KONE Sustainability Report 2017

KONE 2017 | SUSTAINABILITY REPORT Driving innovation and improving resource efficiency 21 Logistics 50% Vehicle fleet 30% Electricity and district heat 11% Business air travel 5% Heating fuels and cooling gases 3% Waste 1% Logistics amounts to 50% of KONE’s operational greenhouse gas emissions 30% of all electricity consumption at KONE facilities is green electricity produced from renewable sources. 100% of the electricity consumed at KONE’s corporate head offices and its manufacturing and R&D sites in Finland, Italy, and the Netherlands is green electricity. Other KONE units that purchase green electricity are our Austrian, Belgian, Danish, Dutch, German, Italian, Norwegian, Swedish, and Swiss country organizations. In addition, we have some onsite renewable energy production in the U.S., Italy, Norway, Finland, and China. is the increase of kilometers driven, which in turn results from an increased number of elevators, escalators and automatic building doors under KONE maintenance contracts. We continuously search for new and innovative ways to reduce the carbon foot- print of our vehicle fleet. We have been fur- ther exploring the use of alternative fuels and planning for the long-term (2030) restructuring of our vehicle fleet compo- sition. Our aim is to shift from fuel cars to electric vehicles in our fleet as soon as the leasing contract renewal periods allow and the needed infrastructure is in place in those countries where we operate. Business air travel In order to reduce the need for travel and to facilitate global virtual collabora- tion, KONE continues to invest in better online meeting solutions and video con- ferencing equipment. In addition, KONE carefully considers the need for travel in the first place, and in the second place recommends optimizing the locations of meetings and conferences. In 2017 vir- tual meeting time increased by 5% com- pared to 2016. This has been achieved by encouraging KONE personnel to use online meeting tools instead of travel. During the second half of 2017 KONE also issued strict travel restrictions, which are reflected in the significant reductions of our 2017 greenhouse gas emissions from business air travel. Electricity KONE is committed to reducing elec- tricity consumption in its operations and has set a long-term target to increase the share of green electricity to more than 50% by 2021. Electricity is used in KONE’s offices, warehouses, and manu- facturing facilities. The reported electric- ity/district heat emissions 34,100 tCO 2 e (2016: 34,100) take into account our usage of green electricity produced using renewable sources (market-based calcula- tion method). Without the use of green electricity (location-based method), our electricity/district heat carbon footprint would have amounted to 38,200 tCO 2 e (2016: 39,700). As positive developments we can see some emission reductions in North America and India. 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. KONE has strict require- ments concerning the eco-efficiency of its service providers’ operations. KONE’s big- gest logistics service providers have ambi- tious environmental programs, and KONE as a customer enjoys the achievements of these programs. Read a case story on how we work with DHL on p. 42. Vehicle fleet The total size of KONE’s fleet during 2017 was around 16,900, out of which 15,900 (94%) were in the scope of KONE’s envi- ronmental reporting globally. Service vehi- cles made up in total two thirds of the fleet while benefit cars accounted for the rest. The reporting scope, covering 26 coun- tries, was extended during the year by adding Greece, Hong Kong, the Philip- pines, Russia as well as some employee benefit cars from our Italian manufacturing unit to the scope (impact altogether 1,900 tCO 2 e). The main reason for the increased carbon footprint related to the vehicle fleet 225 hybrid cars on the road in the United States.