2023: Strategy for a green supply chain

As the first automotive company, Scania introduced an industry-leading strategy to significantly remove supply chain emissions. The company set targets for 100 percent green purchases of steel, batteries, aluminium and cast iron for its European operations by 2030. These four material areas constituted around 80 percent of carbon emissions arising from Scania’s production materials. Scania’s definition of “green” aimed at eliminating the main sources of emissions by utilising new technologies, green electricity and/or recycled material.

Scania announced this transformative move, in close collaboration with suppliers and partners. The reason for implementing green purchasing requirements was a question of making sustainable transport a reality and to ensure access to low-carbon material in a rapidly increasing competition.

Requirements on technologies mentioned was from 2023 set to be on the table in negotiations of future contracts as well as in reviews of existing ones regarding deliveries of these essential materials. This spring, Scania placed its first order of green steel from Stegra (formerly known as H2 Green Steel). In mid-November, a joint target was announced with SSAB to decarbonise all current steel deliveries in 2030. The plan was to extend the scope of the decarbonisation target to eventually cover the entire global supply chain.