19 / 52
KONE 2016 | SUSTAINABILITY REPORT
ENVIRONMENT - OPERATIONS
19
Logistics
Logistics accounted for 149 ktCO
2
e (2015:
148), or 48% of KONE’s operational carbon
footprint, making it the biggest contributor in
terms of greenhouse gas emissions. KONE’s
logistics greenhouse gas emissions data has
been externally assured since 2013. In 2016
KONE’s logistics carbon footprint relative to
elevators and escalators delivered to customers
increased by 0.9%. The main reasons for
not meeting the 3% reduction target are
increased transportation distances from
KONE’s supply unit in China to customer sites
(average increase by 90 kilometers, impacting
a 2% increase to the overall result), increased
deliveries in the US (inbound road freight), and
increased share of ocean freight (in particular
export to distant countries) and air freight
deliveries from Europe and China. Emissions
from spares deliveries increased by 0.2%,
but this has been excluded from the relative
emission calculation. As positive developments
we can mention the reduction of relative
emissions from our GiantKONE supply unit
in China thanks to shortened transportation
distances, as well as reduced emissions from
local logistics deliveries, escalator deliveries,
and direct air freight shipments from suppliers
to customers.
The logistics data covers the transportation of
products from KONE’s manufacturing units
to customers and the transportation of those
modules that are delivered straight from our
suppliers to our distribution centers and onward
to customers. The relative logistics carbon
footprint excludes spare parts deliveries. During
the year, KONE delivered over 3.3 million
packages from distribution centers to installation
sites, and around 1.3 million packages of spare
parts from distribution centers to customer sites.
KONE has strict requirements concerning the
eco-efficiency of its service providers’ operations.
KONE’s biggest logistics service providers have
ambitious environmental programs, and KONE
as a customer enjoys the achievements of these
programs. From a reporting perspective, we
continuously improve our collaboration with
logistics service providers by further developing
our reporting methods and tools.
KONE’s logistics operations are based on
accurate and timely information at all phases
of the delivery chain, and on using distribution
models that take eco-efficiency into account.
Special attention is paid to reducing the impact
of transportation through route and shipment
optimization, as well as through careful analysis of
alternative transportation model.
How KONE reduces the environmental impacts of transportation
Development action
Impact on eco-efficiency
Optimized use of transportation networks.
Optimal routing of material through distribution
center network and selection of suppliers located
close to distribution centers.
Maximized use of railway transportation, mini-
mized use of air freight. Waterway transportation
also preferred over air freight.
Less CO
2
emissions per tonne-kilometer.
Improved space utilization ratio in loading.
Better load planning of outbound trucks and
containers resulting in improved container space
utilization, optimization of transportation units
used and more products delivered per shipment.
Centralized volumes to main suppliers, convenient
location of suppliers close to distribution centers.
Fewer transportation routes and improved trans-
portation efficiency ratio.
Use of more eco-efficient transportation
equipment.
Truck equipment selection from eco-efficiency
perspective. Requirement for Euro 4 trucks for
European logistics service providers (European
emission standard for vehicles).
How KONE reduces packaging-related emissions and waste
Development action
Impact on eco-efficiency
Optimized packaging to better fit into logistics
chain.
More products delivered per transportation unit.
Optimized use of packaging materials.
Less packaging material used, better waste
management, increased recyclability of materials.
Management and development of suppliers’
packaging.
Less packaging material used, better waste
management, improved logistics efficiency.
Did you know that the
domestic transportation
in three biggest countries,
China, the US and India,
together contribute to
almost half of KONE’s total
2016 logistics carbon
footprint?