In recognition of our changing business environment, as well as our commitment to sustainability and responsibility, Scania conducts a materiality analysis. This is done to understand where our biggest impacts are and what the most important areas for our stakeholders are, to improve how we do business.
Understanding what’s important
Scania’s materiality analysis is part of the company’s strategic work and continuous improvement philosophy. We continuously engage with our stakeholders, 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. Scania’s approach to materiality is based on three areas: impact, risk and science.
Material areas or issues for Scania are therefore always based on where and how big our impacts are (socially, environmentally and economically), where the risk for negative impacts lays and how it can be mitigated. Our assessments are to the greatest extent possible externally validated and based on the latest science. Our strategic focus is formed in dialogue with relevant stakeholders.
The analytical method
Scania has interactions with different stakeholders during the year through various channels and methods. Most of them are integrated in our regular work by for example ongoing dialogue with organisations, customers, suppliers and partners. Different steps have been taken each year to further improve our analyses and understanding.
In 2017 a new long list of topics where created and mapped against Scania’s ways of working with sustainability. The work was complemented with an online survey. 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 were held internally with relevant employees in different positions.
In 2018 the materiality analyses were complemented with details from our ongoing interactions with our stakeholders and a further connection with Scanias ongoing risk process where established.
During 2019 a major work started to develop Scania’s strategy ahead which included a major mapping of societal expectations, scenario planning and research on key areas.
During 2020 Scania’s new strategy was rolled out, where sustainability is placed at the core of the business strategy. Prioritised areas are decarbonisation, circular business and people sustainability, and development within these areas are done in dialogue with stakeholders.
The latest findings show that while the topics that for some years now have been part of Scania’s material areas still are valid we can see that the agenda is shaped by global sustainability influences such as the SDG’s, push for more transparency, lifecycle impact due diligence and more legal and voluntary frameworks. These different trends are impacting on our ways of working within each area. We can also see new and emerging areas that will need to be integrated in ongoing processes and ways of working. The division below concerns our strategic focus areas.
Scanias material areas:
Environment and decarbonisation
Sustainable transport through efficiency, Renewable fuels and electrification, Smart transport, internal emission, and resource efficiency., (CO2, water, energy, and waste).
Emerging areas are related to lifecycle assessments, climate risk, and environmental due diligence.
Safety and health, Diversity and inclusion, Human and labour rights, Responsible sourcing and business ethics and Road safety.
Emerging areas that we see are gaining importance is the social effects of sustainable transport, just transition, human rights due diligence and fair transport.
Value chain and Circular business
Supply and value chain emissions, Business development, Innovation and Partnerships.
The result shows that our focus areas are in line with our stakeholders’ expectations. The highlighted areas can be found throughout our annual and sustainability report and on our webpage, where we describe our actions and ways 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 more importantly, in our business plans and strategic direction.