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Konecranes is reducing product-related emissions by addressing climate impact at the raw material stage. Steel sourcing and supplier collaboration play a key role in this work.
Let’s look at the numbers behind this pattern: Only approximately 1% of the total emissions originate from Konecranes’ own operations (Scope 1 and 2).1 The rest comes from the value chain (Scope 3), of which 67% from the use of its products. 27% of the value chain emissions originate from purchased goods and services, and here steel contributes the most as it is the main raw material used in the company’s products.1
According to the International Energy Agency and World Steel Association the iron and steel industrial sector is responsible for around 7% of global energy-related CO₂ emissions2. This is largely because conventional steel production still relies heavily on coal-based blast furnace routes. This makes steel a clear priority for climate action across many industries.
“Steel is essential to cranes and material handling solutions. It provides the strength, durability and reliability required in demanding industrial environments. But it is also a carbon-intensive raw material and the largest contributor to the carbon footprint of crane structures3. That is why raw materials, like steel, and their purchasing play a central role in our climate work,” says Helena Hartiala, Head of Climate Action at Konecranes.
Konecranes’ science-based climate target for Scope 3 emissions covers purchased steel raw materials and the use of sold products, with the aim of reducing these emissions by 50% by 2030 from the 2019 base year. By looking closely at the raw materials — especially steel — Konecranes can take concrete steps to reduce emissions in its value chain while continuing to deliver the same product safety, quality and performance customers expect. This also benefits Konecranes’ customers as they are able to reduce their value chain emissions, too.
Raw material purchasing is not only about securing availability, cost efficiency and technical specifications. It is also increasingly about understanding the climate impact of different material options and working with suppliers to make lower-emission alternatives available at scale.
This requires collaboration across sourcing, sustainability, product management, engineering and suppliers. This helps turn climate ambitions into practical decisions: identifying suitable suppliers, assessing material availability, verifying technical requirements, evaluating emissions data, product design, and commercial implementation.
At Konecranes, supplier engagement is an important part of this work. “We challenge steel suppliers to set ambitious climate targets and to move toward production methods with lower emissions. At the same time, Konecranes is working to increase the use of low-emission steel6 for selected product applications where it can deliver meaningful reductions,” says Helena.
Helena continues: “One concrete example is Konecranes’ low-emission steel girder option for selected crane configurations.4 The steel used in this option fulfills our criteria for low-emission steel: it is produced with a high share of recycled content, electric arc furnace technology and using fossil-free electricity.”
A crane’s largest lifecycle emission sources typically come from raw material production and the use phase, although the relative impact depends on the crane type and application. This means material choices can be part of a broader approach to reducing emissions alongside energy efficiency, product performance, maintenance and lifecycle value.
According to a cradle-to-gate lifecycle assessment case study of a specific overhead crane, using selected low-emission steel in the main girder instead of traditionally produced steel, the crane’s climate impact can be reduced by roughly 40%4. Compared to conventionally produced steel, this lowers the climate impact while maintaining the safety requirements, technical standards and functional expectations Konecranes’ customers expect. This in turn helps also customers in achieving their climate targets.
“Another example is increasing the use of low-emission steel in gears which are essential components in our equipment. By focusing on gear wheels and shafts, we have identified opportunities to reduce emissions related to raw materials,” says Helena.
For example, a 65% emission reduction was achieved in steel bar emissions, resulting in a 13% emission reduction for a full gearbox when taking into consideration raw materials and production (cradle-to-gate) compared to traditional steel.5
Lower emission steel is becoming increasingly available as steel manufacturers are investing in new production methods, renewable electricity, higher recycled content, hydrogen-based technologies and other solutions to reduce emissions. At the same time, industrial customers such as Konecranes can help create demand for lower-emission materials by integrating them into real products and customer offerings.
Purchasing decisions therefore have influence. They help signal to the market that lower-emission materials are needed, support suppliers investing in lower-emission production, and create practical pathways for customers to reduce material-related emissions in their own value chains.
“For Konecranes, this work is part of the company’s climate action activities that combines decarbonizing own operations, improving product energy efficiency, developing low-carbon offerings and collaborating across the value chain. Raw materials are an important part of that bigger picture,” says Helena.
Reducing material-related emissions is a complex challenge, but every step matters. By focusing on high-impact raw materials such as steel, strengthening supplier collaboration and making lower-emission options available in selected product applications, Konecranes can make a difference.
Helena concludes: “As availability, technology and customer demand continue to evolve, Konecranes will keep exploring opportunities to expand the use of low-emission materials and support customers in reducing the environmental impact of their operations — without compromising safety, quality or performance.”