Scania is a global company working on five continents, with customers in more than 100 countries. Our operations and products have far-reaching impacts on people, society and the planet. We are committed to managing these impacts responsibly across our value chain.
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.
Actions towards fossil-free operations
Our science-based target to reduce carbon emissions from our own operations by 50 percent is key to our internal decarbonisation journey.
One underlying target that will help us achieve the science-based target is the commitment to sourcing 100 percent fossil-free electricity for all of our production sites. In 2020, we met that target. All ten of our production sites worldwide are now powered by fossil-free electricity. Together, the ten plants consume nearly 450,000 MWh annually. The transition to fossil-free electricity will save around 33,000 tonnes of CO2 every year.
While this is a major achievement, our truck cab production site in Oskarshamn has gone even further. In addition to fossil-free electricity supplying the facilities general energy needs, the complete site is now powered by fossil-free fuels, including its seven paint shop ovens. That makes Oskarshamn the first Scania production site to be 100 percent fossil-free also contributing to a reduction of around 12 percent of the total CO2 emission from Scania production.
During 2020 Scania also reworked our biggest inbound logistics flows with great results. In the flow between Meppel and Angers, a CO2 reduction of 59 percent is achieved.
Circular thinking is also key in reducing CO2 emissions. We have a target to ensure that 80 percent of the plastic in our inbound packaging is made from recycled or bio-based plastic by 2025.
Scania is committed to respecting human rights in our operations and in our supply chain, in line with the UN’s Guiding Principles on Business and Human Rights. Human rights include issues that have been core to Scania’s operations for decades, such as a commitment to safety and health and high standards for rights at work. In 2020, Scania launched a new global Employment Policy, setting out our global ambitions as an employer within areas such as working hours, family responsibilities, and work-life balance.
We are striving to integrate human rights into decision-making and to work in partnerships, increasing our leverage to uphold high standards globally. In 2020, Scania launched a Human Rights Policy to guide Scania on this journey and creates a clear commitment to do this in dialogue with our stakeholders.
Legislation for mandatory human rights due diligence is evolving rapidly through national and international initiatives. In 2020, we joined the multi-stakeholder campaign Visa Handlingskraft, encouraging an aligned approach to mandatory Human Rights Due Diligence at an EU-level.
Scania sources materials, parts and other resources from around 1,000 direct and more than 10,000 indirect suppliers around the world. We are committed to assessing and mitigating human rights risk throughout our supply chain. Working with our partners in the Volkswagen Group, we have developed a group-wide approach that increases our leverage and ensures greater transparency on human rights challenges. As part of this approach, the Volkswagen Group has a joint management system for sustainability rating for suppliers. In 2020 a management system for raw materials was established. In 2021 the approach will be completed with a system for human rights due diligence covering other materials outside the raw materials scope.
Understanding the impact of raw materials
The lack of reliable data around the impact of raw materials is one of the main barriers to responsible sourcing
in our sector. To address this challenge, we have been working alongside our partners in Drive Sustainability to develop the Raw Materials Observatory: a process for assessing risks and increasing transparency in the raw material supply chains. The results of the first round of raw material assessments were presented in the Material Change report, commissioned by Drive Sustainability. Based on this assessment, a raw material human rights management system was created within the Volkswagen Group. Working together increases our capacity to obtain transparency in the supply chains and our ability to mitigate the risks.
Being a trusted partner
Driving the shift depends on building partnerships based on trust and credibility. To earn that trust, it’s essential that we act with integrity and to the highest ethical standards.
Scania’s standards for business ethics are set out in our Code of Conduct. Together with our core values and our leadership principles, the Code of Conduct provides the ethical framework that guides all our decisions as a business. The function Group Compliance advises the Scania organisation on business integrity matters globally. It also manages a comprehensive business ethics programme, including a new tool and process for due diligence of sales intermediaries. Group Compliance as a global function has the role to advise, train and see to that the organisation is equipped to uphold these standards.
Highlights from 2020 include the Responsible Business Week in Brazil, an event raising awareness of the importance of conducting responsible business for sustainable development. Topics from several functions were discussed during the event, ranging from anti-corruption and competition law compliance to diversity and inclusion, harassment, and data protection. We also continued our global roll-out of Code of Conduct training, which is now available in 34 languages.