KONE Sustainability Report 2017

KONE 2017 | SUSTAINABILITY REPORT Driving innovation and improving resource efficiency 23 How KONE reduces the environmental impacts of logistics 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. Waterway and railway transportation prioritized 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 transpor- tation units used and more products delivered per shipment. Centralized volumes to main suppliers, convenient location of suppli- ers close to distribution centers. Fewer transportation routes and improved transportation 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). Improved logistics reporting. Continuous development of reporting methods and tools in collaboration with logistics service providers for optimal use of logistics data. 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, more effective waste management, increased recyclability of materials. Management and development of suppliers’ packaging. Less packaging material used, more effective waste management, improved logistics efficiency. How KONE reduces the environmental impact of its vehicle fleet Development action Impact on eco-efficiency Compliance with KONE vehicle fleet policy. Defines maximum CO 2 emission limits and encourages employees to select vehicles with lower CO 2 emissions for benefit cars. Selecting fuel-efficient vehicles. Fuel-efficiency and compactness are the main criteria when renewing our passenger and commercial vehicles. KONE cooperates with suppliers who comply with the Euro 6 emission standard for light passenger and com- mercial vehicles. The vehicle rightsizing program continued in 2017. KONE has continuously paid attention to selecting correctly sized commercial vans when replacing existing models. The proportion of compact and medium-sized vans in the global fleet continues to grow. Introduction of electric vehicles. To reduce CO 2 emissions in the long term, piloting full electric vehicles continued in Norway, France, the UK, and piloting hybrid electric vehicles continued in the United States and the Netherlands. In the US, KONE currently has 225 (2016: 145) hybrid sedans on the road, where in the Netherlands we have around 15 (2016: 15) hybrid vehicles. Driving performance. KONE monitors the driving performance, such as fuel efficiency and driving behavior, of its service drivers in several European countries and the US. Telematics systems are also in use in the UK and Sweden to increase driver safety and fuel efficiency. KONE also encourages vehicle sharing. Remote monitoring and mobile tools for technicians reduce the need for site visits.