In recognition of our changing business environment, as well as our commitments to sustainability and responsibility, Scania conducts a materiality analysis to understand where our biggest impact are and what the most important areas are for our stakeholders, to improve how we do business in the future.
Scania’s materiality analysis is part of the company’s continuous improvement philosophy. We engage with our stakeholders continuosly, including our partners, suppliers and customers, to find out what they believe are the most important subjects facing the transport industry as a whole and Scania as a company. Understanding our stakeholders’ views of their material considerations allows Scania to focus on the areas that matter and improve our cooperation. It also helps us to tailor our responses and supports us in getting our priorities right, as well as informing us on our reporting.
In our efforts to play a leading role in the shift towards sustainable transport while conducting our daily operations in a responsible and transparent manner, the analysis provides us with valuable input into important stakeholder expectations.
The analytical method
Scania has ongoing interactions with different stakeholders during the year through different channels and methods. Most of them are integrated in our regular work through for example ongoing dialogue with organisations, customers, suppliers and partners. To complement that picture an online survey was used for the materiality analyses during 2017. The participants included Scania customers, customers’ customers, suppliers and industry, capital providers, political decision-makers, regulators, non-governmental organisations, students, media and labour unions. While workshops was held internally with relevant employees in different positions. We used three overarching categories: Sustainable Transport, Responsible Business and Long-Term Business Value. The categories are based on Scania’s sustainability definition. The participants were asked to prioritise the areas in each category based on its importance to them but also to take the relative impact from the area into account.
In 2018 the analyses has been complemented with details from our ongoing interactions with our stakeholders.
During 2019 Scania has kept on developing our strategy ahead to prepare for the coming changes.
The results of the prioritisation by categories are shown below:
Energy efficiency, CO2 reductions and Smart transport are top priorities for our stakeholders, while alternative fuels and electrification also rank highly. These areas are also material to Scania in terms of possible impact since the main environmental impact from the vehicles comes from the user phase and are crucial areas moving forward.
A safe, healthy and productive work environment is of highest importance, together with human and labour rights, which has increased in importance. Responsible sourcing, Resource and energy-efficient operations, Integrity and Anti-corruption measures are also key focus areas, with circular economy growing also this year and a topic that we will put more focus on going forward.
Long term business value
Customer satisfaction has an unquestionable place in our stakeholders’ eyes, along with Business development, Innovation and Partnerships. Long term financial viability and Attraction and retention of employees were also deemed to be important from an internal perspective.
Complementing the picture we can see that the SDG’s are further influencing the agenda and that the areas that gained importance during 2018 have kept on being in focus during 2019 such as human rights and circular economy, we also see an even growing interest and focus on the climate area and CO2 reductions as that is the area where the transport industry have the biggest impact and therefore also the greatest opportunity.
The result of the exercise shows that our focus areas are in line with our stakeholders’ expectations. However Scania has identified that three key areas will grow even more in importance and needs to permeate all parts of business going forward. These are: CO2, Circular business and people sustainability. These areas are directly linked to our most significant impacts, and are aligned with the priorities of our stakeholders. The highlighted areas can be found throughout our annual and sustainability report and on our webpage, where we describe our actions and way of working to meet our stakeholders’ expectations.
Our future focus
Scania will broaden the materiality analysis during the coming years, to include a wider range of stakeholders and tap into their expectations on a more continuous basis. The materiality analyses will also be further integrated and connected with Scania’s risk process. The conclusions we draw from these interactions will guide our priorities, not only in the sustainability area, but even more importantly, in our business plans and strategic direction.