Our ambitious science-based carbon targets are integral to our business strategy.
Our carbon targets
Our carbon targets commit us to reducing our total carbon footprint at the scale and pace required by the Paris Agreement. In May 2020, the targets were formally approved by the Science Based Targets initiative, making Scania the world’s first heavy commercial vehicle manufacturer to officially adopt science-based carbon reduction targets.
The targets are far-reaching because they commit us to reducing our total value chain carbon impact not only of our own operations, but of our vehicles while they are in use by our customers. Our two targets commit us to reducing carbon emissions from our operations by 50 percent, and from our products in use by 20 percent by 2025 (both from a 2015 baseline).
Focusing on our biggest impacts
To calculate the climate impact from Scania the Green House Gas Protocol (GHG Protocol) is used. The GHG protocol is the most commonly used global standard to measure greenhouse gas (GHG) emissions. The GHG protocol divides a company’s emissions into three scopes.
Scope 1 and 2 emissions
The direct carbon emissions from our own operations such as burning of fossil fuels for heating, engine testing, and emissions from company vehicles is considered Scope 1, and indirect emissions generated by purchased energy, heat, and steam are considered Scope 2 emissions.
Our 50 percent science-based target covers all our Scope 1 and Scope 2 emissions and is ambitious enough to be aligned with a 1.5-degree scenario – the most stringent decarbonisation scenario according to Science Based Targets Initiative.
Scope 3 emissions
The indirect emissions stemming from the value chain both upstream and downstream are considered Scope 3. These include all emissions generated from the production of parts in the supply chain to the use of our products and all the way to end of life.
Of the impacts related to our indirect downstream activities, the 20 percent science-based target is focusing on the user phase of our trucks and buses, which accounts for more than 90 percent of our total carbon footprint. According to the Science Based Targets initiative, this target is far-reaching and aligned with the most ambitious decarbonisation scenario developed by the initiative.
Well-to-wheel vs tailpipe emissions
Scania takes a well-to-wheel approach to measuring carbon emissions from the vehicles in use. This takes into account carbon impacts across the value chain, starting with the production and distribution of fuel or electricity, all the way up to the tailpipe emissions from the vehicles while they are in use. While tailpipe emissions provide the legal minimum scope for assessing vehicle carbon impacts, we believe that measuring well-to-wheel impacts gives a more accurate, transparent picture of the total carbon footprint of our customers’ vehicles. For example, although natural gas and biogas produce roughly the same tailpipe emissions, we can see that the global carbon impact of biogas is significantly better than natural gas based on well-to-wheel emissions.
How we will reach our targets
To achieve our Scope 1 and 2 target we are focusing on three areas. Firstly, we will eliminate energy waste through continuous improvements in a number of areas. Secondly, we will improve energy efficiency by optimising heat, ventilation, and lighting in our production processes. Finally, we will switch to fossil-free forms of energy and electricity to power our operations.
Our products in use
Reducing emissions from our vehicles in use will depend on a combination of improving the efficiency of conventional powertrains and increasing the use of renewable fuels, while also increasing the share of electrified vehicles.
Although electrification is critical to our overall decarbonisation journey, our new powertrain range will play a key role in accelerating progress towards our targets in the short term, by providing a major increase in fuel efficiency.
These measures will be supported by other initiatives and services that further reduce carbon emissions, both in conventional and electrified vehicles. These include customised driver training to improve energy efficiency, enhancing our vehicle specifications, and creating new models for supplying green electricity and renewable fuels to our customers.
Delivering on our purpose
Our carbon targets are integral to our business strategy. They will accelerate the transformation of our business, and support in defining our priorities to deliver on our purpose of driving the shift.
The targets are a part of our corporate targets and will steer our business decisions from this point forwards. Achieving these targets will require coordinated action across our entire organisation, as well as close collaboration with our customers and other partners across the transport ecosystem.