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As a global company, our operations affect the lives of millions of people every day. We’re committed to managing our impacts responsibly across our value chain, aiming for high environmental, social and ethical standards in everything we do.
At Scania, change starts at home. To drive the shift in the wider transport industry, we need to make sure we are conducting our own business responsibly, in line with our core values and international standards.
Scania is a global company working on five continents, with customers in more than 100 countries. Every day, our operations and products impact millions of people, both directly and indirectly. For Scania, being a responsible business means understanding and managing these impacts across every stage in our value chain, from the way we source materials all the way through to the end-of-life phase of our products.
Scania’s aim is to integrate sustainability in the normal processes and in all decision-making. Scania has identified three key areas that needs to permeate all parts of our business going forward: reducing CO2 emissions, circular business and people sustainability. These key areas are directly linked to our most significant impacts, and are aligned with the priorities of our stakeholders and the opportunities we see in the future. Setting high standards and working towards our targets across these areas will increase our ability to be leaders in the shift towards a sustainable transport system.
Reducing CO2 emissions
CO2 emissions are our main environmental impact, and the area where we can make the biggest contribution to sustainable development. To manage our climate impact, we are committed to reducing emissions throughout our entire value chain and across all relevant scopes.
To scale up our efforts, we have recently committed to setting science-based targets for CO2 reduction.
We use the term circular business to define what circular economy means for Scania and we recognise the importance of circularity in maximising value and minimising carbon emissions along the value chain. We have started the journey to promote circular business across our organisation. This journey includes exploring innovative business models, developing products that are designed for life, maximising the use of resources and energy, maintain value as far as possible in our products and to promote recycling when the product life can no longer be extended.
Our business operations impact the lives of people every day, both within our own company and across our entire value chain. For Scania, people sustainability is about identifying and managing these impacts, in order to mitigate the negative and increase positive ones.
Scania is a signatory to the United Nations Global Compact, which means that we have committed ourselves to environmentally and socially responsible practices globally.
Scania recognises UN’s Agenda 2030 and its 17 goals for sustainable development (SDGs) as a key guidance for sustainable development. Advances in transport will play an integral role in achieving the Agenda 2030 and Scania strives for alignment with the SDGs when setting strategic and operational targets.
Managing our life cycle impacts
The life cycle of every Scania product has a number of stages, beginning at research and development and running all the way through to end-of-life. By integrating responsible business practices at each of these stages, we can minimise social and environmental impacts across our products’ full life cycle.
Research and development
Scania invests around SEK 7.2 bn in R&D, and an increasing part of that investment focuses on making the transport system safer and more sustainable for society as a whole. We’re also focused on understanding and managing the impact of the materials our products are made of. This includes promoting a circular approach in our designs, as high-quality solutions as possible for as long as possible but also ensuring that more of the materials and components we use are recycled and recyclable.
With more than 1,000 direct and 10,000 indirect suppliers, managing our sourcing impacts calls for a structured approach. Scania requires its suppliers, to for example maintain high social and labour standards for their employees, while minimising their environmental impact. We work with our suppliers to help them improve their sustainability performance through customised audits and training. We also work together in partnerships, to improve for example traceability of material. This area will be increasingly important going forward, as new technologies such as electrification may increase our environmental and social sourcing impact.
Scania has an extensive logistical network including inbound flows (materials and parts coming to Scania from our suppliers), and outbound flows (Scania vehicles and components being delivered to customers all over the world). Promoting responsible transport buying is part of our core business, and we aim to lead by example and set the benchmark for sustainable logistics. We are committed to continuously improving our logistical flows to eliminate waste, improve energy efficiency and reduce CO2 emissions, while also working to promote fair working conditions for drivers.
Scania produces hundreds of vehicles every day and has around 19,000 people working in our production facilities worldwide. We operate according to the Scania Production System, which drives us to reduce the environmental impact of production by using energy efficiently, reducing CO2 emissions, minimising waste and managing chemicals and water resources responsibly. We’re committed to ensuring that our production facilities are safe, healthy environments to work in.
Our sales staff work with our customers to ensure that their vehicles are optimised for their specific transport assignment and to address the products’ environmental impact. This includes offering a non-diesel product option in every quotation, where possible. The sustainable transport solutions we provide are based on three pillars: energy efficiency, renewable fuels and electrification, and smart and safe transport.
The emissions produced by Scania’s products during their use represent their biggest life cycle impact, accounting for 96 percent of our total carbon footprint across our value chain. We’re focused on driving down the carbon footprint of our vehicles while they are in use through energy efficient drivetrains, promoting the adoption of renewable fuels, and introducing cleaner technology such as electrification. We also provide training for drivers on energy-efficient driving techniques that further reduce fuel consumption and emissions.
A well-maintained vehicle performs more efficiently and has fewer environmental impacts. More than 12,000 employees work in our service network and through services such as Scania Flexible Maintenance, we are helping tens of thousands of customers to maximise their uptime and to be as efficient as possible in their operations. Scania Zone gives traffic-planners and drivers the ability to pre-programme vehicles to follow local traffic regulations automatically, improving efficiency and road safety. Other Scania services support our circular approach – for example, by giving faulty or worn parts a second life through remanufacturing.
End of life
Scania aims to promote a circular life cycle, where parts and materials from Scania products at the end of their life are reused and recycled. We provide guidelines for end-of-life treatment and dismantling to help us close the loop. Remanufacturing, the collection of faulty or worn parts which are remade and sold again, also plays a key role moving forward.