Cargotec and SSAB have agreed to work on the introduction of fossil-free steel to the cargo handling industry, according to the company's release. The intent outlines that the companies will start coordinated development toward the use of SSAB’s fossil-free steel in Cargotec’s cargo handling equipment.
This is a strategic partnership for the benefit of both parties and end customers. It represents a significant milestone in moving toward a sustainable development and a fossil-free product offering.
Steel and steel components are the main contributors for CO2 footprint at Cargotec’s scope 3 (value chain) upstream emissions. The total CO2 footprint comprises upstream emissions, which account for over a third of Cargotec’s total emissions, emissions from own operations (scope 1 and 2), and emissions from the use-phase of the products (scope 3 downstream). Fossil-free steel has significantly lower environmental impact and hence, contributes towards a carbon neutral value chain. It has been estimated that steel demand will increase in the future and hence, meeting this demand requires development and usage of fossil-free steel alternatives.