIT), %
1
8.1% 5.3%
Personnel at the end of period 5,289 5,253 0.7
In full year 2024, orders received totaled EUR 1,263.5 million
(1,354.4), corresponding to a decrease of 6.7 percent. On a
comparable currency basis, orders received decreased 6.3
percent. External orders received decreased 7.6 percent
on a reported basis and 7.2 percent on a comparable
currency basis. Order intake increased in components but
decreased in standard cranes and process cranes.
Sales increased 2.7 percent to EUR 1,289.3 million (1,255.8).
On a comparable currency basis, sales increased 3.1
percent. External sales increased 2.7 percent on a reported
basis and 3.1 percent on a comparable currency basis.
Sales increased in process cranes and components, but
remained approximately flat in standard cranes.
The comparable EBITA was EUR 116.5 million (87.4) and the
comparable EBITA margin 9.0 percent (7.0). The increase
in the comparable EBITA margin was mainly attributable to
pricing and good strategy execution. The operating profit
was EUR 104.6 million (66.9) and the operating margin 8.1
percent (5.3).
Industrial Equipment
1
Previous year restated due to the change in reporting in which the internal component orders received from and internal
component sales to Port Solutions have been transferred to internal items within the Port Solutions.
2
Excluding items affecting comparability and purchase price allocation amortization.
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
1-12/2024 1-12/2023 Change %
Change %
at comparable
currency rates
Orders received, MEUR 1,350.5 1,468.5 -8.0 -8.1
Order book, MEUR 1,559.1 1,705.0 -8.6 -8.5
Net sales, MEUR 1,521.7 1,370.8 11.0 10.9
of which service, MEUR 278.2 233.3 19.3 19.2
Comparable EBITA, MEUR
1
142.2 102.7 38.4
Comparable EBITA, %
1
9.3% 7.5%
Purchase price allocation amortization, MEUR -7.4 -6.6 12.9
Items affecting comparability, MEUR -1.3 -1.1
Operating profit (EBIT), MEUR 133.5 95.1 40.4
Operating profit (EBIT), % 8.8% 6.9%
Personnel at the end of period 3,420 3,222 6.1
1
Excluding items affecting comparability and purchase price allocation amortization.
In full year 2024, orders received totaled EUR 1,350.5 million
(1,468.5), corresponding to a decrease of 8.0 percent. On a
comparable currency basis, orders received decreased 8.1
percent.
Sales increased 11.0 percent to EUR 1,521.7 million (1,370.8). On
a comparable currency basis, sales increased 10.9 percent.
The comparable EBITA was EUR 142.2 million (102.7) and the
comparable EBITA margin 9.3 percent (7.5). The increase
in the comparable EBITA margin was mainly attributable to
higher volumes, pricing and good strategy execution. Gross
margin increased on a year-on-year basis. Operating profit
was EUR 133.5 million (95.1) and the operating margin 8.8
percent (6.9).
Port Solutions
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Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Group overheads
In full year 2024, the comparable unallocated Group over-
head costs and eliminations were EUR 38.5 million (35.7),
representing 0.9 percent of sales (0.9).
The unallocated Group overhead costs and eliminations
were EUR 40.8 million (36.4), representing 1.0 percent of
sales (0.9). These included items affecting comparability of
EUR 2.3 million (0.7).
Administration
Decisions of the Annual General Meeting
The Annual General Meeting was held on March 27, 2024.
The meeting approved the Company’s annual accounts
for the fiscal year 2023, discharged the members of the
Board of Directors and the CEO from liability, and approved
all proposals made by the Board of Directors and its
committees and the Shareholders’ Nomination Board to the
AGM.
The AGM approved the Board’s proposal that a dividend of
EUR 1.35 per share be distributed. The dividend was paid on
10 April 2024.
The AGM approved the Remuneration Report. The
resolution by the AGM on approval of the Remuneration
Report is advisory.
The AGM decided to support the Remuneration Policy. The
resolution by the AGM on approval of the Remuneration
Policy is advisory.
The AGM approved the Shareholders’ Nomination Board’s
proposal that the annual remuneration for the Board of
Directors and the meeting fees for the committees and
meetings of the Board of Directors remain unchanged.
The AGM approved the Shareholders’ Nomination Board’s
proposal that the number of members of the Board of
Directors shall be eight. The current Board members Pauli
Anttila, Pasi Laine, Ulf Liljedahl, Gun Nilsson, Sami Piittisjärvi,
and Päivi Rekonen were re-elected, and Thomas Schulz and
Birgit Seeger were elected as new members. Pasi Laine was
elected as Chair of the Board of Directors.
The AGM approved the Board’s proposal that Ernst &
Young Oy be re-elected as the Company’s auditor. The
remuneration will be paid according to an invoice approved
by the Company.
The AGM approved the Board’s proposal to change the
language of the Company’s Articles of Association to
Finnish and the Company’s business name into Konecranes
Oyj.
The AGM authorized the Board to decide on the repurchase
and/or on the acceptance as pledge of the Company’s own
shares.
The AGM authorized the Board to decide on the issuance of
shares as well as on the issuance of special rights entitling
to shares.
The AGM authorized the Board to decide on the transfer of
the Company’s own shares.
The AGM authorized the Board to decide on a directed
issuance of shares without payment for an Employee Share
Savings Plan.
The AGM authorized the Board to decide on donations.
The resolutions of the AGM have been published in the
stock exchange release dated March 27, 2024.
Board of Directors
The Board of Directors elected in the Annual General Meeting
2024 consisted of:
• Pasi Laine, Chair of the Board
• Pauli Anttila, Member of the Board
• Ulf Liljedahl, Member of the Board
• Gun Nilsson, Member of the Board
• Päivi Rekonen, Member of the Board
• Thomas Schulz, Member of the Board
• Birgit Seeger, Member of the Board
• Sami Piittisjärvi, Member of the Board
The term of office ends at the closing of the Annual General
Meeting in 2025.
On March 27, 2024, Konecranes announced that the
Board had held its first meeting. The Board decided to
continue with an Audit Committee and a Human Resources
Committee.
Ulf Liljedahl was elected Chair of the Audit Committee, and
Gun Nilsson, Päivi Rekonen and Birgit Seeger as Committee
members. Pasi Laine was elected Chair of the Human
Resources Committee, and Pauli Anttila and Thomas Schulz
as Committee members.
All Board members with the exception of Sami Piittisjärvi
were deemed to be independent of the Company and all
Board members with the exception of Pauli Anttila were
deemed to be independent of the Company’s significant
shareholders.
Sami Piittisjärvi was deemed not to be independent of the
Company due to his current position as an employee of
Konecranes. Pauli Anttila was deemed not to be independent
of a significant shareholder of the Company based on
his position as Investment Director and Member of the
Management Team at Solidium Oy until January 2025.
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Shareholders’ Nomination Board
On September 9, 2024, Konecranes announced the
composition of the Shareholders’ Nomination Board.
The following members were appointed to the Shareholders’
Nomination Board:
• Reima Rytsölä, CEO of Solidium, appointed by Solidium Oy,
• Markus Aho, Chief Investment Officer of Varma, appointed
by Varma Mutual Pension Insurance Company,
• Stig Gustavson, appointed by Stig Gustavson and family, and
• Mikko Mursula, Deputy CEO, Investments of Ilmarinen,
appointed by Ilmarinen Mutual Pension Insurance
Company.
Pasi Laine, the Chair of the Konecranes’ Board of Directors,
serves as an expert in the Nomination Board without being a
member.
Konecranes Leadership Team
In full year 2024, Konecranes Leadership Team consisted of:
• Anders Svensson, President and CEO
• Teo Ottola, CFO, Deputy CEO
• Fabio Fiorino, Executive Vice President, Industrial Service
and Equipment
• Tomas Myntti, Business Area President, Port Solutions
(since October 14, 2024)
• Juha Pankakoski, Executive Vice President, Port Solutions
(until October 13, 2024)
• Minna Aila, Executive Vice President, Corporate Affairs &
Brand (since July 1, 2024)
• Claes Erixon, Executive Vice President, Technologies
(since May 13, 2024)
• Christine George, Executive Vice President, Corporate
Strategy & Business Development (since April 8, 2024)
• Anneli Karkovirta, Executive Vice President, People and
Culture
• Sirpa Poitsalo, Executive Vice President, General Counsel
On October 1, 2024, Konecranes announced that as of
January 1, 2025, the company will have three Business Areas:
Industrial Service, Industrial Equipment and Port Solutions.
Related to the new operating model, Fabio Fiorino was
appointed Business Area President, Industrial Service, as of
January 1, 2025. He continues as a member of the Konecranes
Leadership Team. Marko Tulokas was appointed as Business
Area President, Industrial Equipment, and a member of the
Konecranes Leadership Team as of January 1, 2025.
Shares and trading
Share capital and shares
On December 31, 2024, the company’s registered share
capital totaled EUR 30.1 million. On December 31, 2024,
the number of shares including treasury shares totaled
79,221,906.
Treasury shares
On December 31, 2024, Konecranes Plc was in possession
of 12,788 treasury shares, which corresponds to 0.0 percent
of the total number of shares, and which had on that date a
market value of EUR 0.8 million.
On January 2, 2024, 6,868 treasury shares were conveyed
without consideration as the reward payment to the key
employee participating in the Konecranes Restricted Share
Unit Plan 2017. After the share delivery, Konecranes holds a
total of 12,788 own shares.
Market capitalization and trading volume
The closing price for the Konecranes shares on the Nasdaq
Helsinki on December 31, 2024, was EUR 61.20. The volume-
weighted average share price in full year 2024 was EUR
53.30, the highest price being EUR 68.60 in September
and the lowest EUR 38.09 in January. In full year 2024, the
trading volume on the Nasdaq Helsinki totaled 31.5 million,
corresponding to a turnover of approximately EUR 1,678.9
million. The average daily trading volume was 125,507 shares
representing an average daily turnover of EUR 6.7 million.
On December 31, 2024, the total market capitalization of
Konecranes Plc was EUR 4,848.4 million including treasury
shares. The market capitalization was EUR 4,847.6 million
excluding treasury shares.
Performance Share Plans 2022, 2023 and 2024
On February 1, 2024, Konecranes announced that the Board
of Directors had decided to establish a new Performance
Share Plan 2024 for Konecranes key employees. The Plan
has a three-year performance period from 2024 to 2026.
The Plan has three performance criteria: the cumulative
comparable Earnings per Share (EPS) for the financial years
2024–2026 with a 55 percent’s weighting, the compound
annual growth rate (CAGR) for Sales for the financial years
2024–2026 with a 35 percent’s weighting and the CO2
emissions from own operations for the financial years 2024-
2026 with a 10 percent’s weighting. The targets for the
three-year performance period have also been decided by
the Board of Directors. The target group of the Plan consists
of approximately 170 Konecranes key employees. Additional
information, including essential terms and conditions of
the Plan, is available in the stock exchange release dated
February 1, 2024.
On February 1, 2024, Konecranes announced that the Board
of Directors had decided the criterion for the measurement
period 2024 of the Performance Share Plan 2022. The
criterion is comparable earnings per share (EPS). Also, the
targets for the measurement period 2024 were decided
by the Board of Directors. Additional information on the
criterion is available in the stock exchange release dated
February 1, 2024.
Additional information, including essential terms and
conditions of the Plan 2022 in the stock exchange release
published on March 30, 2022. Information, including
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
essential terms and conditions of the Performance Share
Plan 2023, is available in the stock exchange release
published on February 1, 2023.
Employee Share Savings Plan
On February 1, 2024, Konecranes announced that the
Board of Directors had decided to launch a new Plan Period
relating to the Employee Share Savings Plan. The new Plan
Period began on July 1, 2024, and will end on June 30, 2025.
The other terms and conditions approved by the Board
have been published in the stock exchange release dated
February 1, 2024.
Notifications of major shareholdings
In January-December, Konecranes did not receive
notifications of major shareholdings.
Research and development
In 2024, Konecranes’ research and product development
expenditure totaled EUR 59.8 (51.3) million, representing 1.4
(1.3) percent of sales. R&D expenditure includes product
development projects aimed at improving the quality and
cost efficiency of both products and services.
Konecranes is a technology leader in its industry, building
on more than a century of breakthroughs and innovation.
Offering is built around state-of-the-art solutions that
provide tangible benefits for customers, while meeting
increasing requirements in areas such as cybersecurity.
Making material flow better, safer and more sustainable
In 2023 Konecranes launched its Zero4 research and
innovation program, partly funded by Business Finland.
The program aims to improve industrial productivity by
zeroing out information barriers, safety incidents, absolute
greenhouse gas emissions and energy waste in material
In 2024, Konecranes strengthened its own third-party risk
management, implemented supplier security monitoring and
started a supplier security audit program. These initiatives
were designed to protect the organization from potential
threats, ensure business continuity and maintain a high level
of security and assurance throughout the supply chain.
Technology and data boost business operations and
employee productivity
In its technology development, Konecranes prioritizes
projects that provide tangible business and customer
benefits. This is exemplified by the Predictive Maintenance
Engine, which was launched the previous year and further
developed in 2024. Co-developed by Konecranes’ data
experts and customer-facing frontlines, the engine predicts
service needs by bringing together a multitude of data
points including asset usage hours and age and field inputs
from service technicians.
The engine has proven to be a valuable tool in predicting
when a piece of equipment will require service. This
insight is appreciated by customers, who use it to avoid
unplanned downtime. Solutions such as this showcase the
unique capabilities of Konecranes, pairing its expertise
in material handling equipment with deep data and
technology capabilities. Konecranes works with technology
development throughout its Technologies function,
including a dedicated Data Science Lab, and together with
the businesses.
Konecranes also places a focus on providing its employees
with the latest productivity tools. As large language models
became more prevalent in 2024, Konecranes developed the
Konecranes Artificial Intelligence Secured Advisor (KAISA).
Based on commercially available large language models,
KAISA provides a secure environment for Konecranes
employees to utilize generative AI. Other tools based on
generative AI are also in development to improve internal
processes and ways of working.
handling. The vision of Zero4 is a unified material flow
platform that seamlessly tracks, orchestrates, visualizes
and optimizes the flow of material and intralogistics
equipment fleets.
As part of the program, Konecranes plans to develop
selected production plants into material flow flagship sites
and model factories to boost research and innovation
efforts.
The program has so far brought together more than 60
ecosystem partners, with the number expected to grow
further. In 2024, six research projects were started within
Zero4:
• TwinFlow focuses on enhancing production and
intralogistics operations.
• HiFive explores utilizing metaverse technologies in
industrial work.
• MixedFleet researches enhanced collaboration between
machines and humans.
• Inverse further develops the collaboration between cranes
and robots.
• In VIIMA, Konecranes studies the effects of variating wind
loads in dimensioning components such as gears and
motors, relevant for equipment in high-wind environments
such as ports.
• DareX focuses on data-based circularity strategies.
Cybersecurity throughout the value chain
Cybersecurity is a priority for Konecranes and has become
a differentiator when doing business. In 2024, Konecranes
received its expanded ISO 27001 certification, a standard
for information security management which is especially
crucial for potential customers tendering within critical
infrastructure and governmental contracting. Konecranes
also achieved its first product security certification, IEC
62443 4-1, for the secure development of products,
showcasing that security is a priority in every step of our
product development process.
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
General disclosures
Basis for preparation
General basis for preparation of sustainability
statement
The Konecranes Sustainability Statement has been prepared
on a consolidated basis. With regard to owned subsidiaries,
the scope of consolidation is the same as for the financial
statements, except for acquisitions and divestments.
The joint operations and equity accounted investments,
for which Konecranes has no operational control, are
treated as suppliers or investments and excluded from the
Sustainability Statement regarding own operations.
Acquisitions and divestments during the reporting year are
included in the consolidated sustainability statements as
soon as they are integrated into the relevant information
systems. The acquisitions and divestments completed
during 2024 are accounted in the year-end headcount
figures and occupational safety figures for own workforce.
The acquisitions and divestments are considered to have an
immaterial impact on the sustainability metrics in 2024. For
more information about the acquired and divested entities
during the reporting year, see Acquisitions and divestments
in note 4 in Konecranes’ Financial Review 2024.
Sustainability statement
1. GENERAL INFORMATION
The Konecranes Sustainability Statement covers the
company’s upstream and downstream value chain to the
extent that the company has visibility and a direct ability
to affect. Konecranes’ Supplier Code of Conduct and
Distributor Code of Conduct set requirements for Tier 1
suppliers and subcontractors, other business partners and
third parties Konecranes works with, as well as sub-suppliers
and subcontractors that provide services or deliver products
to such companies for the benefit of Konecranes. Regarding
downstream, the Sustainability Statement covers customers
and end-users, distributors and logistics providers,
depending on the go-to-market model of the Business Area
and Business Unit in question.
In the Sustainability Statement, Konecranes has not used the
option to omit the disclosure of sensitive information.
Disclosures in relation to specific circumstances
Other medium- or long-term time horizons than defined in
ESRS 1
In the Konecranes Sustainability Statement, the short-term
horizon is 1 year, medium-term over 1 year and up to 5 years,
and long-term is more than 5 years.
Value chain estimation
In the Konecranes Sustainability Statement, value chain
data is mainly used to calculate Scope 3 greenhouse gas
emissions data. The Scope 3 calculation methodologies and
used estimations are described in E1-6 Gross Scopes 1, 2, 3
and Total GHG emissions.
Sources of estimation and outcome uncertainty
No metrics with a high level of measurement uncertainty have
been identified in the Konecranes Sustainability Statement
2024. As Scope 3 GHG emission calculations include indirect
data sources and estimations, they are subject to some
level of uncertainty especially related to data accuracy and
timeliness.
Governance
Role of the administrative, management and
supervisory bodies
Composition and access to sustainability expertise and skills
At the end of 2024, the Konecranes Leadership Team
had nine executive members including the CEO, and the
Board of Directors had eight members. One of the Board
members is an employee representative, selected from
among candidates put forward by the employees of
Konecranes in accordance with the agreement on employee
representation between Konecranes and its employees, and
the other seven are non-executive Board members.
Konecranes’ Shareholders’ Nomination Board prepares
proposals for the election of the members of the Board
of Directors and for identifying potential Board member
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
candidates. The Shareholders’ Nomination Board ensures
that the Board of Directors and its members maintain and
represent a sufficient level of expertise, knowledge and
competence as well as diversity. Board selections are
based on a candidate’s background and competency
to understand Konecranes’ current and future markets,
strategy, employees and customers, including a sound
understanding of financials and business dynamics.
Collectively the Board of Directors should have combined
experience in different markets, geographies and important
topics like digitalization and corporate responsibility.
As of 2024, Konecranes’ Board of Directors includes
individuals with relevant experience across different sectors
and regions.
The share of independent Board members in 2024 was 88
percent.
Percentage of members of administrative, management
and supervisory bodies by gender
Both females and males are represented on the Board of
Directors, and Konecranes’ aim is to strive towards a good
and balanced Board composition taking into account all
aspects of Board diversity.
At the end of 2024, out of eight Board members, three were
female, representing 38 percent of the total. The Board
members represented three different nationalities and were
born in four different decades. The Board also consisted
of versatile work experience and different educational
backgrounds from the fields of engineering and economics.
The Board’s gender diversity ratio was 0.6.
Roles and responsibilities
Konecranes’ Board of Directors is the highest body
overseeing sustainability. Two Board committees, the Human
Resources Committee and the Audit Committee, have
sustainability-related responsibilities. Konecranes’ President
and CEO holds the highest executive management-level
responsibility on sustainability. The Konecranes Leadership
Team might also carry out relevant responsibilities, with the
assistance of the Councils and Committees reporting to the
Konecranes Leadership Team.
The responsibilities of the committees are defined in their
respected charters. The Board of Directors approves the
long-term focus, ambition level and targets. The Board
of Directors’ Human Resources Committee is the official
supervisory Board committee focusing on sustainability. The
Human Resources Committee is responsible for assisting
and providing guidance and recommendations to the Board
of Directors in fulfilling its oversight and other responsibilities
concerning sustainability. The Human Resources Committee
evaluates and makes recommendations to the Board
concerning the company’s strategy and ambitions related
to sustainability and ESG, specially related to environmental
responsibility, human and labor rights, health and safety as
well as diversity, equity and inclusion. The Human Resources
Committee reviews the reports on the Konecranes
sustainability strategy, and reviews performance against set
targets, business strategy and Konecranes values as well
as the long-term and short-term incentive plans including
ESG metrics. The Board of Directors’ Audit Committee is
the official supervisory body for overseeing the Corporate
Sustainability Reporting.
Konecranes’ President and CEO holds the highest
executive-level responsibility on sustainability. The
Konecranes Leadership Team plays a significant role in the
company’s management system, strategy preparation and
decision-making and is involved in the risk and financial
planning process, but it has no official statutory position
based on legislation or the Articles of Association. The
Konecranes Leadership Team approves sustainability
policies, strategy and targets and reviews sustainability
performance on a monthly basis.
The Sustainability Council, which is nominated by the
Konecranes Leadership Team, advises and assists in
overseeing the sustainability strategy, ambition and
performance, as well as compliance with Konecranes’
sustainability-related policies and processes. The
Sustainability Council also validates the materiality
assessment, prepares policies, and oversees the
implementation of the practices. The Sustainability Council
follows risk and opportunity assessments and emerging
trends and regulations, and is led by the Vice President,
Sustainability. The Compliance & Ethics Committee oversees
the development and quality of the Compliance & Ethics
Program and is sponsored by the Executive Vice President,
General Counsel.
In Konecranes’ organizational structure, the highest
responsibility for operational sustainability work is with the
Vice President, Sustainability, who reports directly to the
President and CEO. The Vice President, Sustainability, also
reports to Konecranes’ Leadership Team on progress on a
monthly basis, and to the Konecranes Board of Directors and
to the Committees of the Board annually.
Konecranes has some dedicated controls and procedures
over managing identified sustainability impacts, risks and
opportunities. Negative impacts and risks are integrated into
Konecranes’ Enterprise Risk Management (ERM) process,
while positive impacts and opportunities are more likely
to be acknowledged in the strategy process. Konecranes
has a Risk Management function reporting to the Executive
Vice President, General Counsel. The identified material
sustainability risks are visible on the Konecranes ERM top
risk list discussed within the Audit Committee of the Board
annually, presented by the global Head of Risk Management.
Overseeing the company’s target setting and monitoring
progress are built into the company’s governance
mechanism. The Sustainability Council prepares proposals
on the targets for the Konecranes Leadership Team’s
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Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
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approval. The Board of Directors approves the strategic
targets and follows progress at least annually with the
support of the Human Resources Committee. The Human
Resources Committee serves as a supervisory body on
sustainability-related issues. It approves the long-term
sustainability goals, ambitions, and targets, while also
reviewing performance and activities on an annual basis.
Additionally, the Human Resources Committee oversees
the progress of the climate transition plan and manages
employee incentives. The Vice President, Sustainability,
reports to the Human Resources Committee annually.
As an example, in 2024, Konecranes committed to setting
long-term company-wide emission reduction net-zero
targets, in line with the Science Based Targets initiative
(SBTi), in addition to the current near-term targets. The Vice
President, Sustainability, presented the proposal to the
Sustainability Council and after it was approved, took the
proposal to the Konecranes Leadership Team for approval.
After this, the proposal was brought to the agenda of the
Human Resources Committee, and once the Committee
approved it, the proposal was officially approved by the
Board of Directors. Sustainability is an annual agenda
item in Board meetings, where progress is reviewed. The
Konecranes Leadership Team follows the progress on a
monthly basis.
How appropriate skills and expertise are available or will be
developed to oversee sustainability matters
According to the charter of the Shareholders’ Nomination
Board, the most important nomination criteria for Board
members are competency, knowledge, personal qualities
and integrity. Furthermore, the members of the Audit
Committee must have the qualifications necessary to
perform the responsibilities of the Audit Committee, and
at least one member shall have expertise specifically
in accounting, bookkeeping or auditing. Additionally,
according to the Board of Directors’ diversity policy, the
Members of the Board of Directors are always selected
based upon their expected contribution and effectiveness
as members of the Board of Directors, and their capability
to positively influence the long-term strategic direction
and performance of the company. Collectively the Board
of Directors should have combined experience in important
topics like digitalization and corporate responsibility. These
requirements also ensure that the Board of Directors has
sufficient sustainability-related expertise.
The Board has received training on the Corporate
Sustainability Reporting Directive and has access to
Konecranes’ internal experts for additional insights.
Sustainability matters are presented to the Board and its
committees several times each year. Notably, sustainability is
a topic scheduled to be discussed annually by the Board.
The Board and the President and CEO, together with the
company’s in-house sustainability experts, are able to
ensure the company continues to have sufficient internal
sustainability expertise. External advisors can be used when
needed.
The Konecranes Leadership Team members have strong
sustainability expertise and have actively been participating
in sustainability-related discussions.
Additionally, administrative, management and supervisory
bodies have the opportunity to seek external and internal
expertise.
The Board of Directors’ knowledge and experience ensure
a reasonable understanding of sustainability-related
topics to include the sustainability perspective in market,
business, and strategic decisions. The Board and the
Konecranes Leadership Team are systematically informed
about Konecranes’ sustainability-related topics, such
as progress and regulatory requirements, to ensure that
they have the necessary knowledge to make business
decisions. Additionally, Konecranes has experts in different
operational teams that have deep knowledge relevant to all
material topics.
Governance in relation to business conduct
The Group’s Compliance & Ethics program is overseen by
an executive-level Compliance & Ethics Committee and the
Audit Committee of Konecranes’ Board of Directors. The
Audit Committee receives periodic compliance and ethics
reports that allow proper oversight, including summaries
of internal investigations that can be of significance.
Furthermore, the Head of Compliance & Ethics provides a
compliance and ethics update to the full Board of Directors
once a year or as needed.
The President and CEO receives periodic updates from the
Compliance & Ethics Committee that allow proper oversight.
Additionally, the Head of Compliance & Ethics provides
quarterly reports to the Konecranes Leadership team. The
Board and the President and CEO are provided training on
the company’s Code of Conduct.
Information provided to and sustainability matters
addressed by administrative, management and
supervisory bodies
At Konecranes, the functional leaders inform administrative,
management and supervisory bodies as agreed annually to
ensure that the material sustainability matters are addressed
during the reporting period. The information is usually shared
within the scheduled meetings of the respective bodies.
Sustainability matters are covered on the agenda at least once
a year in the meetings of Konecranes’ Board of Directors.
The Human Resources Committee reviews sustainability
performance and activities at a minimum of once a year. The
Konecranes Leadership Team reviews sustainability progress
systematically and in 2024 this was done once a month.
The identified material sustainability risks are discussed
in the Board of Directors’ meeting annually, presented by
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Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
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the global Head of Risk Management. By systematically
receiving reviews the Board can assess the progress
made as well as the related risks and opportunities. With
this process, Konecranes aims to ensure that the Board
members utilize this information when making any strategy-
related decisions.
Sustainability is embedded in the core of Konecranes’
strategy, as advancing responsible business is identified
as one of the company’s strategic enablers. Also, the
company’s values include a sustainability aspect. To ensure
that material topics are considered within decision-making,
ESG topics are evaluated within the annual and long-range
planning, as well as Enterprise Risk Management, and
they are identified in the strategy process. Having ESG
matters included in the processes ensures that the risks and
opportunities are addressed and that the related trade-offs
are considered.
In 2024, the double materiality assessment was discussed
in the Konecranes Leadership Team and Audit Committee
of the Board. Risks identified within the double materiality
assessment were introduced to the Board of Directors
and the Konecranes Leadership Team as part of Enterprise
Risk Management. The sustainability agenda in general
was discussed in the Board and the Human Resources
Committee once, including deep dives into the climate
agenda and safety. People topics are discussed in all
Human Resources Committee meetings. The Board
reviewed the Corporate Sustainability Reporting Directive
(CSRD) implementation progress twice and the Audit
Committee three times. Information security as well as
compliance and ethics topics were covered in the Audit
Committee.
Integration of sustainability-related performance in
incentive schemes
Konecranes integrated ESG into its incentive scheme in
2023.
The members of the Board do not participate in Konecranes’
incentive schemes and do not receive performance-based
remuneration nor do they have a pension scheme arranged
by Konecranes. Remuneration of the Konecranes President
and CEO and Deputy CEO includes a fixed remuneration
of base salary, fringe benefits and pension, and a variable
remuneration with short-term and long-term incentives.
Further details are provided in Remuneration Report 2024.
The short-term incentive plan is based on annual targets
related to financial performance as well as ESG. In 2024
the long-term Performance Share Plan (PSP) was based on
longer-term financial performance and shareholder value
creation.
In 2024, the short-term incentive plan consisted of sales
growth (%) and comparable EBITA (%) on a Group level or
Business Area level, where applicable, and ESG targets with
two main KPIs: CO2 emissions from own operations and
the Total Recordable Incident (TRI) rate, with a weighting of
5 percent for each. Thus, the total weighting of ESG in the
short-term plan is 10 percent.
Additionally, the short-term incentives of Konecranes
leaders include ESG metrics to further enforce the
management’s commitment to Konecranes’ sustainability
targets.
The incentive schemes are approved annually by the Board
of Directors based on a proposal by the Human Resources
Committee.
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Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
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Statement on due diligence
Core elements of due diligence Environment People Paragraphs in the sustainability statement
a) Embedding due diligence in governance,
strategy and business model
– Material impacts, risks and opportunities and
their interaction with strategy:
Sustainability is identified as a business enabler and is linked to strategy and long- and short-term business
planning. Double materiality assessment will be revisited regularly to ensure that the material impacts, risks
and opportunities are made visible and known by the internal stakeholders who drive and lead the relevant
strategic areas of the company. The material impacts, risks and opportunities will be taken into account
within the annual and long-range planning of all relevant Group functions, Business Areas and their Business
Units as well as Enterprise Risk Management.
General disclosures:
• Governance
• Strategy
• Impact, risk and opportunity management
- Integration to policies: Environmental Policy Statement, Konecranes Code
of Conduct, Supplier Code of Conduct, Distributor
Code of Conduct and internal programs, such as
HSE excellence.
Human Rights Policy, Konecranes Code of Con-
duct, Supplier Code of Conduct, Distributor Code
of Conduct and topic-specific policies such as Fair
Labor Frame; Health and Safety Policy Statement;
Diversity, Equity and Inclusion Policy Statement;
Data Protection Policy.
E1 Climate change:
• E1-2 Policies related to climate change
mitigation and adaptation
E5 Resource use and circular economy
•
circular economy
S1 Own workforce
•
S2 Workers in the value chain
•
S4 Consumers and end-users
•
users
G1 Business conduct
•
culture
• Entity-specific information: Cyber-
preparedness and enterprise resilience
- Integration to administrative, management and
supervisory bodies
Information is regularly provided and matters addressed by the Sustainability Council, the Human Resources
Committee of the Board and different business and functional leadership meetings.
General disclosures:
• Governance
- Integration of sustainability-related
performance in incentive schemes:
In 2024, the short-term incentive targets of the President and CEO, the Deputy CEO and other senior
management had a 10 percent weighting on ESG targets.
General disclosures:
• Governance
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
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Core elements of due diligence Environment People Paragraphs in the sustainability statement
b) Engaging with affected stakeholders in all key
steps of the due diligence
Employees: Internal communications, idea.
konecranes.com, e-learnings, internal team
meetings and internal training and development.
Customers: Sales personnel, key account
managers and service technicians. Surveys and
the Voice of Customer (VoC) feedback tool after
delivery or installation. Customer data requests.
Investors: Investor briefings and meetings,
Annual General Meetings, Annual Report and
sustainability reporting, and by replying to investor
questionnaires.
Suppliers, subcontractors: Procurement
personnel, supplier assessments and negotiations,
and ongoing contract management.
Employees: Internal communications (e-mail,
Konecranes’ intranet, internal social media channel
Viva Engage), employee engagement survey (EES),
idea.konecranes.com, Pulse checks, e-learnings,
Whistleblowing Channel and compliance e-mail,
internal team meetings and internal training and
development.
Customers: Engagement mainly through sales
department, key account managers and service
technicians. Surveys and the Voice of Customer
(VoC) feedback tool is also used after delivery
or installation. In addition, replying annually to a
significant number of data requests by customers.
Investors: Engagement through investor briefings
and meetings, Annual General Meetings, Annual
Report and sustainability reporting, and by replying
to investor questionnaires.
Suppliers, subcontractors: Engagement through
procurement personnel, supplier assessments and
negotiations, and ongoing contract management.
General disclosures:
• Strategy
S1 Own workforce
• S1-2 Processes for engaging with own workers’
representatives about impacts
• S1-3 Processes to remediate negative impacts
and channels for own workforce to raise
concerns
S2 Workers in the value chain
• S2-2 Processes for engaging with value chain
workers about impacts
• S2-3 Processes to remediate impacts and
channels for value chain workers to raise
concerns
S4 Consumers and end-users
• S4-2 Processes for engaging with consumers
and end-users about impacts
• S4-3 Processes to remediate negative impacts
and channels for consumers and end-users to
raise concerns
G1 Business conduct
• G1-2 Management of relationships with
suppliers
c) Identifying and assessing adverse impacts Regular impact assessment and climate risk
analysis based on scenario work using internal and
external expertise as well as input from e.g. audits.
Regular risk assessment from enterprise to topic-
specific level.
Regular impact assessment using internal and
external expertise as well as input from e.g.
audits and Whistleblowing Channel. Regular risk
assessment from enterprise to topic-specific level.
General disclosures:
• Governance
• Strategy
• Impact, risk and opportunity management
E1 Climate change
• Material impacts, risks and opportunities and
their interaction with strategy and business
model
S1 Own workforce
• S1-3 Processes to remediate negative impacts
and channels for own workforce to raise
concerns
S2 Workers in the value chain
• S2-3 Processes remediate impacts and
channels for value chain workers to raise
concerns
S4 Consumers and end-users
• S4-3 Processes to remediate negative impacts
and channels for consumers and end-users to
raise concerns
G1 Business conduct
• G1-2 Management of relationships with
suppliers
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
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Core elements of due diligence Environment People Paragraphs in the sustainability statement
d) Taking actions to address those adverse
impacts
Own operations’ environmental management
based on certified ISO 14001 EMS and global HSE
Standards, product development according to
Design for Environment, supplier management
according to Supplier Code of Conduct.
Programs and processes for Health and Safety,
Compliance and Ethics, Human Resources,
Supplier Management, Know Your Counterparty,
Data Protection, Diversity, Equity and Inclusion.
E1 Climate change
• E1-3 Actions and resources in relation to climate
change policies
E5 Resource use and circular economy
• E5-2 Actions and resources related to resource
use and circular economy
S1 Own workforce
• S1-4 Taking action on material impacts
on own workforce, and approaches to
managing material risks and pursuing material
opportunities related to own workforce, and
effectiveness of those actions
S2 Workers in the value chain
• S2-4 Taking action on material impacts on
value chain workers, and approaches to
managing material risks and pursuing material
opportunities related to value chain workers,
and effectiveness of those actions
S4 Consumers and end-users
• S4-4 Taking action on material impacts on
consumers and end-users, and approaches to
managing material risks and pursuing material
opportunities related to consumers and end-
users, and effectiveness of those actions
G1 Business conduct
• G1-2 Management of relationships with
suppliers
• Actions and resources related to business
conduct
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
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Core elements of due diligence Environment People Paragraphs in the sustainability statement
e) Tracking the effectiveness of these efforts, and
communicating
Monitoring progress of key indicators monthly and
at a minimum on an annual basis monitoring, for
example, energy and emissions and circularity KPIs.
Supplier Code of Conduct audits, social
responsibility assessments for own operations,
internal auditing, Whistleblowing Channel,
employee surveys, Health & Safety and
Compliance & Ethics KPIs. Overseeing findings in
necessary forums.
E1 Climate change
• E1-3 Actions and resources in relation to climate
change policies
• E1-4 Targets related to climate change
mitigation and adaptation
E5 Resource use and circular economy
• E5-2 Actions and resources related to resource
use and circular economy
• E5-3 Targets related to resource use and
circular economy
S1 Own workforce
• S1-4 Taking action on material impacts
on own workforce, and approaches to
managing material risks and pursuing material
opportunities related to own workforce, and
effectiveness of those actions
• S1-5 Targets related to managing material
negative impacts, advancing positive impacts,
and managing material risks and opportunities
S2 Workers in the value chain
• S2-4 Taking action on material impacts on
value chain workers, and approaches to
managing material risks and pursuing material
opportunities related to value chain workers,
and effectiveness of those actions
• S2-5 Targets related to managing material
negative impacts, advancing positive impacts,
and managing material risks and opportunities
S4 Consumers and end-users
• S4-4 Taking action on material impacts on
consumers and end-users, and approaches to
managing material risks and pursuing material
opportunities related to consumers and end-
users, and effectiveness of those actions
• S4-5 Targets related to managing material
negative impacts, advancing positive impacts,
and managing material risks and opportunities
G1 Business conduct
• G1-2 Management of relationships with
suppliers
• Actions and resources related to business
conduct
• Targets related to business conduct
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
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Risk management and internal controls over
sustainability reporting
Konecranes has created a control environment for its
sustainability reporting. For all material datapoints, there
is evidence or a control in place, ensuring good data
quality in the reporting process. In addition, Konecranes
has identified risk factors to which each datapoint could
be exposed. All datapoints are assessed against those
risk factors, determining the overall risk level for incorrect
reporting. Further control needs and internal controls are
designed based on the risk level. This process will promote
data accuracy and mitigate the risk of human errors in the
reporting process in the coming years.
For quantitative datapoints, Konecranes assessed risk
levels as high, medium, or low, based on several predefined
factors. The factors influencing risk include alignment with
key company targets or management incentives, data
availability, dependencies between datapoints, involvement
of multiple personnel in the data collection process, reliance
on spreadsheets, and estimation-based data.
For qualitative datapoints, high, medium, or low risk was
identified using specific criteria related to data source
availability, data complexity, and narrative scope. By
summing these factors within defined thresholds, risk levels
were prioritized without explicitly detailing individual scoring.
The main risks identified were related to the same data used
in many disclosure points, data timing availability, and source
of the data including topics such as many data sources. The
risk evaluation and control descriptions are integrated into
the CSRD reporting process documentation and reviewed
with affected functions.
To support the control environment development own
operations’ reporting on energy consumption will be
implemented in internal audit processes and practices in 2025.
The risk assessment is presented to the Konecranes
Leadership Team and the Audit Committee of the
Board regularly, and the process is aligned with the risk
management function and the internal audit team.
Strategy
Strategy, business model and value chain
Konecranes’ purpose is to shape next-generation material
handling for a smarter, safer and better world. The world is
facing the challenge of providing materials and goods that
are essential for people, while preserving scarce resources
and limiting emissions. As an industry leader, Konecranes
is perfectly placed to meet this challenge: the Company
supports its customers’ operations with innovative solutions
that help enhance their productivity, lower their emissions
and drive their business forward. Demand for Konecranes’
products and services is influenced by market conditions
in the manufacturing and container handling industries, and
the Company sees growth opportunities arising from the
demand for higher productivity, safety and environmental
sustainability. Additionally, three megatrends have been
identified that shape Konecranes’ markets and provide
business opportunities: Sustainability, Digitalization and
automation, and Geopolitics.
Konecranes’ ambition is to become the world leader in
material handling solutions, creating value for everyone.
For this, the Company has set financial targets as well as
ambitious climate targets (read more from E1-4 Targets
related to climate change mitigation and adaptation).
In order to generate growth and improve profitability,
Konecranes has outlined five strategic enablers that are
critical for the company’s success. These are Deepening
customer focus; Accelerating efficiency; Scaling
technology innovation; Advancing responsible business;
and Enhancing our winning culture. Read more about
the Company strategy from the Report of the Board of
Directors.
In its double materiality assessment, Konecranes has
identified actual and potential impacts related to
sustainability matters, which are connected to the whole
product and service offering. As sustainability is at the
core of Konecranes’ strategy and operations, Konecranes
continuously takes action to minimize the negative
impacts caused by its products and services. Konecranes’
sustainability-related goals are set at the Group level. In
terms of products, Konecranes aims for all new solutions to
be more sustainable than the previous generation. Other
than this, the goals are not limited in terms of groups of
products and services, customer categories, geographical
areas and relationships with stakeholders.
Konecranes offers products and services through its three
business segments – Service, Industrial Equipment and Port
Solutions – each contributing approximately one third of
Group sales.
The business segment Service provides specialized
maintenance services and spare parts for all types of
industrial cranes and hoists, from a single piece of equipment
to entire operations. The objective is to improve the safety
and productivity of Konecranes’ customers’ operations. The
service products help to extend the lifecycle of customers’
equipment and to improve the safety and security of the
equipment.
The business segment Industrial Equipment provides an
extensive range of industrial cranes, from components
and light duty applications to demanding process use
and solutions. They include, for example, industrial cranes
and wire rope hoists, other components needed for crane
manufacturing as well as digital controls, software and
automation. Konecranes also offers chain hoists, workstation
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Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
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lifting systems, overhead cranes, and cranes and hoists for
hazardous environments. The whole Industrial Equipment
offering is electric. Taking this into account, the product
sustainability focus areas in Industrial Equipment are
topics such as material selection and weight optimization,
and improving the energy efficiency of the products.
Konecranes has, for example, investigated standby power
reduction possibilities and offerings related to regenerative
power, as well as motor development with optimized
material use and efficiency. Streamlining of the product
variants continued, resulting in fewer components. In
2024, Konecranes launched several new products like the
Konecranes S-series low headroom hoist, the Konecranes
D-series electric chain hoist, the X-series crane and a
new explosion-proof electric chain hoist for hazardous
environments (zones 1/2/21).
The business segment Port Solutions provides equipment,
services and software, including products such as ship-to
shore cranes, rubber-tired gantry cranes, lift trucks, mobile
harbor cranes, straddle carriers, automated guided vehicles
and automated stacking cranes. Additionally, Port Solutions
offers maintenance and repair services as well as spare
parts for the container handling industry and its products.
In Port Solutions, Konecranes has steadily expanded its
offering of electric and hybrid products, with the last
remaining diesel-fueled product lines within the lift truck
business to be made available electrically by the end of
2026. This is one of Konecranes’ focus areas connected
to the company’s Scope 3 target of halving emissions by
2030. The emissions category “use of sold products” is the
biggest source of emissions, and the share of Port Solutions’
diesel-powered equipment sales impacts that heavily. This
is why Konecranes’ transition plan focuses on this area in the
customer industries of ports and terminals.
In 2024, Konecranes further expanded the Port Solutions
offering of electrified lift trucks by launching the company’s
second electric forklift E-VER in 18–25-ton capacity and
the empty container handler E-ACE for the Asian market.
Konecranes also launched the Konecranes Noell Straddle
and Sprinter Carrier with modular power options for hybrid,
battery and hydrogen, and built-in readiness for future power
sources. Each option is retrofittable and interchangeable.
During 2024, Konecranes also launched the Future Fields
automation concept, which is an integrated automated
solution incorporating a multi-trolley ship-to-shore crane,
an automated guided vehicle and Automated High-Bay
Container Storage.
Konecranes’ products are designed to combine
productivity with eco-efficiency, and the extensive
service offering lengthens the lifecycle of equipment and
supports circular business models. Safety and security are
incorporated into the design, construction, maintenance
and service of our products. With the Konecranes Design
for Environment (DfE) process, the company aims to
improve its products’ environmental performance already
at the design phase.
The demand for Konecranes’ products and services is
driven by market conditions in different industries. Business
Area Industrial Service and Equipment serves general
manufacturing and various process industries, such as metals
production, power generation, automotive, pulp and paper,
raw materials and chemicals. Business Area Port Solutions
serves mainly the container handling industry, covering ports
and terminal customers. Additionally, customers include
industrial customers and those involved in other material
handling sectors, primarily bulk material handling.
At the end of 2024 Konecranes had 16,842 employees of
whom 10,066 or 60 percent were in the Europe, Middle
East and Africa region (EMEA), 3,415 or 20 percent in the
Americas region, and 3,361 or 20 percent in the Asia-Pacific
(APAC) region.
Konecranes has no products or services relating to or
affecting sustainability matters that are banned in certain
markets.
Konecranes’ strategic enablers have a focus on the most
material sustainability matters and they guide the company’s
approach to the future. For example, Enabling responsible
business focuses on safety and security, environmental
sustainability, human and labor rights, as well as ethical
business behavior, while Scaling technological innovation
focuses on low-carbon R&D and digitalization on top of
general innovation activities.
Konecranes’ specific sustainability strategy is built around
four sustainability commitments:
• We deliver safe and secure material handling solutions
• We enable a decarbonized and circular world
• We create a fair, inclusive, diverse, and engaging working
environment
• We expect high ethical standards of ourselves and our
business partners
Konecranes has set targets for each sustainability
commitment as well as programs that ensure the
implementation of the needed actions.
Description of business model and value chain
Konecranes’ ambition is to become the world leader in
material handling, creating value for everyone. Konecranes
is shaping the next generation of material handling for a
smarter, safer and better world. The company focuses
on designing, manufacturing, and servicing intelligent,
connected lifting devices. Key resources include
technological innovation, a skilled workforce, and
sustainable practices. The company’s distribution channels
ensure efficient delivery to diverse customer segments,
including industrial sectors, ports, and logistics providers.
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Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
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Konecranes’ key stakeholders are the following, including
the main upstream (supplier) and downstream (customer)
value chain relationships.
• Investors: Investors in Konecranes include both
shareholders who own the company’s shares and potential
investors, as well as equity research analysts. The General
Meeting of Shareholders serves as the highest decision-
making body, where shareholders exercise their decision-
making power and supervise and control the company’s
business. Investors make their investment decisions
independently and determine their holdings based on
their individual investment strategies.
• Customers and distributors: The quality and quantity of
Konecranes’ offering can affect customers. The majority
of Konecranes’ emissions originate from the use of sold
products, meaning the emissions generated at customer
sites. Customers are increasingly interested in ESG
topics, and Konecranes’ products can affect customers’
environmental impacts from an emissions perspective.
• Suppliers and subcontractors: Konecranes relies on its
suppliers to perform business operations and projects.
Similarly, these suppliers depend on Konecranes to
financially support their own business. The impact of
raw materials and their acquisition is significant for
Konecranes’ ESG targets, highlighting the importance of
suppliers for the company. Konecranes has a vast, global
supplier base.
• Employees: Konecranes’ employees are key stakeholders
since they interact directly with customers, keep the
business running and earn a living from working at the
company.
Konecranes is organized into three business segments
based on its products and services. In accordance with
IFRS 8, it has three reportable segments in 2024: Service,
Industrial Equipment and Port Solutions. In the company’s
double materiality assessment, Konecranes has identified
impacts, risks and opportunities which may have an impact
on its stakeholders and on all of its business segments
equally.
Inputs
Konecranes considers the following topics as inputs: People;
technology; business conduct; collaboration and partners;
manufacturing and supply chain; financial inputs; and natural
resources.
People: Konecranes has approximately 16,800 employees
worldwide. The company focuses on acquiring, developing
and retaining talented workforce. To achieve this, the
company has solid processes in place in the areas of
recruitment, learning and development. To secure talented
workforce, Konecranes aims to create a diverse and inclusive
working environment where people feel trusted, can thrive
by working in a psychologically safe environment, and where
everyone has an opportunity to succeed.
Technology: Konecranes has 1,750 patents or patents
pending globally, spends 1.4 percent of sales in R&D and
has five R&D units globally. Konecranes’ innovation process
enables new innovations, and the product development
process and quality management, together with the
oneKONECRANES systems and processes, enable the
technology development. Patent management enables the
protection of Konecranes’ intellectual property rights (IPR).
Business conduct: Konecranes invests in leadership
development, follows relevant regulations and legal
frameworks, and has built a strong governance model.
Together with common processes and due diligence,
the company has a strong business conduct model. This
is supported by the company’s Code of Conduct and,
for example, the company’s values. To further develop
its business conduct, processes such as the company’s
Whistleblowing Channel enable taking corrective actions
and developing company processes and approaches for
knowledge sharing. Employee engagement and training help
in building a strong culture.
Collaboration and partners(hips): Konecranes has partner
programs with startups, universities and different research
and innovation programs. Regarding manufacturing and
supply chain, Konecranes’ global manufacturing network
and global supplier and subcontractor base ensure that the
company gets the needed inputs, while the Konecranes Way
lean methodology helps develop them, and procurement
and manufacturing processes as well as continuity planning
help in securing them.
Safety and security: Safety and security are at the core of
Konecranes’ operations – they are prioritized in all areas of
the company’s operations and throughout the value chain.
Prioritizing safety and security in all areas of the company’s
activities provides it with a competitive advantage. With the
company’s offering, customers can not only enhance the
safety and security of their business, but also improve the
efficiency and productivity of their operations. Konecranes’
safety culture is based on the principle that there is no work
so urgent or important that it cannot be done safely. Product
and information security is managed systematically to
protect the company’s information assets.
Manufacturing and supply chain: Konecranes has a global
manufacturing footprint and an extensive service network.
Konecranes also has an extensive global supplier base of a
total of 22,000 Tier 1 suppliers (including logistics services,
material and components, installations, assemblies and
other services). In Industrial Service and Equipment, in
addition to selling equipment with the Konecranes brand
directly to end-users, the company also sells its products to
distributors with its other brands such as Demag, R&M, SWF,
Donati and Verlinde. Konecranes’ approach to gathering and
developing manufacturing and supply chain inputs is based
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
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on global material and service delivery processes as well
as procurement process (oneKONECRANES processes),
Supplier Relationship Management, and the Konecranes
Way lean methodology. To secure the inputs, Konecranes
practices continuity planning. In securing our supply chain,
we focus on dual purchasing options, demand planning and
forecasting, supply chain disruption screening, inventory
management, and securing our regional supply base, all
contributing to supply chain resilience.
Financial inputs: Konecranes creates value by leveraging
financial inputs from debt and equity investors. Funds
raised through investment and loans are used to support
the development and manufacturing of the company’s
products, which are then sold to customers. Revenue
generated from these sales, along with healthy margins,
sustains and grows the business. Konecranes’ Enterprise
Resource Planning and Group consolidation system ensure
that the financial reporting adheres to IFRS standards and
is regularly verified by both internal and external audits,
guaranteeing transparency and accuracy. Secure IT systems
safeguard the integrity of our financial data. The consistent
quality and reliability of Konecranes’ products foster repeat
sales, assuring investors of the stability and profitability of
their contributions. This continuous cycle of investment and
reinvestment enables Konecranes to develop, innovate and
maintain a resilient and thriving business.
Natural resources: Regarding materials, Konecranes
mainly procures steel as well as mechanical and electrical
components. The company uses energy, for example, for
heating and cooling and for manufacturing processes, as
well as fuels, for example, for service vehicles. To gather,
develop and secure the needed raw materials and energy,
Konecranes has a Supplier Code of Conduct that sets the
minimum legal and ethical requirements and principles of
conduct which Konecranes requires from its suppliers and
subcontractors.
Outputs
Konecranes considers the following topics as outputs:
Products and services; waste and emissions; economic
value distributed.
Products and services:
Konecranes’ product offering consists of an Industrial
Equipment offering of standard cranes and process
cranes and Port Solutions’ products for container handling.
Konecranes’ business segment Service provides industry-
leading lifecycle services for all types and makes of industrial
cranes and hoists. Konecranes technology improves
operational performance through operational software
and services, connected cranes and digital tools as well as
intelligent machines and devices.
• Current and expected benefits for customers and
end-users: Konecranes’ innovation work concentrates
on adopting new technologies and optimizing material
handling flows with its products, services, and digital
solutions. Konecranes helps its customers cut their
carbon footprint with its eco-optimized offering,
enabling transition to a low-carbon future. Konecranes
applies circular economy principles in its processes for
improving resource and energy efficiency. Extending
asset lifecycles, minimizing the overall carbon impact, and
ensuring that materials are kept in circulation all create
value for the customer.
• Current and expected benefits for investors: Konecranes
provides value for investments by meeting non-financial
expectations via producing products and services that
advance responsible business.
• Current and expected benefits for other stakeholders:
The society benefits from decarbonization that
Konecranes aims to advance by electrifying its offering
and utilizing circular economy principles in its processes.
By doing this the company improves its resource and
energy efficiency, extends equipment lifecycles and
minimizes the overall carbon impact, as well as ensures that
materials are kept in circulation.
Waste and emissions:
• Current and expected benefits for customers and end-
users: Konecranes helps its customers cut their carbon
footprint with its eco-optimized offering and by minimizing
the emissions from its own operations. This will be done by
electrifying Konecranes’ offering to minimize the use phase
emissions of sold equipment. By applying circular economy
principles in its processes, Konecranes improves resource
and energy efficiency, and therefore reduces waste and
emissions. By extending customers’ asset lifecycles,
minimizing the overall carbon impact of its products
and operations, and ensuring that materials are kept in
circulation, the company creates value for the customer.
• Current and expected benefits for society: Konecranes
aims to minimize the waste generated as well as emissions,
and thereby helps society in the transition to a low-carbon
future.
Economic value distributed:
• Current and expected benefits for customers and
end-users: Monetary value with profitability and stability.
Reliable and optimized performance. High reliability leads
to increased uptime and predictability, which can lower the
total cost of ownership of a customer’s material handling
system.
• Current and expected benefits for investors: Dividends.
Konecranes also creates value for shareholders by
meeting the non-financial expectations via sustainable
business practices and risk management.
• Current and expected benefits for other stakeholders
(society, employees and educational institutions): Paying
taxes and boosting local economies as an employer,
providing rewarding jobs and competitive salaries for
employees, donating, non-profit organizations. Close
and mutually beneficial relationships with educational
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
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institutions and top universities, including financial
endowments.
Main features of upstream and downstream value chain
Upstream value chain: This includes all our upstream
activities not covered in own operations, mostly focusing on
procurement. Konecranes has workers in the supply chain
(subcontractors) working at the company’s sites and at their
own sites. Konecranes’ suppliers of steel and other key raw
materials such as fabricated steel and electric components
are key, especially the suppliers of steel, which is the main
raw material used in the company’s products. Also, suppliers
related to transportation are those with great importance to
Konecranes.
Downstream value chain: In the downstream value chain,
Konecranes includes all end-users using its products
(they act in industries like ports and terminals handling
containers, shipyards, metals production, paper and forest,
automotive, waste to energy and biomass, and nuclear)
and services. In Konecranes’ downstream value chain, also
distributors are important, as for example in the Business
Area Port Solutions Konecranes sells its products to end-
users through distributors in addition to utilizing its own
sales organization. In the Business Area Industrial Service
and Equipment Konecranes has a dual channel approach:
The so called beta channel is for selling products under the
Konecranes brand directly to end-users, and the so-called
alpha channel is indirect distribution to end-users via crane
builders, distributors and component integrators. On the
service side, Konecranes’ relationship with customers and
end-users is based on, for example, service agreements. In
the parts business, Konecranes’ customers can buy spare
parts directly from Konecranes.
Interests and views of stakeholders – general
Konecranes places a great deal of importance on its role
in addressing sustainability opportunities and challenges.
In addition to being responsible, Konecranes must also
be responsive to society’s fast-changing expectations
by engaging in regular and close dialogue with its key
stakeholders to understand their evolving needs and
expectations. Strategic dialogue helps the company
ascertain that its sustainability strategy supports market
demands and that the information it provides is relevant and
transparent.
Konecranes’ key stakeholders are customers, distributors,
employees, shareholders and investors as well as suppliers
and subcontractors. Stakeholder engagement occurs
systematically with all mentioned stakeholder groups.
Engagement with customers is mainly handled by the
company’s sales department, their key account managers
and service technicians. Konecranes uses surveys and the
Voice of Customer (VoC) feedback tool after delivery or
installation. In addition, Konecranes replies to a significant
number of data requests by its customers annually. On health
and safety issues, Konecranes engages with customers, and
especially the end-users of its products, through Konecranes’
authorized contact raised through Accident Investigation
Reporting (AIR) or Field Quality Inspections (FQI) processes.
These processes ensure constant engagement with the
customers. The main aim is to ensure a deepening customer
focus. Konecranes has a proactive approach to how it
understands and collaborates with its customers, enabling the
company to continuously deliver solutions and experiences
they value. The company engages actively with its customers
throughout the equipment lifecycle, strengthening
relationships, building trust, optimizing performance and
enhancing profitability, in accordance with the company’s
strategic priorities and values.
Regarding employees, the types of engagement are
described as part of Konecranes’ people processes. One
example of collecting feedback on interests, views and
rights is the Pulse survey and the Employee Engagement
Survey. Additionally, Konecranes maintains open
communication channels with workers’ representatives to
discuss and address different concerns that may arise on a
day-to-day basis. Konecranes has an intranet, an enterprise
social network and several other online tools as engagement
platforms for our internal stakeholders.
Konecranes engages in active dialogue with shareholders
and encourages shareholders to share feedback with the
company. The feedback is received in shareholder meetings
and calls as well as through questionnaires and ratings that
shareholders value.
Supplier cooperation is organized by the company’s
centralized and business unit specific procurement and
purchasing functions. A supplier management model is
utilized for creating solid partnerships. Suppliers’ workers are
able to voice their views and concerns, including human rights
concerns, through their company’s Konecranes contact, as
part of audit interviews and in case of actual negative impacts,
through Konecranes’ Whistleblowing Channel.
The purpose of having an active stakeholder engagement
approach is to ensure that Konecranes continuously
stays ahead of and is responsive to the emerging trends
and requirements, as well as to understand stakeholders’
evolving needs and expectations. Konecranes wants to
be a preferred supplier for its customers and a preferred
employer for its existing and future employees. Konecranes
follows the interests of its investors to ensure it is aligned with
their requirements. Engaging with suppliers ensures that the
company knows what is happening within its supply chain,
for example, around new innovations and/or identifying
potential changes and securing compliance.
The information received through the company’s
stakeholder engagement is used as an input in Konecranes’
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Remuneration Report
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2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
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sustainability strategy and all the way to the Group’s
strategy. It helps to ensure that the strategy supports market
demands and that the information Konecranes provides to
the market is relevant and transparent.
Konecranes has gained valuable insights into its
stakeholders’ interests and perspectives through various
communication tools and channels. These have been
used to inform the double materiality assessment. Using
both the ESRS guidance and findings from Konecranes’
2022 materiality assessment as a foundation, Konecranes
reviewed stakeholder input to identify and exclude topics
less relevant to our organization. Key topics of interest for
Konecranes’ stakeholders include GHG emissions and
materials used for our products to reduce environmental
impact, as well as employee and product health and safety,
human rights, and transparency.
Konecranes launched its updated strategy in May 2023. No
amendments to the new strategy have been made since
then.
The administrative, management and supervisory bodies
are informed, as relevant, about the views and interests
of affected stakeholders either when the information is
available or as a part of predefined topical reviews. The
Investor Relations team gathers shareholder feedback and
shares it with the Board of Directors, if relevant. Employee
views are obtained from the results of employee surveys.
The customer’s voice is the focus of our Business Areas,
and KPIs related to the work with customers are followed
monthly by the Konecranes Leadership Team. The results of
the double materiality assessment, including stakeholder
views and interests, are presented to the Board of
Directors or to the Committees of the Board and to the
Konecranes Leadership Team whenever the assessment
is updated. The Sustainability Council validates the
assessment.
Material impacts, risks and opportunities and their
interaction with strategy and business model
Environment:
Climate change mitigation is a material topic for
Konecranes. The biggest impacts as well as opportunities
in climate change mitigation are related to the sub-topic
GHG emissions reduction in own operations, and upstream
and downstream value chain. The need to reduce emissions
can create material financial opportunities through enabling
a competitive position in the market and increased sales
of a low-carbon offering. Konecranes also acknowledges
a negative impact to the environment generated through
its emissions, mainly through upstream (e.g. raw material
purchases, steel) and downstream (use of sold products)
value chain emissions. Also, the emissions caused by
Konecranes’ own operations are relevant, although the
impact is small compared to the value chain emissions.
If Konecranes’ customer industries and suppliers of
carbon-intensive raw materials like steel do not proceed
with their decarbonization actions and customers do not
prefer electric products instead of diesel-fueled ones,
Konecranes will not be able to meet its emissions reduction
targets. This may also be seen as a risk if the development
costs of a low-carbon offering do not generate income.
Konecranes has identified impact reduction and financial
opportunities especially in the downstream value chain
when ensuring sustainable product design and utilizing new
sustainable technologies. Also, sustainable finance and
investments are material for Konecranes through supporting
positive impacts and creating financial opportunities
especially in relation to the downstream value chain. For
example, government grants can support the financing
of research and development, improving environmental
performance. Energy consumption is a material topic,
negative impacts generated mainly through own operations
and use of sold products in the downstream value chain.
The energy efficiency of the product offering also creates
an opportunity: Konecranes can gain a competitive
advantage with more energy efficient products. In addition,
renewable energy alternatives enable emissions reduction in
Konecranes’ own operations and along the value chain.
Within the topic of climate change adaptation, the impact
of extreme weather events is negative mainly due to the
potential damage to manufacturing facilities, but also
due to potential impacts in manufacturing and logistics in
the upstream value chain, resulting in availability issues or
delays. Impacts within the downstream value chain could
happen mainly through product deliveries to Port Solutions
customers who are in general more subject to extreme
weather events than the customers of Industrial Equipment.
The lifecycle of our products may be decades, and
resource outflows is material for Konecranes from the
circular economy perspective. In this area the topic of
product quality and lifecycle has a positive impact on
the environment through the downstream value chain.
Manufacturing durable and efficient products reduces
their environmental footprint during the whole lifecycle
of the product. This may create a financial opportunity
for Konecranes when the products are seen as more
environmentally sustainable, strengthening the company’s
good market position. Similarly, material use efficiency
has a positive impact on the environment mainly through
Konecranes’ own operations (for example, by using materials
more efficiently in production) and downstream value chain
(when the products have been designed by keeping, for
example, modularity in mind).
The management of relationships with suppliers is
material for Konecranes, specifically the topic of setting
environmental requirements for suppliers, leading to a
smaller environmental impact when Konecranes is selecting
its suppliers with the same high level of environmental
ambitions as Konecranes. This might have a positive impact
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2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
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on the GHG emissions reduction but is also seen as a
material reputational risk if the suppliers are not meeting the
environmental requirements or if the climate footprint of
Konecranes’ product portfolio would increase, affecting the
company’s market position.
Social:
Working conditions of own workforce is a material topic
for Konecranes. The material negative impact of the sub-
topic working time is related to possible excessive overtime
that may lead to physical and mental health issues and
impact an individual’s right to family or personal time. The
topic adequate wages has a positive impact in the form of,
for example, living wages, which is a very important topic
for Konecranes. Paying adequate wages, and especially
living wages, to all employees results in positive impacts,
especially in low-income countries. Konecranes sees
adequate wages as an essential component of decent
work, reducing inequalities and increasing gender
equality. Freedom of association has a positive impact
on employees’ fundamental labor right of freedom of
association and their ability to engage with Konecranes
as an employer. Work-life balance may negatively impact
employees’ quality of life in the form of balancing time
between work and private life. At Konecranes, work-life
balance is considered to apply to all employees, not only
family leaves. Health and safety might have a negative
impact on employees’ well-being. Many of Konecranes’
employees work in the field at customers’ sites, and this
work has many safety risks.
Equal treatment and opportunities of own workforce is also
a material topic for Konecranes. Its sub-topic training and
skills development impacts both positively and negatively
not only Konecranes’ own operations but also the company’s
employees and the surrounding society. Diversity can relate
to positive and negative impacts. Promoting diversity,
equity and inclusion can enhance employee engagement.
On the other hand ,if the company is not promoting equity
and inclusion of all employees, this might potentially lead to
discrimination.
Regarding workers in the value chain, the impacts on
people are concentrated in the upstream value chain,
where working conditions are seen as a material topic.
Working time relates to suppliers’ employees’ possible
excessive overtime that may lead to physical and mental
health issues and impact individuals’ right to family or
personal time. Health and safety impacts suppliers’
employees’ well-being. When looking at other work-
related rights, forced labor can create severe negative
impacts further down in the upstream value chain.
Regarding consumers’ and end-users’ personal safety, the
negative impact on people is mainly generated through the
downstream value chain due to the impacts on the end-
users’ and consumers’ health and safety through potential
safety incidents. There are both compliance and reputational
risks in the case of serious incidents (even fatalities) related
to possible product quality failures where Konecranes’
products would be involved. However, Konecranes sees
this as a material financial opportunity as our good product
quality provides us with a competitive advantage.
Governance:
Regarding business conduct, corruption and bribery and
especially the prevention and detection of corruption and
bribery, including training are material topics for Konecranes,
impacting people in own operations and in the upstream and
downstream value chain. These can have negative impacts
on businesses by creating an unfair playing field for those
doing honest business. These can also have a negative
impact on local economies and societies, as they raise the
cost of doing business, discourage investments and hinder
economic growth, while undermining social cohesion and
eroding trust.
Corporate culture is a material topic, where positive impacts
are seen generated especially through own operations
and the upstream value chain. It positively impacts ethics in
general, the social environment as well as the environment.
Corporate culture defines how Konecranes operates,
and a strong culture helps us in being compliant and in
managing relationships with suppliers and, for example,
distributors – which in turn helps us in achieving our climate
targets (which in turn has positive impact on the environment
through decreased emissions). Corporate culture is both a
financial opportunity and a risk. A strong, good corporate
culture leads to better performance. It supports employee
engagement and helps to build trust with customers and
investors. Companies, including Konecranes, also face risks
of non-compliance, sanctions and reputational risks related
to corporate culture.
Management of relationships with suppliers and
especially management of relationships with suppliers
excluding payment practices are seen as material topics
for Konecranes due to the related financial opportunities
and risks. Good supplier management and processes are
opportunities as they help to increase predictability and
resiliency and reduce risks. The respective risks relate to the
regulatory environment and a scenario in which businesses
would not be able to implement a due diligence act (e.g.
Germany’s Due Diligence Act) properly.
Entity-specific topics:
Within the area of cybersecurity, Konecranes has identified
two material sub-topics that are slightly different from each
other: cyber-preparedness and enterprise resilience; and
product security. Cyber-preparedness and enterprise
resilience has a negative impact mostly through Konecranes’
own operations: The continuity of Konecranes operations
is based on functional and reliable business applications,
IT infrastructure and factories. A wide-scale cybersecurity
attack against Konecranes can cause a data breach,
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Report of the Board of Directors
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Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
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operational downtime, and failure to provide service and new
equipment to customers according to service agreements
and contracts. This is both a financial risk and an opportunity
for Konecranes. When cybersecurity is managed well,
Konecranes businesses can run smoothly, and, in some
cases, this is a prerequisite for doing business. Product
security is a material topic with a negative impact through
the downstream value chain. Konecranes’ material handling
solutions are used by customers operating in industries like
the energy sector, industrial manufacturing, and ports. The
availability and security of the material handling solutions
impact the continuity of customers’ processes. Poor
security of the solutions can cause safety, environment and
availability issues. Thus, the solutions must be secure by
design and remain secure throughout their lifecycle. Product
security is also both a financial risk and an opportunity:
Good product security helps Konecranes do business with
customers and, for example, a cybersecurity certificate
can be a prerequisite from the customer. Badly managed
product security could have the opposite impact: Failing to
comply with cybersecurity regulation and standardization
requirements weakens business opportunities and market
position or results in regulatory fines.
Pollution, water and biodiversity
Pollution is not considered as material for Konecranes
as it does not exceed the set threshold for materiality.
Konecranes uses only limited volumes of chemicals and most
of the hazardous substances in Konecranes products are
widely used commercial components that do no significant
harm during the products’ use phase.
Based on an analysis, water consumption is not significant for
Konecranes since the company’s manufacturing processes
use very little or no water at all, and the company’s operations
do not require extensive changes in freshwater or seawater
use. Therefore, Konecranes has deemed water as a non-
material topic.
Biodiversity and ecosystems is not considered a material
topic for Konecranes. The manufacturing of Konecranes’
products does not reserve large areas of land or have
a significant effect on biodiversity in the surrounding
natural environment. Based on biodiversity risk screening,
Konecranes factories are not located in biodiversity-
sensitive areas such as UNESCO World Heritage sites,
Ramsar sites or UNESCO biosphere reserves. However, one
of the factories is in an area considered a key biodiversity
area. This factory is described in more detail in Process
to identify and assess impacts, risks, dependencies and
opportunities in relation to other environmental topics.
Current and anticipated effects of material impacts,
risks and opportunities
During the initial double materiality assessment process,
several internal stakeholders participated in discussing the
current and anticipated effects of Konecranes’ material
impacts, risks and opportunities on the company’s
business model, value chain, strategy and decision-
making. And as the double materiality assessment will be
revisited regularly, these topics are made clearly visible
and are known by the internal stakeholders who drive and
lead the related areas within the company. The current
and anticipated effects of the material impacts, risks and
opportunities will be taken into account within the annual
and long-range planning of all relevant Group functions,
Business Areas and their Business Units, as well as
Enterprise Risk Management.
The material impacts related to the following material
topics: Greenhouse-gas emissions reduction, sustainable
product design, new sustainable technologies, sustainable
finance and investments, reduced energy consumption,
utilization of renewable energy alternatives, suppliers’
environmental requirements, product quality and lifecycle
as well as material use efficiency; all affect people and the
environment by mitigating climate change and its negative
impacts to people and the environment. Konecranes also
acknowledges a negative impact to the environment and
people generated through its emissions. The majority of
these emissions come from the value chain, mainly from
steel raw material purchases and the energy used when using
Konecranes’ sold products.
The social material impacts related to topics within own
workforce’s working conditions and equal treatment and
opportunities for all are mainly related to people’s physical
or mental well-being or health and safety, either positively
or negatively, similarly to the working conditions and other
work-related rights of workers in the value chain. Positive
impacts are also related to, for example, helping to prevent
unintentional and intentional discrimination and harassment.
Negative impacts are related to violations of human rights
of those working in the supply chain. Consumers’ and end-
users’ personal safety-related impacts affect end-users’
health and safety.
The material impacts are closely connected to Konecranes’
strategy, business model and purpose of Shaping next
generation material handling for a smarter, safer, and
better world. They are also very well connected to all of the
company’s five strategic enablers: Deepening customer
focus; Accelerating efficiency; Scaling technology
innovation; Advancing responsible business; and Enhancing
our winning culture, as well as the company’s values: Putting
customers first; Doing the right thing; Driving for better; as
well as Winning together.
The impacts have been considered regarding their
likelihood, taking into account the expected time horizon
in the following way: Is the event expected to occur in most
circumstances (more than once a year), some circumstances
(once every 1–5 years), at some time (once every 5–10 years)
or in only exceptional circumstances (once in 10–50 years or
longer).
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Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
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Konecranes is involved in the material impacts through its
activities or because of its business relationships in the
following ways:
For example, Konecranes’ impacts on the environment (for
example, climate change mitigation) can be affected by
having ambitious climate targets regarding Scope 1, 2 and 3
emissions. Konecranes can reduce its emissions with activities
such as managing the supplier relationship and setting tighter
environmental requirements for the company’s suppliers.
Also, the product offering’s environmental impact can be
minimized by utilizing smart design principles, maximizing the
product lifecycle and utilizing circular economy principles
throughout the value chain. Konecranes’ service business
helps to maximize the life of material handling equipment
with, for example, predictive maintenance, modernizations
and retrofits. Konecranes also works towards carbon neutral
own operations by 2030 and helps its customers in reaching
their low-carbon targets. The safety-related impacts can be
managed by prioritizing and embedding safety in everything
the company does. Konecranes has systematic approaches
to the different aspects of safety, for example, in the form of
embedding safety into the design requirements and product
development processes, certifications for ISO 45001 and
ISO 9001, and additionally, the reliability and testing approach
following ISO 17025. Security in the form of cybersecurity
is being managed by systematically implementing security
best practices, such as requirements set in the ISO 27001
standard for information security, cybersecurity and privacy
protection. In the product security area, Konecranes relies on
the industry’s best practice standards, such as IEC 62443 for
industrial automation and control systems.
Konecranes is involved in the material impacts on people
through its activities on governance (the Code of Conduct
setting the direction for these activities), supplier
management (the Supplier Code of Conduct setting the
direction, supported by the Know Your Supplier Policy) as
well as different people-related activities that are guided by
the company’s policies such as the Human Rights Policy, the
Diversity, Equity and Inclusion policy statement, as well as the
Talent Acquisition and Recruitment policy.
In the reporting year, no material financial effects on the
financial position, financial performance or cash flows have
been identified regarding material risks and opportunities.
No significant risk for material adjustments in the next
annual reporting period has been identified. The resilience
of Konecranes’ strategy and business model regarding
the capacity to address material impacts and risks, and to
take advantage of the material opportunities, is discussed
in connection with the material topics in Material impacts,
risks and opportunities and their interaction with strategy
and business model as well as under relevant topic-specific
standards.
The double materiality assessment was done for the first
time in 2023, and this is the basis for reporting year 2024.
In addition to the impacts, risks and opportunities that are
covered by ESRS Disclosure Requirements, Konecranes has
identified two entity-specific material topics: Product security
and Cyber-preparedness and enterprise resilience. These
entity-specific material impacts, risks and opportunities are
disclosed in Material impacts, risks and opportunities and
their interaction with strategy and business model as well as
with entity-specific disclosures in S4 Consumers and end-
users (product security) and G1 Business conduct (cyber-
preparedness and enterprise resilience).
Impact, risk and opportunity management
Description of process to identify and assess
material impacts, risks and opportunities
In defining its impacts, risks and opportunities and their
assessment, Konecranes has followed the draft guidance
of double materiality assessment provided by the European
Securities and Market Authority (ESMA). First, a model for
the assessment was created by mapping all the relevant
stakeholders and their interests, topics, sub-topics and
sub-subtopics. Then, the thresholds for materiality were
defined.
Different information sources were used to map the
stakeholders and their interests: Regulations (topics that
are highly regulated or topics with emerging regulations);
investors (feedback from ESG ratings and discussions
with investors); customers (customer requests, annual
benchmarking and a thesis work from 2023 including a
customer questionnaire); competitors (annual competitor
benchmark, and various discussions with customers);
employees (subject matter experts, Employee Engagement
Survey results and Pulse surveys’ results); company
management (Konecranes’ strategy and values, and
discussions with the management).
To map the sustainability universe (topics), a long list of all
aspects of sustainability was created based on ESRS and
Konecranes’ 2022 materiality analysis, and topics relevant for
Konecranes were added, further increasing the granularity of
the topics. The next step was to define topics that were not
relevant for Konecranes’ internal or external stakeholders,
using the information sources listed above.
For defining the thresholds for materiality, the framework was
aligned with Konecranes’ Enterprise Risk Management (ERM)
methodology as much as possible: The ERM scales were
used for defining the impact severity of scale, scope and
irremediability (1–4; low, medium, severe, very severe) and
likelihood (1–4; low, possible, likely, highly likely). The average
of severity mirrored with likelihood then showed if the impact
is minor, significant, major or critical (1–4). The impacts
were assessed in relation to Konecranes’ own operations
and upstream and downstream value chain. For assessing
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
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financial effects, the ERM-aligned approach was used to
evaluate a potential monetary value (1–4; minor, significant,
major or critical) as well as likelihood (1–4; low, possible, likely,
highly likely). To define the final threshold for the material
topics, a heatmap for the high-level topics was created and
all topics having major or critical impact either from impact
materiality or financial materiality point of view were deemed
to be material topics for Konecranes.
In general, the analysis supporting materiality assessment
was based on Konecranes’ operations at a global level.
Related to certain topics, for example, local or supply
category specific risks were assessed on a more granular
level.
To include insights on how affected stakeholders’ may
be impacted, Konecranes used the insights collected
from interviews of suppliers’ employees during third-
party supplier audits. Regarding the internally affected
stakeholders, the information collected from the
Employee Engagement Surveys as well as the Pulse
surveys was used.
In general, the same approach was used for identifying,
assessing, prioritizing and monitoring financial risks and
opportunities. First, it was assessed whether the topic is a
risk or an opportunity by nature – or both. Next, the size of
the financial effect (EUR) was evaluated considering short-,
medium- and long-term time horizons. This evaluation
considered whether the topic is related to potential income
or costs. In addition, it was analyzed whether the effect
was reputational, legal, people- or environment-related.
The likelihood of the financial effect was also assessed.
Finally, the actual financial effect was a result of the scale of
the monetary effect adjusted by its likelihood. Out of the
resulting scale of minor, significant, major and critical, the
major and critical financial effects were deemed material for
Konecranes’ Sustainability Statement.
The connections of impacts and dependencies with risks
and opportunities that may arise from those impacts
and dependencies have been considered as much as
possible by looking at the whole spectrum of the topics,
impacts, risks and opportunities during the assessment
process.
The double materiality assessment process was validated
with select leaders of the company. After this initial validation,
the assessment was validated by the Sustainability Council.
Finally, the Audit Committee of the Board reviewed the
results. As a control procedure the assessment results were
reviewed by relevant topic-specific experts and internal
stakeholders.
The information from the double-materiality assessment
is utilized in Konecranes’ annual ERM process. As part of
the process, sustainability-related risks are integrated
into enterprise risk reporting, evaluated by the Audit
Committee of the Board and reported to the Board of
Directors.
The assessment information supports Konecranes’
sustainability agenda and roadmaps and helps to ensure
that the identified impacts, risks and opportunities are
addressed. The Group’s Sustainability team is responsible
for defining the action plans. As part of Konecranes’ overall
management and business planning process, sustainability
topics, where relevant, are integrated into the annual and
long-range planning of Business Areas, business units and
functions.
Konecranes has considered its own operations as well as the
upstream and downstream value chain activities throughout
the double materiality analysis. The double materiality
assessment process was applied for the first time for the
reporting period 2024. The materiality assessment will be
reviewed annually.
Process to identify and assess climate-related impacts,
risks and opportunities
IThe identification of climate-related impacts, risks and
opportunities started by creating a long list of potential
risks and opportunities. For the assessment, Konecranes
has used the information received from earlier natural
hazard risk evaluations, a climate risk scenario analysis
done for selected predefined risks, as well as insights from
internal experts and business segment management team
members who in the end validated the results. Company-
level climate-related risks and opportunities are reviewed
annually. In addition to the short-, medium- and long-
term (0–10 years) time horizons, a longer time horizon to
the year 2050 has been considered for climate-related
risks and opportunities. The local environmental and
climate-related risks are assessed locally according to the
requirements established in the ISO 14001 environmental
management systems. Climate risks are integrated into
a multi-disciplinary, company-wide risk management
process. The Konecranes Board of Directors has defined
and adopted a set of risk management principles based
on widely accepted international management practices.
These principles serve as part of the company’s system of
controls and are designed to ensure that any risks related
to the company’s business operations are identified and
managed adequately and appropriately to safeguard the
continuity of Konecranes’ business at all times. As part of
the process, risk points are discussed, documented, and
prioritized involving considerations on probability, costs of
mitigation, and impacts on the business.
Key risks are reported to risk management (legal
department), the Konecranes Leadership Team and the
Board of Directors’ Audit Committee. The Konecranes
Leadership Team and Business Area management teams
are responsible for supporting risk mitigation with the
activities needed.
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Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
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Konecranes deploys a systematic approach to calculating
its Greenhouse Gas (GHG) emissions. The details of the
accounting are explained under E1-6 Gross Scopes 1, 2, 3
and Total GHG emissions.
Climate-related physical risks and opportunities
Physical climate risks, such as the increase in extreme
weather conditions like storms, cyclones, hailstorms and
lightning, could have a potential impact on Konecranes’ own
manufacturing units. In the upstream value chain, extreme
weather conditions could have a potential impact on the
shipment of the goods purchased and in the downstream on
the shipments of Konecranes products or spare parts. The
risks identified in the downstream value chain are considered
less significant from Konecranes’ business perspective,
although the impacts might be severe for the company’s
customers. The risks are identified as higher in the medium
and long term, as the volume of extreme weather events has
been estimated to increase over time.
To identify climate-related hazards and to understand
the probability, time scale and actual risks involved, the
company builds on the results from local natural hazard
assessments conducted during 2017–2019. The analysis
for climate-related physical risks was further supported
by an assessment facilitated by a third party in 2019. This
assessment focused on Konecranes’ own operations in the
United States, Finland, Germany, Ukraine, and China. The
countries were selected based upon the significance of the
operations in these countries, and they are considered to
represent a Group-wide view.
The risks were again assessed at Group level in 2022, and
in 2024 as part of the annual enterprise risk management
process, and no major changes were considered. When
assessing climate-related risks and opportunities,
Konecranes has focused on the SSP5-8.5 and SSP5-2.6
global reference scenarios prepared by the International
Panel on Climate Change (IPCC). The assessment has
included the view of short-, medium- and long-term (0–10
years) time horizons, but also a longer time horizon to the
year 2050 has been considered for climate-related risks
and opportunities. The time horizons are also aligned with
Konecranes’ GHG emissions reduction targets.
The potential impacts of climate-related hazards on
customers will be investigated further during the coming
years.
Climate-related transition risks and opportunities
Technological development has been identified as one of
the most significant transitional risks as well as opportunities
for Konecranes. This is relevant across all of Konecranes’
Business Areas, but in particular in the traditional diesel
engine powered product segments of the Business Area
Port Solutions. In the medium- and long-term scenarios
where Konecranes’ product offering would not be attractive
to its customers and would not help them achieve their
environmental targets, Konecranes could lose market
share. To mitigate this risk, Konecranes is committed to
electrifying its offering in all product groups, continuing the
development of the energy efficiency of its equipment,
and seeking to develop new services and solutions that
accelerate circularity, automation and digitalization.
The most relevant climate opportunities also reside in
Konecranes’ offering, enabling the decarbonization of
customers’ operations by providing equipment and
solutions that reduce emissions and advance electrification.
Transition to a low-carbon society is faster in climate
scenarios where global warming is less than 2°C. In these
scenarios, Konecranes has identified increased sales
opportunities in its current and future low-carbon offering as
well as in modernizations and retrofits.
The market risks may have a significant financial impact in
the case of increased carbon taxation for steel or material
availability challenges. Konecranes’ mitigation activities
include, for example, the diversification of the supplier
network and investments in research and development on
alternative materials. The cost of affordable sustainable
energy and materials may also entail a short-, medium-
and long-term risk and opportunity. Konecranes has been
focusing on improving energy efficiency for years, which
minimizes the risk. The company also applies smart design
principles to maximize resource efficiency.
Emerging regulations create a moderate risk and opportunity,
especially in the medium term. Both Konecranes and
its customers will experience changes in the business
environment as they navigate the evolving landscape of
regulations and sustainability requirements. This requires
a strategic approach, including stakeholder engagement,
risk assessments, and the integration of sustainability
considerations into business strategies. The reporting
requirements coming from the regulation are increasing
direct and indirect costs. To mitigate this risk, Konecranes is
closely following regulatory developments.
Konecranes has set an ambitious climate target to reduce
greenhouse gas emissions along the value chain, which
relies on customers’ and suppliers’ commitments to
decarbonization. The target exposes the company to a mid-
and long-term reputational risk as well as an opportunity.
In addition to the global reference scenarios by the IPCC,
Konecranes has considered the Sustainable Development
Scenario by the International Energy Agency (IEA) when
assessing climate-related transition risks and opportunities.
In this scenario, global warming remains below 2°C, involving
regulatory measures and investments in low-emission
technologies. The scenario helps to identify risks and
opportunities stemming from the development in regulation,
markets, and technologies, although the eventual events
depend on the pace of transition and its regional variations.
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Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
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Uncertainties and constraints in the scenario relate, among
others, to regulatory initiatives, technological development,
economic conditions, and market dynamics in different
regions.
Konecranes has also examined the potential impacts of
carbon pricing within different emission-level scenarios in
case the company’s operations would be directly under
emission trading systems. Konecranes does not see this as
likely to be realized over the short- or medium-term time
horizon.
The compatibility of climate scenarios with critical climate-
related assumptions made in financial statements
The climate-related risks and opportunities are considered,
where relevant, in the preparation of Konecranes’
financial statements. The assumptions for the financial
statements are based on the climate scenarios described
in the sustainability statements. Climate risks may impact
Konecranes’ operations, and require judgment in the
financial reporting, relying on the management’s best
judgement and knowledge under the current circumstances.
For more information, see Use of estimations and
judgements in Konecranes’ financial statements.
Process to identify and assess impacts, risks,
dependencies and opportunities in relation to other
environmental topics
Pollution
Pollution is not considered as a material topic for
Konecranes’ sustainability statement. Konecranes has
considered microplastics, pollutants, pollution to water
and soil, harmful chemicals and chemical usage and
disposal in its double materiality assessment. However,
location-based or business activity-based screening
has not been conducted, nor consultation with affected
communities.
Water and marine resources
The impacts, risks and opportunities concerning water
and marine resources were assessed together with other
environmental topics. The topic was deemed not material
for Konecranes’s sustainability statement. The assessment
was supported by water consumption data collected from
Konecranes’ manufacturing sites and the WWF Water Risk
Filter tool for basin and operational water risks in relation to
the sites. Based on the analysis, water consumption is not
significant since Konecranes’ manufacturing processes use
very little or no water at all. The water risk analysis indicated
that Konecranes has no manufacturing units in “Very High”
water scarcity areas. The analyses covered 35 units out
of which four units are located in “High” and the rest in
“Medium” or “Low” risk areas. Only two of the units in high-
risk areas use water in their production processes. The tool
also provided scenarios on water risks based on climate
and socioeconomic changes by 2030 and 2050, giving an
insight into the future water risks. Consultation with affected
communities has not been conducted regarding water.
Biodiversity and ecosystem
Konecranes’ materiality assessment for biodiversity
was supported by a combination of different methods
and tools to identify the actual and potential impacts on
biodiversity and ecosystems. High-level dependencies
related to biodiversity and ecosystems and impacts were
analyzed using the ENCORE tool. Biodiversity impacts of the
company’s manufacturing units have been assessed with
the WWF Biodiversity Risk Filter tool, which has also been
used to support the screening of potential dependencies
as well as potential physical and reputational risks. In
addition, transitional risks were included, and biodiversity risk
screening has been conducted to identify those Konecranes
factory locations which are located in or near biodiversity-
sensitive areas. Systemic risks have not been considered,
and communities were not involved in the materiality
assessment of biodiversity and ecosystems.
The biodiversity and ecosystems topic is not considered as
material for Konecranes. The manufacturing of Konecranes’
products does not reserve large areas of land or have a
significant effect on biodiversity in the surrounding natural
environment. Water consumption is not significant since
Konecranes’ manufacturing processes use very little or
no water at all. The company’s operations do not require
extensive changes in freshwater or seawater use. Based on
biodiversity risk screening, Konecranes factories are not
located in biodiversity-sensitive areas such as UNESCO
World Heritage sites, Ramsar sites or UNESCO biosphere
reserves. However, one of the factories, Konecranes’
Thailand manufacturing unit, is in an area considered as
a key biodiversity area. The biggest threats to the area’s
biodiversity are agriculture, urban expansion, infrastructure
and industrial development, and related pollution. The
manufacturing units is in an established industrial area.
The environmental management of Konecranes’ own
operations is based on ISO 14001. Konecranes’ Global
HSE Standards for environmental management set the
minimum requirements and standardize the ways of
working by defining common rules for all operations. For
energy management as well as for chemical handling and
waste management, the standards set a minimum level for
environmental management. There are clear instructions in
place to ensure that residual waste and hazardous waste are
disposed of according to local requirements and through
licensed waste management companies. Waste data
is followed on a quarterly basis, including the treatment
method. Environmental incidents and near-miss cases
are reported through a global HSE reporting tool, and
investigations of the root causes and corrective actions are
conducted accordingly. Konecranes collects and reviews
water consumption data quarterly from its factories. It
has not been concluded whether or not it is necessary to
implement biodiversity mitigation measures.
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Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
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Resource use and circular economy
The identification of impacts, risks and opportunities related
to resource inflows, outflows and waste was done together
with the climate assessment. For the circularity assessment,
Konecranes used several information sources such as
product-level material distribution information available in
the Environmental Product Declarations, product Life Cycle
Assessments, as well as information on its own resource
usage such as data on water consumption and generated
waste. Steel raw material was assessed more carefully as
steel is a dominating material in product-level distribution in
terms of material volumes.
From the resource outflow point of view, the topic of
product quality and lifecycle and material use efficiency
has been identified as material. Resource input flow and
waste were identified as not material for Konecranes.
Increasing the use of recycled steel is a part of Konecranes’
climate action transition plan under the theme of steel
industry decarbonization. The expected decarbonization
effect from steel is approximately 1.5 percent of the value
chain emissions in scope of the company’s science-
based targets, including the increased use of recycled
steel, but also focusing on, for example, electrifying and
using renewable energy in steel manufacturing. Thus,
the impact from the increased use of recycled steel
alone is not very significant, but it is one decarbonization
lever in the company’s climate transition plan. During the
assessment, no consultations have taken place with affected
communities.
Process to identify and assess business conduct-related
material impacts, risks and opportunities
When describing the overall process in General information:
Description of process to identify and assess material
impacts, risks and opportunities, Konecranes has
considered the relationship with business conduct matters.
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Remuneration Report
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
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Disclosure Requirements covered by sustainability statements
The following content index presents the Disclosure Requirements Konecranes complies with in its Sustainability Statement.
1. GENERAL INFORMATION 48
General disclosures 48
Basis for preparation 48
Governance 48
Strategy 56
Impact, risk and opportunity management 64
2. ENVIRONMENTAL INFORMATION 78
Disclosures pursuant to Article 8 of Regulation 2020/852 (Taxonomy regulation) 78
E1 Climate change 84
E1-1 Transition plan for climate change mitigation 84
Material climate-related impacts, risks and opportunities
and their interaction with strategy and business model 85
E1-2 Policies related to climate change mitigation and adaptation 87
E1-3 Actions and resources in relation to climate change policies 87
E1-4 Targets related to climate change mitigation and adaptation 88
E1-5 Energy consumption and mix 91
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions 92
E5 Resource use and circular economy 96
E5-1 Policies related to resource use and circular economy 96
E5-2 Actions and resources related to resource use and circular economy 96
E5-3 Targets related to resource use and circular economy 97
E5-5 Resource outflows 98
3. SOCIAL INFORMATION 99
S1 Own workforce 99
Material own workforce-related impacts, risks and opportunities
and their interaction with strategy and business model 99
S1-1 Policies related to own workforce 100
S1-2 Processes for engaging with own workers
and workers’ representatives about impacts 102
S1-3 Processes to remediate negative impacts
and channels for own workforce to raise concerns 103
S1-4 Taking action on material impacts on own workforce, and approaches
to managing material risks and pursuing material opportunities related to
own workforce, and effectiveness of those actions 104
S1-5 Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities 108
S1-6 Characteristics of the undertaking’s employees 109
S1-9 Diversity metrics 110
S1-10 Adequate wages 110
S1-13 Training and skills development metrics 110
S1-14 Health and safety metrics 110
S2 Workers in the value chain 111
Material impacts, risks and opportunities related to workers in the value chain
and their interaction with strategy and business model 111
S2-1 Policies related to value chain workers 112
S2-2 Processes for engaging with value chain workers about impacts 113
S2-3 Processes to remediate negative impacts and channels
for value chain workers to raise concerns 114
S2-4 Taking action on material impacts on value chain workers, and approaches
to managing material risks and pursuing material opportunities related
to value chain workers, and effectiveness of those actions 115
S2-5 Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and opportunities 117
69
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
S4 Consumers and end-users 119
Material end-user-related impacts, risks and opportunities
and their interaction with strategy and business model 119
S4-1 Policies related to consumers and end-users 119
S4-2 Processes for engaging with consumers and end-users about impacts 121
S4-3 Processes to remediate negative impacts and channels
for consumers and end-users to raise concerns 122
S4-4 Taking action on material impacts on consumers and end-users, and
approaches to managing material risks and pursuing material opportunities
related to consumers and end-users, and effectiveness of those actions 123
S4-5 Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and opportunities 126
4. GOVERNANCE INFORMATION 127
G1 Business conduct 127
G1-1 Business conduct policies and corporate culture 127
G1-2 Management of relationships with suppliers 128
G1-3 Prevention and detection of corruption or bribery 129
Actions and resources related to business conduct 130
Targets related to business conduct 130
Entity-specific information: Cyber-preparedness and enterprise resilience 131
Konecranes discloses material information, with one exception: S1-15 work-life balance. The
topic as such was assessed to be material. However, the disclosure requirements in S1-15
address family-related leave, which Konecranes does not deem material for its Sustainability
Statement. This is why S1-15 work-life balance information is not disclosed. Instead, related to
the topic of work-life balance, Konecranes has identified hybrid work as a material topic, which
is included in the disclosures on own workforce.
70
Corporate Governance Statement 2024
Remuneration Report
Risk Management
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
List of datapoints in cross-cutting and topical standards that derive from other EU legislation
The following table lists ESRS datapoints that derive from other EU legislation and the page numbers where these
datapoints are disclosed as material. Datapoints assessed as not material are marked as “not material,” while the
datapoints subject to phasing-in omission are labeled “phasing-in omission.”
Disclosure Requirement
and related datapoint
SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Page
ESRS 2 GOV-1
Board’s gender diversity paragraph
21 (d)
Indicator number 13 of Table #1 of
Annex 1
Commission Delegated Regulation
(EU) 2020/181627, Annex II
49
ESRS 2 GOV-1
Percentage of board members who
are independent paragraph 21 (e)
Delegated Regulation (EU) 2020/1816,
Annex II
49
ESRS 2 GOV-4
Statement on due diligence
paragraph 30
Indicator number 10 Table #3 of
Annex 1
52
ESRS 2 SBM-1
Involvement in activities related to
fossil fuel activities paragraph 40 (d)
Indicator number 4 Table #1 of
Annex 1
Article 449a Regulation (EU) No
575/2013; Commission Implementing
Regulation (EU) 2022/245328
Table 1: Qualitative information
on Environmental risk and Table 2:
Qualitative information on Social risk
Delegated Regulation (EU) 2020/1816,
Annex II
Not applicable
ESRS 2 SBM-1 I
Involvement in activities related to
chemical production paragraph 40
(d) ii
Indicator number 9 Table #2 of
Annex 1
Delegated Regulation (EU) 2020/1816,
Annex II
Not applicable
ESRS 2 SBM-1
Involvement in activities related to
controversial weapons paragraph
40 (d) iii
Indicator number 14 Table #1 of
Annex 1
Delegated Regulation (EU)
2020/181829, Article 12(1) Delegated
Regulation (EU) 2020/1816, Annex II
Not applicable
ESRS 2 SBM-1
Involvement in activities related
to cultivation and production of
tobacco paragraph 40 (d) iv
Regulation (EU) 2020/1818, Article
12(1) Delegated Regulation (EU)
2020/1816, Annex II
Not applicable
71
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Disclosure Requirement
and related datapoint
SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Page
ESRS E1-1
Transition plan to reach climate
neutrality by 2050 paragraph 14
Regulation (EU)2021/1119, Article 2(1) 84–85
ESRS E1-1
Undertakings excluded from Paris-
aligned Benchmarks paragraph 16 (g)
Article 449a Regulation (EU)
No575/2013; Commission
Implementing Regulation (EU)
2022/2453 Template 1: Banking
book - Climate Change transition risk:
Credit quality of exposures by sector,
emissions and residual maturity
Article 12.1 (d) to (g), and Article 12.2 85
ESRS E1-4
GHG emission reduction targets
paragraph 34
Indicator number 4 Table #2 of
Annex 1
Article 449a Regulation (EU) No
575/2013; Commission Implementing
Regulation (EU) 2022/2453 Template
3: Banking book Climate change
transition risk: alignment metrics
Delegated Regulation (EU) 2020/1818,
Article 6
88–89
ESRS E1-5
Energy consumption from fossil
sources disaggregated by sources
(only high climate impact sectors)
paragraph 38
Indicator number 5 Table #1 and
Indicator n. 5 Table #2 of Annex 1
91
ESRS E1-5
Energy consumption and mix
paragraph 37
Indicator number 5 Table #1 of
Annex 1
91
ESRS E1-5
Energy intensity associated with
activities in high climate impact
sectors paragraphs 40 to 43
Indicator number 6 Table #1 of
Annex 1
91
ESRS E1-6
Gross Scope 1, 2, 3 and Total GHG
emissions paragraph 44
Indicators number 1 and 2 Table #1 of
Annex 1
Article 449a; Regulation (EU) No
575/2013; Commission Implementing
Regulation (EU) 2022/2453 Template
1: Banking book Climate change
transition risk: Credit quality of
exposures by sector, emissions and
residual maturity
Delegated Regulation (EU) 2020/1818,
Article 5(1), 6 and 8(1)
92–95
72
Corporate Governance Statement 2024
Remuneration Report
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Disclosure Requirement
and related datapoint
SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Page
ESRS E1-6
Gross GHG emissions intensity
paragraphs 53 to 55
Indicator number 3 Table #1 of
Annex 1
Article 449a Regulation (EU) No
575/2013; Commission Implementing
Regulation (EU) 2022/2453 Template
3: Banking book Climate change
transition risk: alignment metrics
Delegated Regulation (EU) 2020/1818,
Article 8(1)
95
ESRS E1-7
GHG removals and carbon credits
paragraph 56
Regulation (EU) 2021/1119,
Article 2(1)
Not material
ESRS E1-9
Exposure of the benchmark portfolio
to climate-related physical risks
paragraph 66
Delegated Regulation (EU) 2020/1818,
Annex II Delegated Regulation (EU)
2020/1816, Annex II
Omitted due
to phased-in
disclosure
requirement
ESRS E1-9
Disaggregation of monetary amounts
by acute and chronic physical risk
paragraph 66 (a)
ESRS E1-9
Location of significant assets at
material physical risk paragraph 66
(c).
Article 449a Regulation (EU) No
575/2013; Commission Implementing
Regulation (EU) 2022/2453
paragraphs 46 and 47; Template
5: Banking book - Climate change
physical risk: Exposures subject to
physical risk
Omitted due
to phased-in
disclosure
requirement
ESRS E1-9
Breakdown
of the carrying value of its real estate
assets by energy-efficiency classes
paragraph 67 (c).
Article 449a Regulation (EU) No
575/2013; Commission Implementing
Regulation (EU) 2022/2453
paragraph 34; Template 2: Banking
book -Climate change transition risk:
Loans collateralised by immovable
property - Energy efficiency of the
collateral
Omitted due
to phased-in
disclosure
requirement
ESRS E1-9
Degree of exposure of the portfolio
to climate-related opportunities
paragraph 69
Delegated Regulation (EU) 2020/1818,
Annex II
Omitted due
to phased-in
disclosure
requirement
ESRS E2-4
Amount of each pollutant listed in
Annex II of the E- PRTR Regulation
(European Pollutant Release and
Transfer Register) emitted to air, water
and soil, paragraph 28
Indicator number 8 Table #1 of
Annex 1 Indicator number 2 Table #2 of
Annex 1 Indicator number 1 Table #2 of
Annex 1 Indicator number 3 Table #2
of Annex 1
Not material
73
Corporate Governance Statement 2024
Remuneration Report
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Disclosure Requirement
and related datapoint
SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Page
ESRS E3-1
Water and marine resources
paragraph 9
Indicator number 7 Table #2 of
Annex 1
Not material
ESRS E3-1
Dedicated policy paragraph 13
Indicator number 8 Table 2 of
Annex 1
Not material
ESRS E3-1
Sustainable oceans and seas
paragraph 14
Indicator number 12 Table #2 of
Annex 1
Not material
ESRS E3-4
Total water recycled and reused
paragraph 28 (c)
Indicator number 6.2 Table #2 of
Annex 1
Not material
ESRS E3-4
Total water consumption in m
3
per
net revenue on own operations
paragraph 29
Indicator number 6.1 Table #2 of
Annex 1
Not material
ESRS 2- IRO 1 - E4
paragraph 16 (a) (i)
Indicator number 7 Table #1 of
Annex 1
Not material
ESRS 2- IRO 1 - E4
paragraph 16 (b)
Indicator number 10 Table #2 of
Annex 1
Not material
ESRS 2- IRO 1 - E4
paragraph 16 (c)
Indicator number 14 Table #2 of
Annex 1
Not material
ESRS E4-2
Sustainable land / agriculture
practices or policies paragraph 24 (b)
Indicator number 11 Table #2 of
Annex 1
Not material
ESRS E4-2
Sustainable oceans / seas practices
or policies paragraph 24 (c)
Indicator number 12 Table #2 of
Annex 1
Not material
ESRS E4-2
Policies to address deforestation
paragraph 24 (d)
Indicator number 15 Table #2 of
Annex 1
Not material
ESRS E5-5
Non-recycled waste paragraph 37 (d)
Indicator number 13 Table #2 of
Annex 1
Not material
74
Corporate Governance Statement 2024
Remuneration Report
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Disclosure Requirement
and related datapoint
SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Page
ESRS E5-5
Hazardous waste and radioactive
waste paragraph 39
Indicator number 9 Table #1 of
Annex 1
Not material
ESRS 2- SBM3 - S1
Risk of incidents of forced labour
paragraph 14 (f)
Indicator number 13 Table #3 of
Annex I
99
ESRS 2- SBM3 - S1
Risk of incidents of child labour
paragraph 14 (g)
Indicator number 12 Table #3 of
Annex I
99
ESRS S1-1
Human rights policy commitments
paragraph 20
Indicator number 9 Table #3 and
Indicator number 11 Table #1 of Annex I
100–101
ESRS S1-1
Due diligence policies on issues
addressed by the fundamental
International Labor Organisation
Conventions 1 to 8, paragraph 21
Delegated Regulation (EU) 2020/1816,
Annex II
101
ESRS S1-1
Processes and measures for
preventing trafficking in human
beings paragraph 22
Indicator number 11 Table #3 of
Annex I
101
ESRS S1-1
Workplace accident prevention
policy or management system
paragraph 23
Indicator number 1 Table #3 of
Annex I
101
ESRS S1-3
Grievance/complaints handling
mechanisms paragraph 32 (c)
Indicator number 5 Table #3 of
Annex I
103–104
ESRS S1-14
Number of fatalities and number
and rate of work-related accidents
paragraph 88 (b) and (c)
Indicator number 2 Table #3 of
Annex I
Delegated Regulation (EU) 2020/1816,
Annex II
110
ESRS S1-14
Number of days lost to injuries,
accidents, fatalities or illness
paragraph 88 (e)
Indicator number 3 Table #3 of
Annex I
110
75
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Disclosure Requirement
and related datapoint
SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Page
ESRS S1-16
Unadjusted gender pay gap
paragraph 97 (a)
Indicator number 12 Table #1 of
Annex I
Delegated Regulation (EU) 2020/1816,
Annex II
Not material
ESRS S1-16
Excessive CEO pay ratio paragraph
97 (b)
Indicator number 8 Table #3 of
Annex I
Not material
ESRS S1-17
Incidents of discrimination paragraph
103 (a)
Indicator number 7 Table #3 of
Annex I
Not material
ESRS S1-17
Non-respect of UNGPs on Business
and Human Rights and OECD
paragraph 104 (a)
Indicator number 10 Table #1 and
Indicator n. 14 Table #3 of Annex I
Delegated Regulation (EU) 2020/1816,
Annex II Delegated Regulation (EU)
2020/1818 Art 12 (1)
Not material
ESRS 2- SBM3 S2
Significant risk of child labour or
forced labour in the value chain
paragraph 11 (b)
Indicators number 12 and n. 13
Table #3 of Annex I
111–112
ESRS S2-1
Human rights policy commitments
paragraph 17
Indicator number 9 Table #3 and
Indicator n. 11 Table #1 of Annex 1
100–101,
112–113
ESRS S2-1
Policies related to value chain workers
paragraph 18
Indicator number 11 and n. 4 Table #3
of Annex 1
112–113
ESRS S2-1
Non-respect of UNGPs on Business
and Human Rights principles and
OECD guidelines paragraph 19
Indicator number 10 Table #1 of
Annex 1
Delegated Regulation (EU) 2020/1816,
Annex II Delegated Regulation (EU)
2020/1818, Art 12 (1)
113
ESRS S2-1
Due diligence policies on issues
addressed by the fundamental
International Labor Organisation
Conventions 1 to 8, paragraph 19
Delegated Regulation (EU) 2020/1816,
Annex II
113
ESRS S2-4
Human rights issues and incidents
connected to its upstream and
downstream value chain paragraph
36
Indicator number 14 Table #3 of
Annex 1
116
76
Corporate Governance Statement 2024
Remuneration Report
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Disclosure Requirement
and related datapoint
SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Page
ESRS S3-1
Human rights policy commitments
paragraph 16
Indicator number 9 Table #3 of
Annex 1 and Indicator number 11 Table
#1 of Annex 1
Not material
ESRS S3-1
Non-respect of UNGPs on Business
and Human Rights, ILO principles or
and OECD guidelines paragraph 17
Indicator number 10 Table #1 Annex 1 Delegated Regulation (EU) 2020/1816,
Annex II Delegated Regulation (EU)
2020/1818, Art 12 (1)
Not material
ESRS S3-4
Human rights issues and incidents
paragraph 36
Indicator number 14 Table #3 of
Annex 1
Not material
ESRS S4-1
Policies related to consumers and
end-users paragraph 16
Indicator number 9 Table #3 and
Indicator number 11 Table #1 of
Annex 1
119–121
ESRS S4-1
Non-respect of UNGPs on Business
and Human Rights and OECD
guidelines paragraph 17
Indicator number 10 Table #1 of
Annex 1
Delegated Regulation (EU) 2020/1816,
Annex II Delegated Regulation (EU)
2020/1818, Art 12 (1)
121
ESRS S4-4
Human rights issues and incidents
paragraph 35
Indicator number 14 Table #3 of
Annex 1
124–125
ESRS G1-1
United Nations Convention against
Corruption paragraph 10 (b)
Indicator number 15 Table #3 of
Annex 1
127
ESRS G1-1
Protection of whistleblowers
paragraph 10 (d)
Indicator number 6 Table #3 of
Annex 1
128
ESRS G1-4
Fines for violation of anti-corruption
and anti-bribery laws paragraph 24 (a)
Indicator number 17 Table #3 of
Annex 1
Delegated Regulation (EU) 2020/1816,
Annex II)
Not material
ESRS G1-4
Standards of anti-corruption and
anti-bribery paragraph 24 (b)
Indicator number 16 Table #3 of
Annex 1
Not material
77
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Remuneration Report
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Disclosures pursuant to Article 8 of
Regulation 2020/852 (Taxonomy
regulation)
Konecranes has activities that qualify as environmentally
sustainable according to the EU Taxonomy Regulation (EU)
2020/852. Konecranes has activities related to its equipment
sales that are in the scope of technical screening criteria
(TSC) 3.6. Manufacture of other low-carbon technologies
of delegated regulation (EU) 2021/2139. These activities are,
according to Article 16 of the Taxonomy Regulation, enabling
substantial contribution towards climate change mitigation.
In addition, Konecranes’ maintenance and repair activities
within both Business Area Industrial Service and Equipment,
as well as Port Solutions, enable substantial contributions to
circular economy according to delegated regulation (EU)
2023/3851 C (2023). Those are described in TSC 5.1 Repair,
refurbishment and remanufacturing. Konecranes’ spare
parts businesses within both Business Areas are taxonomy-
eligible for their support in the transition to a circular economy
according to TSC 5.2 Sale of spare parts.
Accounting principles, assessment process and
changes in the reporting
Eligibility and alignment of revenue was evaluated at product
and solution level and represents only sales to external
customers at Group level. Eligibility and alignment of capital
expenditure and operational expenditure were assessed
at Group level. Konecranes avoids double counting by
separating the activities related to equipment and service
activities and by having a clear structure in financial reporting
to ensure that the business units and cost elements are
separate for each activity. In 2022 Konecranes assessed its
equipment offering against the technical screening criteria
of the activity 3.6. The work included identifying eligible
2. ENVIRONMENTAL INFORMATION
and aligned activities, reviewing the technical screening
criteria (TSC) and the ‘do no significant harm’ criteria (DNSH)
for each of the remaining environmental objectives for all
relevant business activities, and carrying out an assessment
of the Minimum Safeguards (MS) at Group level. In 2023
the main focus was on assessing the new established
environmental objectives and identifying eligible activities
related to environmental objectives for economic activities
contributing substantially to the transition to a circular
economy. Konecranes also reviewed its compliance
against the updated 2023 version of the OECD guidelines.
In 2024 Konecranes further assessed the alignment for the
substantial contribution criteria for 5.1 Repair, refurbishment
and remanufacturing and for 5.2 Sale of spare parts. The
new draft FAQ on the interpretation and implementation of
certain legal provisions of the EU Taxonomy delegated acts
from the European Commission, published on November 29,
2024, has been noted in 2024 and possible implications are
being investigated further during 2025.
For 2024 reporting Konecranes changed the calculation
method of CapEx and OpEx in activity under Section 3.6.
The previous year’s figures have been recalculated for
comparability. The previous year’s figures changed for
aligned CapEx from EUR 5 million to EUR 4 million and for
OpEx from EUR 14 million to EUR 10 million.
The changes lead to more reliable data and are compliant
with point (a) of Section 1.1.2.2 and Section 1.1.3.2 of the
Disclosures Delegated Act 2021/2178 and can be associated
with taxonomy-aligned economic activities. Konecranes
directs R&D efforts to low-carbon development. However,
the R&D costs are not necessarily linked to taxonomy-
aligned products and services, and these have been
excluded from the OpEx denominator.
Eligible and aligned revenue
Konecranes’ activities are aligned with the objective of
Climate Change Mitigation according to the technical
screening criteria of 3.6. Manufacture of other low-
carbon technologies. The calculation of the revenue
percentage is based on lower carbon technology such
as inverter-controlled hoisting, regenerative braking and
hybrid and electric power options (within the markets
where there are diesel power options). These solutions
provide a lower-emission alternative compared to other
available technologies. Inverter technology as well as
regenerative braking solutions may contribute significantly
to the energy consumption of the equipment, saving
15–45 percent in carbon emissions from the use phase
during the crane’s lifecycle. These technologies substitute
existing technology with lower-emission alternatives in
lifting applications of all customer industries, but especially
in heavy duty applications where the use phase impact
is significant. Compared to diesel equipment, hybrids
save up to 20 percent in emissions during equipment
lifetime. Fully electric equipment can reduce emissions by
approximately 70 percent. When using renewable electricity,
the emissions savings will be higher. This equipment aims
to create substantial GHG emissions reductions in the
ports and terminal industries. Konecranes’ activities in
these areas enable substantial contributions towards
climate change mitigation according to representative
Life Cycle Assessments (LCA) made in comparison with
the best performing alternative technologies. The lifecycle
GHG emissions savings are calculated according to ISO
standards.
Within the objective of circular economy, Konecranes
has activities following the technical screening criteria 5.1
and 5.2. The activities that are contributing substantially
to a circular economy include repair, refurbishment and
remanufacturing activities, as well as the sale of spare
parts, as they enable a significantly longer lifetime for
the equipment. Konecranes’ maintenance and repair
activities, including modernizations and retrofits, are
taxonomy-aligned according to the TSC laid out in 5.1
Repair, refurbishment, and remanufacturing due to their
78
Corporate Governance Statement 2024
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Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
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Board of Directors’ proposal to the Annual
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substantial contribution to the circular economy objectives.
Konecranes embeds a waste management guidance on
the Group level, providing waste management guidelines
for Konecranes service operations. The objective is to
minimize negative health and environmental impacts
caused by waste and pollution while promoting resource
efficiency and circularity throughout the service activities.
Konecranes’ spare parts business was assessed to be
taxonomy-eligible but not taxonomy-aligned according to
the technical screening criteria for 5.2 Sale of spare parts.
Spare parts enable a prolonged lifetime for equipment.
TSC 5.2 includes the requirements that primary and
secondary packaging be made of at least 65 percent
recycled material. For paper and cardboard packaging,
the remaining primary raw materials must be certified and
overall, for plastic packaging, only mono materials without
coatings are allowed. Konecranes is still evaluating the
packaging requirements. The ‘do no significant harm’
criteria of 5.1 Repair, refurbishment and remanufacturing
and 5.2 Sale of spare parts have been assessed.
‘Do no significant harm’ assessment
The ‘do no significant harm’ assessment has been conducted
collaboratively for Konecranes entities, focusing on
Konecranes’ production sites and offering.
Climate change mitigation (for Circular economy)
Konecranes’ repair, refurbishment and remanufacturing acti-
vities do not involve on-site generation of heating/cooling or
co-generation including power, and they emit no direct GHG
emissions deriving from this activity.
Climate change adaptation
Konecranes has conducted a climate risk and opportunity
assessment. The company has focused on two scenarios:
the SSP5-8.5 and SSP5-2.6 global reference scenarios by
the International Panel on Climate Change (IPCC). Based on
the results of the assessment, Konecranes has implemented
mitigation measures, including focusing on continuous
improvement of energy efficiency as well as addressing
physical climate hazards in the continuity planning, where
relevant.
Sustainable use and protection of water and marine
resources
Konecranes has water management practices in place,
such as the ISO 14001 management system, and other
internal processes and policies. According to a study done
using the WWF Water Risk Filter tool, Konecranes has no
manufacturing sites in “Extremely High” water stress areas.
Only two of Konecranes’ sites located in high-risk areas use
water in their production processes. For example, the site in
Jejuri, India, has countermeasures in place, such as a closed-
loop system for the water used in the production process
and a sewage treatment plant.
Transition to a circular economy (for Climate change
mitigation)
Konecranes’ commitment to a circular economy is
integrated into the company’s business processes,
covering sourcing, product development and production.
Konecranes has implemented a Design for Environment
concept, and the company’s Supplier Code of Conduct
covers requirements for waste management and a list of
restricted substances. For its own operations, the company
has launched a Global Environmental Standard on waste and
resource management.
Pollution prevention and control
The criteria for this environmental objective require that
relevant business activities do not lead to the production,
putting onto the market, or use of chemicals listed in multiple
EU chemical regulations and directives. Konecranes has
identified that its products contain commercial components
that, at low concentrations, include Substances of Very High
Concern (SVHC), such as lead. Konecranes is compliant
with the REACH Regulation. The company’s processes
ensure that the use of such substances is minimized,
and components are substituted if there is commercial
availability. Additionally, Konecranes ensures that
substances present in concentrations above 0.1 percent by
weight, which have the same properties as SVHC, but are not
classified as such, are minimized or replaced with alternative
substances wherever feasible. Konecranes’ products
are handled and used in industrial facilities and/or by
professional users. Substances present in the products are
incorporated into articles and are not meant to be released.
Protection and restoration of biodiversity and ecosystems
Konecranes has conducted an analysis to identify factories
located in biodiversity-sensitive areas such as UNESCO
World Heritage sites, Ramsar sites or UNESCO biosphere
reserves, and based on the analysis no factories are located
in these areas. However, the company’s Thailand factory
is in an area that is considered a key biodiversity area. The
biggest threats to the area’s biodiversity are agriculture,
urban expansion, infrastructure and industrial development,
as well as pollution. The factory is in an established industrial
area. Konecranes aims to ensure that it has an efficient
environmental management system in place including
pollution control and waste management practices, as well
as all other necessary precautionary procedures.
Minimum safeguards
Konecranes has assessed its compliance regarding the
Minimum Safeguards and based on the assessment, it has
adequate minimum safeguards in place. Konecranes is
committed to the UN Guiding Principles on Business and
Human Rights and the OECD Guidelines for Multinational
Enterprises. The company has a documented assessment
of the due diligence criteria. Konecranes’ global policies
such as the Code of Conduct, the Human Rights Policy and
the Supplier Code of Conduct, among other standards,
set the minimum requirements for the conduct of the
company’s employees, management and business
partners. Furthermore, Konecranes has processes in place
to discover any material breaches or violations of the
79
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Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
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principles. The company is committed to strengthening
the processes and assessments continuously to further
improve its practices.
Turnover
Revenue is calculated on the basis of the sales revenue
(revenues according to IFRS 15) as reported in Note 5 to
the Financial Statements. In 2024, Konecranes’ revenue
amounted to EUR 4,227 million (denominator). Aligned and
eligible revenue was calculated at product and solution
level and represents only sales to external customers at
Group level. Taxonomy-aligned products for activity 3.6.
accounted for EUR 892 million, or 21 percent of Konecranes’
revenue. Taxonomy-aligned sales for activity 5.1. accounted
for EUR 1,099 million, or 26 percent of Konecranes’ revenue.
The changes in the revenue are affected by the sales
mix. Taxonomy-eligible service solutions for activity 5.2
accounted for EUR 574 million, or 14 percent of the revenue.
Capital and operating expenditure
Capital expenditure (CapEx) and the specifically defined
categories of operating expenditure (OpEx) described in
the Taxonomy Regulation are reported at Group level. They
support the transition towards a low-carbon and circular
economy and achieving the science-based climate targets
set for own operations and for the value chain.
In taxonomy reporting, CapEx contains intangible and
tangible asset additions and also covers additions resulting
from business combinations. In 2024, the total CapEx
amounted to EUR 199 million (2023: 129 million) (see Notes
14 and 15 to the Financial Statements). In the aligned CapEx
for Activity 3.6, Konecranes includes investments in own
and leased facilities and production equipment of over
EUR 50,000 that are associated with the manufacturing of
taxonomy-aligned equipment. Additionally, the CapEx with
vehicles used for service activities, meaning, for example,
the maintenance and modernization of customer assets,
are included in the aligned CapEx for Activity 5.1. The total
taxonomy-aligned CapEx amounted to EUR 26 million or 13
percent of the total CapEx.
In taxonomy reporting, OpEx amounted to a total of EUR
91 million (2023: 80 million). The total OpEx contains direct
non-capitalized costs that relate to building renovation
measures and maintenance and repair expenditures related
to servicing of assets of property and equipment, R&D
expenses and short-term leases. Out of these Konecranes
classifies the costs of maintenance and repair for plants that
manufacture taxonomy-aligned equipment as taxonomy-
aligned OpEx for Activity 3.6. The expenditure of these costs
is calculated according to the proportion of taxonomy-
aligned sales or production value of the total sales or
production value. Additionally, the costs of maintenance
and repair for service-related activities are included in
the taxonomy-aligned OpEx for Activity 5.1. Taxonomy-
eligible OpEx for the technical screening 5.2. refers to
costs of maintenance and repair for locations in spare parts
operations.
The taxonomy-aligned OpEx was EUR 14 million or 15 percent
of the total OpEx. The taxonomy-eligible OpEx from the
spare parts related repair and maintenance was EUR 1 million
or 1 percent of the total OpEx.
The taxonomy-aligned CapEx and OpEx increased mainly
due to the taxonomy-alignment of assets and processes
associated with activity 5.1.
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Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
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Table 1. Revenue
Proportion of turnover from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024
Economic Activities Code Turnover
Proportion
of turnover,
year 2024
Climate
Change
Mitigation
Climate
Change
Adaptation Water Pollution
Circular
Economy Biodiversity
Climate
Change
Mitigation
Climate
Change
Adaptation Water Pollution
Circular
Economy Biodiversity
Minimum
safeguards
Proportion
of Taxonomy
aligned
or eligible
turnover,
year 2023
Category
enabling
activity
Category
transitional
activity
MEUR % Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Manufacturing of other low carbon technologies CCM 3.6 892 21% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 19% E
Repair, refurbishment and remanufacturing CE 5.1 1,099 26% N/EL N/EL N/EL N/EL Y N/EL Y Y Y Y Y Y 27%
Turnover of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
1,991 47% 21% 0% 0% 0% 26% 0% Y Y Y Y Y Y Y 46%
Of which Enabling 892 21% 21% 0% 0% 0% 0% 0% Y Y Y Y Y Y 19% E
Of which Transitional 0 0% 0% Y Y Y Y Y Y 0% T
A.2. Taxonomy-Eligible but not environmentally
sustainable activities (not Taxonomy-aligned
activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Spare parts CE 5.2 574 14% N/EL N/EL N/EL N/EL EL N/EL 12%
Turnover of Taxonomy-eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2)
574 14% 0% 0% 0% 0% 14% 0% 12%
A. Turnover of Taxonomy-eligible activities
(A.1 + A.2)
2,565 61% 21% 0% 0% 0% 40% 0% 58%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities 1,662 39%
TOTAL 4,227 100%
Substantial Contribution Criteria
Financial year 2024
2024
DNSH criteria (‘Does Not Significantly Harm’)
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Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
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Table 2. CapEx
Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024
Economic Activities Code CapEx
Proportion
of CapEx,
year 2024
Climate
Change
Mitigation
Climate
Change
Adaptation Water Pollution
Circular
Economy Biodiversity
Climate
Change
Mitigation
Climate
Change
Adaptation Water Pollution
Circular
Economy Biodiversity
Minimum
safeguards
Proportion
of Taxonomy
aligned or
eligible CapEx,
year 2023
Category
enabling
activity
Category
transitional
activity
MEUR % Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Manufacturing of other low carbon technologies CCM 3.6 3 2% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 3% E
Repair, refurbishment and remanufacturing CE 5.1 22 11% N/EL N/EL N/EL N/EL Y N/EL Y Y Y Y Y Y 16%
CapEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
26 13% 2% 0% 0% 0% 11% 0% Y Y Y Y Y Y Y 20%
Of which Enabling 3 2% 2% 0% 0% 0% 0% 0% Y Y Y Y Y Y 3% E
Of which Transitional 0 0% 0% Y Y Y Y Y Y 0% T
A.2. Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned
activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
CapEx of Taxonomy-eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2)
0 0% 0% 0% 0% 0% 0% 0%
A. CapEx of Taxonomy-eligible activities
(A.1 + A.2)
26 13% 2% 0% 0% 0% 11% 0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities 173 87%
TOTAL 199 100%
Substantial Contribution Criteria
Financial year 2024
2024
DNSH criteria (‘Does Not Significantly Harm’)
82
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Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
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Table 3. OpEx
Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024
Economic Activities Code OpEx
Proportion
of OpEx,
Year 2024
Climate
Change
Mitigation
Climate
Change
Adaptation Water Pollution
Circular
Economy Biodiversity
Climate
Change
Mitigation
Climate
Change
Adaptation Water Pollution
Circular
Economy Biodiversity
Minimum
safeguards
Proportion
of Taxonomy
aligned or
eligible OpEx,
year 2023
Category
enabling
activity
Category
transitional
activity
MEUR % Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Manufacturing of other low carbon technologies CCM 3.6 11 12% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 12% E
Repair, refurbishment and remanufacturing CE 5.1 3 3% N/EL N/EL N/EL N/EL Y N/EL Y Y Y Y Y Y 2%
OpEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
14 15% 12% 0% 0% 0% 3% 0% Y Y Y Y Y Y Y 15%
Of which Enabling 11 12% 12% 0% 0% 0% 0% 0% Y Y Y Y Y Y 12% E
Of which Transitional 0 0% 0% Y Y Y Y Y Y 0% T
A.2. Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned
activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Sale of spare parts CE 5.2 1 1% N/EL N/EL N/EL N/EL EL N/EL
OpEx of Taxonomy-eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2)
1 1% 0% 0% 0% 0% 1% 0% 1%
A. OpEx of Taxonomy-eligible activities
(A.1 + A.2)
15 17% 12% 0% 0% 0% 5% 0% 1%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES 16%
OpEx of Taxonomy-non-eligible activities 75 83%
TOTAL 91 100%
Substantial Contribution Criteria
Financial year 2024
2024
DNSH criteria (‘Does Not Significantly Harm’)
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Consolidated cash flow statement
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E1 Climate change
E1-1 Transition plan for climate change
mitigation
Konecranes’ transition plan for climate change mitigation
is supported by 1.5°C-aligned science-based near-term
targets validated by the Science Based Targets initiative
(SBTi). Additionally, in 2024, Konecranes committed to
setting long-term company-wide emissions reductions
targets in line with science-based net-zero with the SBTi.
Konecranes is committed to and has built a transition plan for
mitigating climate change and to supporting its customers in
decarbonizing their operations.
Ninety-nine percent of Konecranes’ climate impact comes
from the value chain where the use of sold products is the
highest contributing category followed by purchases of
goods and services, where steel-related purchases play the
most significant part. In the near term, Konecranes aims to
reduce its absolute Scope 1 and 2 greenhouse gas emissions
by 50 percent and Scope 3 emissions encompassing
the use of sold products and steel raw material purchase
emissions by 50 percent by 2030, from the 2019 baseline.
The Scope 3 target covers more than 70 percent of the value
chain emissions within the 2019 emissions inventory. Since
the company has made great progress and has reached
the science-based emissions reduction target for Scope 1
and 2 emissions, an additional, new target was set in 2022:
Konecranes aims to reach carbon neutral own operations
by 2030, a target not validated by SBTi. Additionally,
Konecranes recently committed to setting long-term net-
zero emissions reduction targets in line with the SBTi’s Net-
Zero Standard. These long-term science-based targets will
be set within the next 1–2 years.
Konecranes’ transition plan focuses on five drivers steering
the company’s own decisions or highlighting expected
market transformation.
1) Electrified offering and customer industries’
electrification. Konecranes is committed to having fully
electric variants of its entire product portfolio by 2026.
This target applies to Port Solutions, as the offering within
Industrial Service and Equipment is already fully electrified.
However, the further electrification of Port Solutions’
customer industries, ports and terminals, is a prerequisite
for Konecranes to reach its climate ambitions and Scope
3 emissions target. The key assumption in Konecranes’
transition plan is that customers will favor fully electrified
ports equipment. As the biggest source of emissions is
diesel-powered equipment sales, the plan heavily relies on
the electrification market transformation. The regulatory
environment is expected to support this change.
2) Steel industry decarbonization. The steel industry is
expected to decarbonize, and the regulation is pushing for
a green transformation, especially in Europe. Cooperation
with steel manufacturers is needed to reduce Konecranes’
steel-related value chain emissions, as the current steel
production process is carbon-intensive. Konecranes wants
to challenge its suppliers to move to low-emission steel
production.
3) Energy market decarbonization. According to energy
market reports, the share of renewable energy will continue
to increase, supporting emissions reductions along the value
chain.
4) Material handling optimization. Konecranes is optimizing
material handling by offering and further developing
automation and digital solutions. From a climate perspective,
this helps to improve the efficiency of customer operations
by minimizing energy consumption and emissions. In product
development, the continuous improvement is ensured by
adopting the Design for Environment concept, which aims to
improve a product’s environmental performance, in product
development projects.
5) Carbon neutral own operations. Konecranes continues
to invest in energy efficiency in its own manufacturing
operations. For the vehicle fleet, the focus is on
electrification as well as on efficient work planning. The
company is also working to increase the share of renewable
energy in its own energy consumption. The aim is to achieve
as significant emissions reductions as possible to minimize
the needed carbon offsets for the remaining unavoidable
emissions.
Konecranes’s GHG emissions reduction targets are in
line with the goal of the Paris Agreement of limiting global
warming to 1.5°C and have been validated by SBTi in 2022.
The decarbonization levers identified, and key actions
planned, including changes in the product and service
portfolio and the adoption of new technologies in
Konecranes’ own operations, or the upstream and/or
downstream value chain are explained in E1-4 Targets
related to climate change mitigation and adaptation.
Konecranes’ investments and funding supporting the
implementation of the transition plan with reference to the
key performance indicators of taxonomy-aligned CapEx and
OpEx are the following:
Taxonomy-aligned capital expenditure (CapEx):
Konecranes has been investing in climate change mitigation
actions. Aligned with the EU Taxonomy Regulation 2020/852
criteria, Konecranes invested EUR 3 million in assets that are
associated with Taxonomy-aligned economic activities in
the climate change mitigation objective. This includes, for
example, the purchases of new machinery required for the
manufacturing of taxonomy aligned equipment.
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Taxonomy-aligned operating expenditure (OpEx):
Konecranes’ Maintenance and Repair costs were EUR 11 million
supporting the manufacture of the company’s taxonomy-
aligned equipment in the climate change mitigation objective.
The shares of the EU taxonomy-aligned capital expenditure
(CapEx), operating expenditure (OpEx) and revenue are
expected to increase in the medium term. Konecranes
focuses on transforming the product portfolio towards a
low-carbon offering, which will enhance the alignment of
revenue with economic activity 3.6 under the environmental
objective of climate change mitigation. Additionally, the
company aims to grow its service business, enabling growth
in activity 5.1 under the circular economy objective.
Read more about the EU Taxonomy KPIs in the respective EU
Taxonomy disclosures.
The potential locked-in GHG emissions arise from the use
of diesel-powered equipment by Konecranes’ customers.
If the customer industries do not accelerate their climate
actions and fail to favor electrification, the ongoing reliance
on diesel-powered equipment could significantly hinder
both their climate transformation efforts and Konecranes’
ability to meet its emissions reduction targets.
Konecranes is not excluded from the EU Paris-aligned
Benchmarks.
For strategy alignment and financial planning, the climate
ambition-related considerations are embedded in the most
important strategic processes including short-term annual
and long-term planning, top management incentives as
well as enterprise risk management processes. Climate-
related requirements are embedded in Konecranes’ relevant
policies, processes, and standards. For example, the
investment policy gives guidance on considering the energy
efficiency aspect of new investments.
The transition plan has been approved by the Konecranes
Board of Directors and by the Konecranes Leadership Team.
The implementation of the transition plan has progressed
as planned. Konecranes’ climate impact in 2024 totaled
5,274,000 tonnes of CO2e. Total emissions have decreased
by approximately 8 percent compared to 2019.
In 2022, Konecranes achieved the science-based target of
reducing emissions from own operations (Scope 1 & 2) by
50 percent from 2019. The main contributor was the shift to
renewable electricity in manufacturing locations. In 2024,
emissions from own operations had further decreased by 8
percent compared to 2023, and by 56 percent compared to
the base year 2019.
Konecranes’ Scope 3 emissions within the science-based
target boundary limited to the use of sold products and steel
raw material purchases increased by one percent year on
year, mainly due to increased Port Solutions sales volumes
which increased the emissions associated with the use of
sold products. The total Scope 3 emissions were 12 percent
lower compared to the base year 2019.
Material climate-related impacts, risks and
opportunities and their interaction with
strategy and business model
The potential impacts of climate change are far-reaching.
Konecranes has reviewed both aspects of climate change
– how climate change affects Konecranes and how the
company contributes to climate change.
Technological development has been identified as one
of the most significant transitional risks as well as an
opportunity for Konecranes. In a scenario where Konecranes’
product offering would not be attractive to its customers
and would not help them achieve their environmental targets,
Konecranes could lose market share. The most relevant
climate opportunities reside in Konecranes’ offering,
enabling the decarbonization of customers’ operations by
providing equipment and solutions that reduce emissions
and advance electrification. Transition to a low-carbon
society is faster in climate scenarios where global warming is
less than 2°C. In these scenarios, Konecranes has identified
possible increased sales opportunities in its current and
future eco-optimized offering.
The pressure for technological development in carbon-
intensive industries might also increase the market risk
linked to the development costs as well as the availability
of technology or key components. For example, the
widespread electrification trend might cause longer term
availability risks in batteries.
Emerging regulations might create a moderate climate-
related risk for the company as they might lead to increased
costs of energy and materials, for example, due to increased
taxation of carbon-intensive raw materials.
Among the most significant physical risks are floods
and severe storms that might damage Konecranes’
manufacturing sites or customers’ sites and cause business
interruption and delays in manufacturing and transportation.
The company has conducted several natural hazard
assessments with its insurance company to understand
the probability, time scale and actual risks involved. When
relevant, this information is taken into consideration in
business continuity planning.
Resilience of strategy and business model in relation
to climate change
Konecranes’ Business Areas and product groups have been
considered in the resilience analysis for climate-related
risks and opportunities. The analyses for climate-related
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physical risks have focused on own operations in the United
States, Finland, Germany, Ukraine, and China. The country
selection is considered to represent an organization-wide
view. An underlying assessment on physical climate risks was
conducted in 2019 with the support of a third-party climate
consultancy.
Both the physical and transitional risks and opportunities
were again assessed in 2022 including minor updates to
the climate scenarios. The outcomes were reviewed as part
of the annual enterprise risk management process in 2024,
and no major changes were considered. The horizons of
the assessment include the view of short-, medium- and
long-term (0–10 years) time horizons, but also a longer time
horizon to 2050 has been considered for climate-related
risks and opportunities. The time horizons are also aligned
with Konecranes’ GHG reduction targets.
When assessing climate-related risks and opportunities,
Konecranes has focused on two scenarios: the SSP5-8.5
and SSP5-2.6 global reference scenarios by the International
Panel on Climate Change (IPCC). In the SSP5-8.5 highest
emissions scenario, the physical impacts of climate change
are the most severe. In that scenario, the concentration of
GHG emissions would continue to increase throughout the
century and consequently the average global temperature
would rise more than 4.0°C. In the SSP5-2.6 strong
mitigation scenario, the impacts are less severe. Regulatory
measures and investments in low-emission energy and
technologies would keep global emissions low and the
temperature rise below 2.0°C.
Konecranes’ business may face risks in both scenarios,
while the opportunities to increase the sales of hybrid and
electric equipment, due to the investments in technological
development, are largest in the strong mitigation scenario. In
the high-emissions, business-as-usual scenario, the physical
impacts and risks from climate change are more severe.
Resilience regarding climate-related transition
Konecranes’ resilience relating to technological
development is at a good level, as the company’s offering
is wide and investments in development continue to be a
focus.
Signals from the markets, legislative development,
voluntary agreements made by industries, and customer
feedback all indicate that the demand for low-emission
products and services will continue to increase. The
growing demand for low-emission offering presents an
opportunity – especially in ports and terminal industries
where equipment is still largely operated with diesel.
Konecranes’ service business improves significantly the
company’s resilience as its offering is extensive, from basic
maintenance concepts to modernizations and retrofits.
The transition to a low-carbon society should be faster in
a strong mitigation scenario where global warming is less
than 2°C. In this scenario, also the opportunities to increase
sales in Konecranes’ current and future eco-optimized
offering are clearest.
The market risks, for example related to potentially increased
production costs due to changing input prices (energy, raw
materials etc.) are seen as moderate. However, these market
risks are not considered to be specific to Konecranes only –
they are wider market risks. To minimize the resource needs,
Konecranes considers production methods that improve
energy efficiency and minimize waste. The company also
continues to roll out lean manufacturing practices with the
Konecranes Way program.
Emerging regulation might lead to increased cost of energy
and materials, for example, due to increased taxation of
carbon-intensive raw materials or a greater demand for
more sustainable materials. Konecranes is closely following
regulatory developments. Potential cost increases are
also considered in the pricing of products. Furthermore,
the company applies smart design principles to maximize
resource efficiency and invests in energy efficiency.
Konecranes has set an ambitious climate target to reduce
GHG emissions along the value chain, which relies on
customers’ and suppliers’ commitments to decarbonization.
Resilience regarding physical climate change
The potential physical risks are mostly related to
transportation or production locations. An increase in
extreme weather conditions could especially affect crane
installations and delivery project sites. Heavy rain, storms
or floods might put only a few of the company’s production
sites at risk. Extreme weather conditions can also have a
potential impact on the shipment of Konecranes’ products
or spare parts. Konecranes takes advantage of the findings
of the climate risk scenario analysis in its risk management.
Konecranes’ manufacturing sites also have continuity plans in
the case of unlikely but high impact events, such as fires. The
continuity plans consider extreme weather events when they
pose a significant risk at the location.
Extreme weather events, such as floods and hurricanes,
and for example heatwaves may also affect occupational
health and safety, and labor productivity, which needs to be
considered in the locational occupational health and safety
planning.
When relevant, climate-related risks and opportunities
are considered in Konecranes’ strategic, operational, and
financial planning, including investments in research and
product development. Climate risks might have a significant
impact on Konecranes’ operations, which might require
judgment, for example, in revenue recognition (especially in
long-term projects), provisions, collectability of accounts
receivable and impairment of assets. The evaluation of the
overall climate risk and opportunity impacts over the short,
medium and long term can be complicated, as the effects
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of the risks and opportunities can be difficult to estimate or
quantify. The impacts of climate change on the estimates
and assumptions used in the financial reporting rely on the
management’s best judgement and knowledge under the
current circumstances.
E1-2 Policies related to climate change
mitigation and adaptation
Konecranes’ Environmental Policy Statement defines
the company’s dedication to actively managing and
minimizing its environmental impact and is structured to
address key environment-related material topics, including
decarbonization, circular economy, and resource efficiency.
The policy statement commits Konecranes to achieving
carbon neutrality in its own operations by 2030, reducing
greenhouse gas emissions, improving energy efficiency, and
transitioning to renewable energy sources.
Konecranes is actively increasing environmental awareness
among its employees and business partners and is
establishing clear environmental requirements for suppliers
and subcontractors. The effectiveness of environmental
initiatives is continuously monitored and evaluated to
ensure compliance with applicable laws, to meet or exceed
regulatory requirements, and to effectively mitigate
climate-related risks as well as to explore climate-related
opportunities. For further information on the process to
identify and assess risks and opportunities, see General
information: Description of process to identify and assess
material impacts, risks and opportunities.
Konecranes’ Environmental Policy Statement extends
the responsibility for environmental issues to everyone at
Konecranes. The policy statement covers a commitment to
stakeholder cooperation by promoting collaboration and
ecosystem building and setting environmental requirements
for suppliers. It covers all the company’s own operations
as well as states requirements regarding the development
of the offering and a commitment to support customers in
reaching their low-carbon targets.
Konecranes’ Environmental Policy Statement has been
approved by the Konecranes Leadership Team and signed
by the President and CEO. Its implementation is carried
out by the relevant Business Areas and functions. The most
senior-level personnel accountable for the implementation
of the Environmental Policy Statement are the direct reports
of the President and CEO.
Konecranes’ Environmental Policy Statement includes the
company’s commitment to the 1.5°C-aligned science-
based near-term targets validated by the Science Based
Targets initiative (SBTi). The key third-party standards or
initiatives Konecranes commits to respect through the
implementation of the policy statement include the Paris
Agreement, the ISO 14001 Environmental Management
system, the Greenhouse Gas Protocol, and the science-
based targets by SBTi, and refers to local and international
environmental regulations. The policy statement is publicly
available through Konecranes’ website and is provided to
stakeholders upon request.
The policy statement addresses climate change mitigation
by including a commitment to reducing greenhouse gas
emissions and reaching carbon neutrality in Konecranes’ own
operations by 2030. Regarding climate change adaptation,
Konecranes has integrated climate risk mitigation into its
environmental strategy, employing effective risk management
practices to address potential climate-related risks and
vulnerabilities. This approach aims to enhance the resilience of
the company’s operations and value chain against the impacts
of climate change. To address improving energy efficiency,
one of the key objectives of the policy statement, Konecranes
has committed to enhancing energy efficiency across its
operations. Additionally, the policy statement promotes an
already active shift towards renewable energy sources within
the company’s operations. Konecranes actively works to
increase the share of renewable energy in its energy mix.
Beyond climate-specific actions, the policy statement
addresses additional environmental areas, such as waste
reduction, circular economy advancement, pollution control,
and increased recycling rates. Konecranes also focuses
on raising environmental awareness among its employees
and partners, setting clear environmental standards for
procurement, and establishing sustainability criteria for
suppliers and subcontractors.
E1-3 Actions and resources in relation to
climate change policies
Key actions taken in the reporting year and planned,
expected outcomes and contribution to policy
objectives and targets
During 2024, Konecranes proceeded with each of the key
drivers in its transition plan.
Electrified offering and customer industries’ electrification.
In 2024, Konecranes launched the company’s second fully
electrified forklift E-VER with increased capacity, and the
empty container handler E-ACE for Asian markets, as well
as the Konecranes Noell Straddle and Sprinter Carrier with
modular power options for hybrid, battery, and hydrogen.
The sales of these new launches did nothave a material
impact on emissions reduction in 2024, but they are
expected to support future reductions. In 2024, the sales
of Konecranes’ Port Solutions Equipment “eco portfolio”,
consisting of fully electrified and hybrid equipment,
accounted for 66 percent of the total sales in the respective
equipment business. Konecranes is committed to having a
fully electrified offering available by the end of 2026.
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Steel industry decarbonization. In 2024, Konecranes
further increased its understanding of the steel market
decarbonization development and its impact on the
company’s products. Product Lifecycle Assessments (LCAs)
were conducted for selected products to estimate the
environmental impact of using lower-emission steel as a raw
material. Konecranes already has suppliers providing it with
low-emission steel, namely steel with high recycled content
combined with using renewables in production. In 2024,
Konecranes further investigated alternatives for purchasing
low-emission steel. In 2025 the plan is to increase the usage
of supplier-specific environmental data to improve emission
measurement accuracy and to be able to quantify the
emissions reductions from purchasing low-emission steel.
Konecranes is actively engaging in a dialogue with steel
raw material suppliers regarding their maturity in climate-
related topics and their capability to provide emissions
calculations. Konecranes is challenging its suppliers to move
to low-emission production and to increase the share of
recycled steel in their products. Konecranes is committed to
supporting the transformation by increasing its use of low-
emission steel.
Energy market decarbonization. Konecranes expects
energy market decarbonization to help decrease the
emissions along the value chain and in its own operations.
Affordable sustainable energy is a prerequisite for the global
climate transition in general. In the midterm, Konecranes
considers that the energy market decarbonization will bring
a minor contribution to the achievement of the value chain
emissions reduction target.
Material handling optimization. In 2024, Konecranes
continued to implement its Design for Environment (DfE)
principles in product design and development projects.
Konecranes also continued to study the digitalization of
environmental data, for example, to improve visibility to
emissions in the product design phase. The emissions
reductions associated with these actions are not measured
at a project-level, but their implementation is expected
to contribute to emissions reductions along Konecranes’
value chain.
Carbon neutral own operations. In 2024, Konecranes
continued to increase the share of renewable energy in its
own operations especially by shifting to fully renewable
district heating and renewable fuels (HVO100) in Hyvinkää,
Finland, and by replacing oil-based heating with geothermal
heating in Markaryd, Sweden. The annual emissions reduction
impact of these activities is expected to be 890 tonnes of
CO2e. In addition, Konecranes continued to electrify its
vehicle fleet and improve heating, ventilation and insulation
at factories, replacing old machinery with more energy-
efficient ones and upgrading to LED lighting. Konecranes
is committed to continuous improvement in its own energy
management systems and the adoption of low-carbon
technologies in the manufacturing processes, and the
target is to achieve carbon neutrality in own operations by
2030. In the coming years Konecranes expects to achieve
further emissions reductions especially by continuing
to invest in energy efficiency, electrifying vehicles, and
further increasing the share of renewable energy in its own
operations.
Scope of key actions
Konecranes’ key activities related to carbon neutral own
operations cover 100 percent of its own operations. The
key actions in the value chain are focused on decreasing
emissions from the use of sold products and purchased steel
raw material. The scope for both topics is global, covering
both Business Areas.
Financial and other resources allocated to the
actions
The actions enabling the reduction of Konecranes’
emissions in its own operations and value chain are
dependent on the availability and strategic allocation of
resources. For example, financial investments and access
to renewable energy are required for achieving carbon
neutrality in own operations. Emission reductions along the
value chain rely, for example, on the resourcing of product
development, skilled workforce, supplier collaboration, and
the availability of cost efficient low-carbon materials as well
as the availability of batteries. As climate-related capital
expenditure (CapEx) and operating expenditure (OpEx) are
an integrated part of the operations, Konecranes aims to
develop respective reporting on a consolidated basis in the
future.
The CapEx and OpEx financing Konecranes’ climate actions
are partly included in the company’s taxonomy-aligned
reporting. For the taxonomy-aligned CapEx and OpEx, see
E1-1 Transition plan for climate change mitigation.
E1-4 Targets related to climate change
mitigation and adaptation
Konecranes is committed to reducing its absolute Scope 1
and 2 greenhouse gas (GHG) emissions by 50 percent and
absolute Scope 3 emissions, encompassing the use of sold
products and steel raw material purchases related emissions,
by 50 percent by 2030 from the 2019 baseline.
In addition to the above-mentioned science-based targets
approved by SBTi, Konecranes aims for carbon neutral own
operations by 2030. The targets are measured in tCO2e.
These climate-related targets are included in Konecranes’
Environmental Policy Statement as the objectives to which
Konecranes is committed.
The target scope is 100 percent from own operations (Scope
1 and 2) and 73 percent of the total value chain emissions
(Scope 3) based on the base year 2019. The value chain
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emissions scope covers emissions from the category Use
of sold products and steel raw material related emissions
from the category Purchased goods and services. In 2019,
Konecranes’ total GHG emissions were 5,753,300 tCO2e.
Konecranes’ GHG emissions targets are in line with the
goal of the Paris Agreement of limiting global warming to
1.5°C and the target criteria defined by the Science Based
Targets initiative (SBTi). The company has involved internal
stakeholders in setting the climate targets.
No significant changes in data collection, underlying
measurement methodologies, or assumptions have
been made during the target period. In 2025, the aim
is to develop value chain emissions accuracy through,
for example, increasing the share of supplier-specific
emissions data.
Performance against targets
In 2022, eight years ahead of schedule, Konecranes
achieved the Scope 1 and 2 science-based target of
reducing the emissions of own operations by 50 percent
by 2030 from the baseline year 2019. The main contributor
was the shift to renewable electricity in manufacturing
locations. In 2024, emissions from own operations have
further decreased by 8 percent compared to 2023, and by
56 percent compared to the base year 2019.
Konecranes’ Scope 3 emissions within the science-based
target boundary limited to the use of sold products and steel
raw material purchases increased by one percent year on
year, mainly due to increased Port Solutions sales volumes.
The Scope 3 emissions were 12 percent lower compared to
the base year 2019.
In 2024 Konecranes introduced new, more sustainable
products into its offering. For more information on these
product launches, see E1-3 Actions and resources in relation
to climate change policies.
The progress and performance of emissions (Scope 1 and 2)
from Konecranes’ own operations are followed on a monthly
basis, and Scope 3 at a minimum annually.
Konecranes set its science-based targets in 2022. The
targets are reviewed during the next 1–2 years as part of the
net-zero target setting. The review of the targets follows the
criteria set by the Science-Based Targets initiative (SBTi). The
criteria include, for example, that the targets are reviewed
every five years at a minimum or following significant
changes in the operational environment.
Climate change mitigation, including emissions reduction,
is assessed to be a material topic for Konecranes. The
company’s GHG emissions targets have been set to mitigate
risks and seek opportunities.
Konecranes’ GHG emissions inventory and accounting
practices are in line with the GHG Protocol Corporate
Standard. The operational control approach is applied to
allow Konecranes to account for 100 percent of emissions
where it has the authority to influence operating policies
and reduce emissions. For Scope 2, the emissions reduction
target has been set using the market-based method.
In case of significant changes to the baseline due to structural
changes or changes in calculation methodologies, the target
baseline recalculation process is started, and the target
scope is adjusted if relevant. Konecranes systematically
reviews the potential update needs of the GHG inventory to
reflect potential changes in its own operations or value chain.
External factors such as pandemics did not affect
Konecranes’ energy consumption in the target base year
2019. According to the World Meteorological Organization,
the years 2015–2023 were the nine warmest years on record.
Besides the general temperature increase, the year 2019 did
not have any major abnormal weather conditions.
For absolute emission values regarding Konecranes’ SBT,
see the table Konecranes’ GHG emissions and the science-
based targets in E1-6 Gross Scopes 1, 2, 3 and Total GHG
emissions.
Konecranes’ GHG emissions reduction targets follow the
cross-sector criteria of the Science Based Targets initiative
(SBTi) of limiting global warming to 1.5°C. The targets were
validated in early 2022 by the SBTi. GHG emissions inventory
and accounting practices are in line with the GHG Protocol
Corporate Standard.
In defining the roadmap to meet the 1.5°C targets,
Konecranes used a model of two percent annual increase
in sales for Scope 3. Konecranes expects its customers
to value low-carbon products and the policies to favor
the electrification shift, and the roadmap leans on the
expectation of high share of sales in the electrified and
hybrid offering.
Expected decarbonization levers to achieve
emissions reduction targets
Electrified offering and customer industries’ electrification.
The most significant decarbonization lever is electrifying
the offering in Port Solutions and enabling customers’
transition to low-emission material handling solutions. To
achieve significant emissions reductions, the market will
need to transform and the interest in electrifying operations
within the ports and terminals industry needs to increase.
The decarbonization potential from electrification has been
estimated to be close to 40 percent of the total baseline
Scope 3 emissions, assuming the market transformation is
favorable.
Steel industry decarbonization. Konecranes’ science-
based target in the Scope 3 category purchased goods
and services covers the emissions associated with steel
raw material purchasing. These emissions depend on the
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annual purchase volume and material decisions made when
purchasing. By 2030 the decarbonization potential has been
estimated to be around 25 percent of baseline steel raw
material purchase emissions, or 1.5 percent of Konecranes’
baseline value chain emissions. The potential is based on
steel manufacturers’ GHG emissions reduction targets
and Konecranes’ aspiration to increase its use of recycled
steel. Konecranes currently estimates that 40 percent of
the steel used by the company is recycled, based on the
industry average share of recycled steel in countries where
steel suppliers operate. The lack of steel emissions reporting
standardization and long supply chains pose challenges for
getting accurate emissions data from suppliers.
Energy market decarbonization. In the midterm, Konecranes
considers that the energy market decarbonization will bring
a minor contribution to the achievement of the value chain
emissions reduction target.
Material handling optimization. Konecranes aims for all
new solutions to be more sustainable than the previous
generation. The Design for Environment (DfE) process,
combined with product Life Cycle Assessment (LCA)
methodology, is used in product design and development
projects to improve energy and material efficiency as
well as the maintainability of products. Planned energy
efficiency improvements, such as reducing standby power
consumption and improving motor efficiency, are expected
to be significant for electrified products while the impact
on total value chain emissions is low. Konecranes expects
to realize emissions reductions for product use phase also
through innovations, which can be a result of continuous
improvement and digitalization activities or more radical
innovations or changes in the industry or customer behavior.
Carbon neutral own operations. Konecranes continues
to invest in energy efficiency and to increase the share
of renewable energy in its own operations, having direct
impact on Scope 1 and 2 GHG emissions. In the short term,
Konecranes expects to reach further emissions reductions
especially by continuing to invest in energy efficiency,
electrifying vehicles, and further increasing the share of
renewable energy in its own operations.
Scope 3 emissions are mostly affected by the sold product
mix and their prime power technology (fully electrified,
hybrid, or diesel). Konecranes seeks to develop new
technology applications and innovations to reduce
dependency on fossil fuels and to increase energy
efficiency. Many customers have adopted biodiesel (HVO)
in diesel-powered equipment in their current fleet, while
simultaneously focusing on electrifying new equipment.
However, the use of HVO is not recognized in Konecranes’
emissions figures yet, as assured information on customers’
fuel selection is not available. Konecranes is also prepared
to support its customers with hydrogen solutions when they
become feasible for heavy machinery applications. This
would have a significant emissions reduction potential, like
the electrified and hybrid offering.
To determine decarbonization levers, Konecranes has
considered different climate scenarios. Read more about
these scenarios in E1-1 Resilience of strategy and business
model in relation to climate change.
These climate scenarios have also been considered to
detect relevant environmental, societal, technological,
market and policy-related developments. Regarding
technological developments, Konecranes monitors
advancements in low-emission technologies and
innovations that can enhance energy efficiency and reduce
emissions in its manufacturing processes and products. In
terms of market developments, Konecranes has analyzed
the shift in market demand towards more sustainable
products and services, identifying opportunities to meet
these preferences through its offerings. Konecranes also
monitors emerging regulations and policies aimed at
reducing GHG emissions.
In terms of environmental developments, Konecranes
assesses the implications of changing climate patterns, such
as increased frequency of extreme weather events and long-
term shifts in temperature, for its operations.
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E1-5 Energy consumption and mix
Disaggregation of total energy consumption from fossil sources
High climate impact sectors used to determine energy intensity
Konecranes operates within an industry classified with NACE code C28.22 Manufacture of
lifting and handling equipment, which is considered a high climate impact sector according
to the ESRS Annex 2. Konecranes’ equipment offering is included in this sector and in the
high climate impact sector energy intensity calculation. The service operations are excluded,
as they are considered to have a positive impact by contributing to a circular offering and
extended lifetime.
The energy intensity figure for high climate impact sectors is based on energy consumption at
the manufacturing sites and in equipment sales. In 2024, energy consumption in equipment
sales (manufacturing units) was 113,400 MWh. The net revenue used for the energy intensity for
high climate impact sectors is based on equipment sales.
Energy intensity in relation to sales in high climate impact sectors
Energy consumption and mix, MWh 2023 2024
Total energy consumption 236,000 232,400
Total fossil energy consumption 181,200 168,600
Fuel consumption from coal and coal products 0 0
Fuel consumption from crude oil and petroleum products 121,900 118,200
Fuel consumption from natural gas 38,400 37,600
Fuel consumption from other fossil sources 5,500 5,100
Consumption of purchased or acquired electricity, heat, steam,
and cooling from fossil sources
15,400 7,700
Share of fossil sources in total energy consumption (%) 77% 73%
Consumption from nuclear sources Not material Not material
Share of consumption from nuclear sources in total energy
consumption (%)
Not material Not material
Total renewable energy consumption 54,800 63,800
Fuel consumption for renewable sources 2,000 2,500
Consumption of purchased or acquired electricity, heat, steam,
and cooling from renewable sources
51,200 59,800
Consumption of self-generated non-fuel renewable energy 1,600 1,500
Share of renewable sources in total energy consumption (%) 23% 27%
2023 2024
Change
year-on-year,%
Energy intensity, MWh per million EUR 49 46 -6%
Net revenue from activities in high climate
impact sectors used to calculate energy
intensity per million EUR
2,308.3 2 ,442.5 6%
Net revenue (other) in million EUR 1,658.0 1 ,784.5 8%
Total net revenue in million EUR (Financial
Statements)
3,966.3 4 ,227.0 7%
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E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions
2019 target
base year 2023 2024
Change
year-on-year, %
2024 compared to
base year 2019, %
Scope 1 GHG emissions
Scope 1 GHG emissions tCO
2
eq 52,500 37,300 35,000 -6% -33%
Percentage of Scope 1 GHG emissions from regulated emission trading schemes 0% 0% 0% 0% 0%
Scope 2 GHG emissions
Scope 2 GHG emissions tCO
2
eq (location-based) 29,700 19,800 18,300 -8% -39%
Scope 2 GHG emissions tCO
2
eq (market-based) 33,100 3,300 2,400 -27% -93%
Scope 3 GHG emissions
Total scope 3 GHG emissions tCO
2
eq 5,667,700 5,202,400
1
5,236,600 1% -8%
1 Purchased goods and services 1,573,000 1,434,100
1
1,349,900 -6% -14%
2 Capital goods 3,700 3,300
1
2,300 -30% -37%
3 Fuel and energy-related activities (not included in Scope1 or Scope 2) 19,900 12,700 12,600 0% -37%
4 Upstream transportation and distribution 39,500 160,200 196,900 23% 399%
5 Waste generated in operations 600 200 200 -11% -68%
6 Business travelling 12,100 12,500 13,000 4% 7%
7 Employee commuting 18,100 13,000 13,500 4% -26%
8 Upstream leased assets Not material Not material Not material
9 Downstream transportation 3,900 16,000 19,700 23% 399%
10 Processing of sold products Not material Not material Not material
11 Use of sold products 3,984,200 3,524,500
1
3,600,100 2% -10%
12 End-of-life treatment of sold products 5,900 5,200 4,000 -24% -33%
13 Downstream leased assets Not material Not material Not material
14 Franchises Not material Not material Not material
15 Investments 6,700 20,700 24,500 18% 266%
Total GHG emissions
Total GHG emissions (location-based) (tCO
2
eq) 5,749,900 5,259,500
1
5,289,900 1% -8%
Total GHG emissions (market-based) 5,753,300 5,242,900
1
5,274,000 1% -8%
1
Recalculated for comparability.
Konecranes’ greenhouse gas emissions
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Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
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2019 base year 2023 2024
Change
year-on-year, % 2030 target, %
2024 compared to
base year, %
Total Scope 1 and 2 GHG emissions (market-based), tCO
2
eq 85,700 40,500 37,400 -8%
-50%
from the base year
-56%
Scope 3 GHG emissions, SBT coverage
1
, tCO
2
eq 4,233,600 3,651,300
2
3,705,700 1%
-50%
from the base year
-12%
Konecranes’ GHG emissions and the science-based targets
1
Konecranes’ Scope 3 emissions within the science-based target boundary are limited to the use of sold products and purchases of steel raw material.
2
Recalculated for comparability.
Methodologies, significant assumptions and emissions
factors
As of the Group’s reporting for 2024, energy consumption
and emissions (Scope 1 and 2) from Konecranes’ own
operations are calculated on a rolling 12-month basis using
the previous year’s December data due to data availability at
the time of consolidation. A specific reporting tool is used to
consolidate energy use data and calculate emissions from
own operations.
Scope 1
Scope 1 includes emissions from direct energy usage: diesel,
petrol, ethanol, HVO100, natural gas, LPG consumption and
refrigerants. Emissions are calculated using DEFRA 2023
emissions factors.
Konecranes’ Scope 1 GHGs cover carbon dioxide (CO
2
),
methane (CH
4
), nitrous oxide (N
2
O), hydrofluorocarbons
(HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF
6
)
and nitrogen trifluoride (NF
3
). Scope 2 emissions cover CO
2
,
CH
4
and N
2
O.
In 2024, the biogenic emissions of CO
2
in Konecranes’ own
operations originated from the use of biofuels in leased
vehicles and lift trucks. The biogenic emissions amounted
to 410 tCO
2
.
Scope 2
Scope 2 includes purchased electricity and district heat.
Emissions are calculated according to the GHG Protocol
Scope 2 Guidance dual reporting requirement: location-
based and market-based method. The IEA 2023 emissions
factors are used in the calculations.
The consumption of natural gas, liquid petroleum gas (LPG)
and district heat in service operations and certain offices
is excluded from the reporting as not material. The largest
service offices report on their electricity consumption, while
the rest of the service offices’ electricity consumption is
extrapolated by using the employee headcount.
Since 2022, Konecranes’ manufacturing sites have
purchased only renewable electricity. In addition, the
company’s sites in Hämeenlinna and Hyvinkää, Finland,
started to purchase renewable district heating in 2023 and
2024, respectively. To confirm the origins of the energy,
Konecranes uses International Renewable Electricity
Certificates (I-RECs), Renewable Electricity Certificates
(RECs) and Guarantees of Origins, (GOs) and direct contracts
with suppliers.
In 2024 the I-RECs and GOs bundled directly with supplier
contracts accounted for 53 percent of Konecranes’ total
energy consumption. The respective share for purchased
electricity was 73 percent and for purchased district heating
27 percent. The remaining renewable energy was covered by
centrally purchased unbundled I-RECs, RECs and GOs.
Biogenic emissions associated with purchased energy are
not available.
Scope 3
Scope 3 related calculation methodologies, significant
assumptions, and used emission factors are disclosed in the
table below.
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Scope 3 category Methodology, significant assumptions and emission factors
1 - Purchased goods and
services
Emissions for aluminum and steel raw material purchases are based on
primary purchase volume data and Ecoinvent 3.7.1 emissions factors
for virgin and recycled steel. The steel raw material purchases are
estimated to include 40% recycled steel.
Emissions for other purchased goods and services are calculated
based on primary monetary purchase data, adjusted with inflation rate,
and Quantis emissions factors.
Emissions for water consumption are calculated based on primary
water consumption volume and the DEFRA 2024 water supply
emissions factor. These emissions are calculated on a rolling four-
quarter basis using the previous year’s fourth quarter due to data
availability at the time of consolidation.
2 - Capital goods Emissions are calculated based on primary monetary purchase data,
adjusted with inflation rate and Quantis emissions factors.
3 – Fuel and energy related
activities not included in
Scope 1 or Scope 2
The value chain emissions associated with fuels, electricity, and heat
are calculated based on actual consumption volumes and DEFRA 2024
WTT emissions factors. For transmission and distribution emissions
calculations, IEA 2023 lifecycle emissions factors are used. Emissions
are calculated on a rolling 12-month basis using the previous year’s
December data due to data availability at the time of consolidation.
4 - Upstream transportation
and distribution
Emissions calculation is largely based on emissions reports provided
by the main logistics service providers, who calculate the emissions
based on transportation distance and method, and relevant WTW
emissions factors.
Emissions for logistics service providers without emissions reporting
capability are extrapolated by using primary monetary purchase data
and average emissions intensity of the primary supplier data explained
above.
5 – Waste generated in
operations
Emissions are calculated based on primary waste and water volume
data and DEFRA 2024 waste disposal and water treatment emissions
factors. Primary waste volume data includes information on waste
type and treatment method. Emissions are calculated on a rolling
four-quarter basis using the previous year’s fourth quarter due to data
availability at the time of consolidation.
Scope 3 category Methodology, significant assumptions and emission factors
6 – Business travel Emissions calculation is based on emissions reports provided by travel
agency. Travel agencies calculate emissions based on travel distance
and method as well as the number of hotel nights.
In addition, a minor share of flight emissions is extrapolated with
the same emissions intensity to cover travel arranged without travel
agencies.
7 - Employee commuting Employee commuting emissions are calculated based on primary
headcount data, secondary data for average commuting distances
and methods, and Ecoinvent 3.11 and DEFRA 2024 emissions factors.
For countries where secondary information is not available, Quantis
emissions factors are used.
9 - Downstream
transportation and
distribution
The downstream transportation emissions are estimated based on the
emissions information from Konecranes’ upstream transportation and
the assumption that downstream transportation corresponds to 10
percent of the upstream transportation emissions.
11 – Use of sold products Emissions are calculated based on primary sales volume data, product-
specific energy data, use rate, lifetime estimate (10–30 years), the
Ecoinvent 3.11 average Europe electricity emissions factor, and the
DEFRA 2024 fuel production and combustion emissions factor. The
calculation does not consider customers’ potential use of biodiesel
(HVO) or renewable electricity.
12 - End-of-life treatment of
sold products
Emissions are calculated based on primary sales volume data, product
weight and material composition (product EPDs), Eurostat average
waste treatment methods, and DEFRA 2024 waste disposal emissions
factors.
15 - Investments Emissions are calculated based on Konecranes’ proportional revenue
share in equity accounted investments in their latest available financial
reporting and OECD 2019 country-specific emissions factors for
manufacturing.
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In Scope 3 calculations, emissions factors that cover
carbon dioxide (CO
2
), methane (CH
4
), nitrous oxide (N
2
O),
hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur
hexafluoride (SF
6
) and nitrogen trifluoride (NF
3
) are mostly
used. For transportation and distribution, as well as fuel- and
energy-related activities, CO
2
, CH
4
and N
2
O are covered.
Konecranes follows the GHG protocol in Scope 3 emissions
calculations and considers that primary data is used only if
emissions factor data is obtained from value chain partners
and the volume data is primary. Based on this logic, the total
share of primary data for Scope 3 emissions is approximately
two percent. This consists of upstream transportation and
distribution data received from logistics service providers
as well as travel data received from travel agencies. Over
99 percent of Scope 3 emissions calculations are based on
primary volume or monetary data, which ensures adequate
accuracy also for metrics with secondary emissions factors.
Secondary emissions factors are from reliable sources such
as DEFRA, IEA, and Ecoinvent.
Konecranes plans to develop Scope 3 calculation methods
further in 2025, including revision of secondary data used in
the calculations. The focus will be especially on developing
primary data collection from suppliers to improve the
accuracy of emissions from purchased goods and services.
The following Scope 3 GHG emissions categories have been
excluded from the inventory:
• 8 Upstream leased assets: Leased vehicles and facilities
are included in Scope 1 calculations.
• 10 Processing of sold products: Konecranes does not sell
intermediate products that need to undergo significant
further processing before end-use.
• 13 Downstream leased assets: Konecranes does not own
or operate assets that it leases to other entities with one
exception. In December 2024 Konecranes completed
the acquisition of Peinemann Port Services and Container
Handling, which leases assets to other entities. These
assets are still excluded from the value chain emissions in
the Sustainability Statement 2024.
• 14 Franchises: Konecranes does not have franchises as a
part of its business model.
Biogenic emissions have been estimated to be minor and
thus are not included in Scope 3 calculations. Transportation
can cause biogenic emissions if logistics service providers
use, for example, biodiesel, but there has not been any
agreement on the use of such fuels, and thus we expect the
usage to be low. The calculation methodology for biogenic
emissions will be evaluated in 2025.
Changes to the reporting
Konecranes has recalculated selected Scope 3 categories
for 2023. The recalculated 2023 total Scope 3 emissions are
43, 000 tCO
2
e lower. For categories 1 Purchased goods and
services and 2 Capital goods, an inflation correction was
applied for 2023 and 2024. In addition, a small correction
was made for the volume of steel raw material purchases. For
category 11 Use of sold products, the sales volumes were
aligned with revenue recognition in financial reporting.
Organizational boundaries in Scope 3 reporting
Konecranes has not had any significant changes in the defini-
tion of what constitutes the reporting undertaking and value
chain. Konecranes does not have joint ventures or equity
accounted investments under its operational control, and
these are accounted for as suppliers or investments in Scope
3 emissions.
GHG emissions intensity in relation to sales
2023 2024
Change
year-on-year, %
Total GHG emissions intensity (location-based) (tCO
2
eq per million EUR) 1,326 1,251 -6%
Total GHG emissions intensity (market-based) (tCO
2
eq per million EUR) 1,322 1,248 -6%
For the net revenue used in the intensity calculation, see Consolidated statement of income (Sales) in the Financial Statements.
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E5 Resource use and circular economy
E5-1 Policies related to resource use and
circular economy
The commitments towards a circular economy are stated in
Konecranes’ Environmental Policy Statement. The commitments
related to circularity include three objectives: 1) Maximizing the
lifecycle value of products and service solutions; 2) Reducing
waste and maximizing recycling rate; and 3) Improving resource
efficiency by minimizing raw material use and water consumption.
Konecranes’ Environmental Policy Statement extends the
responsibility for environmental issues to everyone at Konecranes.
The policy statement includes a commitment to stakeholder
cooperation by promoting collaboration and ecosystem building
and setting environmental requirements for suppliers. It covers
all own operations as well as states requirements regarding the
development of the offering and a commitment to supporting
customers in reaching their low-carbon targets.
The Environmental Policy Statement has been approved by the
Konecranes Leadership Team and signed by the President and
CEO. Its implementation is carried out by the relevant Business
Areas and functions. The most senior-level personnel accountable
for the implementation of Konecranes’ Environmental Policy
Statement are the direct reports of the President and CEO.
The Environmental Policy Statement is publicly available on
Konecranes’ website and is provided to stakeholders upon
request.
E5-2 Actions and resources related to
resource use and circular economy
For Konecranes, the most significant action related to circular
economy is the company’s service business as a whole.
Service represents more than 40 percent of Konecranes’
revenue annually. Konecranes’ service operations extend the
lifecycle of equipment through preventive and predictive
maintenance, repairs and remanufacturing of parts, as well as
modernizations and retrofits. Services can improve energy
efficiency and performance, as well as save raw materials,
reduce emissions from the transportation of new equipment,
and decrease the energy used in manufacturing.
Well planned and executed equipment maintenance helps
to increase safety and reduce downtime, and it can also
extend equipment life and help optimize energy use. This
helps to avoid premature wear of components resulting
in breakdowns, which can increase service visits and
equipment downtime.
When carefully maintained, a crane can last for decades.
Regular inspections and preventive maintenance are needed
to keep equipment and components in use, and for safety
and productivity. Inspections identify risks and improvement
opportunities, and preventive maintenance tasks help keep
equipment productive and minimize downtime. Frequently
needed parts can be kept on site with a parts package
reducing the need for transport.
Predictive maintenance utilizes advanced inspections
and data analytics that help make informed component-
specific predictions and prioritize recommendations and
actions. This means that maintenance can be carried out
based on actual conditions and planned around production
schedules, making repairs more targeted and resource-
efficient.
Modernizations and retrofit solutions are about upgrading
old equipment with new state-of-the-art technology.
These solutions enable improved equipment performance,
enhanced safety, and extended operational life of the crane,
allowing every asset to reach its full value. Modernizations
can provide a complete transformation for an existing crane
as an alternative to replacing it. It also allows the introduction
of new technology that did not exist before. Modernizing
an old crane instead of replacing it with a new one can save
hundreds of tons of steel.
Konecranes’ digital services play a key role in achieving
improved performance. Through optimized maintenance
needs, spare parts management, extended equipment
lifecycles, and accurate failure predictions, Konecranes’
customers can improve their operational efficiency,
reduce their environmental impact and increase their cost-
effectiveness.
In 2024, Konecranes continued to study three new business
opportunities related to the circular economy: a reuse
concept for transport packaging, end-of-life services for
cranes, and end-of-life opportunities for batteries. In its
own operations Konecranes continued to implement the
company’s own Global HSE standards, which include waste
and resource management.
The scope of Konecranes’ key actions encompass
mostly upstream activities via its offering, as well as
some Konecranes manufacturing units and product
development, including R&D globally. Konecranes has
service operations in approximately 50 countries. The
strategic ambition is to extend the service business
continuously. Konecranes’ innovation work and pilot
projects on circular business models are focused on the
European region. If realized as business activity, these
projects would be extended globally.
The innovation work is continuous, and the priorities of this
work are reviewed annually at the minimum. Project plans
are established for circular business opportunities that are
identified as feasible for implementation.
In the beginning of 2023, Konecranes launched its Zero4
research and innovation program to improve the industrial
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productivity and competitiveness of Finnish companies.
This program is partly funded by Business Finland as a part
of its broader “Veturi” program that aims to significantly
boost research, development and innovation activities
in Finland. Konecranes expects the program to further
strengthen the company’s efforts to decarbonize its
own operations and value chain, as well as to accelerate
circularity.
Financial resources linked to the substantial contribution
of the EU Taxonomy Activity 5.1 Repair, refurbishment and
remanufacturing are crucial in enabling a circular economy.
In 2024, Konecranes’ operating expenditure (OpEx) was
EUR 3 million for repair and maintenance activities in the
field service business. Konecranes invested EUR 22 million
as capital expenditure (CapEx) in service vehicles, which are
needed for repair, refurbishment and remanufacturing work.
E5-3 Targets related to resource use and
circular economy
Konecranes has defined one voluntary target regarding
the circular economy: To assess at least three new circular
economy business opportunities each year. The target
supports Konecranes’ environmental objectives set out in
the policy: 1) Maximizing the lifecycle value of the products
and service solutions; 2) Reducing waste and maximizing
the recycling rate; and 3) Improving resource efficiency by
minimizing raw material use and water consumption.
The circular economy business opportunities are measured
as a number of assessed new circular economy business
models. All own operations, upstream and downstream value
chains are considered when circular business opportunities
are selected for assessment.
The target has been in place since 2022. In 2025 Konecranes
will further assess the target setting for the coming years.
When assessing the new circular business opportunities,
Konecranes considers both environmental impacts
and business benefits. Life Cycle Assessment is usually
used to validate the possible environmental impacts.
The assessments are primarily based on ISO 14040-44
standards.
Konecranes has involved internal stakeholders in the
target-setting process. This includes discussions between
functions and business units.
Konecranes periodically reviews and updates its targets and
metrics to reflect new insights and changing circumstances.
Any changes in targets, methodologies, or assumptions are
documented, with explanations provided for the rationale
behind these adjustments, which ensures transparency and
maintains comparability over time.
Konecranes also regularly monitors and reviews its
performance against the disclosed targets. Progress is
reported annually. To date, the performance has generally
been aligned with the planned milestones.
In 2024, Konecranes has assessed three (3) circular economy
business opportunities. All three studies were ongoing at the
end of 2024 and will also continue in 2025.
All circular opportunities assessed in 2024 relate to the
increased use of circular materials. End-of-life services for
cranes and end-of-life opportunities for batteries intend to
close the material loops. Reuse of transport packaging aims
to keep packaging in use for a long time and reduce the need
for virgin packaging raw material.
The environmental impacts of a product are primarily
determined during the design phase. Konecranes uses the
Design for Environment concept (DfE) in its product design
process. This approach looks into the product’s emissions
and energy usage, minimizing hazardous substances, and
incorporating circularity by selecting repairable, recycled,
and recyclable materials and components. The products
are designed considering their entire lifecycle. Konecranes’
products are not only well-suited for repair and maintenance
operations to ensure long-lasting performance but
also designed to be easily reused and recycled. Digital
solutions play a critical role in detecting wear and tear of the
equipment and predicting maintenance needs.
Most of Konecranes’ products already consist of materials
that are recyclable. The company aims to increase the share of
recyclable materials, making their recovery and reuse easier.
In addition to the target of annually assessing at least three
new circular economy business opportunities, Konecranes
has defined the following KPIs supporting the company in
following the progress related to resource use and circular
economy:
• Share of recycled steel used in the company’s
products. In 2024 this was followed as an estimate,
taking into consideration the general manufacturing
averages in every region and assessing Konecranes’
purchasing volumes based on that split. In the coming
years, Konecranes aims to collect supplier-specific
information. It is estimated that the share of recycled
steel in Konecranes’ steel purchases is 40 percent.
• Recycling rate of waste generated in manufacturing
operations. Waste information is collected systematically,
and results are calculated annually. In 2024, the recycling
rate was 86 percent, including waste directed to recycling,
reuse, or composting.
• Revenue linked to modernization and retrofits. The
company’s aim is to increase the lifespan of its products and
to integrate design features that facilitate easier repair and
maintenance with minimal resource use. Data is assessed
and reported on a quarterly basis. In 2024, Konecranes’
revenue from modernizations and retrofits was EUR 336
million or 8 percent of the Group’s total revenue.
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E5-5 Resource outflows
Konecranes provides specialized maintenance services
and spare parts for all types of industrial cranes and hoists,
from a single piece of equipment to entire operations. The
company also offers maintenance and repair services as
well as spare parts for the container handling industry and
its products. Konecranes service operations extend the
lifecycle of equipment through maintenance and repairs,
remanufacturing of parts, modernization, and retrofitting.
Konecranes’ Industrial Equipment and Port Solutions
products are mainly made of recyclable metals. The Design
for Environment (DfE) process, combined with product Life
Cycle Assessment (LCA) methodology, is used in product
design and development projects to improve the energy and
material efficiency as well as the maintainability of products.
Given the limited research currently available on cranes’ life
spans, the industry averages for different product groups are
not available. ISO 12482:2014 defines the typical operational
period for industrial cranes as 10–20 years. The standard
does not separate different product groups.
Konecranes’ products are designed for a long lifetime as
well as for maintainability. A crane’s lifetime depends heavily
on different factors such as the type of load, the number
of lifting cycles and the maintenance of the product. The
expected lifetime of the company’s cranes is generally from
10 to 30 years.
Konecranes’ product design emphasizes modularity
and easy access to critical components, facilitating
straightforward repairs and reducing downtime.
Konecranes also ensures that the repaired parts are
readily available to support efficient maintenance and
possible upgrades. The spare parts or replacement kits are
available for many years, making it possible to keep older
cranes in operation. Modernizations enable new features
to be added to existing cranes. The company has several
repair shops that can repair crane components and even
complete cranes.
Based on Konecranes’ Environmental Product Declarations
(EPDs), on average 92 percent of material weight in products
come from metals, which are widely recyclable.
The estimated rate of recyclable content in plastic
packaging is 99 percent, based on information collected
from purchased packaging materials in 2022. The rates of
recyclable content in other packaging materials are not
currently available.
The product lifetime projections mainly follow data-based
design working period calculations (DWPs) from the field. In
addition, in certain product categories, a scenario-based
approach to reaching the expected design number of cycles
has been used to estimate product lifetimes.
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S1 Own workforce
Material own workforce-related
impacts, risks and opportunities and their
interaction with strategy and business
model
Konecranes is committed to fostering a fair, inclusive and
diverse working environment where we treat each other with
respect and expect high ethical standards of ourselves and
our business partners. The company’s strategy also focuses
on enhancing a winning culture, including building a culture
of continuous learning, where people are supported and
encouraged to develop and grow every day. Operating in
industrial, international business brings along some material
impacts, such as impacts on people’s health and safety, as
well as pressure on working times. These material impacts
are aligned with Konecranes’ strategy, which emphasizes
advancing responsible business practices.
No topic or sub-topic related to own workforce was deemed
material from the financial risks and opportunity perspective
and therefore Konecranes does not disclose the relationship
between its material risks and opportunities arising from
impacts and dependencies on its own workforce and
strategy and business model.
Own workforce at Konecranes consists of employees and
non-employees. The latter includes both self-employed
people and people provided by third-party undertakings
primarily engaged in employment activities. All employees
who could be materially impacted by Konecranes are
3. SOCIAL INFORMATION included in the scope of this Sustainability Statement. Non-
employees who could be materially impacted are mainly
not in the scope of the statement, but they are separately
mentioned when covered by specific disclosures.
Health and safety impacts are most relevant for people
working in operative roles, whether they are employees or
non-employees. Especially people working at factories, in
crane and equipment installation, and in service business,
where the working conditions of the technicians vary, are
subject to negative health and safety impacts. Additionally,
employees who are required to drive a lot due to their job
duties have a higher risk of vehicle accidents.
Employees working in both operative and office roles
are occasionally subject to negative impacts caused by
excessive working hours and potentially unhealthy work-life
balance. Both types of employees benefit from the positive
impacts of adequate wages, freedom of association,
training and skills development, and diversity, equity and
inclusion.
Regarding the negative impacts, Konecranes considers
health and safety impacts to be caused by individual
incidents. The impacts caused by excessive working hours
can be seen as a widespread risk potentially causing health
and safety issues.
On the side of positive impacts, Konecranes considers the
payment of adequate wages, and especially Konecranes’
commitment to living wages to all employees,results
in positive impacts especially for employees in low job
grades and in low-income countries. Living wages are
an essential component of decent work, as they reduce
inequalities and increase gender equality. Embedding
diversity, equity and inclusion in recruitment, promotion
and development stages of employment creates a
positive impact on all employees, especially on minorities.
Freedom of association and information, consultation and
participation rights of employees cover all employees and
are put into practice not only through works councils, which
cover part of the Konecranes geographies and employees,
but also through different forums like town hall meetings
and employee resource groups. Related to training and
skills development, all employees have an opportunity
for a personal development plan and a certain amount of
training.
Konecranes does not disclose any material impacts on
its own workforce that may arise from transition plans for
reducing negative impacts on the environment, as the
company has not identified any material impacts on its own
workforce caused by its climate transition plans. Additionally,
Konecranes has not identified its own operations as being
at significant risk of incidents of forced labor or compulsory
labor or incidents of child labor.
Regarding the negative impacts, Konecranes’ health and
safety and people processes help in understanding how
particular groups of people may be at a greater risk of
harm. For example, the knowledge on people especially at
risk of negative health and safety impacts is based on the
company’s health and safety management system and risk
assessment processes. There are specific processes to
ensure that the work is done safely especially in hazardous
environments, such as nuclear and waste treatment facilities.
Konecranes’ people processes, such as employee surveys,
create understanding of employees particularly affected by
excessive working hours and potentially unhealthy work-life
balance.
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S1-1 Policies related to own workforce
Konecranes has adopted several policies to manage its
material impacts on its workforce. At the highest level,
Konecranes’ Code of Conduct sets requirements on
responsible business.
Konecranes’ Human Rights Policy focuses on respecting
and supporting human rights across all operations,
encouraging business partners to do the same, and
conducting risk-based human rights due diligence. Key
commitments include maintaining effective mechanisms
for raising concerns and seeking to provide remedy for
where issues arise. This policy covers all internationally
recognized human rights, addressing material impacts
such as health and safety incidents, potential physical and
mental health issues, forced labor and the individual’s right
to family or personal time – particularly when affected by
excessive overtime. Monitoring occurs through human
rights due diligence, including audits like the Supplier
Code of Conduct and social responsibility assessments.
Additionally, topic-specific policies offer guidance on
addressing particular material impacts.
Konecranes’ Health and Safety Policy Statement states the
company’s top priority: Everyone should be able to go safely
home, every day. The Health and Safety Policy Statement
also lists seven health and safety commitments, such as
having a zero tolerance towards unsafe acts and safety
violations, and six ways of working to enable the realization
of these commitments. The monitoring is done through
Konecranes’ health and safety management system.
In accordance with its Diversity, Equity and Inclusion (DEI)
Policy Statement, Konecranes aims to create a diverse and
inclusive working environment where people feel trusted and
can thrive by working in a psychologically safe environment
where everyone has an opportunity to succeed. Monitoring
is done, for example, with employee surveys, especially
by following the development of the Inclusion Index.
Konecranes also follows how countries develop their goals
and tactics to assure an inclusive environment. The trends of
an increasingly diverse workforce (e.g. gender diversity and
nationality diversity) are also being followed. Additionally,
Konecranes has a Talent Acquisition and Recruitment Policy
to ensure that a diverse talent funnel is part of the recruitment
practices. This is monitored through the share of gender and
nationality diversity in the hirings.
Konecranes’ Fair Labor Frame is aimed at supporting
continuous improvement in Konecranes’ own operations
and at acknowledging different maturity levels of
different locations on this topic. The Basic level states
the minimum requirements, and the Advanced level
includes the recommended practices Konecranes strives
to achieve. Out of the material impacts, the Fair Labor
Frame addresses freedom of association (for example,
employee cooperation), diversity, equity and inclusion
(equal opportunities), working hours and work-life balance,
training and skills development, and adequate wages
(compensation). The Frame states that worker associations
such as work councils and trade unions are allowed, no
discrimination is allowed against employees on grounds
of being or not being trade union activists, and there is
fair cooperation between Konecranes and employee
representatives, trade unions and employee committees,
wherever those exist. Working hours need to stay within
legal limits and employees need to have regular rest days. To
further support a healthy work-life balance, flexible working
hours, time and place are recommended to be offered where
applicable and available. When it comes to training and
development, all employees have an equal opportunity for
basic trainings and are recommended to have development
discussions called “My development” with their manager. The
Frame also recommends having a process to define the local
living wage and to have an implementation plan to close gaps
if wages are not sufficient to meet basic needs and provide
some discretionary income. The monitoring of the Fair Labor
Frame topics is done through regular people processes and
social responsibility assessments.
All Konecranes employees are in the scope of the above-
mentioned policies, and the Human Rights Policy, the
Health and Safety Policy Statement and the Diversity,
Equity and Inclusion (DEI) Policy Statement also partly
cover non-employees. The policies have been approved
by the Konecranes Leadership Team and signed by the
President and CEO, except for the Fair Labor Frame, which
has been approved by the Sustainability Council, and
the Talent Acquisition and Recruitment Policy, which has
been approved by People & Culture Leadership Team.
The implementation is carried out by the relevant Business
Areas and functions, and the most senior-level personnel
accountable for the implementation of the Human Rights
Policy, the Health and Safety Policy Statement, the
Diversity, Equity and Inclusion (DEI) Policy Statement and
the Fair Labor Frame are the direct reports of the President
and CEO.
By implementing the Human Rights Policy, Konecranes
is committed to operating in a manner consistent with
internationally recognized human rights as defined in the
International Bill of Human Rights and the International
Labour Organization’s (ILO) Declaration on Fundamental
Principles and Rights at Work. The Human Rights Policy
also states Konecranes’ commitment to the UN Guiding
Principles on Business and Human Rights and the ten
principles of the UN Global Compact. As stated in the
Diversity, Equity and Inclusion Policy Statement, Konecranes
additionally supports the UN Sustainable Development
Goals on reduced inequalities and gender equality and has
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signed the European Commission’s Diversity Charters in
some European countries.
Konecranes has recognized that many of its customers,
investors and employees see that the topics related to
health and safety, diversity, equity and inclusion, training
and skills development and fair working conditions would
be material for Konecranes, and hence these stakeholders
expect Konecranes to have policies in place on these topics.
The policies are available on Konecranes’ intranet pages and
many also publicly on Konecranes.com. They have also been
promoted to potentially affected members of the workforce
as well as to the people helping to implement the policies
through various trainings and awareness campaigns.
Human rights policy commitments relevant to own
workforce
Konecranes has made commitments relevant to its own
workforce in the company’s Human Rights Policy. The
commitments are: Konecranes respects and supports
human rights, conducts risk-based human rights due
diligence, maintains effective concern-raising mechanisms,
and seeks to provide remedy.
Konecranes respects and supports the human rights of its
own workforce. The company is committed to operating in
a manner consistent with internationally recognized human
rights as defined in the International Bill of Human Rights and
the International Labour Organization’s (ILO) Declaration on
Fundamental Principles and Rights at Work (ILO principles
covering occupational safety and health; freedom of
association and collective bargaining; non-discrimination
in employment and occupation; elimination of slavery and
forced labor; and abolition of child labor).
Konecranes engages with affected persons in its own
workforce as part of its human rights due diligence.
If Konecranes causes or contributes to negative human
rights impacts, the company seeks to provide access to
remedy for the affected people either by the company’s
own resources or by cooperating in remediation through
legitimate processes. This is documented in Konecranes’
Human Rights Policy and the investigation process. The need
for remedy is always considered in relation to investigations
having a human rights aspect as part of the corrective and
remedial actions consideration, including the follow-up to
ensure that the necessary action is taken.
Trafficking in human beings, forced labor or
compulsory labor and child labor, and alignment with
internationally recognized standards relevant to own
workers
Konecranes’ Human Rights Policy is aligned with the key
principles of the United Nations Guiding Principles on
Business and Human Rights (UNGP), by following UNGP
expectations for a structure of a due diligence process and
by stating a commitment to maintain effective concern-
raising mechanisms and to seek to provide remedy.
Konecranes’ policies explicitly forbid forced labor and child
labor.
Workplace accident prevention
Konecranes’ Health and Safety Policy Statement describes
the commitments and objectives for managing health
and safety. These topics are driven by the Health, Safety
and Environmental Excellence Program that focuses on
three areas: Life-Saving Behaviors; Global Health, Safety
and Environmental Standards; and Certified Management
Systems, which are certified by ISO 45001.
Policies aimed at elimination of discrimination
The Code of Conduct states the expectation of Konecranes
being an equal opportunity employer and prohibits any
form of discrimination. Konecranes’ Diversity, Equity and
Inclusion (DEI) Policy Statement’s commitment related
to inclusion or positive action for people from groups at
particular risk of vulnerability in its own workforce states
that Konecranes aims to create a diverse and inclusive
working environment where people feel trusted and can
thrive by working in a psychologically safe environment. The
objective is to go beyond equality and promote equity by
providing resources for success based on the individual’s
uniqueness. Furthermore, Konecranes’ Talent Acquisition
and Recruitment Policy aims to ensure that a diverse
talent funnel is part of the recruitment practices and that
Konecranes provides equal opportunities to people with
different backgrounds.
Konecranes’ Diversity, Equity and Inclusion (DEI) Policy
Statement and Code of Conduct state that the company
does not tolerate any discrimination based on reasons
such as the employee’s race, religion, color, gender,
gender identity, sexual orientation, age, marital status,
family situation, national origin, national extraction or
social origin, citizenship, political opinion, trade union
membership, disability (where the applicant or employee is
qualified to perform the essential functions of the job with
or without reasonable accommodation) or other forms of
discrimination covered in relevant regulations and laws. The
company does not tolerate any form of harassment.
In addition to Konecranes’ Diversity, Equity and Inclusion
(DEI) Policy Statement, the company’s DEI commitments
are stated in Konecranes’ DEI Vision. The execution of these
commitments takes place through the company’s DEI
strategy. The ambition is to build a more diverse organization,
considering all aspects of diversity. For that reason,
Konecranes’ DEI agenda is embedded into the company’s
processes. The principles for attracting and hiring the
best, diverse talents are defined within Konecranes’ Talent
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Acquisition and Recruitment Policy. The use of common
and objective criteria for rewarding people for their work
is reinforced and the company is committed to ensuring
pay equity to its employees in accordance with local
requirements, EU directives and other relevant regulations.
Konecranes embraces pay equity not only because of the
legislation, but because it is part of the company’s equity
principles.
Konecranes emphasizes positive actions that promote
inclusivity, generate awareness, and support the
underrepresented people and people at risk of vulnerability.
For that reason, DEI work is being done at the local level.
Through the Supervisory Boards of the legal entities,
Konecranes ensures that DEI actions are part of local
agendas.
Konecranes has also established global Employee Resource
Groups that help tailor actions that advance inclusivity in
the area of LGBTQI+ and people with disability. On the first
topic, Konecranes has created a handbook on language and
behavioral tips to educate the organization. On the second
topic, the company has run an internal survey to capture
areas of improvement and form a baseline for a future
strategy.
Konecranes does not tolerate any form of harassment.
The company’s Code of Conduct defines the principles
and processes to protect our employees. Konecranes’
DEI agenda implementation is managed and driven by the
Business Areas, Business Units and country organizations
locally led by the Chief Diversity and Inclusion Officer on
the Group level. Progress is measured through a structured
set of targets and key performance indicators (KPIs) and
reported through the annual reporting process. KPIs include
metrics on gender diversity in leadership and in the entire
organization.
S1-2 Processes for engaging with own
workers and workers’ representatives
about impacts
Konecranes holds regular town hall meetings and conducts
employee surveys. The local health & safety committees
and employee resource groups engage with the company’s
own workers and workers’ representatives to incorporate
employee feedback into decisions to address potential
workforce impacts. Additionally, Konecranes maintains open
communication channels with workers’ representatives to
discuss and address any other concerns that may arise on a
day-to-day basis.
The engagement occurs both directly with Konecranes’
workers and through their representatives, such as works
councils, employee representatives or unions, wherever
they exist. The engagement happens at various stages,
including during the planning, implementation, and review
phases of projects and policies, and the frequency varies
from monthly resource group meetings, quarterly town halls
and semiannual surveys to needs-based discussions related
to specific issues. The Executive Vice President, People
& Culture, holds operational responsibility for ensuring
effective engagement with the company’s own workforce,
oversees the implementation of engagement strategies, and
ensures that feedback is integrated into the organizational
approach.
Konecranes has signed an agreement with its European
employees to establish a European Works Council (EWC)
that ensures respect for human rights and facilitates regular
engagement and review and consulting with employees
about important matters. The parties have taken into
consideration the Directive of the Council of Europe (Council
Directive 94/45/EC) on the establishment of a European
Works Council.
The effectiveness of Konecranes’ engagement with its
own workers is assessed using various methodologies.
They include analyzing employee surveys to identify trends
and areas of improvement, monitoring participation rates
in surveys, focus groups and town hall meetings as an
indicator of engagement, and tracking voluntary employee
turnover.
Steps taken to gain insight into particularly
vulnerable people’s perspectives
To gain insight into the perspectives of people in its own
workforce, Konecranes follows the results of employee
surveys, especially by following the Inclusion Index
development.
The company actively seeks input from vulnerable
and marginalized employee groups through some
of the employee surveys that gather feedback from
employees about their experiences and perceptions
related to workplace inclusivity. Konecranes supports
and encourages the formation of Employee Resource
Groups (ERGs) that provide a platform and an opportunity
to improve practices that allow inclusion of marginalized
employees.
Relating to gender diversity, many local ERGs have been
formed to support gender equity advancement, and
inclusion. Additionally, the company has launched a program
called Women in Front Line to improve practices in areas like
Field Operatives, where the presence of women is extremely
low from a global market perspective.
The company has improved awareness of inclusive culture
within the organization through a robust learning offering. For
example, Konecranes has created an inclusion library based
on training and e-learning. The company’s internal e-learning
has been updated on equity expectations, and the training
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on diversity, equity and inclusion has been included in all
the managerial and leadership programs. The company’s
mentoring programs utilize and leverage internal and external
mentors from European Women on Boards.
S1-3 Processes to remediate negative
impacts and channels for own workforce
to raise concerns
If Konecranes causes or contributes to negative human
rights impacts, the company seeks to provide access to
remedy for the affected people either using the company’s
own resources or by cooperating in remediation through
legitimate processes, for example, by removing risk
factors, supporting the persons involved and by preventing
retaliation, if applicable.
The impacts and effectiveness of remedy are assessed in
connection with the investigation process, for example,
by monitoring the possible reoccurrence of such negative
impacts.
Konecranes encourages its employees and any
external stakeholders to report all concerns relating to
Konecranes, without fear of retaliation. The company has
a specific reporting channel in place, the Whistleblowing
Channel, which can be used to report all kinds of
compliance and ethics concerns. Where required by
local laws, Konecranes also has local reporting channels
in place, which are managed in accordance with local
laws. Read more about the whistleblowing channels in
G1-1 Business conduct policies and corporate culture.
In addition, Konecranes has an internal health, safety
and environmental reporting tool as well as local health
and safety committees for raising any health and safety
concerns and observations.
Grievance or complaints relating to employee matters
that relate to actual or suspected breaches of law or the
company’s policies are handled in line with the Group’s
investigation process. Otherwise, local complaint handling
processes on employee matters, where they exist, are
led by the People & Culture function and are aligned with
the requirements of unions or works councils, as well as
applicable laws.
Health and safety related incidents, near-misses and
observations are followed through the health, safety and
environmental reporting tool and local health and safety
committees.
The Whistleblowing Instruction, which is available to all
employees in 35 languages, gives guidance on how to
report ethics and compliance concerns and on the process
involved. Konecranes’ Whistleblowing Channel platform is
further available in 39 languages, and any language can be
used to submit a report. Employees are regularly provided
with training on the subject in connection with the Code of
Conduct trainings and other targeted trainings.
The health, safety and environmental reporting tool is open
to all employees and non-employees (Konecranes’ own
workforce). The tool is available both as a mobile application
and through a web interface in 28 languages. Regular
awareness communication about the tool is provided as part
of various health and safety trainings.
The local health and safety committees exist widely in
Konecranes’ operations globally to support the responsible
business units and to follow up on corrective actions.
Internal investigations are managed by the Group’s
Compliance & Ethics team in line with a defined
investigation process, with Compliance & Ethics
Committee and Audit Committee oversight. Konecranes
follows on a monthly basis various indicators, such as the
number and type of reports, businesses and geographies
involved as well as the substantiation rate, to identify any
trends and risks.
Stakeholder feedback on the effectiveness of the
reporting channel is received through Konecranes’ third-
party social responsibility assessments and different
employee surveys, such as the Employee Engagement
Survey and the Compliance & Ethics risk assessment
survey. Based on the feedback, Konecranes has, for
example, increased local communication on the process of
reporting concerns.
Further, corrective and remedial measures in individual
cases will also be considered from the point of view of the
effectiveness of the complaints procedure, for example,
to identify any gaps in awareness. The effectiveness of
the complaints procedure would also be considered and
ensured in the context of possible mergers and acquisitions
and other possible material changes in the realignment of the
company or its business.
The data inserted into the health, safety and environmental
reporting tool is followed closely by the local health, safety
and environmental experts and unit managers. Corrective
actions are created in the system and their completion is
followed regularly. The process is supported by the local
health and safety committees in the responsible business
units, for example, by bringing up issues and following up on
corrective actions.
There are frequent calls with the internal network which
enable receiving feedback about the health, safety and
environmental reporting tool and its usability. The tool’s users
are also encouraged to bring forward development ideas.
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Employees’ awareness and trust in the reporting channels
and investigation process is regularly followed and assessed
with risk assessments and surveys, as well as in connection
with regular tracking and analysis of the reports received. In
addition, the share of positive responses to the following two
questions of the Employee Engagement Survey is followed:
1) “Management of my unit is committed to integrity and
ethical business practices” and 2) “I would feel comfortable
reporting unethical behavior if I saw it in Konecranes” as
part of Konecranes’ Compliance & Ethics KPIs. Additionally,
every second year the biennial Compliance & Ethics risk
assessment survey respondents are asked to rate, for
example, the risk of people not reporting due to their lack of
awareness of the relevant channels or their lack of trust in the
process and fear of retaliation.
Konecranes has a strict policy of non-retaliation expressed
in the Code of Conduct and the Whistleblowing Instruction.
More information is available in G1-1 Business conduct
policies and corporate culture. The health, safety and
environmental reporting tool user rates are followed
regularly.
S1-4 Taking action on material impacts
on own workforce, and approaches to
managing material risks and pursuing
material opportunities related to own
workforce, and effectiveness of those
actions
Health and safety:
Safety is vital in Konecranes’ operations; the overall
approach and commitment is outlined in Konecranes’
Health and Safety Policy Statement. Konecranes’ Health,
Safety and Environmental Excellence program focuses on
three areas: Life-Saving Behaviors; Global Health, Safety
and Environmental Standards; and Certified Management
Systems.
The Total Recordable Incident (TRI) rate is the company’s
main lagging KPI. The objective is to reach a TRI rate below
three by the end of 2025.
During 2024, actions on embedding health and safety into
everyone’s daily job continued. This was done by supporting
employees in recognizing hazards; making health, safety and
environmental observations; and promoting health, safety
and environmental excellence. The ISO 45001 certifications
continued to cover most of the organization.
Learning from incidents focused on thorough investigation
and corrective actions. The health, safety and environmental
reporting tool supports the quality of incident investigations
and the completion of corrective actions. A strong focus on
reporting and following up on cases with actual or potential
Serious Injury and Fatality (SIF) exposure was also maintained.
The number of health, safety and environmental observations
has been the leading KPI for the past years. All areas within
the organization showed significant improvement in
reporting observations.
The key activities in 2025 will continue to be the same as
in previous years: further improving incident investigation
and corrective actions and the quality of observations and
concentrating on reducing incidents with SIF exposure.
Konecranes continues to improve its safety culture together
with all employees, guided by the Health, Safety and
Environmental Excellence program.
Konecranes has tools and resources to support and endorse
employee well-being, such as occupational health services,
and multiple courses related to resilience and well-being.
In 2024, Konecranes launched a manager survey on well-
being at Konecranes to evaluate the overall well-being of the
majority of people managers. The survey results will be used
to define the future well-being strategy and to plan concrete
actions to support employees’ well-being.
Working time:
Working times are tracked by local people processes,
typically including electronic recording of working hours
and manager approvals. In addition to these continuous
local processes, compliance with local working hour
regulations and with Konecranes’ global recommendations
is assessed annually at some sites as part of Konecranes’
Social responsibility assessments. Improvement actions
are agreed case by case after the assessments. Three
assessments were conducted in 2024 and at minimum three
are planned for 2025.
Work-life balance:
To support employees in having a good work-life balance
and to ensure keeping up with the current and future labor
market trends and supporting the needs of working in a
global company, Konecranes has launched a hybridworking
guideline globally in all Konecranes countries for employees
whose work is not tied to a specific location. By the end of
2024, the application of the hybrid working guideline was
launched in all countries with over 10 employees. Countries
have established their local hybrid work guidelines allowing
employees whose work is not tied to a specific location to
work remotely at least 20 percent of their work time.
Training and skills development:
Konecranes offers its employees various development
and training programs in areas such as technology, sales,
communication, leadership, health and safety, project
management and ways of working. In addition, employees
can enrich their work, for example, by learning on the job,
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from peers, or by joining mentoring and coaching programs
and communities. Konecranes has several internal career
and mobility opportunities and is actively promoting
internal opportunities through the internal career pages,
development discussions, social platforms, and newsletters
– to ensure employees can take further steps in their
career and develop their professional expertise. In 2024,
Konecranes continued to offer all Konecranes employees
the opportunity to have manager-employee development
discussions. By having continuous dialogue with their
manager, employees can achieve their targets faster and
accelerate their professional growth. For non-employees,
Konecranes also offers training in areas such as technology,
sales, communication, leadership, health and safety, project
management and ways of working.
Konecranes is planning to continue a similar approach for
training and development in 2025.
Freedom of association:
Freedom of association is guaranteed for all Konecranes
employees in the Code of Conduct. In 2024, the
cooperation with works councils and trade unions
continued in part of Konecranes geographies, such as
Europe. European Works Council discussions covered,
for example, quarterly reviews with top-level and regional
business leaders of financial results. Information was
shared on Employee Engagement Survey action planning,
Value & strategy renewal workshop and manager survey on
well-being at Konecranes. Separate information calls were
arranged covering topics like structural changes and the
Konecranes Leadership changes.
Konecranes also had alternative ways to increase
information, consultation and participation rights of its
workforce e.g. via quarterly webinars with the President and
CEO, townhall meetings, idea management groups and
Employee Resource Groups. Konecranes plans to continue
different ways to ensure information, consultation and
participation rights also in 2025.
Adequate wages:
In 2023, Konecranes made a living wage analysis for all
its employees and in 2024, the company committed to
meeting the living wage requirements and started to close
gaps. Work to close the remaining gaps continues in the
coming years. Konecranes’ living wage analysis is based on
WageIndicator’s typical family methodology, lower range.
In 2024, Konecranes also added an adequate wage analysis
to its wage analysis, following CSRD’s definition of adequate
wage. In 2024, Konecranes paid an adequate wage to
all its employees. The living wage is in several locations
higher than the CSRD-defined adequate wage, which is in
most countries based on minimum wages and collective
bargaining.
Diversity, equity and inclusion:
See S1-1 Policies related to own workforce on how
diversity, equity and inclusion related policies are
implemented through specific procedures to advance
diversity and inclusion in general. In 2024, Konecranes
reinforced the guidance on inclusive language to raise
awareness and improve the inclusivity of the working
environment. Konecranes launched a renewed version of
its internal diversity and inclusion e-learning, now including
also the concept of equity. One additional example of
the actions for including DEI in the Group-level training
programs is Konecranes’ flagship leadership program, “KC
leader”, where the participants created their own action
plans related to DEI.
Konecranes has concluded a pay equity pilot in line with
future EU directives in five countries and identified focus
areas to prevent repeating pay gaps. The company also
leveraged its Employee Resource Groups to help with
practicalities for inclusion-related activities during the Pride
month and conducted a survey to understand Konecranes’
status of disability inclusion, with the aim of building specific
initiatives in 2025 for this specific area.
In 2024, Konecranes also launched a program “Women In
Front Line” aiming to accelerate actions to attract women
to technician roles in frontlines. The country organizations
have been engaged in crafting their DEI strategies and
objectives.
In 2025, Konecranes aims to continue its focus on gender
diversity, with particular attention to building the funnel
for women in frontlines and focusing on a diverse future
generation of leaders, by piloting a learning program that
provides development support to underrepresented
groups, starting from women in leadership. The aim is to
increase the focus on inclusion, including programs for
disability inclusion and multigenerational diversity.
Financial resources allocated to own workforce-related
actions
Konecranes has allocated significant expenditure in health
and safety development as well as towards the training and
development of its employees. As own workforce-related
capital expenditure (CapEx) and operating expenditure
(OpEx) are an integrated part of Konecranes’ operations,
the company aims to develop respective reporting on a
consolidated basis in the future.
Action taken to provide or enable remedy
During 2024, actions were taken to provide remedy for
people injured in health and safety incidents. Remediation
actions are driven by local legislation and insurance systems
and mainly concern treatment of injuries and rehabilitation.
Other types of remediation (e.g. financial support for
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Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
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families, compensation, sanctions, reorganizing work tasks)
are considered case by case based on the severity of the
incident, the local social support systems and the individual
situation of the family.
Assessing the effectiveness of actions in delivering
outcomes for own workforce
The effectiveness of health and safety related actions
and initiatives is followed through lead and lag indicators
and through our internal health and safety audits and our
certification audits.
Compliance with the Fair Labor Frame, which includes many
of the material impacts, such as freedom of association,
wages and working hours, is assessed annually at selected
sites through on-site Social Responsibility Assessments.
These assessments also include confidential worker
interviews. Internal audit function is assessing at selected
sites that the company complies with local regulations on
working hours and that the company takes diversity, equity
and inclusion into account in hiring decisions.
The effectiveness of training and skills development is
assessed e.g. with feedback collected after completion
of selected trainings. Employee Engagement Survey (EES)
contains a question “I have the training I need to do my job
effectively”. The EES also contains questions on perceived
health and safety, work-life balance, wages and diversity,
equity and inclusion. EES results are analyzed all the way
from team level to global level to assess how employees in
different parts of the organization perceive the current state.
The global People & Culture Rewards, Recognitions
and Wellbeing team makes an annual assessment of
adequate wages as defined by CSRD and of living wages,
and addresses possible gaps for local People & Culture
functions, to be discussed with businesses.
Konecranes is also rated by different investors, analysts and
joint customer platforms, which allows comparisons with peers.
Processes to identify needed and appropriate actions in
response to actual or potential negative impact
The processes through which Konecranes identifies
what actions are needed and appropriate in response to
actual or potential negative impacts on its workforce are
several: 1) Assessing and mitigating occupational health
and safety risks; 2) preventing and tracking health and
safety incidents, near-misses, and observations; and 3)
learning from past cases. The purpose of these processes
is to ensure that everyone gets home safely every day.
Konecranes’ Life-Saving Behaviors and Global Health, Safety
and Environmental standards define the behaviors and
procedures that the company’s employees are expected
to comply with in order to create and maintain a healthy and
safe workplace.
The health, safety and environmental reporting tool is used
in daily health and safety management. The data entered is
followed closely by the local experts and the responsible
business supervisors. Improvements are planned together
with the local on-site employees. Corrective actions are
recorded in the system and their completion is monitored by
the business units and reported internally.
By auditing health and safety protocols and procedures both
internally and externally, for example, through certification
schemes, the business units can, in cooperation with the
health, safety and environmental team, oversee the current
level of the operations and ways of working, and supervise
and guide the unit in their continuous drive for improvement
and doing things right.
People managers are responsible for tracking their
subordinates’ working hours and that the working hours stay
within legal limits. Working hours impact work-life balance.
Employees’ perceptions of their work-life balance are
measured as part of employee and manager surveys, and the
results are analyzed at different levels of the company to find
appropriate ways to improve the situation, as needed.
Konecranes’ corporate culture helps in ensuring that the
company’s own practices do not cause or contribute to
material negative impacts on its own workers. The way
of working is based on the principle that there is no task
so urgent or important that it cannot be done safely. The
human rights due diligence process aims to ensure that the
company has the needed policies and practices in place for
identified negative impacts on own workforce. Konecranes
works to continuously improve its due diligence process.
Managing the material impacts
Konecranes has allocated personnel and technical resources
to manage its material impacts. On the other hand, many
of the material impacts are at the core of the company’s
corporate culture, and all employees play an important part
in the daily execution of the practices.
Daily health and safety management is owned and led by
business units and supported by the internal health, safety
and environmental network. Continuous improvements
related to day-to-day work are accomplished in cooperation
with the local health and safety committees. The overall
health and safety strategy, short-term targets, and action
plans are defined by the health, safety and environmental
core team together with the health, safety and environmental
network and the Business Areas. This work is guided by the
Sustainability Council.
Health and safety themes and metrics are followed
regularly by the Business Area management teams and
the Konecranes Leadership Team. Konecranes expects all
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Consolidated cash flow statement
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employees to be active in enhancing its safety culture and
preventing incidents from taking place by removing hazards
and sharing improvement ideas. Everyone plays a part in
building a safe and healthy working environment, and every
employee and non-employee is responsible for health and
safety.
Konecranes’ People & Culture organization has a central
role in managing other material impacts than health and
safety incidents. People managers are responsible for
their subordinates’ working hours compliance, and hours
are tracked by local people processes, typically using
dedicated tools. The People & Culture and Health and Safety
organizations are key drivers to provide employees with
means to achieve a healthy work-life balance. The People &
Culture organization’s Rewards, Recognitions and Wellbeing
team is responsible for, among other things, the global hybrid
working guidelines, planning global well-being initiatives
such as internal trainings and awareness campaigns, and
gaining insights about the current well-being of managers
and employees, for example, through surveys. In addition,
local People & Culture teams ensure with local management
that employees get adequate wages according to local
wage regulations and where applicable, according to
collective bargaining agreements. The global People &
Culture Rewards, Recognitions and Wellbeing team makes
an annual assessment against adequate wages as defined
by CSRD and against living wages, and addresses possible
gaps for the local People & Culture function for discussions
with businesses.
The Executive Vice President, People & Culture, holds
the operational responsibility for ensuring effective
engagement with Konecranes’ workforce. Local People &
Culture teams facilitate the information, consultation and
participation rights of employees together with businesses
by arranging meetings with works councils and organizing
different forums like town hall meetings and employee
resource groups.
Konecranes fosters a culture of continuous learning that
enables its people to take ownership of their development
in order to reach their full potential. The global Learning &
Development (L&D) team manages global learning and
leadership development programs. Business Area and
function-specific L&D teams manage role-specific and
technical training programs tailored to their specific needs,
while local L&D teams address local needs based on local
regulations and requirements. This coordinated approach
ensures that employees have access to the most relevant
and effective learning and development opportunities.
To support continuous learning, Konecranes leverages
technology such as a learning management system and
external learning libraries.
Regarding diversity, equity and inclusion, progress, plans
and metrics are followed regularly by the Business Area
management teams, the Konecranes Leadership Team,
and the local teams. Everyone within the company plays a
part in building a diverse and equitable work environment.
Konecranes’ Diversity, Equity and Inclusion Policy Statement
and Code of Conduct provide guidance and channels to
ensure inclusiveness. Konecranes educates its organization
to ensure positive inclusion actions and limit the risks of
intentional discrimination. Any form of harassment is not
tolerated within Konecranes.
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Consolidated cash flow statement
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S1-5 Targets related to managing material negative impacts, advancing positive impacts,
and managing material risks and opportunities
Notes to social targets for own workforce
Total Recordable Incident rate
• Methodologies and significant assumptions: The Total
Recordable Incident (TRI) rate is calculated using the
following formula: (Number of work-related incidents
resulting in medical treatment or lost time) ÷ (Total
working hours performed during the reference period) ×
1,000,000 hours.
• Relationship of the target to the policy objectives: The
TRI rate is an indicator for the implementation of the Health
and Safety Policy Statement.
• Scope of the target: All employees are in the scope of the
target.
• Baseline value and base year: The target was set in 2020
based on the TRI rate of 6.2 in 2019.
• Methodologies and significant assumptions used to
define targets: The health and safety target setting is
based on past performance and continuous improvement
year on year.
• Stakeholders’ involvement in target setting: The yearly TRI
rate targets have been set together with the Konecranes
Leadership Team and the business unit heads.
• Changes in targets, metrics, or measurement
methodologies: No changes.
• Performance against disclosed targets: After several
years of steady improvement, safety performance in
2024 did not reach the set target level due to several
identified and investigated reasons. The identified pain
points have been addressed in the 2025 annual plans for
health and safety. Safety-related themes and metrics
are monitored closely by the business units. Health
and safety metrics are followed against the set targets
regularly by the Business Area management teams and
the Konecranes Leadership Team.
Number of social responsibility assessments
• Methodologies and significant assumptions: The
annually performed social responsibility assessments are
calculated by summing together assessments completed
by a third party on site during January 1 – December 31.
Assessments are conducted by a third party against
Konecranes’ Fair Labor Frame and local regulations on the
topics covered by the Frame.
• Relationship of the target to the policy objectives: Social
Responsibility Assessments are used to check compliance
with Konecranes’ Fair Labor Frame requirements and
recommendations, which address material impacts
including working hours, work-life balance, freedom of
association, wages, and training and skills development. In
addition to Konecranes’ Code of Conduct, the Fair Labor
Frame is based on the following internationally recognized
principles and best practices (but is not fully adhering
to all their details): United Nations Global Compact,
International Labor Organization’s (ILO) Declaration on
Fundamental Principles and Rights at Work, and Social
Accountability International’s SA8000 standard.
• Scope of the target: All Konecranes sites are in the scope
of the target, but countries with higher likelihood of human
rights risks are prioritized.
• Baseline value and base year: Baseline value and base
year are not applicable. An annual assessment target has
been in place since 2021.
• Stakeholders’ involvement in target setting: There was no
stakeholder involvement in the target setting.
• Changes in targets, metrics, or measurement
methodologies: The target level was reduced from a
minimum of five to three annual assessments from 2023
onwards as many of the riskiest sites were already covered
during the first years.
• Performance against disclosed targets: The annual
target number of assessments has been achieved since
setting the target. The target is reviewed annually, and
the progress is monitored regularly by the Konecranes
Leadership Team.
Topic Target 2023 2024
Health and safety Total Recordable Incident (TRI) rate to be below 3 by
the end of 2025
4.6 5.9
Labor practices Conduct annually at least 3 on-site social responsibility
assessments in Konecranes’ own operations.
No end date is set for the target.
4 3
Diversity, equity and inclusion Maintain a strong Inclusion Index result (71% or above)
Target will be reviewed in 2025
81% 83%
Social targets for own workforce
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Inclusion Index result:
• Methodologies and significant assumptions: The Inclusion
Index metric is measured based on employee responses
to an employee survey encompassing three questions.
The questions cover important aspects of inclusion:
belonging, authenticity, and equity. All of these questions
use a 5-point response scale, from “strongly disagree”
to “strongly agree”. “Agree” and “Strongly agree” are
considered favorable answers. The Inclusion Index is an
average percentage of the favorable responses given to
the three inclusion questions. The Inclusion Index questions
are tailored to align with Konecranes’ ambition, but in
general reflect the Qualtrics tool and methodology to
allow some benchmarking. Konecranes has set the desired
target level of the Inclusion index to 71% or above. The
target performance is monitored on average once per year.
• Relationship of the target to the policy objectives: The
Inclusion Index measures the Diversity, Equity and Inclusion
(DEI) Policy Statement’s aim to create an inclusive working
environment.
• The scope of the target: The metric covers all employees.
• Baseline value and base year: The target was updated in
2024 based on the strong Inclusion Index level of 81% in
2023 as well as performance in previous years. In 2021, the
index result was 69%.
• Stakeholders’ involvement in target setting: There was no
stakeholder involvement in the target setting.
• Changes in targets, metrics, or measurement
methodologies: During 2022–2023, the target was to
“improve on the Inclusion Index”. For 2024, the target was
updated, as the Inclusion Index level achieved in 2023 was
already strong. The target is reviewed annually.
• Performance against disclosed targets: In 2024 the
performance was above the target level. Progress
has been positive and improved measurement by
measurement from 2021 to 2024.
Process for setting the targets, including how
Konecranes engaged directly with its own workforce or
representatives
Konecranes’ own workforce was not directly engaged
in setting the above global targets. In some countries,
local works council representatives have been involved in
discussing the local elements of the health and safety target
setting. The performance against health and safety targets
is reviewed regularly with own workforce in various forums,
including local health and safety committees, operational
meetings, and works council meetings. The Inclusion Index
results have been shared and discussed with employees as
part of the employee survey results.
Employees are encouraged and expected to take part in
enhancing the safety culture. This includes, but is not limited
to, reporting health, safety and environmental observations
and adding improvement ideas via the health, safety and
environmental reporting tool. Continuous improvements
related to day-to-day work are accomplished together with
the local health and safety committees. Also, employees
have been encouraged to propose improvements to
Konecranes’ diversity, equity and inclusion work based on
the Inclusion Index results.
S1-6 Characteristics of the undertaking’s
employees
Number of employees by gender as of Dec 31, 2024
The largest countries of operation in terms of number of
employees
1
Employees by contract type and gender as of Dec 31, 2024
Gender
Number of
employees
% of
employees
Male 13,581 81%
Female 3,243 19%
Not reported 18 0%
Total employees 16,842 100%
Female Male
Not
reported Total
Number of employees 3,243 13,581 18 16,842
Number of permanent
employees
3,107 13,054 17 16,178
Number of temporary
employees
136 527 1 664
Country
Number of
employees
Germany 3,423
Finland 2,420
The United States 2,244
Total 8,087
1
The countries that include at least 10% of the total headcount
Note: Konecranes does not have non-guaranteed hours employees.
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S1-9 Diversity metrics
S1-10 Adequate Wages
S1-13 Training and skills development
metrics
Employees by age group as of Dec 31, 2024
Percentage of employees participating in performance or
career development review
Number of
employees
% of
employees
Under 30 years old 2,782 16%
30–50 years old 9,366 56%
over 50 years old 4,694 28%
Total 16,842 100%
Female 96%
Male 95%
All employees 95%
Note: For employees who have not reported gender the percentage
was 67%.
Total number of employees who have left the undertaking
during the reporting period and the rate of employee
turnover in the reporting period:
Number of employees who have left: 1,957
Rate of employee turnover: 11.75%
Methodologies and assumptions
At Konecranes, the official headcount (HC) is reported
on the second day of every month for the end of the
previous reporting period. The official headcount definition
includes all employees with employment status “Active”
and employee group as “Employee”, “Expatriate”, or
“Apprentice”. In the Sustainability Statement, Konecranes
reports the official headcount number in absolute value at
the end of the reporting period. For the rate of employee
turnover, the numerator includes employees who have left
in the reporting year and the denominator is the average
headcount of the reporting year.
For the number of employees in the financial statements,
see Note 8 Personnel expenses and number of personnel in
Konecranes’ consolidated financial statements.
At the end of 2024, 347 (81 percent) of the company’s top
managers were male and 80 (19 percent) were female. Top
managers include senior leaders who are positioned on
Job Level 11 and above (“Leadership”) in Konecranes’ job
architecture.
In 2024, all Konecranes employees were paid an adequate
wage, in line with the benchmarks defined by the CSRD.
Average hours of training per employee in 2024
Female operatives 17
Female office workers 15
All female employees 15
Male operatives 26
Male office workers 15
All male employees 21
Gender not reported 27
All employees 20
S1-14 Health and safety metrics
The table below presents key metrics regarding health and
safety of employees.
The health and safety incidents cover on-site incidents
with medical treatment or lost days of own employees. The
health and safety reporting system, Life-Saving Behaviors
and Planet-Saving Behaviors and Global Health, Safety and
Environmental Standards are considered as Konecranes’
health and safety management system. All employees have
access to this system environment.
Metric 2023 2024
Employees covered by health and safety
management system
100% 100%
Number of Total Recordable Incidents (TRIs) 139 180
TRI rate 4.6 5.9
Fatalities 0 0
Lost Days N/A 2 ,741
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S2 Workers in the value chain
Material impacts, risks and opportunities
related to workers in the value chain
and their interaction with strategy and
business model
The health and safety and other human rights of the value
chain workers is connected to Konecranes’ strategy starting
from the company’s purpose of Shaping next generation
material handling for a smarter, safer and better world.
Also, one of Konecranes’ strategic enablers, Advancing
responsible business, means that Konecranes is embracing
the broader sustainability agenda. Konecranes’ business
model includes the use of subcontractors, for example, in the
manufacturing, installation and maintenance of the products
and solutions in different heavy industries, and these tasks
pose an inherent risk of negative health and safety impacts.
Konecranes’ business model is to offer a wide range of
products and service solutions globally, which means that
we also have an extensive global supplier base. The majority
of the company’s suppliers and subcontractors are located
in countries where legislation supports the protection
of human rights, but some of the suppliers are located in
countries where the rule of law to protect fundamental
human rights and to observe and respect freedoms is weak.
This increases, for example, the likelihood of forced labor.
Konecranes mitigates health and safety and other labor
rights impacts with different appropriate measures.
The types of value chain workers who could be materially
impacted by Konecranes include certain workers on
Konecranes’ sites who are not part of the company’s own
workforce. For example, cleaners may be at a higher risk
of being negatively impacted by forced labor due to their
generally seen weaker position to protect labour rights. In
addition, security guards have been identified to be at a
greater risk of being negatively impacted due to excessive
working hours.
Another category of value chain workers who could be
materially impacted by Konecranes are those working
for entities in Konecranes’ upstream value chain, and in
particular, industrial workers, and workers of the company’s
steel structure subcontractors, who may be at a greater risk
of being subject to negative health and safety impacts and
excessive working hours. Konecranes is also aware that some
products it purchases require the extraction of metals and
minerals which takes place deeper in the company’s supply
chain. If the extraction is done in conflict-affected areas, it
increases the risk of workers related to those activities being
subjected to forced labor.
From among workers working for entities in Konecranes’
downstream value chain, workers involved in the logistics
activities, such as drivers and warehouse workers, are seen to
hold a greater risk of being negatively impacted by excessive
working hours and reduced health and safety at work.
Konecranes purchases a wide range of products and
services across different industries globally and recognizes
that there may be, potentially, workers in the value chain
particularly vulnerable to different negative impacts, such as
migrant workers who are known to face, for example, a higher
risk of being negatively impacted by forced labor.
An increased risk of forced labor is identified especially in
the supply chain of commodities that may include conflict
minerals (tin, tantalum, tungsten, and gold) such as electronic
components, and countries where the weak local legislation
and protection of fundamental labor rights create a higher
risk of forced labor, particularly for migrant workers.
Konecranes follows international human rights indices on
country risks, and based on the available information, also
related to specific risk topics such as conflict-affected
and high-risk areas related to sourcing of minerals, the
company has defined some countries to have an extreme
geographical risk. These countries include, for example,
the Democratic Republic of Congo, Ethiopia, Nigeria, and
Pakistan.
Considering material negative impacts, forced labor is seen
as systemic in the context of sourcing commodities, such as
electric components that possibly include conflict minerals.
These minerals are known to be possibly connected with
forced labor in conflict-affected areas. On the other hand,
all identified negative material impacts—forced labor,
working hours, and health and safety—are seen as somewhat
systemic in countries where the local labor legislation and
protection of fundamental labor rights are weaker, and the
average income level is lower. Though the aforementioned
factors pose a higher risk of negative material impact
realization, possible actual negative impacts are expected to
be present only within individual business relationships of the
company.
Considering workers in the value chain, and those with
particular characteristics, Konecranes has developed
an understanding of which types of workers may be at a
greater risk of harm and where in the supply chain. This
understanding has been gained through an abstract
human rights impacts and risks assessment the company
has conducted, as well as a concrete identification of
the impacts. Konecranes’ human rights impacts and risks
assessment is based on external expert knowledge on
typical risks in the company’s purchasing categories and
countries from which purchases are made, enriched with
internal expert knowledge to identify general areas where
impacts are most likely to occur and to be most severe.
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Concrete information about the impacts is received from
Konecranes’ own monitoring channels, such as Supplier
Code of Conduct audits, suppliers’ concerns raised via
Konecranes’ Whistleblowing Channel or other ways of
reporting compliance concerns and via Konecranes’
legal and compliance survey. Based on this information,
Konecranes has identified that, for instance, migrant
workers and workers performing duties hazardous to human
health are at a greater risk of harm and more subject to
material negative impacts.
S2-1 Policies related to value chain
workers
Konecranes’ Human Rights Policy and Supplier Code of
Conduct are the key policies managing the company’s
material impacts related to value chain workers. For
information on Konecranes’ Human Rights Policy, see S1-1
Policies related to own workforce.
Konecranes’ Supplier Code of Conduct states that
Konecranes expects its suppliers and subcontractors to
conduct their business in compliance with the same legal
and ethical requirements and principles that Konecranes
requires in its Code of Conduct. These principles are of
utmost importance when establishing and conducting
business relationships. Konecranes’ Supplier Code of
Conduct (“Code”) sets the minimum legal and ethical
requirements and principles of conduct that Konecranes
requires from its suppliers and subcontractors. The Code
covers all material impacts. The Code states, for example,
that any form of modern slavery, including forced labor,
compulsory labor, debt bondage, human trafficking or
similar is not accepted. Working hours shall comply with
the local laws and collective agreements, and they shall be
followed and documented. All overtime shall be voluntary,
and suppliers shall allow their employees regular rest
days. Suppliers shall ensure that their employees have a
healthy and safe working environment. Suppliers shall take
measures to adequately protect against occupational
injuries and illnesses and ensure that their employees are
trained to do their work safely and correctly.
Internally, Konecranes has a Know Your Supplier Policy in
use, which is established to ensure that Konecranes does
business with suppliers and subcontractors that are able to
meet the requirements set out in Konecranes’ Supplier Code
of Conduct and other Konecranes’ policies. Read more in
G1-2 Management of relationships with suppliers.
Konecranes’ Human Rights Policy covers all value chain
workers. Konecranes’ Supplier Code of Conduct covers all
suppliers and subcontractors that have a direct contractual
relationship with Konecranes, as well as the sub-suppliers
and subcontractors that provide services or deliver products
to such companies for the benefit of Konecranes. The
Supplier Code of Conduct is applicable also to workers
working at Konecranes sites but who are not part of own
workforce (such as cleaners) and to a part of the workers
working for entities in Konecranes’ downstream value chain
(for example, those involved in the activities of logistics).
The above-mentioned policies have been approved
by the Konecranes Leadership Team and signed by the
President and CEO. Their implementation is carried out
by the relevant Business Areas and functions. The most
senior-level personnel accountable for the implementation
of Konecranes’ Human Rights Policy and Supplier Code of
Conduct are the direct reports of the President and CEO.
Through its Human Rights Policy, Konecranes is committed
to operating in a manner consistent with internationally
recognized human rights as defined in the International Bill
of Human Rights and International Labour Organization’s
(ILO) Declaration on Fundamental Principles and Rights
at Work. The Policy also states a commitment to the UN
Guiding Principles on Business and Human rights and the
ten principles of the UN Global Compact. Konecranes’
Supplier Code of Conduct refers to the OECD Guidelines for
Multinational Enterprises and UN Global Compact.
Konecranes has identified that many of its customers and
investors view it as important that Konecranes properly
manages sustainability in its supply chain, and this has been
one of the reasons to create the company’s Human Rights
Policy and Supplier Code of Conduct. Furthermore, many
customers expect Konecranes to ensure that customers’
supplier requirements related to social responsibility are
passed along in the supply chains. Therefore, Konecranes
included all core principles and requirements towards our
suppliers and subcontractors in Konecranes’ Supplier Code
of Conduct, which was updated in 2024.
Konecranes’ Human Rights Policy and Supplier Code of
Conduct are available on Konecranes.com. The Supplier
Code of Conduct is available in more than 20 languages, and
after the launch of the year 2024 version of the Code, it was
also communicated separately to suppliers. Compliance
with the requirements set in Konecranes’ Supplier Code of
Conduct is a standard clause in the company’s purchase
agreements and when defined mandatory, Konecranes
requires suppliers and subcontractors to sign a separate
contractual commitment to comply with the ethical and legal
principles and requirements of Konecranes’ Supplier Code
of Conduct.
Human rights policy commitments relevant to value
chain workers and general approaches
As stated in Konecranes’ Human Rights Policy, Konecranes
respects and supports human rights and encourages all its
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business partners to respect human rights. As expected by
the UN Guiding Principles on Business and Human Rights,
Konecranes is committed to conducting risk-based human
rights due diligence and to maintaining effective concern-
raising mechanisms and seeking to provide remedy. As
per Konecranes’ Supplier Code of Conduct, suppliers shall
treat their employees in a fair and equitable manner, taking
into account human rights as defined in the International
Bill of Human Rights and the International Labour
Organization’s (ILO) Declaration on Fundamental Principles
and Rights at Work.
Konecranes’ commitment to respect human rights includes
respecting the human rights of its value chain workers.
Konecranes works with and encourages its business partners
to respect internationally recognized human rights within
their businesses and in turn, their business relationships.
Furthermore, the company’s suppliers and subcontractors
are expected to comply with the principles set out in
Konecranes’ Supplier Code of Conduct.
Konecranes aims to engage with affected value chain
workers as part of the company’s overall human rights
due diligence. Currently, the main approach is to conduct
confidential supplier worker interviews as part of Supplier
Code of Conduct audits. Konecranes aims to expand the
ways to listen to affected workers in the coming years.
If Konecranes causes or contributes to negative human
rights impacts, the company seeks to provide access to
remedy for the affected people either with the company’s
own resources or by cooperating in remediation through
legitimate processes. This is documented in Konecranes’
Human Rights Policy and in the investigation process
related to concerns reported to the Group’s Compliance
& Ethics team. The need for remedy is always considered in
relation to investigations having a human rights aspect as
part of the corrective and remedial actions consideration,
including the follow-up to ensure that necessary action is
taken.
Trafficking in human beings, forced labor or
compulsory labor and child labor, and alignment with
internationally recognized instruments
Konecranes’ Supplier Code of Conduct explicitly states that
trafficking in human beings, forced labor or compulsory labor
and child labor is not accepted.
Konecranes’ Human Rights Policy is aligned with the key
principles of the United Nations Guiding Principles on
Business and Human Rights (UNGP), by following UNGP
expectations for a structure of a due diligence process and
by stating a commitment to maintain effective concern-
raising mechanisms and to seek to provide remedy.
Regarding other internationally recognized instruments
relevant to value chain workers, Konecranes’ Supplier Code
of Conduct states that the supplier shall treat its employees
in a fair and equitable manner, taking into account human
rights as defined in the International Bill of Human Rights and
the International Labour Organization’s (ILO) Declaration on
Fundamental Principles and Rights at Work.
During 2024, no severe cases of non-respect of the UN
Guiding Principles on Business and Human Rights, the ILO
Declaration on Fundamental Principles and Rights at Work
or human rights-related clauses of the OECD Guidelines for
Multinational Enterprises that involve value chain workers
were reported. Konecranes takes into account the value
chain-related non-respect of fundamental labor rights cases
reported via the Whistleblowing Channel or otherwise to
Konecranes’ Compliance & Ethics team and found to be
substantiated as a result of an investigation. Konecranes also
includes severe findings from the due diligence process,
including Supplier Code of Conduct audits. There were audit
findings, such as excessive working hours, missing personal
protective equipment or missing grievance channels, but
those have not been classified as severe cases of non-
respect of the above-mentioned principles or guidelines.
Konecranes requires suppliers to provide a corrective action
plan for such cases and works together with the suppliers to
resolve the findings.
S2-2 Processes for engaging with value
chain workers about impacts
Konecranes conducts confidential supplier worker
interviews as part of its Supplier Code of Conduct audit
process, where employees can freely speak up without the
attendance of their management. Konecranes’ Supplier
Code of Conduct audits are conducted by an external
third-party auditor, and thus, all auditors are professionals,
educated in the world-leading social responsibility
assessment framework and with knowledge in relevant
local laws and regulations. Suppliers and other value chain
workers can raise their concerns also via Konecranes’
Whistleblowing Channel. The information received through
these processes will be annually or, if needed, immediately
taken into consideration in the wider human rights impacts
and risks assessment that guides, for example, which
suppliers in specific purchasing categories or countries
should have a more extensive know-your-supplier process.
Read more in G1-2 Management of relationships with
suppliers.
Engagement occurs directly with value chain workers
through confidential worker interviews between the third-
party auditor and individual workers.
The responsibility for the implementation of Konecranes’
Supplier Code of Conduct audit process is within the
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procurement organization, where the most senior role is the
Chief Procurement Officer.
At the moment, Konecranes does not have any Global
Framework Agreements or other agreements with global
union federations.
The effectiveness of the engagement with workers in the
supply chain occurring through Konecranes’ Supplier Code
of Conduct audit process is assessed in the Supplier Code
of Conduct re-audits through which the company receives
actual results of the effectiveness and permanence of
completed corrective actions since the previous audit.
The third-party Supplier Code of Conduct auditor has
been instructed that the worker interview sample shall
always be as diverse as possible and include workers who
may be particularly vulnerable to negative impacts and/or
marginalized.
S2-3 Processes to remediate negative
impacts and channels for value chain
workers to raise concerns
If Konecranes causes or contributes to negative human
rights impacts, the company seeks to provide access to
remedy for the affected people either with its own resources
or by cooperating in remediation through legitimate
processes by removing risk factors, supporting the persons
involved and by preventing retaliation, if applicable, among
others.
The evaluation and determination of potential remedies are
part of the defined investigation process. Further, impacts
and effectiveness of remedies are assessed in connection
with the investigation process by, for example, following up
on the possible reoccurrence of such negative impacts.
Channels for raising concerns
Konecranes encourages its employees and any external
stakeholders to report all concerns relating to Konecranes,
without fear of retaliation. The company has a specific
reporting channel in place, the Whistleblowing Channel,
which can be used to report all kinds of compliance
and ethics concerns. Where required by local laws, the
company also has local reporting channels in place,
which are managed in accordance with local laws. Under
the Supplier Code of Conduct, Konecranes requires its
suppliers to report any violations of the Supplier Code
of Conduct to Konecranes either directly or via the
Whistleblowing Channel. Konecranes has a strict policy
of non-retaliation expressed in the company’s Code of
Conduct and Whistleblowing Instruction available externally
on Konecranes.com. Read more about the whistleblowing
channels in G1-1 Business conduct policies and corporate
culture.
Value chain workers located at Konecranes’ sites can also
address their concerns via Konecranes’ main contact. At
some sites, value chain workers participate in the site’s health
and safety committees.
Value chain workers may also raise their concerns in
connection with confidential supplier worker interviews
conducted as part of the Supplier Code of Conduct audit
process. Read more in S2-2 Processes for engaging with
value chain workers about impacts.
In line with its Supplier Code of Conduct, Konecranes
expects that suppliers provide their employees and other
stakeholders with the possibility to raise concerns about
unethical or illegal conduct without risk of reprisal and ensure
that appropriate processes are in place to address these
concerns and remedy any confirmed cases. Suppliers are
also required to report any violations of the Supplier Code
of Conduct to Konecranes either directly or via Konecranes’
Whistleblowing Channel.
Information and access to the Whistleblowing Channel
and related process is publicly available in 10 languages on
Konecranes.com. Supplier Code of Conduct audits further
increase awareness of Konecranes’ requirements for the
availability of a reporting channel as well as give feedback
regarding the effectiveness of the channel.
All investigations are managed by the Group’s Compliance
& Ethics team in line with a defined investigation process,
with Compliance & Ethics Committee and Audit Committee
oversight. Any compliance or ethics issues raised, and
investigations conducted, are addressed and tracked in line
with the Group investigation process. The Company follows
on a monthly basis various indicators, such as the number and
type of reports, businesses and geographies involved as well
as the substantiation rate, to identify any trends and risks.
Konecranes follows the Supplier Code of Conduct coverage
of its supplier base. Within the Supplier Code of Conduct
audits, the company evaluates whether suppliers enable
safe and understandable reporting for their employees and if
resources are allocated to address issues identified.
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S2-4 Taking action on material impacts
on value chain workers, and approaches
to managing material risks and pursuing
material opportunities related to value
chain workers, and effectiveness of those
actions
In 2024, Konecranes launched an updated Supplier
Code of Conduct, which strengthens the ethical and
legal principles and requirements for its suppliers and
subcontractors, and which must be followed when working
with Konecranes. The company also started the roll-out
of the updated Supplier Code of Conduct for its suppliers
and subcontractors.
The company continued its risk-based Supplier Code of
Conduct audit program with selected suppliers, while also
launching the first Supplier Code of Conduct re-audits
with the aim of better understanding the effectiveness
of its stakeholder engagement and corrective action
planning process. According to the re-audit results
received so far, the corrective action planning process
with suppliers and subcontractors has resulted, in
many cases, in permanent improvements in suppliers’
compliance with the ethical and legal principles and
requirements set in the Supplier Code of Conduct. On
the other hand, some topics, seen as more systemic
challenges in specific contexts, still require further
development in cooperation between Konecranes and its
suppliers.
Based on the information collected from the Supplier Code
of Conduct audits during the past years, Konecranes also
organized internal training, with the goal of increasing internal
capacity building to support the Company’s suppliers and
subcontractors in challenging Supplier Code of Conduct
topics.
Furthermore, during 2024, Konecranes updated its Know
Your Supplier Policy and the process applicable to all
new and existing suppliers and subcontractors, while the
depth of the know-your-supplier process as well as the
mandatory appropriate measures to prevent or mitigate
the risk vary based on our risk-based approach. During the
know-your-supplier process Konecranes assesses whether
suppliers comply with the requirements of the Supplier
Code of Conduct through a supplier’s self-assessment
questionnaire.
All of the above-mentioned key actions were targeted to be
completed within the reporting period 2024.
During the year 2025, Konecranes will continue to roll out
the updated Supplier Code of Conduct to its suppliers
and subcontractors, and will also establish Supplier Code
of Conduct training internally and externally. As a result of
successful improvements and valuable insights received
from the Supplier Code of Conduct audit program, including
re-audits, Konecranes will also continue auditing suppliers in
2025 with the support of a third-party auditor.
The update of Konecranes’ Supplier Code of Conduct
concerned all suppliers and subcontractors globally. The
Supplier Code of Conduct audit program continued with
the approach of risk-based selection of suppliers, strongly
guided by the company’s human rights impacts and risks
assessment. The representation of the countries where
Konecranes audits its suppliers is broad, covering several
continents. The internal capacity building training was
organized for procurement employees managing suppliers
in a particular area of Asia Pacific. Similarly to the scope
of Konecranes’ Supplier Code of Conduct, the know-
your-supplier process is applicable to all suppliers and
subcontractors globally. The implementation of changes in
the process may take more time in some geographies.
Currently, Konecranes does not allocate significant
operating expenditures (OpEx) or capital expenditures
(CapEx) to the action plan.
Actions taken, planned or underway to prevent,
mitigate or remediate material negative impacts
Konecranes manages its material impacts by setting
high ethical and legal principles and requirements for
its suppliers and subcontractors in its Supplier Code
of Conduct. Compliance with the requirements set in
Konecranes’ Supplier Code of Conduct is a standard
clause in the company’s purchase agreements, and when
defined mandatory, Konecranes requires suppliers and
subcontractors to sign a separate contractual commitment
to comply with the ethical and legal principles and
requirements of the company’s Supplier Code of Conduct.
Moreover, Konecranes agrees with some subcontractors,
which conduct risky work, more specifically the health and
safety requirements and their management as part of the
subcontract.
Konecranes monitors and evaluates how suppliers and
subcontractors comply with the principles and requirements
set in its Supplier Code of Conduct through its Supplier
Code of Conduct audit program. These audits are one of
Konecranes’ key processes to assess the effectiveness of
intended outcomes for value chain workers as they deliver
fact-based data for the company on how the principles and
requirements set in the Supplier Code of Conduct are met
in practice. Audits are conducted on site by the external
third-party auditor specializing in social responsibility audits.
In addition, basic questions related to health and safety and
working hours are covered as part of the annual process
audits for suppliers conducted by Konecranes. After the
audits, Konecranes follows the closure of audit findings
together with suppliers through the corrective action
planning process.
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During 2024, Konecranes also updated its know-your-
supplier process, which ensures that Konecranes does
business with suppliers and subcontractors able to meet
the requirements set out in the Supplier Code of Conduct.
Read more about the know-your-supplier process in G1-1
Business conduct policies and corporate culture. Besides
the aforementioned measures, to prevent and mitigate
forced labor risk specifically related to the sourcing of
minerals, Konecranes continued conducting due diligence
on conflict minerals. More details about conflict minerals
due diligence are presented later in this chapter.
In 2025, Konecranes will continue the roll-out of its updated
Supplier Code of Conduct and to establish related training
internally and externally. The company will also continue
its supplier audits, both those conducted by the company
itself and those conducted in cooperation with the third-
party auditor. Furthermore, the company will continue
implementing the related procurement processes, such as
the know-your-supplier process.
During 2024, Konecranes did not identify actual material
impacts that would have resulted in the provision of remedy
by Konecranes.
During 2024, Konecranes also conducted its first Supplier
Code of Conduct re-audits for suppliers who were initially
audited in 2020 when the Supplier Code of Conduct audit
program was initially introduced. The results of the completed
Supplier Code of Conduct re-audits allow Konecranes to get
valuable insights on the effectiveness and permanence of
corrective actions taken after the initial audit. An example of
such an insight would be reduced overtime working hours due
to enhanced production and work time planning.
Additionally, Konecranes requires its suppliers to report any
violations of the Supplier Code of Conduct to Konecranes
either directly or via the Whistleblowing Channel. Read more
about whistleblowing in G1-1 Business conduct policies and
corporate culture.
Konecranes’ human rights impacts and risks assessment is
based on external expert knowledge on typical risks in the
purchasing categories and countries, enriched with internal
expert knowledge to identify general areas where impacts
are most likely to occur and to be the most severe. This
assessment forms the foundation for identifying suppliers
and subcontractors whose workers may potentially be under
a higher risk of being subject to negative material impacts.
After identifying the suppliers or subcontractors having a
potentially higher risk for negative impacts, Konecranes can
define its actions needed in response to potential negative
impacts, such as the mandatory contractual commitment to
the requirements of the Supplier Code of Conduct or other
additional contractual clauses, Supplier Code of Conduct
audits, preventive and corrective action plans or highly
detailed self-assessment questionnaires towards these
suppliers or subcontractors.
Related to forced labor risk in sourcing of minerals,
Konecranes commits in its Responsible Minerals Statement
to conducting due diligence across the supply chain to
clarify where so-called conflict minerals (tin, tantalum,
tungsten, and gold) originate from. Konecranes aims to
ensure that minerals come from smelters or refineries
audited to be conflict-free. Smelter and refinery audit
information is important, as it is widely known that there is a
risk that funds from the trade of these minerals contribute
to or benefit from serious violations of human rights if the
minerals originate from conflict-affected or high-risk
areas (such as the Democratic Republic of Congo and its
neighboring countries). As conflict minerals are essential in
the manufacture of a variety of devices, including electrical
components, and as a member of the Responsible Minerals
Initiative (RMI), Konecranes utilizes an industry-level
approach. Konecranes started its conflict minerals work
with suppliers providing “Konecranes designed electrical
components” and has enlarged the scope year by year.
Konecranes offers training materials for suppliers included in
its conflict minerals due diligence.
If Konecranes causes or contributes to negative human
rights impacts, the company seeks to provide access to
remedy for the affected people either with the company’s
own resources or by cooperating in remediation through
legitimate processes, for example, by removing risk factors,
supporting the persons involved and preventing retaliation,
if applicable. These actions are documented in Konecranes’
Human Rights Policy and in the investigation process.
Investigations are carried out by a trained Compliance &
Ethics team to ensure that they are carried out in line with the
defined process. The need for remedy is always considered
in case of investigations having a human rights aspect as
part of the corrective and remedial actions consideration,
including the follow-up to ensure that necessary action is
taken.
Processes and approaches to taking action to avoid
causing or contributing to material negative impacts
on value chain workers
Konecranes aims to avoid causing material negative
impacts on its value chain workers through practices
within its own procurement organization and through
various activities which either directly obligate suppliers
and subcontractors to prevent causing or contributing to
material negative impacts or serve as a process indirectly
supporting the objective. Konecranes requires its
suppliers and subcontractors to follow health and safety
requirements, the prohibition of any form of modern slavery
including forced labor, and legal requirements related
to working hours and regular rest days. In addition to
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these requirements set in the Supplier Code of Conduct,
Konecranes conducts audits, requires contractual
commitments to the prevention of material negative
impacts, and assesses its suppliers and subcontractors
through the know-your-supplier process.
In addition, for example, in the collaborative planning of the
procurement process with selected suppliers, Konecranes
shares data of its production planning, which supports
and enables the suppliers to plan their own capacity and
financing, as well as reduce the risk of unexpected peaks
in orders that may lead to increased working pressure that
may cause material negative impacts. In addition, within
the Supplier Relationship Management (SRM) framework,
Konecranes holds meetings with suppliers to better
understand the performance of the suppliers as well as hear
feedback on its own way of operating. Konecranes aims to
collaborate with its suppliers to find solutions in case of any
identified challenges. During the reporting period, there
were no severe human rights issues or incidents caused or
suspected to be caused by Konecranes to its value chain
workers that were reported to Konecranes’ Compliance &
Ethics team either directly or through the Whistleblowing
Channel.
Management of the material impacts on value chain
workers
Konecranes has allocated both personnel resources
and technical resources to manage its material negative
impacts on workers in the value chain. At Konecranes,
the procurement organization is responsible for ensuring
compliance with legal and ethical principles and
requirements within the supply chain and for integrating
these requirements into existing processes. Thus, all
procurement employees hold some level of responsibility,
depending on their job, to address the requirements
stated in Konecranes’ Supplier Code of Conduct. The
actions to manage negative material impacts require
resources from several procurement employees yearly.
These actions refer to, for example, contractually agreeing
on the Supplier Code of Conduct requirements with
suppliers and subcontractors, ensuring the implementation
of the know-your-supplier process, auditing suppliers
and subcontractors as well as agreeing on preventive
and corrective actions with suppliers in case there is
an increased risk of material impacts being realized. In
addition, the procurement leadership team follows the
progress of actions aimed at managing the material
impacts on a monthly basis.
Regarding technical resources, Konecranes’ procurement
organization has good visibility into the company’s Tier
1 supplier base through analytics. This helps to ensure
that the potential areas of material impacts occurring are
acknowledged and that resources are directed to correct
places. Konecranes is also running a project to roll out an
electronic procurement system to manage its supplier
base more efficiently with more automated processes.
Konecranes is also a member of the Responsible
Minerals Initiative (RMI), allowing it to utilize an industry-
level approach in issues that it cannot solve alone. This
membership also provides access to external data
resources like country-level risk scores calculated based
on international human rights indices.
S2-5 Targets related to managing material
negative impacts, advancing positive
impacts, and managing material risks and
opportunities
Konecranes targets to increase the Supplier Code of
Conduct coverage within its supplier base, and the progress
is being followed on a monthly basis. Konecranes also aims
to complete thirty (30) Supplier Code of Conduct audits per
year with selected suppliers. Both of these targets are being
reviewed annually.
The key objective of the company’s Supplier Code of
Conduct is to ensure that Konecranes does business with
suppliers and subcontractors who commit to the same legal
and ethical requirements and principles as the company
itself. Konecranes tracks the Supplier Code of Conduct
commitments of its supplier agreements through the
Supplier Code of Conduct coverage target. The target of
completing thirty (30) Supplier Code of Conduct audits
supports Konecranes in evaluating how Supplier Code
of Conduct objectives are realized by suppliers and
subcontractors in practice. In case of non-compliance with
the policy objectives, Konecranes works with suppliers
and subcontractors to ensure that they conduct their
business in accordance with the Supplier Code of Conduct
requirements in the future.
The Supplier Code of Conduct coverage measures the total
spend with suppliers who have contractually committed
to Konecranes’ Supplier Code of Conduct or equivalent
requirements versus the total supplier spend. The Supplier
Code of Conduct audits are measured as a number of
on-site audits during the reporting period.
The scope of the target covers all Konecranes’ Tier 1
suppliers globally. Logistics companies, which may be part
of the upstream or downstream value chain, are included
as suppliers in the target scope. The supplier spend is
monitored with a central procurement tool currently covering
over 95 percent of the Group’s procurement-relevant
spend.
The base year and baseline value for the Supplier Code of
Conduct target are the previous year and the previous year’s
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value. Hence, the baseline value for the target in 2024 was
58 percent from the base year 2023. For the Supplier Code
of Conduct audits, the target level is the same each year (30
audits), if not decided otherwise.
The targets are seen to reflect the typical way of measuring
the progress in responsible procurement within similar
industries or corporate contexts. No other specific
recognized methodology or significant assumptions have
been applied.
The stakeholders have not been directly involved in the
target setting of Konecranes’ Supplier Code of Conduct
coverage or Supplier Code of Conduct audits.
There have not been any changes in targets within the
reporting period.
In 2024, Konecranes achieved both targets by increasing
the Supplier Code of Conduct coverage from 58 percent to
68 percent and conducting 30 Supplier Code of Conduct
audits.
At the moment, Konecranes does not set targets, track the
performance of these targets nor identify improvements in
the company’s performance by directly engaging with its
value chain workers, or their legitimate representatives or
credible proxies on these matters.
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S4 Consumers and end-users
Material end-user-related impacts, risks
and opportunities and their interaction with
strategy and business model
The health and safety of the end-user is connected to
Konecranes’ strategy starting from the company’s purpose
of Shaping next generation material handling for a smarter,
safer and better world. As Konecranes is involved in the
business of material handling, which means, for example,
lifting heavy loads, the safety aspect has always been
material. End-user safety is managed by multiple functions
and teams across the company to ensure it gets the
attention and expertise needed. Safety and security are
prioritized in all areas of the company’s operations and
throughout its value chain. With the help of Konecranes’
offering, customers can not only enhance the safety and
security of their businesses, but also improve the efficiency
and productivity of their operations.
Topics related to end-users’ safety are also integrated into
most of the company’s five strategic enablers: Deepening
customers focus emphasizes taking a proactive approach to
understanding and collaborating with customers, enabling
the continuous delivery of solutions and experiences they
value, and product safety is a topic that is heavily valued.
Scaling technology innovation involves leveraging data
insights and using, for example, predictive analytics to
enhance the safety, reliability and productivity of customers’
operations. Advancing responsible business refers to the
broader sustainability agenda and delivering solutions for
uncompromised safety and uninterrupted, secure material
flow. The company values Putting customers first; Doing the
right thing; Driving for better; and Winning together are all
closely linked to end-user safety.
Through responsible business practices and a commitment
to safety and security, Konecranes leverages product quality
as a competitive advantage while mitigating reputational
risks from potential safety incidents at customer sites.
The solutions offered to customers and used by the end-
users must be safe and secure by design and remain so
throughout their lifecycle. However, Konecranes remains
partly dependent on the safety culture and awareness of its
customers, as even the safest and most secure products
require proper use.
Konecranes’ disclosure within this Sustainability Statement
includes all end-users who can be materially impacted by
Konecranes. Consumers are not applicable, as Konecranes’
products are not sold to consumers. Konecranes has
identified the end-users’ health and safety through potential
safety incidents caused by Konecranes’ products as a
material impact. The end-users who are subject to this impact
are the operators using Konecranes’ products and people
nearby when products, such as cranes, hoists and mobile
vehicles, are being used. Such incidents can be, for example,
load drops and uncontrolled movement. Konecranes
provides product manuals and other relevant safety
instructions, and that information is important for all operators
using these products. Konecranes does not consider any
end-users to be particularly vulnerable to negative impacts.
Based on Konecranes’ understanding, the product end-
users’ particular characteristics such as age or literacy do
not cause a greater risk of safety incidents, as long as users
have been trained to use products according to safety
instructions. However, there are differences in the risks of
using different Konecranes products. Konecranes’ product
safety management process, Accident Investigation
Reporting (AIR), provides systematic information on which
products or services possible incidents happen and what
their severity is.
During 2024, Konecranes received 250 AIR cases across
the company. Further information about the AIR process is
available in S4-2 Processes for engaging with consumers
and end-users about impacts.
There are both compliance and reputational risks in the
case of serious incidents related to possible product
quality failures or product security issues where
Konecranes’ products would be involved. Furthermore,
there are also financial risks involved in these incidents.
Such financial risks may include lost sales, high repair
costs and inspection costs at customers’ facilities.
Additionally, failing to comply with the cybersecurity
regulation and standardization requirements might cause
a weakened market position or regulatory fines. However,
Konecranes sees product safety and security also as an
opportunity: Good product quality creates competitive
advantage and, for example, a cybersecurity certificate
can be a prerequisite for closing a deal. The product safety
risks and opportunities do not relate to specific groups of
end-users, but to all end-users.
S4-1 Policies related to consumers and
end-users
There are considerable inherent occupational health and
safety risks in industrial material handling. Konecranes has
policies in place that are adopted to manage the material
impacts on end-users’ health and safety potentially caused
by, for example, safety incidents involving the company’s
products and services. These policies also help to manage
the associated material risks and opportunities, including
the compliance and reputational risks in the case of serious
incidents related to possible product quality failures or
product security issues, and opportunities for competitive
advantage due to the company’s good product quality.
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Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
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These policies are the Quality Policy Statement, the Warranty
Handling Policy, the Human Rights Policy and the Information
Security Policy.
As the safety risks and opportunities concerning
Konecranes’ products do not relate to specific groups
of end-users, but to all end-users, the below-mentioned
policies cover all end-users.
Konecranes’ Quality Policy Statement describes the
company’s purpose, objectives and key commitments
related to quality. The policy statement’s objectives the
company is committed to are: Strive for zero product
safety incidents; Prevent all types of non-conformities; and
Improve customer satisfaction. It also contains information
on how the company follows progress and the ways of
working it applies for systematic, continuous improvement.
All nonconformities are handled according to Konecranes’
Warranty Handling Policy that describes the responsibilities,
principles and guidelines of customer notifications in
warranty cases, or when correcting defective deliveries.
Continuous Improvement team is responsible for the
implementation of the policy. Konecranes has identified
different types of nonconformities related to end-
users’ health and safety. Each nonconformity type has
its own process with defined process steps, roles and
responsibilities. Konecranes’ Accident Investigation
Reporting (AIR) instructions describe the guidelines related
to AIR cases, and Konecranes’ Field Quality Inspection (FQI)
instructions give guidance on how to recognize a potential
case, how to make decisions and how to take actions when
required.
Konecranes’ Human Rights Policy gives guidance on the
human rights due diligence process that includes risk and
impact identification and assessment as well as summarizes
the company’s key commitments. Konecranes conducts
risk-based human rights due diligence. The company
regularly assesses human rights risks and impacts, engages
with affected stakeholders and develops and implements
procedures for preventing, mitigating and monitoring
potential and actual adverse human rights impacts. For more
information about the Human Rights Policy, see S1-1 Policies
related to own workforce. Through the implementation
of the Human Rights Policy, Konecranes is committed
to operating in a manner consistent with internationally
recognized human rights as defined in the International Bill
of Human Rights and International Labour Organization’s
(ILO) Declaration on Fundamental Principles and Rights
at Work. The Policy states commitments also to the UN
Guiding Principles on Business and Human rights and the ten
principles of the UN Global Compact.
Konecranes’ Information Security Policy describes
how Konecranes wants to address information security
threats and risks and ensure the safety and security of
Konecranes’ products and business. Konecranes sees
information security as a set of processes and practices
that ensure the confidentiality, integrity and availability
of Konecranes’ information and data, factories and
business processes. The information security objectives
are: Deliver safe and secure material handling solutions;
Improve cyber preparedness and enterprise resilience;
and Empower people to make cyber-aware decisions.
Konecranes manages information security with the
security management best practices described in the
ISO 27001 standard. The company has established
information security policies, roles and responsibilities,
and allocated appropriate resources for maintenance of
the company’s Information Security Management System
(ISMS). The ISMS is subject to continuous, systematic
review and improvement. Through the implementation
of its Information Security Policy, Konecranes commits
to managing information security in accordance with the
security management best practices described in the ISO
27001 standard.
The scope of Konecranes’ Quality Policy Statement, Human
Rights Policy and Information Security Policy covers the
whole value chain, including upstream and downstream
value chain, in addition to own operations. Konecranes’
Warranty Handling Policy covers the downstream value
chain.
When setting these policies, considerations are given to
the interests of relevant key stakeholders like customers,
investors and employees, who expect Konecranes to
provide unrivalled quality as well as safe and secure
products. Topics related to these considerations include,
for example, the risk landscape, regulation, and market
expectations. The policies are available for employees
through Konecranes’ intranet pages and most of them
also publicly via Konecranes.com. The policies have also
been promoted to potentially affected members of the
workforce as well as to the people helping to implement
the policies through various trainings and awareness
campaigns.
General approach in relation to respect of human
rights relevant to end-users
The relevant commitments to end-users in Konecranes’
Human Rights Policy are: We respect and support human
rights; We encourage all our business partners to respect
human rights; We conduct risk-based human rights due
diligence; and We maintain effective concern-raising
mechanisms and seek to provide remedy.
Konecranes is committed to operating in a manner
consistent with internationally recognized human rights
as defined in the International Bill of Human Rights and
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International Labour Organization’s (ILO) Declaration
on Fundamental Principles and Rights at Work (the ILO
principles cover occupational safety and health; freedom of
association and collective bargaining; non-discrimination
in employment and occupation; elimination of slavery and
forced labor; and abolition of child labor). Konecranes is
also committed to the United Nations Guiding Principles
on Business and Human Rights and the ten principles of the
United Nations Global Compact. Where national law and
international human rights standards differ, the company
seeks to follow the higher standard; and where they are in
conflict, strives to find ways to respect human rights to the
greatest extent possible. Where it is necessary to prioritize
actions to address actual and potential adverse human rights
impacts, Konecranes first seeks to prevent and mitigate
those that are the most severe or where delayed response
would make them irremediable. In addition to doing no
harm, Konecranes wants to support positive human rights
outcomes.
Konecranes works with and encourages its business
partners to respect internationally recognized human rights
within their businesses and in their business relationships.
Furthermore, the company’s suppliers and subcontractors
are expected to comply with the principles set out in
Konecranes’ Supplier Code of Conduct, and distributors to
comply with Konecranes’ Distributor Code of Conduct.
As part of the company’s overall due diligence, the company
regularly assesses human rights risks and impacts, engages
with affected stakeholders and develops and implements
procedures for preventing, mitigating and monitoring
potential and actual adverse human rights impacts in the
company’s own operations and business relationships.
As a general approach in relation to engagement with
end-users, Konecranes considers the input and results
received from the monitoring channels. The company also
seeks to collect input for analysis from affected people
through different means, such as employee surveys
and supplier worker interviews. Konecranes actively
communicates with end-users in Accident Investigation
Report (AIR) and Field Quality Inspection (FQI) cases
through Konecranes’ authorized contact with the
customer.
If Konecranes causes or contributes to negative human
rights impacts, the company seeks to provide access to
remedy for the affected people either with its own personnel
and processes or by cooperating in remediation through
legitimate processes.
Konecranes’ Human Rights Policy is aligned with the key
principles of the United Nations Guiding Principles on
Business and Human Rights (UNGP), by following UNGP
expectations for a structure of a due diligence process and
by stating a commitment to maintain effective concern-
raising mechanisms and to seek to provide remedy.
Konecranes’ Quality Policy Statement and Warranty Policy
practically support the “providing a healthy and safe
working environment” principle of the ILO Fundamental
Principles and Rights at Work, while the first one includes a
commitment to strive for zero product safety incidents and
the latter guides the handling of customer notifications in
warranty cases, or when correcting defective deliveries,
including safety cases.
During 2024, no severe cases of non-respect of the UN
Guiding Principles on Business and Human Rights, the ILO
Declaration on Fundamental Principles and Rights at Work
or human rights-related clauses of the OECD Guidelines
for Multinational Enterprises that involve end-users
were reported. Konecranes takes into account the non-
respect of human rights cases caused or jointly caused
by Konecranes’ products and services that are brought
to the company’s attention and substantiated at court,
reported to National Contact Points for OECD Multinational
Enterprises or reported via Konecranes’ Whistleblowing
Channel or otherwise to the company’s Compliance &
Ethics team and found to be substantiated as a result of an
investigation.
S4-2 Processes for engaging with
consumers and end-users about impacts
The perspectives of end-users inform the decisions and
activities aimed at managing actual and potential safety
incidents caused by Konecranes’ products mainly through
the product safety management process called Accident
Investigation Reporting (AIR). Konecranes encourages
its customers to report any incident where equipment,
component or service provided by Konecranes has caused
or threatened to cause a health or safety incident or property
damage. Such incidents can be, for example, load drops and
uncontrolled movement. The reported incidents are handled
through the AIR process, which includes technical experts
thoroughly investigating each incident.
By default, the AIR process includes a root cause analysis
to identify the potential causes of the incident. When
applicable, actions are taken to fix, prevent or reduce the
risk of reoccurrence at existing customers’ sites or future
deliveries. Additionally, by sharing the findings internally,
Konecranes enables continuous safety improvement of the
products and services it designs and supplies worldwide. If
a systemic issue is identified, a project is started to address
it with all affected customers. A similar project can also be
started if the company internally identifies, or the suppliers
inform the company about a systematic issue that affects
the safety of past deliveries.
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Consolidated cash flow statement
Notes to the consolidated financial statements
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Board of Directors’ proposal to the Annual
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In general, Konecranes develops product safety and
quality during the whole product lifecycle. One important
information source is the feedback from product end-users,
which is received from different sources, such as customer
satisfaction surveys (Voice of Customer), and the company’s
own customer-facing personnel.
Based on the customer feedback and requirements,
Konecranes is able to provide different solutions for end-
users who may be particularly vulnerable to health and safety
incidents and/or marginalized (for example, people with
disabilities), and these requirements can be handled already
during the product development process. For example, for
people with a hearing defect, Konecranes can add warning
lights in the cranes.
Konecranes also actively contributes to global
standardization work, which benefits the safety of the whole
industry.
Konecranes’ AIR process is managed at the Group level by
Konecranes’ Continuous Improvement function, and the
respective Business Areas and their Business Unit heads are
responsible for the process implementation.
S4-3 Processes to remediate negative
impacts and channels for consumers and
end-users to raise concerns
Konecranes encourages its employees and any external
stakeholders, like customers (end-users) to report all
human rights and other compliance and ethics concerns
relating to Konecranes, without fear of retaliation. Multiple
ways for dialogue and opportunities to raise topics are
offered, including the confidential whistleblowing channels.
Customers can also contact Konecranes and their contact
person directly via e-mail, phone or a service request.
Product safety issues are handled according to Konecranes’
Accident Investigation Report (AIR) process. Konecranes will
take all necessary steps to address reports made in good
faith and to find the most suitable solution for each situation.
If Konecranes causes or contributes to negative human
rights impacts, it seeks to provide access to remedy for the
affected people either with the company’s own resources
or by cooperating in remediation through legitimate
processes. Remediation actions related to safety incidents
are driven by local legislation and insurance systems and
mainly concern the treatment of injuries, rehabilitation and
possible compensation for pain and suffering.
The impacts and effectiveness of remedy are assessed in
connection with the investigation process by, for example,
following up on the possible reoccurrence of such negative
impacts.
The processes through which Konecranes supports the
availability of channels for end-users to raise their safety-
related concerns or needs directly and have them addressed
are, for example, equipment processes (for example, during
a warranty period), sales and service processes, safety
processes and procedures, quality processes as well as
the human rights due diligence process. Information on and
access to Konecranes’ Whistleblowing Channel and related
processes are publicly available on Konecranes.com.
Konecranes’ Whistleblowing Channel platform is available
in 39 languages and any language can be used to submit a
report.
Konecranes tracks and monitors health and safety issues
raised and addressed through AIR and Field Quality
Inspections (FQI) processes and KPIs. These processes
ensure constant involvement with the customers and
therefore the end-users of the products.
All compliance investigations are managed by the Group’s
Compliance & Ethics team in line with a defined investigation
process, with Compliance & Ethics Committee and Audit
Committee oversight. Any compliance or ethics issues
raised, and investigations conducted are addressed
and tracked in line with the Group investigation process.
Various indicators, such as the number and type of reports,
businesses and geographies involved as well as the
substantiation rate, are followed on a monthly basis to
identify any trends and risks.
Konecranes has assessed that end-users are aware of
and trust the structures or processes as a way to raise their
concerns or needs and have them addressed by regularly
reviewing the results of the customer satisfaction surveys
(Voice of the Customer) and Net Promoter Score, as well
as acting based on the feedback. Also, Konecranes’ non-
retaliation policy is in place and is communicated externally.
Konecranes encourages its employees and any external
stakeholders to report all compliance and ethics concerns
relating to Konecranes, without fear of retaliation.
The company has a clear policy of non-retaliation and
confidentiality established in the Code of Conduct and in the
internal and external whistleblowing guidance. Read more in
G1-1 Business conduct policies and corporate culture.
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Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
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Board of Directors’ proposal to the Annual
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Auditor’s report
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S4-4 Taking action on material impacts
on consumers and end-users, and
approaches to managing material risks
and pursuing material opportunities
related to consumers and end-users, and
effectiveness of those actions
Konecranes is continuously improving its product safety
and related processes. The actions include internal audits,
trainings, the management and implementation of the quality
improvement process, and instructions. Each business unit
and area has its dedicated quality and product development
organizations to improve and monitor product quality and
safety. Product platform teams and functions supporting
product development are constantly evaluating customer
needs and driving the improvement of product safety and
reliability.
Product security at Konecranes is managed through
Konecranes’ Information Security Management System
(ISMS). Konecranes’ Security Steering Group directs
the development at Konecranes, and the Cybersecurity
team, together with business units and Group functions,
implements the developments with a dedicated security
budget. The organizational roles, responsibilities and
competence requirements are defined in the ISMS
Handbook. Information security topics are regularly reported
to Konecranes’ Audit Committee, and further to Konecranes’
Board of Directors, when needed.
Konecranes’ systematic approach to managing information
security aims to ensure that all relevant information security
risks are identified and mitigated. A set of security controls
are implemented, and technical and organizational security
measures cover topics such as asset management,
access control, secure software development, incident
management and information security aspects of business
continuity management. Further information about
cybersecurity is available in G1 Business conduct; Entity-
specific information: Cyber-preparedness and enterprise
resilience.
Key actions taken and planned for the future
During the year 2024, internal audits continued in the field
of Accident Investigation Reporting (AIR) and Field Quality
Inspections (FQI). Findings from the audits were used to
further improve the processes. Process and instruction
updates were conducted, and trainings for Business Areas
and Business Units were held globally.
During the upcoming years, data quality related to AIR and
FQI processes will be further improved, supporting the
prevention of AIR cases. The internal auditing process and
trainings for Business Areas and Business Units will remain as
annual activities.
At Konecranes, significant investments are made to ensure
that customers are provided with service, equipment
and solutions which help them work safely and increase
the usability of their equipment. Safety and quality are
included in Konecranes’ design requirements. Additionally,
Konecranes has comprehensive quality assurance
processes that are an essential part of product delivery.
Systematic root cause analysis, investigations and corrective
and preventive actions are part of the AIR and FQI processes.
Konecranes’ offering includes innovative safety features
that are designed for further safety improvements at the
customer site.
Regarding security, Konecranes’ Information Security
Management System is based on ISO 27001:2022. The
scope covers all of Konecranes, including Information
Technology, Operational Technology and Konecranes’
products and services. The development and delivery of
the yourKONECRANES and TRUCONNECT digital services
achieved certification in 2021, and TBA and Equipment
Control Systems & Services (ECSS) software products
in 2023. The certifications have been maintained since
and will continue to be maintained through a systematic
management approach with the current scope.
In 2024, Konecranes received its first IEC 62443 certification,
a standard for cybersecurity in industrial automation and
control systems, for its Industrial Equipment process
cranes and light lifting product lines. The certification level
is ‘capability to implement’. The certification provides
assurance to customers on the company’s offering and
that it is built according to the industry’s best practices,
fulfilling the regulatory compliance requirements and being
protected against cyber threats. The IEC 62443 certification
continues.
To ensure cybersecurity performance it is essential
that employees’ awareness and level of knowledge on
information security topics is increased. Konecranes has a
mandatory cybersecurity training for all employees, which
must be completed during employee onboarding, and after
that, every time the training module has been updated. More
information about Konecranes’ cyber-preparedness and
enterprise resilience is available in G1 Business conduct;
Entity-specific information: Cyber-preparedness and
enterprise resilience.
All of the actions mentioned above, except for the
certifications, are in effect globally and will be implemented
in all of Konecranes’ Business Units.. During 2024 Konecranes
took action to provide remedy for material health and
safety impacts considered to be caused by the company’s
products to end-users by providing compensation and by
taking corrective and preventive actions as part of the AIR
and FQI processes.
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Consolidated cash flow statement
Notes to the consolidated financial statements
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As regular product safety-related CapEx and OpEx are
part of Konecranes operations, the company actively
advances its capabilities to ensure accurate reporting on a
consolidated basis for the future.
Actions taken, planned or underway to prevent,
mitigate or remediate material negative impacts
To prevent and mitigate material negative impacts,
Konecranes designs its products and services with a
strong emphasis on health and safety, ensuring that
the company’s solutions not only meet but exceed
industry standards for safety, security and reliability. For
customers, there are clear instructions on how to use
the products safely, and all product and service safety
incidents are investigated even if the suspected cause of
the incident is customer misuse. Konecranes is continually
improving the company’s products and services
according to the feedback from internal processes
and external stakeholders. With the continuous quality
improvement processes in-built in the management
system, the company is not only correcting the negative
impacts but also analyzing the root causes of non-
conformities and is conducting preventive actions to
ensure that the offered products and services exceed
industry standards also in the future.
During 2024 Konecranes took action to provide remedy
for material health and safety impacts considered to be
caused by Konecranes’ products to end-users by providing
compensation and by taking corrective and preventive
actions as part of AIR and FQI processes.
To track and assess the effectiveness of the processes
and to find improvement opportunities, Konecranes
conducts internal audits. Also, the teams conducting the
actions and initiatives follow their processes periodically
by comparing the progress to set KPIs and by continuously
creating improvements if development needs are
identified.
Processes and approaches to taking action in
response to a particular actual or potential negative
impact on end-users
Internal guidelines, processes and instructions ensure
that Konecranes’ products meet the needed safety
requirements, achieved through design, verification,
functional testing, documentation and training. Konecranes
actively contributes to global standardization work, which
benefits the safety of the whole industry. Konecranes
defines its own global engineering guidelines, requirements
and recommendations for design work. For example,
to implement safety-related control functions, the
requirements meet both Konecranes’ own and industry
standards. Konecranes’ reliability and testing approach
covers the product lifecycle from research to product use
phase and is certified for ISO 9001 and ISO 17025.
Prior to launch, Konecranes’ products are thoroughly tested
against applicable standards and known real-life operating
conditions in the company’s own Reliability Centers.
Functionalities, including safety features, are verified
and validated in various steps during the development
process. In production and during commissioning,
defined inspections and tests are performed to ensure
the conformity of the product. Fail-safe design and self-
analytics of intelligent machines reinforce the safe operation
over the lifetime. Special attention is paid to process steps
that have the biggest impact on product safety. The defect
rates of final product inspections are monitored and the
types of defects recorded, with the aim of continuously
reducing the most commonly occurring defects.
As Konecranes monitors the defect rates of final product
inspections, records the types of defects found, and aims
to continuously reduce the most commonly occurring
defects, constant involvement with the end-users of the
products is necessary. In the event of a safety incident,
Konecranes provides compensation and takes corrective
actions as part of the AIR and FQI process. The AIR process
KPIs are followed as an indicator for effectiveness of the
implementation and outcomes in the case of possible
safety incidents and to ensure that processes to provide or
enable remedy in the event of material negative impacts are
in place.
In Konecranes’ FQI process, a wider number of products
with possible safety risks to any person or harm to property
or the environment are inspected. Based on the inspection
results, field repairs may be carried out. The process aims to
enable immediate action to correct any defect discovered
in the company’s products and to analyze and determine
if the same defect exists in other similar products. In that
respect, after gaining an understanding of the nature of the
issue, further decisions are made on possible corrective
actions.
Read more about the AIR process in S4-2 Processes for
engaging with consumers and end-users about impacts.
Actions to mitigate material risks arising from
impacts and dependencies on end-users and how to
avoid material negative impacts
Konecranes aims to mitigate material risks arising from its
impacts (in the case of possible health and safety incidents)
and dependencies on end-users with the following actions:
During the product design phase, safety topics are taken
into account through, for example, failure mode and effect
analysis, and also the AIR and FQI processes provide input
for product development. The engineering teams make
two types of risk assessments: generic risk assessment
for cranes as well as project- and industry-specific
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risk assessments. During the design and sales phase,
Konecranes also collaborates with the customer’s crane
operators to get feedback. The aim is to minimize potential
safety incidents.
To pursue material opportunities for Konecranes in relation to
end-user health and safety, Konecranes prioritizes safety in
all areas of its operations. This way Konecranes can improve
safety also throughout the value chain. Safe, secure and
reliable products as well as on-site safety are values the
company provides to its customers.
Konecranes’ employees are trained on product and service
safety. One of the cornerstones of the company’s safety
culture is training. Konecranes has a wide training offering,
nearly 100 course options, from mandatory role-based and
task-specific topics to more general safety introductions.
All training courses can be completed during working hours.
Konecranes’ innovation work concentrates on adopting
new technologies in the company’s products, services and
digital solutions to optimize material handling flows, as well
as to enhance customers’ safety, security and efficiency.
Safety is incorporated into the design, manufacturing,
maintenance and service of Konecranes’ products: the
offering includes technologically advanced equipment with
innovative safety features, as well as efficient preventive
and predictive maintenance that enables customers to
keep the equipment in good working order throughout its
lifespan.
Crane operators who are the end-users of Konecranes’
products are provided applications with features that
increase safety, usability and efficiency. For example, remote
operation (using the Remote Operating Station) enables the
crane operator to work in safe areas with better ergonomics.
Remote operation also increases safety and efficiency
in customer facilities, as people are further away from
the machines and all facility operators can be in the same
operating room, enhancing communication.
Konecranes’ Smart Features (such as sway control and
target positioning) also help crane operators operate the
crane more smoothly. Konecranes’ cranes can be equipped
with a wide variety of the company’s safety improving
assisting functions. Sway Control, Hook Centering and
Snag Prevention limit unwanted movements of the load
during lifting or moving, or if the load or hook gets caught
on something. Inching and Microspeed allow the operator
to control load speeds efficiently and safely especially in
the beginning and end of a lift. Solutions such as Assisted
Load Turning, Target Positioning and End Positioning help
improve the safety of load manipulation and ensure that the
load is delivered safely and accurately where needed. Live
Channel, an online virtual crane demonstration tool, enables
showcasing crane safety features to customers in real time.
Geofencing, which is a feature that limits load handling
device (lift truck) movements in outdoor areas that might
cause risks to people or property, is made possible through
the Work Zone Smart Feature application.
Konecranes’ digital ecosystem includes the
yourKONECRANES customer portal, Konecranes STORE for
spare parts, global enterprise platforms and productivity-
enhancing apps. The comprehensive and systematic
approach to crane maintenance is based on managing
customers’ assets with the help of digital solutions. Data,
machines and people are connected to improve the safety
and productivity of customers’ operations, helping them
reduce the likelihood of failures that result in unplanned
downtime or pose a safety risk.
Konecranes is known for delivering safe products, which
brings the company competitive advantage in the market.
This position and all the technological advancements
are utilized in the company’s marketing communications
towards customers and potential customers as one of the
sales arguments.
During 2024, severe health and safety incidents related
to Konecranes’ products were reported to Konecranes.
Incidents are thoroughly studied as part of the AIR and FQI
process.
Management of material impacts
Konecranes has allocated resources for the management
of end-users’ health and safety incidents. The persons
responsible and their responsibilities are described in
Konecranes’ AIR instructions with a detailed description of
the AIR process.
The company has one process owner for the AIR
process who is responsible for the overall functioning
of the process, who maintains the process, controls
the functioning of the process as well as maintains and
updates the AIR instruction. In addition, Business Areas have
designated AIR process owners for each Business Unit.
They are responsible for the prompt and timely handling
of every AIR case related to their products and within
their respective Business Area. They are also responsible
for cooperating and communicating with other AIR case
handling parties during the AIR process to make sure that
the handling progresses effectively. They maintain the
instructions, procedures and resources for handling AIR
cases in their respective organizations.
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Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
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Board of Directors’ proposal to the Annual
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S4-5 Targets related to managing material
negative impacts, advancing positive
impacts, and managing material risks and
opportunities
Konecranes is committed to three quality objectives
highlighted in the company’s Quality Policy Statement that
was updated in 2023. The objectives are
• Strive for zero product safety incidents
• Prevent all types of non-conformities
• Improve customer satisfaction
At Konecranes, multiple KPIs are monitored to ensure
customer safety. These include the customer Net Promoter
Score (NPS), the number of Accident Investigation Reporting
(AIR) cases, as well as more granular internal indicators
measuring the effectiveness of the company’s AIR and Field
Quality Inspection (FQI) processes. Konecranes encourages
its customers to report any incident where equipment,
component or service provided by Konecranes has caused
or threatened to cause a health or safety incident or property
damage. Although the overall objective is to strive for zero
product safety incidents, a certain level of cases is also an
indication of the functioning of the AIR reporting and its
awareness among customers and stakeholders. Therefore,
no target has been set for the number of AIR cases. A specific
target for product safety will be considered for the next
sustainability statement.
During 2024, Konecranes received 250 AIR cases across the
company. All AIR cases are handled in close collaboration
with the customer. During the process, the project facilitator
and the person responsible for the inspection receive
feedback from the customer and internal stakeholders.
According to this information, process improvements and
instruction updates are conducted periodically. Information
on lessons learned in the AIR cases is shared internally, and
the knowledge and best practices for achieving the targets
are shared to improve customer satisfaction, reduce all
types of non-conformities and strive for zero product safety
incidents.
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Consolidated balance sheet
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Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
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Auditor’s report
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G1 Business conduct
G1-1 Business conduct policies and
corporate culture
Policies with respect to business conduct matters
Business conduct within Konecranes is guided by
applicable laws and the company’ Code of Conduct, which
is supplemented by several Group-wide policies, such as
the Human Rights Policy, the Data Protection Policy, trade
compliance-related instructions, the Competition Policy,
the Anti-Corruption Policy, the Whistleblowing Instruction
and supplier-related requirements such as the Know Your
Supplier Policy, among others.
Konecranes’ Code of Conduct is the foundation setting
forth expectations towards ethical and compliant behavior.
It describes the rules the company is committed to following
towards its customers, business partners, suppliers,
subcontractors, and personnel, and also towards society
and the financial markets in all of the countries where the
company does business.
Konecranes expects its business partners to conduct their
business in compliance and alignment with the company’s
high legal, ethical, environmental and employee-related
principles. Konecranes promotes its responsible ways
of working and zero tolerance of corruption and bribery
to its business partners in Konecranes’ Global Supplier
Manual, Supplier Code of Conduct and Distributor Code of
Conduct.
4. GOVERNANCE INFORMATION
The Code of Conduct applies to all Konecranes entities
and each and every Konecranes employee, manager,
officer and director globally. All Konecranes’ new sales
agents and distributors are required to commit to the
relevant Code.
The Code of Conduct has been approved by the Konecranes
Board of Directors, and the Group-wide guidance needed
to implement the Code is decided in the executive-level
Compliance & Ethics Committee. The most senior-level
personnel accountable for the implementation for the Code
are the Konecranes Leadership Team members reporting to
the President and CEO.
Through the implementation of the Code of Conduct,
Konecranes is committed to the ten principles of the United
Nations Global Compact, to the United Nations Guiding
Principles on Business and Human Rights and to the OECD
Guidelines for Multinational Enterprises. When preparing
the current Code of Conduct in 2023, various internal
stakeholder groups’ interests and views were considered.
The Code and policies are available to all employees. In
addition, many policies and policy statements are made
available publicly. The Code has been translated into 35
languages and the language versions are available internally
and externally on Konecranes.com.
Establishing, developing, promoting and evaluating
the corporate culture
Konecranes’ values are the foundation for the culture the
company wishes to have. In 2023, Konecranes launched
its new values that were co-created with nearly 8,000
colleagues worldwide. At the beginning of 2023, everyone
at Konecranes was invited to participate in this renewal
process. After 27 global workshops with 150 discussion
groups, the inputs were crystallized into the company’s
four new values: Putting customers first; Doing the right
thing; Driving for better; and Winning together. Konecranes’
values guide the way its employees behave and the
way they act, both internally and externally. The values
summarize what the company expects of itself and others
and reflect Konecranes as a company for key stakeholders.
The Code of Conduct in turn sets the ground rules for our
work. These themes are ingrained through consistent
messaging from leadership, training programs, and internal
communications, ensuring that they are understood and
adhered to across all levels of the organization.
Employees are regularly trained in various corporate culture
and business conduct matters. A Code of Conduct basic
training is mandatory for all new employees as part of their
onboarding. A regular Code of Conduct training program
is in place for all employees, and staff employees are
trained on Code of Conduct every year and operatives
once in every two years. The training completions are
closely monitored and reported to the Compliance & Ethics
Committee, the Konecranes Leadership Team and the
Audit Committee. In 2024 a new Code of Conduct basic
training was rolled out to all employees and the completion
rates are described in G1-3 Prevention and detection of
corruption or bribery.
Depending on the employee’s role, there are also other
mandatory and/or recommended trainings in various areas
such as competition law and data protection. Responsible
business conduct is also addressed in new people manager
and leadership trainings. Multiple live trainings are also
arranged every year to varying audiences.
The level of implementation and development of the
corporate culture is evaluated through different employee
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Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
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surveys such as the Employee Engagement Survey and
Pulse surveys. They are important tools for each employee
to get their voice heard and to have an impact on how
their direct surroundings and the whole organization will
be developed. As part of the Compliance & Ethics KPIs,
Konecranes follows the share of positive responses to
two compliance and ethics questions in the Employee
Engagement Survey to get employees’ views on the
management’s commitment to integrity and the speak-up
culture within Konecranes.
Konecranes has an annual Compliance & Ethics risk
assessment process supported by biennial risk assessment
surveys to get insights throughout the organization.
The company also carries out risk-based country-
specific compliance risk assessments. Moreover, Social
Responsibility Assessments are conducted by a third-party
against Konecranes’ Fair Labor Frame and local regulations
on the topics covered by the Frame.
Konecranes’ Whistleblowing Channel provides an
opportunity for the company to learn about possible ethical
concerns and non-compliance with the laws.
Read more about how Konecranes promotes its corporate
culture towards suppliers in G1-2 Management of
relationships with suppliers.
Konecranes offers multiple ways of raising concerns
internally, through the management, People & Culture,
Legal and Compliance & Ethics teams, or through the
externally hosted Whistleblowing Channel, which also
enables anonymous reporting when allowed by local laws.
Konecranes’ Whistleblowing Channel and investigation
process are managed by the Group’s Compliance & Ethics
team, which is a global team independent from businesses
and local decision-making and able to investigate all cases
impartially. Where required by local laws, Group companies
also have local reporting channels in place, which are
managed in accordance with local laws.
An internal Whistleblowing Instruction giving guidance on
how to report compliance and ethics concerns is available
internally in 35 languages. Employees are regularly trained on
the topic as part of the Code of Conduct basic training and
other targeted trainings.
Konecranes’ whistleblowing channels are also open to
anyone externally, and stakeholders are encouraged to
report ethical concerns or non-compliance with laws
related to Konecranes’ operations. The externally hosted
Whistleblowing Channel is available in 39 languages, and
information about the process and the non-retaliation
undertaking has been published externally on Konecranes.com
in 10 languages.
Konecranes has an Anti-Corruption Policy in place, which
is consistent with the United Nations Convention against
Corruption.
Konecranes has a strict policy of non-retaliation as
described in the company’s Code of Conduct and
Whistleblowing Instruction. Konecranes’ Whistleblowing
Channel is hosted via a technical solution provided
by an external partner and the channel is encrypted,
password-protected and allows anonymous reports.
The whistleblowing procedure and storing of related
documentation is strictly confidential and regulated
by a documented process. As part of the process, the
team involved in the investigation process is subject to a
specific confidentiality undertaking and a non-retaliation
undertaking, among others.
The protection of reporters and other participants of the
whistleblowing procedure and the confidentiality and non-
retaliation undertakings extend to all reports on violations
of the company’s policies, Codes, as well as laws, not just
limited to the scope of the national laws implementing the EU
whistleblower protection directive.
The company’s functions that are deemed to be most at
risk of corruption and bribery as a result of their tasks and
responsibilities are: management (including legal managing
director roles), Business Area sales and project management
organizations, central and Business Area procurement
and business unit controllers, region controllers and their
superiors.
G1-2 Management of relationships with
suppliers
Konecranes expects its suppliers and subcontractors
(later together referred to as “suppliers”) to conduct
business in compliance with the same legal and ethical
requirements and principles that Konecranes requires in its
Code of Conduct, and these principles are of the utmost
importance when establishing and conducting business
relationships. The target of embedding sustainability,
compliance, and ethical requirements in the company’s
business processes, as described below, not only supports
Konecranes’ strategic commitments, but also forms a basis
for the company’s supplier relationship management and
reduces the possible risks related to the company’s supply
chain.
Konecranes’ Supplier Code of Conduct sets the minimum
legal and ethical requirements and principles of conduct
which Konecranes requires from its suppliers on topics
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Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
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Board of Directors’ proposal to the Annual
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Auditor’s report
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such as human rights, health and safety, environmental
management, anti-corruption, and trade compliance. In
addition, Konecranes’ Global Supplier Manual imposes
the minimum requirements and expectations for all
suppliers, describing the main processes related to
those expectations. Any additional requirements for the
suppliers might be included, for instance, in Konecranes’
agreements.
Konecranes applies a structured approach to managing its
relationships with its suppliers and this approach includes,
but is not limited to, social and environmental performance.
The key objectives of the company’s Supplier Relationship
Management (SRM) framework include, for instance,
implementation of the know-your-supplier process,
ensuring material availability, reducing supply risk, and driving
and monitoring supplier performance. The SRM framework
aims to give a high-level guidance and governance model on
how to manage the supplier relationships.
Konecranes’ tools for managing the supplier relationship
include, for example, supplier audits, supplier meetings,
and implementation of the know-your-supplier process.
Currently, Konecranes conducts three types of audits
for its suppliers. On-site process audits are focused on
reviewing and validating suppliers’ management systems,
quality assurance methods and process capacities. On-site
Supplier Code of Conduct audits conducted by a third
party evaluate suppliers’ capability to meet the Supplier
Code of Conduct requirements. Additionally, Konecranes
implements information security audits that are also
conducted by a third party. According to the company’s SRM
framework, supplier meetings vary from annual meetings
to ad-hoc ones, depending on the supplier, and they cover
topics such as contracts, supplier performance, compliance,
and risk review of the supplier.
As part of Konecranes’ know-your-supplier process, the
company requires selected, existing suppliers to conduct
a regular background checking where the same risk-
based approach as in the supplier selection is followed.
In this process, selected existing suppliers are requested
to fulfill a wider supplier self-assessment questionnaire
which includes questions on topics such as certificates,
information security, data protection, trade compliance,
ethics, social responsibility, health and safety, and the
environment.
At Konecranes, the procurement organization is
responsible for ensuring compliance with the legal,
ethical, environmental, and other sustainability obligations
within Konecranes’ supplier base, and for integrating the
requirements into existing processes. The procurement
organization is trained on the implementation of the
SRM framework as well as other relevant policies and
processes such as the Know Your Supplier Policy and
process. Supplier management as well as how to avoid
conflicts of interest are themes included in the global
Code of Conduct training. To follow the implementation
of the described practices in the management of supplier
relationships, Konecranes has set internal targets, for
example, related to SRM framework implementation,
the number of completed audits, and Supplier Code of
Conduct coverage, which are followed monthly by the
procurement leadership team.
Social and environmental criteria and the selection of
suppliers
Konecranes’s Know Your Supplier Policy is established to
ensure that the company does business with suppliers and
subcontractors who are able to meet the requirements
set out in Konecranes’ Supplier Code of Conduct, such
as respect of human rights, ethics, and environmental
management. The policy sets the minimum requirements
for the selection and onboarding of new suppliers, as
well as for the renewal of existing suppliers’ background
checking. The policy applies to all Konecranes entities
globally.
Konecranes follows a risk-based approach in supplier
selection and management. When assessing Supplier Code
of Conduct risks, the country and industry of the supplier
are considered for identifying general areas where impacts
are most likely to occur and to be severe. In addition,
supplier-specific risks discovered in the know-your-
supplier process are considered. The risk-based approach
defines the depth of the know-your-supplier process.
For instance, the content and extent of the background
checking assessment vary, as well as the appropriate
measures to prevent or mitigate the risks.
G1-3 Prevention and detection of
corruption or bribery
Konecranes’ Code of Conduct, Supplier and Distributor
Codes of Conduct and Anti-Corruption Policy express the
company’s commitment to working against corruption in all
forms, including extortion and bribery, and set the basis for
Konecranes’ anti-corruption program.
Konecranes’ Anti-Corruption Policy has compliance
protocols and guidelines in place to detect and address
corruption risks, embedding zero tolerance of corrupt
practices into monitoring and follow-up processes. The
policy includes, for example, detailed instructions on gifts
and hospitality, including monetary limits for reporting and
pre-approvals, as well as a review and approval process for
sales intermediaries.
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Consolidated balance sheet
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Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
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Board of Directors’ proposal to the Annual
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Several actions and processes are set up to mitigate
corruption and fraud risks. They include internal controls,
a sponsorship and donation approval process, a Conflict
of Interest declaration portal, and a Gifts and Hospitality
portal, which is the central location for employees to report
on and gain pre-approval for offering and receiving gifts
and hospitality.
Any allegations or suspected incidents of corruption or
bribery are investigated in line with the defined Group
investigation process. This process is managed by
Konecranes’ Compliance & Ethics team as described in
G1-1 Business conduct policies and corporate culture.
The process of reporting outcomes to the administrative,
management and supervisory bodies is explained in General
information: Role of the administrative, management and
supervisory bodies.
The Anti-Corruption Policy applies to all employees
globally and it is available to all employees in 35 languages.
Information on the policy is communicated to employees in
various ways, such as via different kinds of awareness actions
and trainings. All Konecranes employees receive training on
corruption matters as part of the Code of Conduct training.
Additionally, a specific anti-corruption eLearning was
prepared in late 2024 for employees at functions which are
deemed to be at risk of corruption. The new anti-corruption
training will be launched in 2025. The global eLearning is
supplemented with live trainings held in various locations and
teams either face-to-face or virtually. All functions at risk will
be covered by the training.
The same trainings which are rolled out to Konecranes staff
employees globally will be given to the President and CEO,
and the company’s Code of Conduct training is provided
also to the Board of Directors.
Actions and resources related to business
conduct
The key actions taken in 2024 included:
(1) Establishing a new Code of Conduct basic training, which
was rolled out to all employees globally in 35 languages.
(2) Preparing and piloting a new country compliance risk
assessment concept. This has already been piloted in a
handful of countries and will continue to be used in selected
countries to help better understand corruption and other
compliance risks relating to Konecranes’ operations in such
countries.
(3) Preparing a new anti-corruption eLearning to supplement
Konecranes’ existing compliance training program,
specifically targeted to defined functions at risk.
(4) Approval and roll-out of updated Supplier Code of
Conduct, which has been applicable, since the approval, to
all new suppliers. The roll-out of the updated Supplier Code
of Conduct for existing suppliers is done by following a risk-
based approach, starting with suppliers identified with a
higher risk.
(5) Updating the Know Your Supplier Policy and process.
The policy, since its approval, has been applicable to all
Konecranes entities globally.
Konecranes has defined a development plan for future
actions in order to continue enhancing its compliance
policies and processes. The actions include further
enhancing the third-party management process and related
documentation and tools, updating and implementing
the Distributor Code of Conduct and the related training,
and establishing a new Supplier Code of Conduct training
internally and externally.
All of these actions contribute to ensuring and enforcing
compliance and ethical and responsible business conduct
in line with Konecranes’ Codes of Conduct, and all of the
above enhancements are intended to be completed within
the next 1–2 years. Currently, Konecranes does not allocate
significant operating expenditures or capital expenditures to
the action plan.
Targets related to business conduct
Konecranes has two targets within the area of business
conduct:
Target 1. Code of Conduct training completion percentage
globally during the reporting year.
Konecranes wants to ensure that all employees are familiar
with and committed to the company’s Code of Conduct.
Thus, Konecranes aims to have all employees complete a
training on the Code. Konecranes’ Code of Conduct training
program is further explained in G1-1 Business conduct
policies and corporate culture. The target is to reach a 100
percent completion rate among the defined target group
(excluding recent new hires and people on leave of absence
as well as employees in Ukraine). The Code of Conduct
basic training is mandatory for all employees every second
year, whereas the Code of Conduct Refresher training is
mandatory for staff employees every other year. Code of
Conduct training completion is reviewed for the period of
the reporting year. The exclusion of Ukrainian employees
from the statistics of the Code of Conduct training may
change if the circumstances in Ukraine change materially.
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Consolidated balance sheet
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Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
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Target 2. The share of positive replies to Employee
Engagement Survey questions 1) “Management of my unit
is committed to integrity and ethical business practices”
and 2) “I would feel comfortable reporting unethical
behavior if I saw it in Konecranes” at the time of the last
survey conducted.
Following up on the share of positive replies allows
Konecranes to assess the level of perceived commitment
to ethical ways of working and the level of the company’s
speak-up culture. The target is to reach 100 percent positive
replies. All own employees are in scope of the survey. The
survey evaluates the situation at the time it is conducted.
The Code of Conduct basic training and the Employee
Engagement survey are available for all employees globally.
The number of employees who have completed the Code
of Conduct training is collected from Konecranes’ learning
management system. The shares of different replies in
the Employee Engagement Survey are collected from the
survey tool used to manage the survey and to analyze the
answers.
Stakeholders have been involved in target setting by
discussing the targets in the relevant governing body.
Target 2024 performance
Code of Conduct training completed by all employees in the target
group
1
During 2024, 16,295 employees representing 98% of all employees
1
completed the Code of Conduct basic training (EMEA 97%, APAC
~100%, Americas 98%)
100% positive response (with a score 7–10 out of 10) on engagement
survey questions:
1) “Management of my unit is committed to integrity and ethical
business practices”
2) “I would feel comfortable reporting unethical behavior if I saw it in
Konecranes”
No data available for 2024. In the 2023 employee engagement survey,
the average percentage of employees responding positively to
questions (1) and (2) was 87% and 84%, respectively.
1
Excluding recent new hires (less than one month in the company) and people on leave of absence as well as employees in Ukraine.
Performance against the disclosed targets
Entity-specific information: Cyber-
preparedness and enterprise resilience
Impacts, risks and opportunities
As stated in General information, Konecranes has assessed
cyber-preparedness and enterprise resilience as an entity-
specific, material topic for Konecranes. The negative
impacts of this topic could potentially be realized through
Konecranes’ own operations. Functional and reliable
business applications, IT infrastructure and factories are
key for Konecranes’ business continuity. A wide-scale
cybersecurity attack at Konecranes could cause a data
breach, operational downtime, and a failure to provide
service and new equipment to customers according to
service agreements and contracts. This is both a financial
risk and an opportunity for Konecranes: When cybersecurity
is managed well, Konecranes’ businesses run smoothly
and, in some cases, this is a prerequisite for doing business
as some customers require, for example, certifications to
prove systematic management. The risk lies in potential
cyber-attacks that might paralyze the company’s business
continuity if the infrastructure is not properly secured. The
current risk landscape shows that industrial manufacturing
continues to be one of the most attacked industries.
Cybersecurity regulations, such as the EU NIS2 and the EU
Cyber Resilience Act, are bringing new cybersecurity rules to
ensure enterprise resilience and more secure hardware and
software products. To meet market expectations and reduce
risks, Konecranes has a cybersecurity strategy, ambition,
governance and objectives with a detailed roadmap for the
upcoming years.
Policies with respect to cyber-preparedness and
enterprise resilience
Konecranes’ strategic security objectives laid down in the
Information Security Policy are to deliver safe and secure
material handling solutions, improve cyber preparedness
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Consolidated cash flow statement
Notes to the consolidated financial statements
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and enterprise resilience, and ensure people are empowered
with the right knowledge, skills, and tools to make cyber-
aware decisions. See further details on the Information
Security Policy in S4-1 Policies related to consumers and
end-users.
Management of cyber-preparedness and enterprise
resilience
Konecranes’ Information Security Management System
(ISMS) is based on and certified against the ISO 27001
standard. Konecranes’ Security Steering Group directs
the development at Konecranes, and the Cybersecurity
unit, together with business units and Group functions,
implements the developments with a dedicated security
budget. The organizational roles, responsibilities and
competence requirements are defined in Konecranes’ ISMS
Handbook. Information security topics are regularly reported
to Konecranes’ Audit Committee, and further to Konecranes’
Board of Directors, when needed.
Konecranes’ systematic approach to managing
information security aims to ensure that all relevant
information security risks are identified and mitigated. A
set of security controls has been implemented to protect
the information assets and to ensure the confidentiality,
integrity and availability of Konecranes’ products and
services. These technical and organizational security
measures cover topics such as asset management,
access control, secure software development, incident
management and information security aspects of business
continuity management. For example, Konecranes’
information security incident management process
defines how to handle information security incidents.
Devices and networks are monitored, and Security
Information and Event Management (SIEM) is used to
identify abnormal behavior or potential cyberattacks.
Processes are in place for vulnerability management,
malware protection and information system audits.
Konecranes’ Information Technology unit and information
technology suppliers also follow incident, problem and
change management processes to ensure the availability,
stability and security of the information technology
environment. In 2024, Konecranes had three security
incidents which required advanced investigation. None of
the cases had material impacts on Konecranes’ information
or continuity. More information on Konecranes’ security
controls is available on Konecranes.com/cyber.
The scope of Konecranes’ Information Security Management
System covers all of Konecranes, including Information
Technology, Operational Technology and Konecranes’
products and services, as well as the global business
applications and information technology infrastructure. This
increases cyber preparedness and enterprise resilience. The
ISO/IEC 27001 management system certification process
continues.
To enable cybersecurity performance and to secure the
company’s own and its customers’ information, it is essential
that employees’ awareness and level of knowledge on
information security topics is increased. Konecranes has
a mandatory cybersecurity training for all employees,
which must be completed during employee onboarding,
and after that, every time the training module has been
updated. In 2024, a new cybersecurity training was launched.
Additionally, Konecranes has trainings tailored to different
employee groups’ needs available. These cover the various
aspects of information security to increase employees’
ability to recognize cyber threats. Konecranes also has
comprehensive guidelines available to its employees and
regularly implements awareness activities on its internal
forums and channels. During 2024 these campaigns mainly
focused on secure use of Generative AI and how to combat
phishing and vishing.
Konecranes has set key performance indicators on
information security awareness, which are followed up
monthly. At the end of 2024, the renewed mandatory
cybersecurity e-learning was completed by 89 percent of
the company’s employees. All employees are onboarded to
the continuously ongoing training program for recognizing
and reporting cyberattacks.
132
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Litigation
Various legal actions, claims, and other proceedings are
pending against the Group in different countries. These
actions, claims, and other proceedings are typical for this
industry and are consistent with the global business offering
that encompasses a wide range of products and services.
These matters involve contractual disputes, warranty claims,
product liability (including design defects, manufacturing
defects, failure to warn, and asbestos legacy), employment,
auto liability, and other matters involving liability claims.
Date Release
December 18, 2024
Konecranes Restricted Share Unit Plan 2017 -
directed share issue
December 16, 2024
Konecranes Plc's Shareholders' Nomination Board's
proposals for the composition and compensation of
the Board of Directors
October 25, 2024
Konecranes Plc's Interim report, January-September
2024: Continued strong performance
October 24, 2024
Konecranes Plc's financial information and AGM in
2025
October 1, 2024
Changes in Konecranes Leadership Team and
operating model
September 12, 2024
Inside information: Profit warning - Konecranes
upgrades its sales guidance for 2024
September 9, 2024
Composition of Konecranes Plc's Shareholders'
Nomination Board
July 26, 2024
Konecranes Plc's Half-year financial report, January-
June 2024: Record-high comparable EBITA margin in
all Business Segments
June 14, 2024
Change in Konecranes Leadership Team: Juha
Pankakoski, EVP Port Solutions, will leave
Konecranes
June 12, 2024
Inside information: Profit warning - Konecranes
upgrades its profitability guidance for 2024
April 30, 2024
Change in Konecranes Leadership Team: Claes
Erixon appointed EVP, Technologies
April 25, 2024
Konecranes Plc: Interim report, January-March 2024:
Record-high Q1 profitability
Date Release
March 28, 2024
The amendment of the Articles of Association of
Konecranes Oyj has been registered in the Finnish
Trade Register
March 27, 2024
Konecranes Plc: Board of Directors' organizing
meeting
March 27, 2024
Resolutions of Konecranes Plc's Annual General
Meeting of shareholders
March 11, 2024
Change in Konecranes Leadership Team: Christine
George appointed EVP, Corporate Strategy &
Business Development
February 28, 2024
Konecranes Plc's Annual Report 2023 published
February 02, 2024
Konecranes Plc's Board of Directors convenes the
Annual General Meeting 2024
February 02, 2024
Konecranes Plc's Financial statement release 2023:
All-time high sales and comparable EBITA margin in
2023
February 01, 2024
The Board of Directors of Konecranes Plc has
decided to continue the Employee Share Savings
Plan
February 01, 2024
The Board of Directors of Konecranes Plc has
decided the criterion for the measurement period
2024 of the Performance Share Plan 2022
February 01, 2024
The Board of Directors of Konecranes Plc has
decided to establish a new Performance Share Plan
January 30, 2024
Konecranes Plc's Shareholders' Nomination Board's
proposals for the composition and compensation of
the Board of Directors
Stock exchange releases during full year 2024
133
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Date Release
July 12, 2024
Konecranes' January-June 2024 half-year financial
report will be published on July 26, 2024
June 26, 2024
Intergis adds flexibility to cargo handling in South
Korea with Konecranes Gottwald Generation 6
Mobile Harbor Crane
June 11, 2024
Konecranes powers up for the future by expanding
its electrified portfolio and redefining operations
between ship and container stack technology
May 28, 2024
Florida's SeaPort Manatee orders two Konecranes
Gottwald Generation 6 Mobile Harbor Cranes to
expand capacity
April 11, 2024
Konecranes' Interim report, January-March 2024 will
be published on April 25, 2024, conference call time
changed
April 11, 2024
Bahamas port goes electric with Konecranes
Gottwald Generation 6 Mobile Harbor Crane
April 11, 2024
Konecranes' Interim report, January-March 2024 will
be published on April 25, 2024
April 3, 2024
Konecranes strengthens its port services presence
with acquisition of German Kocks Kranbau GmbH
March 19, 2024
Changes in reporting Industrial Equipment's order
intake and net sales with an impact on Industrial
Equipment's reported profitability
March 19, 2024
Konecranes launches smart, connected industrial
crane to tap opportunities across multiple customer
segments
February 16, 2024
Australia's Intermodal Terminal Company orders
seven electric Konecranes RMG cranes for new
Melbourne freight facility
February 07, 2024
Konecranes' climate work earns Leadership ranking
from the CDP for a second consecutive year
February 01, 2024
Konecranes wins Pioneer of the Circular Economy
award from Finland's leading share ownership
promoter
Date Release
January 30, 2024
Konecranes to supply fully automated cranes to Elixir
Group's new waste-to-energy facility in Serbia
January 24, 2024
Verbrugge International streamlines operations
with advanced Terminal Operating Systems from
Konecranes
January 19, 2024
Konecranes' Financial statement release 2023 will be
published on February 2, 2024
January 18, 2024
Konecranes' new brand identity reflects its ambition
to become a global material handling solutions
leader
January 05, 2024
Konecranes to modernize two cranes for Fortum
Power & Heat at Finland's largest hydropower plant
Date Release
December 13, 2024
Konecranes to supply 8 overhead cranes to PT Beka
Wire's new production facility in Indonesia
December 5, 2024
Konecranes receives $46.8 million portal jib order
from the US Navy
December 4, 2024
Haivanship expands operations into northern
Vietnam with two new Konecranes Gottwald ESP.9B
cranes on barge
December 3, 2024
Konecranes has completed its acquisition of
Peinemann Port Services and Container Handling
November 27, 2024
Italian steel handling specialist Transped boosts
efficiency with upgrade to Konecranes Gottwald
ESP.7 Mobile Harbor Crane
November 22, 2024
Konecranes named winner of the Internationalization
Award of the President of Finland for 2024
November 13, 2024
Konecranes to extend the service life of a mobile
harbor crane for Dutch C. Steinweg Group
November 7, 2024
Konecranes expands emissions reduction ambition
by committing to setting long-term, science-based
net-zero targets
October 25, 2024
APM Terminals Maasvlakte II B.V. chooses Automated
Horizontal Transport System from Konecranes to
support doubling of its Rotterdam terminal capacity
October 18, 2024
Konecranes to strengthen its Port Solutions business
with the acquisition of Peinemann Port Services and
Container Handling
October 11, 2024
Konecranes' January-September 2024 interim report
will be published on October 25, 2024
October 8, 2024
Konecranes has signed a EUR 100 million
sustainability-linked bank term loan facility
September 17, 2024
Konecranes wins order for 5 advanced hybrid RTGs
from Taiwan terminal
July 29, 2024
Konecranes is establishing a network of partners to
build a full range of port cranes in the United States
Corporate press releases during full year 2024
134
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Events after the end of the reporting
period
On January 2, 2025, 5,151 treasury shares were conveyed
without consideration as the reward payment to the key
employee, the President and CEO Anders Svensson,
participating in the Konecranes Restricted Share Unit Plan
2017. After the share delivery, Konecranes holds a total of
7,637 own shares.
On January 20, 2025, Konecranes announced that President
and CEO Anders Svensson will leave Konecranes to
join another company. He will continue to actively lead
Konecranes until he leaves on July 19, 2025.
On February 6, 2025, Konecranes announced that the Board
of Directors had decided to establish a new Performance
Share Plan 2025 for Konecranes key employees. The plan
has a three-year performance period from 2025 to 2027.
The Plan has three performance criteria: the cumulative
comparable Earnings per Share (EPS) for the financial
years 2025-2027 with an 80 percent’s weighting, the CO
2
emissions from own operations for the financial years 2025-
2027 with a 10 percent’s weighting and the Konecranes
Eco Vadis score in 2027 with a 10 percent’s weighting. The
targets for the three-year performance period have also
been decided by the Board of Directors. The target group
of the Plan consists of approximately 170 Konecranes key
employees. Additional information, including essential terms
and conditions of the Plan, is available in the stock exchange
release dated February 6, 2025.
On February 6, 2025, Konecranes announced that the
Board of Directors had decided to launch a new Plan Period
relating to the Employee Share Savings Plan. The new Plan
Period will begin on July 1, 2025, and will end on June 30,
2026. The other terms and conditions approved by the
Board have been published in the stock exchange release
dated February 6, 2025.
Demand outlook
Our demand environment within industrial customer segments
has remained good and continues on a healthy level.
Global container throughput continues on a high level, and
long-term prospects related to global container handling
remain good overall.
Financial guidance
Konecranes expects net sales to remain approximately on the
same level in 2025 compared to 2024. Konecranes expects
the full-year 2025 comparable EBITA margin to remain
approximately on the same level or to improve from 2024.
Board of Directors’ proposal for disposal
of distributable funds
The parent company’s non-restricted equity is EUR
1,047,075,358.95 of which the net income for the year is EUR
200,085,532.18. The Group’s non-restricted equity is EUR
1,792,124,000.
According to the Finnish Companies Act, the distributable
funds of the company are calculated based on the parent
company’s non-restricted equity. For the purpose of
determining the amount of the dividend, the Board of
Directors has assessed the liquidity of the parent company
and the economic circumstances subsequent to the end of
fiscal year.
Based on such assessments, the Board of Directors
proposes to the Annual General Meeting to be held on 27
March 2025 that a dividend of EUR 1.65 be paid on each share
and that the remaining non-restricted equity is retained in
shareholders’ equity. The proposal will be included in the
notice to the Annual General Meeting, which will be published
during February 2025.
Konecranes’ full audited financial statements, including the
report of the Board of Directors, and corporate governance
statement will be available on Konecranes’ website on Friday,
February 28, 2025.
Espoo, February 6, 2025
Konecranes Plc
Board of Directors
135
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Konecranes Group 2020−2024
Business development 2024 2023 2022 2021 2020
Orders received MEUR 3,999.6 4,161.4 4,227.9 3,446.9 2,994.2
Order book MEUR 2,888.4 3,040.8 2,901.7 2,036.8 1,715.5
Net sales MEUR 4,227.0 3,966.3 3,364.8 3,185.7 3,178.9
of which outside Finland MEUR 4,131.4 3,864.6 3,262.0 3,098.1 3,096.3
Export from Finland MEUR 1,205.7 1,148.5 789.6 955.2 1,075.9
Personnel on average 16,656 16,503 16,563 16,625 17,027
Personnel on December 31 16,842 16,586 16,522 16,573 16,862
Capital expenditure MEUR 65.7 54.4 37.0 49.8 42.8
as % of Net sales % 1.6% 1.4% 1.1% 1.6% 1.3%
Research and development costs MEUR 59.8 51.3 47.7 47.7 48.5
as % of Net sales % 1.4% 1.3% 1.4% 1.5% 1.5%
Profitability
Net sales MEUR 4,227.0 3,966.3 3,364.8 3,185.7 3,178.9
Comparable EBITA MEUR 551.6 450.7 318.4 312.2 260.8
as % of net sales % 13.1% 11.4% 9.5% 9.8% 8.2%
Comparable operating profit MEUR 520.7 419.7 286.6 279.1 224.9
as % of net sales % 12.3% 10.6% 8.5% 8.8% 7.1%
Operating profit MEUR 511.4 402.5 223.2 220.0 173.8
as % of net sales % 12.1% 10.1% 6.6% 6.9% 5.5%
Income before taxes MEUR 485.3 367.6 190.7 192.5 170.3
as % of net sales % 11.5% 9.3% 5.7% 6.0% 5.4%
Net income
(incl. non-controlling interest)
MEUR 368.4 275.6 138.5 147.4 122.9
as % of net sales % 8.7% 6.9% 4.1% 4.6% 3.9%
Key figures and balance sheet 2024 2023 2022 2021 2020
Equity (incl.
non-controlling interest)
MEUR 1,857.7 1,594.8 1,433.0 1,360.6 1,251.1
Balance sheet MEUR 4,788.3 4,552.4 4,340.6 3,845.8 4,016.5
Return on equity % 21.3 18.2 9.9 11.3 9.8
Return on capital employed % 20.3 16.4 9.0 9.3 8.3
Current ratio 1.4 1.4 1.6 1.2 1.4
Equity to asset ratio % 44.4 41.1 37.9 38.9 34.1
Net working capital MEUR 378.6 353.6 490.2 350.6 227.1
Interest-bearing net debt MEUR 183.5 365.8 688.3 541.6 577.1
Gearing % 9.9 22.9 48.0 39.8 46.1
Shares in figures
Earnings per share, basic EUR 4.65 3.48 1.77 1.86 1.54
Earnings per share, diluted EUR 4.63 3.46 1.77 1.85 1.54
Equity per share EUR 23.45 20.14 18.10 17.08 15.69
Cash flow per share EUR 6.21 7.04 0.84 2.13 5.15
Dividend per share EUR 1.65* 1.35 1.25 1.25 0.88
Dividend /earnings % 35.5 38.8 70.6 67.2 57.1
Effective dividend yield % 2.7 3.3 4.3 3.6 3.1
Price /earnings 13.2 11.7 16.2 18.9 18.7
Trading low / high** EUR 38.09/68.60 28.29/41.38 19.61/38.43 28.80/42.31 14.05/33.08
Average share price** EUR 53.30 33.68 27.14 36.41 23.03
Share price on December 31** EUR 61.20 40.78 28.76 35.16 28.78
Year-end market capitalization MEUR 4,847.6 3,229.9 2,276.8 2,782.4 2,277.5
Number traded*** (1,000) 42,936 70,349 87,275 56,561 121,487
Stock turnover % 54.2 88.8 110.3 71.5 153.6
Average number of shares
outstanding, basic
(1,000) 79,209 79,196 79,152 79,134 79,078
Average number of shares
outstanding, diluted
(1,000) 79,488 79,583 79,508 79,607 79,272
Number of shares outstanding,
at end of the period
(1,000) 79,209 79,202 79,167 79,134 79,134
* The Board’s proposal to the AGM
** Source: Nasdaq Helsinki
*** Source: Intercontinental Exchange
136
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Calculation of key figures
Operating profit (EBIT)
Sales + Other operating income - Materials, supplies and subcontracting -
Personnel cost - Depreciation and impairment - Other operating expenses
Comparable EBITA
Operating profit (EBIT) + purchase price allocation impacts and impairment +
restructuring costs + transaction costs + other items affecting comparability
Comparable Operating profit
Operating proft (EBIT) + restructuring costs + transaction costs + other items
affecting comparability
Return on equity (%):
Net profit for the period
X 100
Total equity (average during the period)
Return on capital employed
(%):
Income before taxes + interest paid + other financing cost
X 100
Total amount of equity and liabilities - non-interest bearing debts
(average during the period)
Current ratio:
Current assets
Current liabilities
Equity to asset ratio (%):
Shareholders’ equity
X 100
Total amount of equity and liabilities - advance payment received
Gearing (%):
Interest-bearing liabilities - cash and cash equivalents - loans receivable
X 100
Total equity
Earnings per share:
Net profit for the shareholders of the parent company
Average number of shares outstanding
Earnings per share, diluted:
Net profit for the shareholders of the parent company
Average fully diluted number of shares outstanding
Equity per share:
Equity attributable to the shareholders of the parent company
Number of shares outstanding
Cash flow per share:
Net cash flow from operating activities
Average number of shares outstanding
Effective dividend yield (%):
Dividend per share
X 100
Share price at the end of financial year
Price per earnings:
Share price at the end of financial year
Earnings per share
Net working capital:
Non interest-bearing current assets excluding income tax receivables and other
financial assets (derivatives) – Non interest-bearing current liabilities excluding
income tax payables and other financial liabilities (derivatives) – long-term provisions
Interest-bearing net debt:
Interest-bearing liabilities (non-current and current) - cash and cash
equivalents - loans receivable (non-current and current)
Year-end market capitalization: Number of shares outstanding multiplied by the share price at the end of year
Average number of personnel: Calculated as average of number of personnel in quarters
Number of shares outstanding: Total number of shares - treasury shares
Operating profit and EBITA are used to measure business profitability before
financial items and taxes. Comparable operating profit and Comparable EBITA
are used to reflect the underlying business performance and to enhance
comparability between financial periods and is frequently used by management,
analysts and investors. See also note 3 for reconciliation.
Return on equity represents the rate of return that shareholders receive on their
investments and Return on capital employed represents relative profitability or
the rate of return that has been received on capital employed requiring interest
or other return.
Current ratio, Equity to asset ratio, Interest-bearing net debt, Interest-bearing
net debt / Equity are used to measure solvency and indebtedness of Konecranes
Group. Some of Konecranes’ loan agreements include a covenant measured
by Gearing ratio. Capital expenditure and Net working capital give additional
information of the cash flows and funding needs of Konecranes Group. Share
related alternative performance measures enhance the information on equity,
cash flow and dividend attributable to the shareholders and development of
Konecranes’ share value in the stock exchange.
137
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Reconciliation of certain alternative
performance measures
Reconciliation of comparable operating profit and comparable EBITA (MEUR) 2024 2023
Operating profit 511.4 402.5
Restructuring costs
Employment termination costs 7.1 21.7
Impairments of non-current assets 0.0 0.2
Impairments of inventories 0.8 1.4
Other restructuring costs and income 1.6 3.1
Restructuring costs, total 9.5 26.4
Costs (-)/ income (+) related to other IAC (mainly the impacts of the war in Ukraine) -0.2 -9.2
Comparable operating profit 520.7 419.7
Purchase price allocation and goodwill impairment impacts 31.0 31.0
Comparable EBITA 551.6 450.7
Reconciliation of interest-bearing net debt
Interest-bearing liabilities 895.6 954.9
Loans receivable -2.1 -2.5
Cash and cash equivalents -710.0 -586.6
Interest-bearing net debt 183.5 365.8
Reconciliation of net working capital
Total current assets 2,719.0 2,558.3
- Interest-bearing current assets -2.1 -2.5
- Other financial assets -11.4 -23.5
- Income tax receivables -23.5 -16.5
- Cash and cash equivalents -710.0 -586.6
Non-interest-bearing current assets 1,972.1 1,929.2
Total current liabilities -1,991.1 -1,845.9
- Current interest-bearing liabilities 356.3 227.2
- Other financial liabilities 27.3 11.3
- Income tax payables 46.7 51.8
Non-interest-bearing current liabilities -1,560.8 -1,555.6
Non-current provisions -32.8 -20.0
Net working capital 378.6 353.6
138
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Consolidated statement of income − IFRS
(EUR 1,000,000) Jan 1–Dec 31, 2024 Jan 1–Dec 31, 2023
Note:
3,5,6 Sales 4,227.0 3,966.3
Other operating income 10.5 9.5
7 Materials, supplies and subcontracting -1,878.2 -1,820.3
7,8 Personnel cost -1,264.0 -1,186.6
9 Depreciation and impairments -120.5 -114.9
7 Other operating expenses -463.4 -451.5
Operating profit 511.4 402.5
4,16 Share of associates' and joint ventures' result 0.6 0.8
10 Financial income 31.2 32.0
10 Financial expenses -57.9 -67.7
Profit before taxes 485.3 367.6
11 Taxes -116.9 -92.0
PROFIT FOR THE PERIOD 368.4 275.6
Profit for the period attributable to
Shareholders of the parent company 368.4 275.6
Non-controlling interest 0.0 0.0
12 Earnings per share, basic (EUR) 4.65 3.48
12 Earnings per share, diluted (EUR) 4.63 3.46
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
(EUR 1,000,000) Jan 1–Dec 31, 2024 Jan 1–Dec 31, 2023
Note:
Profit for the period 368.4 275.6
Items that can be reclassified into
profit or loss
34 Cash flow hedges -15.7 12.5
Exchange differences on translating
foreign operations
11.3
Income tax relating to items that can be
reclassified into profit or loss
Items that cannot be reclassified into
profit or loss
28
Re-measurement gains (losses) on
defined benefit plans
11.3
Income tax relating to items that cannot
be reclassified into profit or loss
-0.6 4.5
Other comprehensive income
for the period, net of tax
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD
Total comprehensive income
attributable to:
Shareholders of the parent company 370.7 257.5
Non-controlling interest 0.0 0.0
The accompanying notes form an integral part of the consolidated financial statements.
139
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Consolidated balance sheet − IFRS
EQUITY AND LIABILITIES
(EUR 1,000,000) Dec 31, 2024 Dec 31, 2023
Note:
Equity attributable to equity holders
of the parent company
Share capital 30.1 30.1
Share premium 39.3 39.3
Paid in capital 752.7 752.7
34 Fair value reserves -3.8 8.8
Translation difference 5.1 -8.7
Other reserve 70.5 71.2
Retained earnings 595.4 425.8
Net profit for the period 368.4 275.6
23
Total equity attributable to equity
holders of the parent company
16 Non-controlling interest 0.0 0.0
Total equity 1,857.7 1,594.8
Non-current liabilities
26,27,32 Interest-bearing liabilities 539.3 727.7
28 Other long-term liabilities 229.3 232.5
24 Provisions 32.8 19.9
17 Deferred tax liabilities 138.1 131.6
Total non-current liabilities 939.5 1,111.7
Current liabilities
26,27,32 Interest-bearing liabilities 356.3 227.2
6 Advance payments received 608.1 668.8
Accounts payable 344.2 313.4
24 Provisions 100.8 101.9
25
Other short-term liabilities (non-interest-
bearing)
32 Other financial liabilities 27.3 11.3
Income tax payables 46.7 51.8
Accrued costs related to delivered goods
and services
25 Accruals 235.9 227.7
Total current liabilities 1,991.1 1,845.9
Total liabilities 2,930.6 2,957.6
TOTAL EQUITY AND LIABILITIES 4,788.3 4,552.4
The accompanying notes form an integral part of the consolidated financial statements.
ASSETS
(EUR 1,000,000) Dec 31, 2024 Dec 31, 2023
Note:
Non-current assets
13 Goodwill 1,058.4 1,038.6
14 Intangible assets 449.9 458.1
15 Property, plant and equipment 433.5 359.9
Construction in progress 24.4 15.8
16
Investments accounted for using the
equity method
Other non-current assets 0.8 0.8
17 Deferred tax assets 95.2 113.9
Total non-current assets 2,069.2 1,994.0
Current assets
18 Inventories 946.3 995.9
19 Accounts receivable 643.6 587.5
20 Other receivables 33.3 33.5
Income tax receivables 23.5 16.5
6 Contract assets 232.5 216.9
32 Other financial assets 11.4 23.5
21 Deferred assets 118.5 98.0
22 Cash and cash equivalents 710.0 586.6
Total current assets 2,719.1 2,558.4
TOTAL ASSETS 4,788.3 4,552.4
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Consolidated statement of changes in equity − IFRS
Equity attributable to equity holders of the parent company
(EUR 1,000,000) Share capital
Share
premium
account
Paid in
capital
Cash flow
hedges
Translation
difference
Other
reserve
Retained
earnings Total
Non-
controlling
interest
Total
equity
Balance at January 1, 2024 30.1 39.3 752.7 8.8 -8.7 71.2 701.4 1,594.8 0.0 1,594.8
Dividends paid to equity holders -106.9 -106.9 -106.9
Equity-settled share-based payments
(note 29)
-0.7 0.0 -0.7 -0.7
Acquisitions -0.2 -0.2 -0.2
Profit for the period 368.4 368.4 368.4
Other comprehensive income -12.6 13.8 1.1 2.3 2.3
Total comprehensive income -12.6 13.8 369.5 370.7 0.0 370.7
Balance at December 31, 2024 30.1 39.3 752.7 -3.8 5.1 70.5 963.8 1,857.7 0.0 1,857.7
Balance at January 1, 2023 30.1 39.3 752.7 -1.2 8.3 67.8 535.9 1,432.9 0.1 1,433.0
Dividends paid to equity holders -99.0 -99.0 -99.0
Equity-settled share-based payments
(note 29)
Acquisitions 0.0 0.0 -0.1 -0.1
Profit for the period 275.6 275.6 275.6
Other comprehensive income 10.0 -17.0 -11.1 -18.1 -18.1
Total comprehensive income 10.0 -17.0 264.5 257.5 0.0 257.5
Balance at December 31, 2023 30.1 39.3 752.7 8.8 -8.7 71.2 701.4 1,594.8 0.0 1,594.8
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(EUR 1,000,000) Jan 1−Dec 31, 2024 Jan 1−Dec 31, 2023
Note:
Cash flow from operating activities
Profit for the period 368.4 275.6
Adjustments to net profit for the period
Taxes 116.9 92.0
Financial income and expenses 26.7 35.7
Share of associates' and joint ventures' result -0.6 -0.8
Depreciation and impairments 120.5 114.9
Profits and losses on sale of fixed assets -1.1 -0.2
Other adjustments 0.6 3.5
Operating income before change in
net working capital
Change in interest-free current receivables -50.1 -23.0
Change in inventories 62.0 -25.2
Change in interest-free current liabilities -17.2 170.1
Change in net working capital -5.3 121.9
Cash flow from operations before financing
items and taxes
Interest received 50.0 49.5
Interest paid -73.9 -77.0
Other financial income and expenses -2.2 27.3
11 Income taxes paid -108.4 -85.1
Financing items and taxes -134.5 -85.3
NET CASH FROM OPERATING ACTIVITIES 491.6 557.3
(EUR 1,000,000) Jan 1−Dec 31, 2024 Jan 1−Dec 31, 2023
Note:
Cash flow from investing activities
4 Acquisition of Group companies, net of cash -46.7 -39.0
4 Divestment of businesses, net of cash 0.0 9.0
Proceeds from disposal of associated company 0.1 0.5
Capital expenditures -69.2 -52.4
Proceeds from sale of property, plant and
equipment and other
NET CASH USED IN INVESTING ACTIVITIES -111.0 -75.4
Cash flow before financing activities 380.6 481.9
Cash flow from financing activities
27.6 Proceeds from borrowings 100.0 0.0
27.6 Repayments of borrowings -202.1 -160.6
27.6 Repayments of lease liability -47.3 -44.1
27.6
Proceeds from (+), payments of (-) current
borrowings
-0.8 -0.4
Change in loans receivable 0.5 0.6
Acquired non-controlling interest -0.2 -0.1
Dividends paid to equity holders of the parent
company
-106.9 -99.0
NET CASH USED IN FINANCING ACTIVITIES -256.8 -303.6
Translation differences in cash -0.4 -5.6
CHANGE OF CASH AND CASH EQUIVALENTS 123.4 172.7
Cash and cash equivalents at beginning of period 586.6 413.9
22 Cash and cash equivalents at end of period 710.0 586.6
CHANGE OF CASH AND CASH EQUIVALENTS 123.4 172.7
The effect of changes in exchange rates has been eliminated by converting the beginning balance at the rates
current on the last day of the year.
The accompanying notes form an integral part of the consolidated financial statements.
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Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
183
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
184
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
185
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
186
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
187
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
188
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
189
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
190
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
191
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
192
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Parent company statement of income − FAS
(EUR 1,000) Jan 1–Dec 31, 2024 Jan 1–Dec 31, 2023
Note:
2 Depreciation and impairments -106 -119
3 Other operating expenses -8,432 -7,059
Operating profit -8,538 -7,178
4 Financial income and expenses 131,948 54,811
Income before appropriations and taxes 123,410 47,633
5 Appropriations 100,250 64,250
6 Income taxes -23,574 -16,890
Net income 200,086 94,993
193
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Parent company balance sheet − FAS
(EUR 1,000) Dec 31, 2024 Dec 31, 2023
Note:
ASSETS
NON-CURRENT ASSETS
Tangible assets
7 Machinery and equipment 122 228
122 228
8 Investments
Investments in Group companies 153,040 153,040
Other shares and similar rights of ownership 171 171
153,211 153,211
Total non-current assets 153,333 153,439
CURRENT ASSETS
Long-term receivables
Loans receivable from Group companies 812,143 806,958
812,143 806,958
Short-term receivables
Accounts receivable 2 11
Amounts owed by Group companies
Accounts receivable 6,106 5,622
10 Deferred assets 159,061 74,517
Other receivables 338 249
10 Deferred assets 60 181
165,566 80,580
Cash in hand and at banks 3 3
Total current assets 977,712 887,542
TOTAL ASSETS 1,131,046 1,040,981
(EUR 1,000) Dec 31, 2024 Dec 31, 2023
Note:
SHAREHOLDERS’ EQUITY AND LIABILITIES
11 EQUITY
Share capital 30,073 30,073
Share premium account 39,307 39,307
Paid in capital 776,239 776,239
Retained earnings 70,750 82,689
Net income for the period 200,086 94,993
1,116,455 1,023,301
LIABILITIES
Current liabilities
Accounts payable 2,880 2,864
Liabilities owed to Group companies
Accounts payable 470 143
12 Accruals 0 37
Other short-term liabilities 7,788 11,941
12 Accruals 3,453 2,695
14,591 17,679
Total liabilities 14,591 17,679
TOTAL SHAREHOLDERS’ EQUITY AND
LIABILITIES
1,131,046 1,040,981
194
Corporate Governance Statement 2024
Remuneration Report
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Parent company cash flow − FAS
(EUR 1,000) Jan 1–Dec 31, 2024 Jan 1–Dec 31, 2023
Cash flow from operating activities
Operating income -8,538 -7,178
Adjustments to operating profit
Depreciation and impairments 106 119
Group contributions from subsidiaries 64,250 39,380
Operating income before changes in net working capital 55,818 32,321
Change in interest-free short-term receivables 979 52,365
Change in interest-free short-term liabilities 1,119 3,193
Change in net working capital 2,098 55,558
Cash flow from operations before financing items and taxes 57,916 87,879
Interest received 30,679 27,097
Interest paid -36 0
Other financial income and expenses -43 7
Income taxes paid -27,747 -1,581
Financing items and taxes 2,852 25,522
NET CASH FROM OPERATING ACTIVITIES 60,768 113,401
(EUR 1,000) Jan 1–Dec 31, 2024 Jan 1–Dec 31, 2023
Cash flow from investing activities
Capital expenditure and advance payments to tangible assets 0 17
Dividends received 51,350 27,700
NET CASH USED IN INVESTING ACTIVITIES 51,350 27,717
Cash flow before financing activities 112,118 141,118
Cash flow from financing activities
Proceeds from share based payments and share issues 0 1,063
Repayments of long-term receivables -5,185 -43,178
Dividends paid -106,932 -99,003
NET CASH USED IN FINANCING ACTIVITIES -112,118 -141,118
Cash and cash equivalents at beginning of period 3 3
Cash and cash equivalents at end of period 3 3
CHANGE OF CASH AND CASH EQUIVALENTS 0 0
195
Corporate Governance Statement 2024
Remuneration Report
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2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Notes to the parent company’s Financial Statement
1. Accounting principles
The financial statements of the company have been
prepared in euro and in accordance with accounting
principles generally accepted in Finland.
STATEMENT OF INCOME
(EUR 1,000,000)
2. Depreciation and impairments
2024 2023
Machinery and equipment 0.1 0.1
Total 0.1 0.1
2024 2023
Wages and salaries 6.2 4.8
Pension costs 0.8 0.5
Other personnel expenses 0.1 0.1
Other operating expenses 0.8 1.5
Total 7.9 6.8
2024 2023
Remuneration to Board 0.8 1.0
Other wages and salaries 5.4 3.8
Total 6.2 4.8
The average number of personnel 7 5
Auditors fees
Audit 0.8 0.6
Other services 0.2 0.1
Total 1.0 0.6
2024 2023
Financial income from long-term
investments:
Dividend income from Group companies 101.4 27.7
Dividend income total 101.4 27.7
Interest income from long-term
receivables:
From Group companies 30.7 27.1
Interest income from long-term
receivables total
30.7 27.1
Financial income from long-term
investments total
132.0 54.8
Interest and other financial income 0.0 0.0
Interest and other financial income
total
0.0 0.0
Interest expenses and other financial
expenses:
Other financial expenses 0.1 0.0
Interest expenses and other financial
expenses total
0.1 0.0
Financial income and expenses total 131.9 54.8
3. Other operating expenses
and personnel
Costs and expenses in the Statement of Income were as
follows:
Wages and salaries in accordance with the Statement
of Income:
4. Financial income and expenses
5. Appropriations
6. Income taxes
BALANCE SHEET
7. Machinery and equipment
2024 2023
Group contributions received from
subsidiaries
100.3 64.3
Total 100.3 64.3
2024 2023
Taxes on appropriations 20.1 12.9
Taxes on ordinary operations 4.5 4.0
Taxes from previous years -1.0 0.0
Total 23.6 16.9
2024 2023
Acquisition costs as of January 1 1.2 1.2
Acquisition costs as of December 31 1.2 1.2
Accumulated depreciation January 1 -1.0 -0.9
Depreciation for financial year -0.1 -0.1
Total as of December 31 0.1 0.2
The values of fixed assets are based on original acquisition
values. Depreciation periods, which are based on estimated
financial operating times, are as follows:
• Immaterial rights 5–10 years
• Machines and inventory 4–10 years
196
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
8. Investments 11. Equity
9. Treasury shares
10. Deferred assets
13. Contingent liabilities
and pledged assets
14. Nominal and fair values of derivative
financial instruments
2024 2023
Acquisition costs as of January 1 153.2 153.2
Total as of December 31 153.2 153.2
2024 2023
Share capital as of January 1 30.1 30.1
Share capital as of December 31 30.1 30.1
Share premium account January 1 39.3 39.3
Share premium account as
of December 31
39.3 39.3
Paid in capital as of January 1 776.2 775.2
Increase 0.0 1.1
Paid in capital as of December 31 776.2 776.2
Retained earnings as of January 1 177.7 181.7
Dividend paid -106.9 -99.0
Retained earnings as of December 31 70.8 82.7
Net income for the period 200.1 95.0
Shareholders' equity as of December 31 1,116.5 1,023.3
Distributable equity
Paid in capital as of December 31 776.2 776.2
Retained earnings as of December 31 70.8 82.7
Net income for the period 200.1 95.0
Total 1,047.1 953.9
2024 2023
Number of shares as of January 1 19,656 55,307
Decrease -6,868 -35,651
Number of shares as of December 31 12,788 19,656
2024 2023
Group contributions 100.3 64.3
Payments which will be realized during
the next financial year
56.7 6.6
Interest 2.5 4.1
Total 159.5 74.9
2024 2023
For obligations of subsidiaries
Group guarantees 1,116.2 1,121.4
Leasing liabilities
Next year 0.2 0.1
Later on 0.2 0.2
Total 0.3 0.3
2024 2024 2023 2023
Fair
value
Nominal
value
Fair
value
Nominal
value
Foreign ex-
change forward
contracts
0.0 2.1 0.0 1.9
2024 2023
Total by category
Guarantees 1,116.2 1,121.4
Other liabilities 0.3 0.3
Total 1,116.6 1,121.7
2024 2023
Domicile
Carrying
amount
Carrying
amount
Konecranes Finance Corp. Hyvinkää 46.4 46.4
Konecranes Finland Corp. Hyvinkää 4.2 4.2
Konecranes Global Corp. Hyvinkää 102.4 102.4
Total 153.0 153.0
2024 2023
East Office of Finnish Industries Oy 0.1 0.1
Dimecc Oy 0.1 0.1
China Office of Finnish Industries 0.0 0.0
Total 0.2 0.2
Investments in Group companies
Other shares and similar rights of ownership
Leasing contracts mainly have a maturity of three years and
they have no terms of redemption.
Derivatives are used for currency rate hedging only.
The derivative financial instruments are recognized
according to KPL 5:2a at fair value in the parent company
financial statements and the company does not apply hedge
accounting for these derivatives.
12. Accruals
2024 2023
Wages, salaries and other personnel
expenses
3.2 2.6
Other items 0.3 0.1
Total 3.5 2.7
197
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Board of Directors’ proposal to the
Annual General Meeting
The parent company’s non-restricted equity is EUR 1,047,075,358.95 of which the net income
for the year is EUR 200,085,532.18.
The Group’s non-restricted equity is EUR 1,792,124,000.
According to the Finnish Companies Act, the distributable funds of the company are
calculated based on the parent company’s non-restricted equity. For the purpose of
determining the amount of the dividend, the Board of Directors has assessed the liquidity of
the parent company and the economic circumstances subsequent to the financial year-end.
Based on such assessments, the Board of Directors proposes to the Annual General Meeting
that a dividend of EUR 1.65 will be paid on each share and that the remaining non-restricted
equity is retained in shareholders’ equity.
The financial statements, prepared in accordance with applicable accounting regulations,
give a true and fair view of the assets, liabilities, financial position, and profit or loss of both the
company and the group of companies included in its consolidated financial statements.
The management report contains a truthful description of the development and result of
the business operations of both the company and the group of companies included in its
consolidated financial statements, as well as a description of the most significant risks and
uncertainties and other aspects of the company’s condition.
Pasi Laine
Chair of the Board
Ulf Liljedahl
Board member
Sami Piittisjärvi
Board member
Thomas Schulz
Board member
Anders Svensson
CEO
Pauli Anttila
Board member
Gun Nilsson
Board member
Päivi Rekonen
Board member
Birgit Seeger
Board member
The sustainability report included in the management report has been prepared in
accordance with the reporting standards referred to in accordance with the reporting
standards referred to in Chapter 7 of the Finnish Accounting Act and Article 8 of the
Taxonomy Regulation.
Espoo, February 6, 2025
198
Corporate Governance Statement 2024
Remuneration Report
Risk Management
2024 highlights
Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Auditor’s report
(Translation of the Finnish original)
To the Annual General Meeting of Konecranes Plc
Report on the Audit of Financial Statements
Opinion
We have audited the financial statements of Konecranes
Plc (business identity code 0942718-2) for the year ended
December 31, 2024. The financial statements comprise
the consolidated balance sheet, statement of income,
statement of comprehensive income, statement of changes
in equity, statement of cash flows and notes, including
material accounting policy information, as well as the parent
company’s balance sheet, income statement, statement of
cash flows and notes.
In our opinion
• the consolidated financial statements give a true and
fair view of the group’s financial position, financial
performance and cash flows in accordance with IFRS
Accounting Standards as adopted by the EU.
• the financial statements give a true and fair view of the
parent company’s financial performance and financial
position in accordance with the laws and regulations
governing the preparation of financial statements in
Finland and comply with statutory requirements.
Our opinion is consistent with the additional report
submitted to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with good auditing
practice in Finland. Our responsibilities under good
auditing practice are further described in the Auditor’s
Responsibilities for the Audit of Financial Statements section
of our report.
We are independent of the parent company and of the group
companies in accordance with the ethical requirements that
are applicable in Finland and are relevant to our audit, and we
have fulfilled our other ethical responsibilities in accordance
with these requirements.
In our best knowledge and understanding, the non-audit
services that we have provided to the parent company
and group companies are in compliance with laws and
regulations applicable in Finland regarding these services,
and we have not provided any prohibited non-audit services
referred to in Article 5 (1) of regulation (EU) 537/2014. The non-
audit services that we have provided have been disclosed in
note 7.1 to the consolidated financial statements and note 3
to the parent company financial statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
financial statements of the current period. These matters
were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.
We have fulfilled the responsibilities described in the
Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report, including in relation
to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our
assessment of the risks of material misstatement of the
financial statements. The results of our audit procedures,
including the procedures performed to address the
matters below, provide the basis for our audit opinion on the
accompanying financial statements.
We have also addressed the risk of management override
of internal controls. This includes consideration of whether
there was evidence of management bias that represented a
risk of material misstatement due to fraud.
199
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Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Key Audit Matter How our audit addressed the Key Audit Matter
Revenue recognition of long-term contracts and
related provisions
Refer to note 2.2 Use of estimates and judgments,
note 2.3 Summary of significant accounting policies,
note 5, note 6 and note 24.
In accordance with its accounting principles,
Konecranes applies the percentage of completion
(PoC) method (performance obligations satisfied
over time) for recognizing revenue from long-term
crane projects. The percentage of completion is
based on the cost-to-cost method.
The percentage of completion method of
accounting involves the use of significant
management assumptions, estimates and
projections, principally relating to future material,
labor and project-related overhead costs and
the estimated stage of completion. In year 2024,
approximately 15% percent of the sales of 4.2 billion
euros were recognized under the PoC method.
Revenue recognition of long-term contracts is a key
audit matter and a significant risk of misstatement as
defined by EU Regulation No 537/2014, point (c) of
Article 10(2).
Konecranes makes several types of provisions
related to risks associated with long-term project
contracts and PoC accounting. These PoC related
provisions require high level of management
judgment and are a key audit matter due to that
reason.
Our audit procedures to address the risk of material
misstatement in respect of the long-term contracts
included among others:
• Assessing the Group’s accounting policies over
revenue recognition of long-term contracts;
• Gaining an understanding of the PoC revenue
recognition process;
• Examination of the project documentation
and testing the PoC calculations and inputs of
estimates in the calculations and comparing the
estimates to actuals;
• Analytical procedures;
• Assessing significant judgments made by
management based on an examination of the
associated project documentation and discussion
on the status of projects under construction with
finance and project managers of the Company; and
• Assessing the Group’s disclosures in respect of
revenue recognition.
We have designed our audit procedures to be
responsive to this specific audit area and our
procedures included among others:
• Gaining an understanding of the PoC related
provisions process;
• Testing the provision calculations and the inputs
of estimates in these calculations and comparing
estimates to actuals; and
• Performing inquiries with management with
regards to any significant events or legal matters
that could affect the provisions.
Key Audit Matter How our audit addressed the Key Audit Matter
Revenue recognition
Refer to note 2.3 Summary of significant accounting
policies and note 5.
According to the Group’s accounting policies
revenue is recognized at an amount of consideration
to which the Group expects to be entitled in
exchange for transferring promised goods or
services to a customer. Goods and services are
generally considered to be transferred when the
customer obtains control. The terms and conditions
of sales contracts vary by market and, in addition, the
local management might feel pressure to achieve the
revenue targets set.
Revenue recognition is a key audit matter and a
significant risk of material misstatement as defined
by EU Regulation No 537/2014, point (c) of Article
10(2) due to the significant risk relating to an incorrect
timing of recognition of revenue.
Our audit procedures to address the risk of material
misstatement in respect of correct timing of revenue
recognition included among others:
• Analytical procedures;
• Assessing the Group’s accounting policies over
revenue recognition compared to applicable
accounting standards;
• Assessing the revenue recognition process and
methodologies and testing controls;
• Testing revenue with substantive analytical
procedures and by testing sales transactions;
• Assessing the Group’s disclosures in respect of
revenues.
Valuation of goodwill
Refer to note 2.2 Use of estimates and judgments,
note 2.3 Summary of significant accounting policies
and note 13.
The value of goodwill at the date of the financial
statements amounted to 1.1 billion euros representing
22% of total assets and 57% of equity (2023:1.0
billion euros, 23% of the total assets and 65% of
equity).
Valuation of goodwill is tested annually through
goodwill impairment test. Konecranes has allocated
goodwill to cash generating units (CGUs) which is the
level for goodwill impairment test. The recoverable
amount of a cash generating unit is based on value
in use calculations, the outcome of which could
vary significantly if different assumptions were
applied. There are a number of assumptions used
to determine the value in use of the cash generating
units, including revenue growth, profitability and
the discount rate applied. Changes in the above-
mentioned assumptions may result in an impairment
of goodwill.
Our audit procedures to address the risk of
material misstatement relating to goodwill
valuation included among others, involving our
valuation specialists to assist us in evaluating
the assumptions and methodologies used by
the Group, in particular those relating to the
discount rate. We specifically focused on the cash
generating units for which reasonably possible
changes in assumptions could cause the carrying
value to exceed its recoverable amount. We also
assessed the historical accuracy of managements’
estimates. We assessed the Group’s disclosures
in note 13 in the financial statements about
the assumptions to which the outcome of the
impairment tests were more sensitive.
200
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Remuneration Report
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Responsibilities of the Board of Directors and the Managing
Director for the Financial Statements
The Board of Directors and the Managing Director are
responsible for the preparation of consolidated financial
statements that give a true and fair view in accordance
with IFRS Accounting Standards as adopted by the EU,
and of financial statements that give a true and fair view
in accordance with the laws and regulations governing
the preparation of financial statements in Finland and
comply with statutory requirements. The Board of Directors
and the Managing Director are also responsible for such
internal control as they determine is necessary to enable
the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors
and the Managing Director are responsible for assessing
the parent company’s and the group’s ability to continue as
going concern, disclosing, as applicable, matters relating
to going concern and using the going concern basis of
accounting. The financial statements are prepared using
the going concern basis of accounting unless there is an
intention to liquidate the parent company or the group or
cease operations, or there is no realistic alternative but to
do so.
Auditor’s Responsibilities for the Audit
of the Financial Statements
Our objectives are to obtain reasonable assurance on
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance
with good auditing practice will always detect a material
misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in
aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of the
financial statements.
As part of an audit in accordance with good auditing
practice, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of
the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness
of the parent company’s or the group’s internal control.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
• Conclude on the appropriateness of the Board of
Directors’ and the Managing Director’s use of the going
concern basis of accounting and based on the audit
evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast
significant doubt on the parent company’s or the
group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to
the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report.
However, future events or conditions may cause the
parent company or the group to cease to continue as a
going concern.
Key Audit Matter How our audit addressed the Key Audit Matter
The annual impairment test is a key audit matter
because
• The assessment process is complex and is based
on numerous judgmental estimates;
• It is based on assumptions relating to market or
economic conditions; and
• Of the significance of the goodwill to the balance
sheet total.
Valuation of goodwill is a significant risk of misstate-
ment as defined by EU Regulation No 537/2014, point
(c) of Article 10(2).
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Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
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• Evaluate the overall presentation, structure and content
of the financial statements, including the disclosures,
and whether the financial statements represent the
underlying transactions and events so that the financial
statements give a true and fair view.
• Plan and perform the group audit to obtain sufficient
appropriate audit evidence regarding the financial
information of the entities or business units within
the group as a basis for forming an opinion on the
group financial statements. We are responsible for
the direction, supervision and review of the audit work
performed for purposes of the group audit. We remain
solely responsible for our audit opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such
communication.
Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors by the Annual General
Meeting on March 8, 2006, and our appointment represents
a total period of uninterrupted engagement of 19 years.
Other information
The Board of Directors and the Managing Director are
responsible for the other information. The other information
comprises the report of the Board of Directors and the
information included in the Annual Report , but does not
include the financial statements and our auditor’s report
thereon. We have obtained the report of the Board of
Directors prior to the date of this auditor’s report, and the
Annual Report is expected to be made available to us after
that date.
Our opinion on the financial statements does not cover the
other information.
In connection with our audit of the financial statements,
our responsibility is to read the other information identified
above and, in doing so, consider whether the other
information is materially inconsistent with the financial
statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated. With respect
to the report of the Board of Directors, our responsibility
also includes considering whether the report of the Board
of Directors has been prepared in compliance with the
applicable provisions, excluding the sustainability report
information on which there are provisions in Chapter 7 of the
Accounting Act and in the sustainability reporting standards.
In our opinion, the information in the report of the Board of
Directors is consistent with the information in the financial
statements and the report of the Board of Directors has been
prepared in compliance with the applicable provisions. Our
opinion does not cover the sustainability report information
on which there are provisions in Chapter 7 of the Accounting
Act and in the sustainability reporting standards.
If, based on the work we have performed on the other
information that we obtained prior to the date of this
auditor’s report, we conclude that there is a material
misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
Opinions based on assignment of the Audit Committee
We support that the financial statements should be adopted.
The proposal by the Board of Directors regarding the use of
the distributable equity shown in the balance sheet for the
parent company is in compliance with the Limited Liability
Companies Act. We support that the Members of the
Board of Directors and the Managing Director of the parent
company should be discharged from liability for the financial
period audited by us.
Espoo, February 6, 2025
Ernst & Young Oy
Authorized Public Accountant Firm
Toni Halonen
Authorized Public Accountant
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Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
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Assurance report on the Sustainability Statement
(Translation of the Finnish original)
To the Annual General Meeting of Konecranes Plc
We have performed a limited assurance engagement
on the group sustainability statement of Konecranes Plc
(0942718-2) that is referred to in Chapter 7 of the Accounting
Act and that is included in the report of the Board of Directors
for the financial year January 1–December 31, 2024.
Opinion
Based on the procedures we have performed and
the evidence we have obtained, nothing has come to
our attention that causes us to believe that the group
sustainability statement does not comply, in all material
respects, with
1) the requirements laid down in Chapter 7 of the
Accounting Act and the sustainability reporting
standards (ESRS);
2) the requirements laid down in Article 8 of the Regulation
(EU) 2020/852 of the European Parliament and of
the Council on the establishment of a framework
to facilitate sustainable investment, and amending
Regulation (EU) 2019/2088 (EU Taxonomy).
Point 1 above also contains the process in which Konecranes
Plc has identified the information for reporting in
accordance with the sustainability reporting standards
(double materiality assessment) and the tagging of
information as referred to in Chapter 7, Section 22 of the
Accounting Act.
Our opinion does not cover the tagging of the group
sustainability statement with digital XBRL sustainability tags
in accordance with Chapter 7, Section 22, Subsection 1(2),
of the Accounting Act, because sustainability reporting
companies have not had the possibility to comply with that
provision in the absence of the ESEF regulation or other
European Union legislation.
Basis for Opinion
We performed the assurance of the group sustainability
statement as a limited assurance engagement in compliance
with good assurance practice in Finland and with the
International Standard on Assurance Engagements (ISAE)
3000 (Revised) Assurance Engagements Other than Audits
or Reviews of Historical Financial Information.
Our responsibilities under this standard are further described
in the Responsibilities of the Group Sustainability Auditor
section of our report.
We believe that the evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Other Matter
We draw attention to the fact that the group sustainability
statement of Konecranes Plc that is referred to in Chapter
7 of the Accounting Act has been prepared and assurance
has been provided for it for the first time for the financial
year January 1–December 31, 2024. Our opinion covers the
comparative information that has been presented in the group
sustainability statement for January 1–December 31, 2023,
but not any other comparative information. Our opinion is not
modified in respect of this matter.
Group sustainability auditor’s Independence
and Quality Management
We are independent of the parent company and of the group
companies in accordance with the ethical requirements that
are applicable in Finland and are relevant to our engagement,
and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
The group sustainability auditor applies International
Standard on Quality Management ISQM 1, which requires the
sustainability audit firm to design, implement and operate
a system of quality management including policies or
procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory
requirements.
Responsibilities of the Board of Directors
and the Managing Director
The Board of Directors and the Managing Director of
Konecranes Plc are responsible for:
• the group sustainability statement and for its
preparation and presentation in accordance with the
provisions of Chapter 7 of the Accounting Act, including
the process that has been defined in the sustainability
reporting standards and in which the information for
reporting in accordance with the sustainability reporting
standards has been identified as well as the tagging of
information as referred to in Chapter 7, Section 22 of the
Accounting Act and
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Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
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• the compliance of the group sustainability statement
with the requirements laid down in Article 8 of the
Regulation (EU) 2020/852 of the European Parliament
and of the Council on the establishment of a framework
to facilitate sustainable investment, and amending
Regulation (EU) 2019/2088;
• such internal control as the Board of Directors and the
Managing Director determine is necessary to enable the
preparation of a group sustainability statement that is
free from material misstatement, whether due to fraud
or error.
Inherent Limitations in the Preparation of
a Sustainability Statement
The preparation of the group sustainability statement requires
a materiality assessment from the company in order to identify
relevant disclosures. This significantly involves management
judgment and choices. Group Sustainability reporting is
also characterized by estimates and assumptions, as well as
measurement and estimation uncertainty.
The determination of greenhouse gases is subject to inherent
uncertainty due to the incomplete scientific data used to
determine the emission factors and the numerical values
needed to combine emissions of different gases.
In addition, when reporting forward-looking information, the
company must make assumptions about possible future
events and disclose the company’s possible future actions
in relation to these events. The actual outcome may be
different because predicted events do not always occur as
expected.
Responsibilities of the Group Sustainability Auditor
Our responsibility is to perform an assurance engagement
to obtain limited assurance about whether the group
sustainability statement is free from material misstatement,
whether due to fraud or error, and to issue a limited assurance
report that includes our opinion. Misstatements can arise
from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to
influence the decisions of users taken on the basis of the
group sustainability statement.
Compliance with the International Standard on Assurance
Engagements (ISAE) 3000 (Revised) requires that we
exercise professional judgment and maintain professional
skepticism throughout the engagement. We also:
• Identify and assess the risks of material misstatement
of the group sustainability statement, whether due to
fraud or error, and obtain an understanding of internal
control relevant to the engagement in order to design
assurance procedures that are appropriate in the
circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the parent company’s or
the group’s internal control.
• Design and perform assurance procedures responsive
to those risks to obtain evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Description of the Procedures That Have Been Performed
The procedures performed in a limited assurance
engagement vary in nature and timing from, and are less in
extent than for, a reasonable assurance engagement. The
nature, timing and extent of assurance procedures selected
depend on professional judgment, including the assessment
of risks of material misstatement, whether due to fraud or
error. Consequently, the level of assurance obtained in a
limited assurance engagement is substantially lower than the
assurance that would have been obtained had a reasonable
assurance engagement been performed.
Our procedures included e.g. the following:
• We have interviewed the key persons responsible for
collecting and reporting the information included in the
group sustainability statement.
• Through interviews, we gained an understanding of
the group’s control environment related to the group
sustainability reporting process.
• We evaluated the implementation of the company’s
double materiality assessment process against the
requirements of ESRS standards and the compliance
of the information provided for the double materiality
assessment with ESRS standards.
• We assessed whether the group sustainability
statement in material respect meets the requirements
of ESRS standards for material sustainability topics:
- We have tested the accuracy of the information
presented in the group sustainability statement by
comparing the information on a sample basis with
supporting company documentation.
- We have on a sample basis performed analytical
assurance procedures and related inquiries,
recalculation and inspected documentation, as well
as tested data aggregation to assess the accuracy
of the group sustainability statement.
• We gained an understanding of the process by which a
company has defined taxonomy-eligible and taxonomy-
aligned economic activities and evaluated the
regulatory compliance of the information provided.
Helsinki, February 6, 2025
Ernst & Young Oy
Authorized Sustainability Audit Firm
Toni Halonen
Authorized Sustainability Auditor
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
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Independent Auditor’s Report on the ESEF Consolidated
Financial Statements of Konecranes Plc
(Translation of the Finnish original)
To the Board of Directors of Konecranes Plc
We have performed a reasonable assurance engagement on
the financial statements 549300EF0CDEQZBMA096-2024-
12-31-fi.zip of Konecranes Plc (y-identifier: 0942718-2) that
have been prepared in accordance with the Commission’s
regulatory technical standard for the financial year ended
December 31, 2024.
Responsibilities of the Board of Directors
and the Managing Director
The Board of Directors and the Managing Director are
responsible for the preparation of the company’s report
of Board of Directors and financial statements (the ESEF
financial statements) in such a way that they comply with
the requirements of the Commission’s regulatory technical
standard. This responsibility includes:
• preparing the ESEF financial statements in XHTML format in
accordance with Article 3 of the Commission’s regulatory
technical standard
• tagging the primary financial statements, notes and
company’s identification data in the consolidated
financial statements that are included in the ESEF financial
statements with iXBRL tags in accordance with Article 4 of
the Commission’s regulatory technical standard and
• ensuring the consistency between the ESEF financial
statements and the audited financial statements
The Board of Directors and the Managing Director are also
responsible for such internal control as they determine
is necessary to enable the preparation of ESEF financial
statements in accordance the requirements of the
Commission’s regulatory technical standard.
Auditor’s Independence and Quality Management
We are independent of the company in accordance with
the ethical requirements that are applicable in Finland and
are relevant to the engagement we have performed, and we
have fulfilled our other ethical responsibilities in accordance
with these requirements.
The firm applies International Standard on Quality
Management (ISQM) 1, which requires the firm to design,
implement and operate a system of quality management
including policies or procedures regarding compliance with
ethical requirements, professional standards and applicable
legal and regulatory requirements.
Auditor’s Responsibilities
Our responsibility is to, in accordance with Chapter 7, Section
8 of the Securities Markets Act, provide assurance on the
financial statements that have been prepared in accordance
with the Commission’s technical regulatory standard. We
express an opinion on whether the consolidated financial
statements that are included in the ESEF financial statements
have been tagged, in all material respects, in accordance
with the requirements of Article 4 of the Commission’s
regulatory technical standard.
Our responsibility is to indicate in our opinion to what
extent the assurance has been provided. We conducted
a reasonable assurance engagement in accordance with
International Standard on Assurance Engagements (ISAE)
3000.
The engagement includes procedures to obtain
evidence on:
• whether the primary financial statements in the
consolidated financial statements that are included in
the ESEF financial statements have been tagged, in all
material respects, with iXBRL tags in accordance with the
requirements of Article 4 of the Commission’s regulatory
technical standard and
• whether the notes and company’s identification data in
the consolidated financial statements that are included
in the ESEF financial statements have been tagged, in all
material respects, with iXBRL tags in accordance with the
requirements of Article 4 of the Commission’s regulatory
technical standard and
• whether there is consistency between the ESEF financial
statements and the audited financial statements.
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Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
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The nature, timing and extent of the selected procedures
depend on the auditor’s judgement. This includes an
assessment of the risk of material deviations due to fraud or
error from the requirements of the Commission’s technical
regulatory standard.
We believe that the evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Opinion
Our opinion pursuant to Chapter 7, Section 8 of the Securities
Markets Act is that the primary financial statements, notes
and company’s identification data in the consolidated
financial statements that are included in the ESEF financial
statements of Konecranes Plc 549300EF0CDEQZBMA096-
2024-12-31-fi.zip for the financial year ended December
31, 2024, have been tagged, in all material respects, in
accordance with the requirements of the Commission’s
regulatory technical standard.
Our opinion on the audit of the consolidated financial
statements of Konecranes Plc for the financial year ended
December 31, 2024, has been expressed in our auditor’s
report on February 6, 2025. With this report we do not
express an opinion on the audit of the consolidated financial
statements nor express another assurance conclusion.
Helsinki, February 26, 2025
Ernst & Young Oy
Authorized Public Accountant Firm
Toni Halonen
Authorized Public Accountant
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Remuneration Report
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
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Name of reporting entity or other means of identification Konecranes Oyj
Domicile of entity Finland
Legal form of entity Oyj
Country of incorporation Finland
Address of entity's registered office Koneenkatu 8, 05830 Hyvinkää, Finland
Principal place of business Hyvinkää
Description of nature of entity's operations and principal activities
Name of parent entity Konecranes Oyj
Name of ultimate parent of group Konecranes Oyj
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Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024
Shares and shareholders
Number of shares
and votes
% of shares
and votes
1 Solidium Oy 8,793,123 11.1%
2 Varma Mutual Pension Insurance Company 2,542,201 3.2%
3 Gustavson Stig and family* 2,366,157 3.0%
4 Ilmarinen Mutual Pension Insurance Company 2,327,049 2.9%
5 Elo Mutual Pension Insurance Company 1,203,000 1.5%
6 Oras Invest Ltd 1,129,000 1.4%
7 Evli Funds 1,007,815 1.3%
8 OP Funds 963,911 1.2%
9 Nordea Funds 751,966 0.9%
10 The State Pension Fund 730,000 0.9%
Ten largest registered shareholders' total ownership 21,814,222 27.5%
Nominee registered shares 39,151,540 49.4%
Other shareholders 18,243,356 23.0%
Shares held by Konecranes Plc 12,788 0.0%
Total 79,221,906 100.0%
Shares
Number of
shareholders
% of
shareholders
Number of
shares
and votes
% of shares
and votes
28,097 61.7% 1,079,259 1.4%
15,346 33.7% 5,038,381 6.4%
1,885 4.1% 4,822,175 6.1%
131 0.3% 3,429,994 4.3%
27 0.1% 7,636,406 9.6%
7 0.0% 18,064,151 22.8%
Registered shareholders total 45,493 100.0% 40,070,366 50.6%
Nominee registered shares 11 0.0% 39,151,540 49.4%
Total 45,504 100.0% 79,221,906 100.0%
Change in share-
holding in 2024
Number of
shares owned
% of shares and
votes
Board of Directors -13,914 20,374 0.0%
Group Executive Board 8,626 164,987 0.2%
Total -5,288 185,361 0.2%
% of shares
and votes
Public sector organizations 20.1%
Households 16.4%
Financial and insurance institutions 5.4%
Non-profit organizations 4.2%
Private companies 3.9%
Foreigners 0.7%
Nominee registered shares 49.4%
Total 100.0%
According to the register of Konecranes Plc’s shareholders kept by Euroclear Finland Oy, there
were 45,504 (2023: 53,043) shareholders at the end of 2024.
Largest shareholders according to the share register on December 31, 2024
Shares owned by the members of the Board and of Directors and of the Group Executive
Board on December 31, 2024
Breakdown of share ownership by number of shares owned on December 31, 2024
Breakdown of share ownership by shareholder category on December 31, 2024
* Konecranes Plc has on December 28, 2011, received information according to which the Chairman of the
company’s Board of Directors Stig Gustavson has donated all of his shares in Konecranes Plc to his near
relatives retaining himself for life the voting rights and right to dividend attached to the donated shares. The
donation encompassed in total 2,069,778 shares.
Source: Euroclear Finland Oy, December 31, 2024.
Important Notice
The information in this document contains forward-looking statements, which are information on Konecranes’ current expectations and
projections relating to its financial condition, results of operations, plans, objectives, future performance and business. All statements other than
statements of historical fact included herein are forward-looking statements including, without limitation, those regarding:
• expectations for general economic development and market situation,
• expectations for general developments in the industry,
• expectations regarding customer industry profitability and investment willingness,
• expectations for company growth, development, and profitability,
• expectations regarding market demand for Konecranes’ products and services,
• expectations regarding the successful completion of acquisitions on a timely basis and Konecranes’ ability to achieve the set targets and synergies,
• expectations regarding competitive conditions and
• expectations regarding cost savings.
These statements may include, without limitation, any statements preceded by, followed by or including words such as “target,” “believe,”
“expect,” “aim,” “intend,” “may,” “anticipate,” “estimate,” “plan,” “project,” “will,” “can have,” “likely,” “should,” “would,” “could” and other words
and terms of similar meaning or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and
other important factors beyond Konecranes’ control that could cause Konecranes’ actual results, performance or achievements to be materially
different from the expected results, performance or achievements expressed or implied by such forward-looking statements. Such forward-
looking statements are based on numerous assumptions regarding Konecranes’ present and future business strategies and the environment in
which it will operate in the future.
Information in this document, including but not limited to forward-looking statements, applies only as of the date of this document and is not
intended to give any assurances as to future results.
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Remuneration Report
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Report of the Board of Directors
Sustainability statement
Consolidated financial statements (IFRS)
Consolidated statement of income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
Notes to the consolidated financial statements
Financial statements of the parent
company (FAS)
Board of Directors’ proposal to the Annual
General Meeting
Auditor’s report
Shares and shareholders
CORPORATE GOVERNANCE
FINANCIAL REVIEW 2024