Sustainability

Cramo Care – Our strategic approach to sustainability

In 2018, we made progress on many fronts of sustainability. We increased the sustainability focus in our value chain, looking at the different parts from a sustainability perspective. The value chain perspective will be in focus going forward, providing us with a framework for moving towards a circular rental process. A special focus was also put on our people – our measures included launching of our people promise, We are Shapers, with the ambition to increase employee engagement and strengthen Cramo’s employer brand. We also established the Cramo Development framework, which is our way of developing and ensuring key competences among our employees. Our sustainability work thus far was also recognised when Cramo was named the joint winner of the European Rental Association’s Sustainability Committee Award.

Cramo Care sustainability programme

Cramo Care is our strategy for integrating sustainability, step by step, into all parts of our business and is based on Cramo’s values Credibility, Creativity and Commitment. Our ambition is to lead the way in advancing sustainability in the rental industry and to meet the requirements of our stakeholders and of internationally agreed standards.

Integrating sustainability into our business

Our sustainability strategy is in line with and mutually supportive of our business strategy, which is aimed at strengthening our long-term focus from the perspective of all our stakeholders.

Sustainability has a direct impact on our internal value creation through growth, return on capital and risk management. It also generates value for our customers and other stakeholders, leading to greater cost-effectiveness, to improved access to products with the highest safety and environmental standards and to a reduced environmental impact.

The key elements of our Cramo Care strategy are:

#1 Cramo as an active shaper of the rental industry, a driver of the sharing economy.

Responsible sharing is the core of our business. Our ambition is to play an active role in developing sustainable rental solutions, enabling our customers to provide safe working environments, cut their energy use, reduce their climate impact and minimise waste.

#2 Value creating targets include both financial and non-financial objectives.

Our key performance indicators and value-creating targets allow us to monitor and continuously improve our performance and to meet the requirements of our customers, investors, employees and other stakeholders.

#3 Overall responsibility lies with Group Management, whereas operational responsibility and employee engagement lie with country managers.

Cramo Group Management has overall responsibility for the Cramo Care strategy and sustainability policies. Country managers are responsible for their implementation and integration at the country level.

#4 Relevance and continuous improvement are strengthened through an active dialogue with all stakeholder groups and partnership development initiatives with front-line actors.

Strategic partnerships with leading experts and our stakeholders put us at the forefront in developing sustainable rental solutions.

Cramo Care material aspects

Strategic targets
  Strategic target Target Outcome 2018 Outcome 2017 Outcome 2016 Status1
Customer Care Most satisfied customers in the industry CSI2 steady over 70 75 73 72  
Employee Care Zero accidents LTIR3 <5 by 2020 9.5 9.9 13.7  
Environmental Care Zero emissions CO2e emissions, scope 1 and 24 relative to sales (tonnes/ MEUR), >20% decrease by 2020 vs 2016 15.6 tonnes/MEUR 17.5 tonnes/MEUR 18.4 tonnes/MEUR  
Social Care Top ranking in business ethics 0 legal proceedings (human rights, corruption, environment) 15 0 0  

1  CRAMO Joo nappula Taulukko On-going – excellent progress or Target achieved     CRAMO Vaiheessa nappula Taulukko On-going – on track     CRAMO Ei nappula Taulukko On-going – not on track
2 All units, weighted average
3 Number of work-related accidents with at least one full day of absence / million working hours
4 A market-based method is used to calculate CO2e emissions from electricity.
5 In 2018, there was one case of sexual harassment reported in Cramo’s operations. The case was investigated by the company, which took actions, and was also heard in a court of law. The company was not a party in the legal proceeding.

 

Aiming to exceed stakeholder expectations

The foundation of Cramo Care is a materiality study that identified our stakeholders’ top priorities and our major impacts throughout the value chain. Our ambition is to exceed our stakeholders’ requirements.

Our biggest impacts occur beyond our direct control. Therefore, we have to work in partnership with suppliers, customers and other stakeholders to tackle these challenges and seize opportunities throughout the value chain.
Maria Karlsson
Vice President, Sustainability

Impacts throughout our value chain
  Major negative impacts Major positive impacts
1. Supply chain
  • resource use
  • environmental risks
  • health and safety risks
  • corruption risks
  • human rights risks
  • innovation focused on resource efficiency, increased circularity and improved safety
2. Cramo
  • resource use
  • health and safety risks
  • rental as a resource-efficient alternative to owning
  • improved safety
  • strong values and well-anchored ethical guidelines
3. Transportation
  • resource use
  • transport optimisation
4. Customer use
  • resource use
  • health and safety risks
  • corruption risks
  • resource efficiency
  • waste reduction
  • enabling safe working environments
5. End of life
  • waste
  • environmental risks
  • health and safety risks
  • corruption risks
  • human rights risks
  • innovation focused on increased circularity
  • controlled phase-out of outdated equipment

Since 2009, Cramo has been a signatory to the UN Global Compact, supporting the ten principles with respect to human rights, labour, environment and anti-corruption.

Efficient internal operations

Cramo Care establishes clear targets and ways to monitor performance and priorities. To uphold our commitment, and to ensure the quality and relevance of our solutions, we work for continuous improvement.

In 2017, we established a Group-wide structure of Cramo Care managers in every country. Together with the country managers and local specialist functions, Cramo Care managers work with local development and implementation of action plans based on our Cramo Care strategy.

Internal organisation, roles and responsibilities

Highest ethical standards

It is vital that our customers, investors, employees, suppliers and other stakeholders trust that we conduct business in an ethical, transparent and lawful manner. Everything we do has an impact.

This is why we make sure that day-to-day decisions are based on doing business properly and with integrity. This supports us in maintaining long-term relationships with our stakeholders.

Our Code of Conduct guides us in our daily work, with its focus on helping our employees make the right decisions. The code covers areas such as compliance with laws and policies, creation of safe, healthy workplaces, and our conduct as a responsible corporate citizen.

Cramo has also established a specific Code of Conduct for suppliers since we encourage our business partners to adhere to similar high ethical standards. Cramo prioritises long-term collaboration with suppliers. Most of our machinery and equipment is purchased from suppliers in Europe, the US and Japan.

See the full Code of Conduct and Supplier Code of Conduct

Transparent communication and anchoring

Our ethical guidelines are systematically communicated and anchored throughout the organisation. We train our employees in our values and strengthen our corporate culture with the objective of excelling in customer satisfaction.

Whistleblowing – following up on our Code of Conduct

Our whistleblowing mechanism provides a way for all our employees to report suspicions of misconduct, that is, actions not in line with our company values and which may harm individuals, the company or the environment. This is an early warning system to reduce risks and an important tool for safeguarding high corporate governance standards and maintaining customer and public confidence in our operations.

The system is provided by an external party, ensuring full anonymity for the whistle-blower. Any concern or issue reported is treated seriously, fairly and promptly. Possible investigations are carried out in a discreet, confidential manner by the Senior Vice President of Human Resource Development, the Vice President of Sustainability and the Director of Internal Audits.

Cramo aspires to lead the way in advancing sustainability in the rental industry and to continuously mitigate our impact across the value chain. Our rental solutions provide safe, resource-efficient options for our customers, enabling them to excel in meeting their stakeholders’ requirements and expectations.
– from the Cramo Care Policy

Implementation in 2018

Increased sustainability focus in our value chain

Cramo’s value chain is not linear, nor is it circular today. As a rental company we buy machines, equipment, site huts and modular space units from our suppliers. We own the items and units for several years, renting them out to customers for shorter or long periods. We provide repair and maintenance as well as refurbishing as part of our services, ensuring that our deliveries are always of high quality. After a number of years, we usually sell the items or units for further use outside Cramo.

In 2018, we increased the sustainability focus in our value chain, looking at the different parts from a sustainability perspective. The value chain perspective will be in focus going forward, providing us with a framework for moving towards a circular rental process.     

Non-financial targets included in the business planning and budgeting process

As part of the 2019 business planning and budgeting process, all local management teams have for the first time set local non-financial targets based on the Group targets. They have also developed action plans for reaching these targets, and all expected costs have been included in the local budgets.

Including non-financial targets in the business planning and budgeting process is an important step towards fully integrating sustainability into our business. It is an effective tool to speed up the implementation of Cramo Care.

Heading for a Group ISO certificate

In 2017, we started the process towards a Group ISO certificate, with a focus on quality, environmental improvements, and health and safety. The work continued in 2018 and is planned to be completed in 2020.

Reporting to the CDP

Cramo has been reporting to the CDP since 2013. In 2018, we received the score D, a result that we are not satisfied with.

To improve our way of monitoring and following up on our greenhouse gas emissions, we have implemented a new system that will be used to gather environmental data. The system gives us the opportunity to increase control of and thus further reduce our greenhouse gas emissions.

Cramo’s sustainability work acknowledged

In 2018, Cramo was honoured as the joint winner of the European Rental Association (ERA)’s Sustainability Committee Award. The Committee aims to support the rental industry in promoting the environmental benefits of rental and, in giving its reasoning for the award, noted that Cramo is at the forefront of developing a genuinely sustainable approach to rental.

Cramo’s CEO, Leif Gustafsson, was also named Best CEO in the Sustainable Rental Equipment Industry by European CEO, a leading subscription-based publication delivered quarterly to C-Suite executives in 28 European countries.

These awards are important recognition of our work and prove that we are on the right track with our Shape and Share strategy.

2019

Implementation of the Cramo Care strategy will continue. The work of setting a framework for our common management system and launching the process of incorporating all operations in a Group-wide ISO certificate will continue and be finalised in 2020. 

We will also continue to raise issues concerning sustainability and responsible sharing in the European Rental Association and other forums.