We expect high ethical standards of ourselves and our business partners

Responsible business conduct is the foundation of how we operate. We are committed to conducting our business with integrity and high ethical standards beyond mere legal compliance requirements. We have a holistic approach to managing risks as well as mitigating negative and maximizing positive impacts. We embed sustainability, compliance and ethical requirements in our business processes and follow strong governance.

Embedding sustainability, compliance and ethical requirements in our business processes


At Konecranes, we see responsible business as a business enabler and therefore it is embedded into our strategy, governance model and company policies and processes. To understand our sustainability-related impacts, risks and opportunities, we do regular assessments and risk analyses. We take actions to prevent and mitigate impacts and accelerate opportunities and provide remediation when appropriate. We track how we’re doing by monitoring our progress through various key performance indicators, or KPIs, audits, assessments and Whistleblowing Channel and oversee the findings in relevant forums. Finally, we engage with our own employees, customers, investors and suppliers through various channels to understand their views.

 

Core elements of sustainability due diligence

 


 

Ethical business conduct

Our global Compliance & Ethics Program promotes a culture of integrity through clear policies, continuous risk assessments, and strong internal controls that help prevent and detect unethical behavior. Our Code of Conduct and group-wide policies set consistent expectations for all employees worldwide, covering areas such as safety, environmental responsibility, anti-corruption, data protection, competition law, equal treatment and diversity. We also expect our suppliers and distributors to follow the same high ethical standards outlined in our Codes of Conduct. 

Learn more about Ethical business conduct at Compliance & Ethics page.

 

Key requirements for our suppliers

Konecranes sources materials and services globally through a network of around 22,000 Tier 1 suppliers. The purchases cover, for instance, steel, mechanical and electrical components, logistics services and subcontracted assemblies. While the broad supply network supports diverse product and service delivery, it also brings sustainability and climate related risks, such as the possible effects of climate change impacting Konecranes or our supply chain directly or indirectly.

Konecranes expects its suppliers and subcontractors to conduct their business in compliance with the same legal and ethical requirements and principles that Konecranes has set in its Code of Conduct. By the end of 2025, suppliers representing approximately 78 percent (2024: 68 percent) of our total procurement spend had signed to commit to the principles and requirements of Konecranes’ SCoC. 

Our supplier selection and onboarding follow a risk‑based know-your-supplier approach, where the depth of supplier screening and mandatory actions depend on the supplier’s risk profile. As part of this approach, we focus our screening efforts on suppliers with medium-to-high ESG risk. In 2025, 100% of the targeted new suppliers were screened using basic ESG criteria, helping us better assess and manage sustainability risks in our supply chain.

Further information can be found in our Sustainability Statement 2025.
 

Managing sustainability during the business relationship with suppliers

We work closely with our suppliers to ensure responsible and reliable operations for our customers.

As part of our ongoing due diligence, we continuously evaluate suppliers through screenings, assessments and audits. As part of the above-mentioned know-your-supplier process, we require selected, existing suppliers to conduct a regular background checking. Selected suppliers complete a comprehensive self assessment covering certificates, information security, data protection, trade compliance, ethics, labor practices, health and safety, and environmental performance.

In 2025, we carried out overall 131on-site supplier audits (2024: 180) out of which 105 were supplier audits conducted by Konecranes. Around 20% of audit checks conducted by Konecranes relate to our Supplier Code of Conduct requirements. Rest 26 were Supplier Code of Conduct (SCoC) audits conducted by third party auditor which concentrate particularly on evaluating our SCoC requirements and local regulations on the SCoC themes. During 2025, SCoC audits were done in China, India, Turkey, Indonesia, Thailand and Poland and those included approximately 400 findings, ranging from working hours, use of personal protective equipment, missing environmental targets and incomplete assessment of relevant anti-corruption risks. Konecranes requires all audited suppliers to provide corrective action plans after audits, and works with suppliers to close findings. If a supplier refuses to correct critical issues, we may suspend business or terminate the relationship.

During SCoC audits, an independent third party auditor carries out confidential worker interviews to ensure employees can share concerns openly and safely. 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.
 

Sourcing of responsible minerals

Although Konecranes is not legally required to follow EU or US conflict minerals regulations, we voluntarily conduct thorough supply chain due diligence in line with our Responsible Minerals Statement. Our goal is to ensure that tin, tantalum, tungsten and gold used in our products come from smelters and refineries audited to be conflict free, helping prevent contributions to human rights violations in high risk areas. We also expect our battery suppliers to source minerals such as cobalt and lithium responsibly and without human rights abuses.

As a member of the Responsible Minerals Initiative (RMI), we use an industry wide approach and support the auditing of additional smelters. We started our conflict minerals work with suppliers providing Konecranes designed electrical components and have gradually expanded our scope to cover a wider range of components., In 2025 we received a 53% response rate, our suppliers were identified to source materials from 282 tin, tantalum, tungsten or gold smelters or refineries, 31% of which were already verified or in the verification process to be conflict free. During 2026 we focus on improving the share of conflict-free certified processors.

Through continuous engagement, training materials, and supplier guidance, we encourage our partners to improve data quality and use minerals from audited sources, through RMI, we support additional smelters in going through auditing. This due diligence work also supports our broader efforts to reduce forced labor risks in mineral supply chains.
 

Acting on supply chain environmental impacts

We work closely with some suppliers to reduce environmental impacts across our value chain. Our upstream supply chain significantly contributes to our Scope 3 emissions, especially through steel. In 2025, we continued collecting supplier specific emission data, especially from steel suppliers, advancing to improve Scope 3 data quality, and monitoring developments in the low-emission steel market. Through our supplier engagement program, we strengthen our supplier cooperation on environmental topics, we support suppliers in understanding, reporting and ultimately reducing their own emissions, strengthening shared climate ambition across the value chain.

We ensure safe, compliant materials in our products through our annually updated Restricted Substances List, which applies to both our own operations and purchased components. We monitor regulatory developments related to substances, including per  and polyfluoroalkyl substances (PFAS), through our established product compliance and supplier declaration processes. In 2025, we continued work related to the EU Waste Framework Directive, which requires companies to report products containing certain REACH listed substances to the ECHA SCIP database. Lead remains the most common reportable substance in small amounts in specific components, and while regulations still permit its use, we actively encourage suppliers to move toward safer alternatives.

Following strong governance on sustainability, compliance and ethics

The Board of Directors is the highest body overseeing sustainability, and approves the long-term focus, ambition level and targets. The Konecranes Board of Directors’ Human Resources Committee is the official supervisory Board committee focusing on sustainability, and it reviews the sustainability strategy implementation and the performance against set targets, business strategy and values and incentive plans including ESG metrics. The Board of Directors’ Audit Committee oversees the Corporate Sustainability Reporting. Konecranes’ President and CEO holds the highest executive-level responsibility on sustainability. The President and CEO and Konecranes Leadership Team approve sustainability policies, strategy and targets and reviews sustainability performance monthly.

The Sustainability Council, nominated by the Konecranes Leadership Team and led by the Vice President, Sustainability, advises and assists in overseeing the sustainability strategy, ambition and performance, and 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, and follows risk and opportunity assessments and emerging trends and regulations. The Compliance & Ethics Committee, sponsored by the Executive Vice President, General Counsel, oversees the development and quality of the Compliance & Ethics Program.

In Konecranes’ organizational structure, the highest responsibility for operational sustainability work is with the Vice President, Sustainability.

Further information on sustainability governance and integration of sustainability-related performance into incentive schemes can be found in our Sustainability statement 2025 and Remuneration Report 2025.

To understand evolving needs and expectations, we engage in regular and close dialogue with our key stakeholders – including our employees, customers and distributors, shareholders and investors as well as suppliers and subcontractors. In addition, relevant stakeholders  that are important to Konecranes, include local communities and authorities, associations, universities and research institutes, trade unions, non-profit organizations (NGOs), rating agencies, analysts and the media. 

Transparency is key for building trust. We aim to communicate clearly and consistently, and ensure our sustainability agenda aligns with market expectations. We engage stakeholders globally through multiple channels and languages. The feedback we gather from our Voice of Customer (VoC) surveys and continuous stakeholder dialogue is essential when reviewing our agenda. Further information on interests and views of stakeholders can be found in our Sustainability statement 2025.

Konecranes wants to advance positive change in the communities where we operate and contribute to causes we believe in, following our donations strategy and Donations, Sponsorships and Marketing Cooperations Policy. Donation strategy focuses supporting science, the environment and humans in need. In accordance, we made three significant donations in 2025 to non-governmental organizations and scientific research. The recipients are the University of Helsinki, the John Nurminen Foundation and Save the Children. In addition, Konecranes’ local units made smaller donations to local communities. Beneficiaries of these donations included, for example, a charity supporting women subjected to domestic violence and a charity arranging events for fatally sick children and their families. 

Learn more about the donations in 2025 here: Konecranes donates EUR 300,000 to support science, protect the Baltic Sea and help children in Ukraine | Konecranes

The sum of donations made in 2025 in accordance with the authorization from the Konecranes Annual General Meeting was EUR 0.3 million. In addition to donations, some of our sponsorships support the communities near our sites, typically relating to sports or cultural events.