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KONE 2015 | SUSTAINABILITY REPORT
ENVIRONMENT - OPERATIONS
26
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 equip-
ment.
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.
Logistics
Logistics accounted for 148 ktCO
2
e, 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 2015 KONE’s logistics
carbon footprint relative to units delivered
to customers increased by 1.0%. The main
reasons for not meeting the 3% reduction
target are increased intercontinental deliveries,
the ramp-up phase of the distribution center
in India, and the challenges posed by volume
growth in North America. 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 1.2 million packages of spare
parts from distribution centers to customer sites.
The biggest changes in KONE’s delivery chain in
2015 related to the further optimization of our
network of distribution centers. We moved the
existing North American distribution center in
Illinois to Ohio at the end of 2014 and saw the
benefits of this change during 2015. The new
Chengdu distribution center in China was also
fully operational during 2015. In Europe the
logistics flows between the distribution centers
were further enhanced according to optimization
calculations. Additionally, the first practical results
were visible from our latest IT systems update,
allowing us to route material from suppliers
to customers in a more optimal way. All these
actions have allowed KONE to limit the increase
in absolute emissions from logistics.
KONE has strict requirements concerning the eco-
efficiency of its service providers’ operations. From
the reporting perspective, we have improved
our collaboration with logistics service providers
by improving our reporting methods and tools.
During 2015 we also developed a new in-house
calculation system for our logistics emissions data.
Both the accuracy and coverage of greenhouse
gas emissions data collection and calculations
have thus been further improved during 2015.
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 models.
Read more
about our supply chain on p. 42.
ITALIAN MANUFACTURINg UNIT
CERTIFIED FOR EXCELLENT ENERgY
MANAgEMENT
KONE’s Italian manufacturing unit
has achieved the ISO 50001 Energy
management systems certification
as the second KONE unit in addition
to the Czech manufacturing unit
certified already in 2013. Receiving
the certification shows awareness of
and commitment to energy reduction
activities. Thanks to actions agreed
during the certification process such
as installing indoor and outdoor LED
lighting, acquiring a new chiller for
the offices, and improving the energy
efficiency of machinery use practices,
significant energy and monetary
savings have been achieved.
LEED PLATINUM FOR THE NEW
HEAD OFFICE OF FINNISH COUNTRY
ORgANIZATION
The office building housing the
new head office of KONE’s country
organization in Helsinki, Finland has
been awarded LEED Platinum green
building certification. In the design
phase, particular attention was placed on
energy- and cost-saving solutions, such
as placing solar panels on the roof of the
building. The building is also very well
located with direct access to multiple
public transportation routes. KONE Park
in Kunshan, China, the People Flow
Center showroom in Hyvinkää, Finland,
the KONE Centre in Moline, USA, and
ITEC in Chennai, India, have already
been certified earlier.