Responsible raw materials management
Raw materials are the basis of Scania’s industrial processes. We are committed to building products through responsible business by aiming for a supply chain which avoids harming people or the environment. However, mapping our products from mine to final assembly is a challenge due to the complexity and constant changes throughout the supply chain.
Scania believes transparency and cooperation are key words for positive change throughout our supply chain. We expect our suppliers to share responsibility with us by identifying and mitigating sustainability risks in the supply chain and by disclosing information on their supply chain to Scania at our request.
Responsible sourcing of raw material
Scania has implemented a Raw Material Due Diligence Management System (RMDDMS) based on criteria set out by the Organisation for Economic Cooperation and Development (OECD) in collaboration with the Volkswagen Group. This system serves to identify, assess and mitigate actual and potential human rights risks that may exist upstream in our raw material supply chains.
The RMDDMS has identified 18 high-risk raw materials in our products. The raw materials are connected to conflict minerals (tin, tantalum, tungsten and gold), battery raw materials (cobalt, lithium, graphite and nickel) and also aluminium, copper, cotton, leather, magnesium, mica, natural rubber, platinum-group metals, rare earth elements and steel. The work for each raw material includes human rights and environmental risk identification, assessment, mitigation, follow-up and reporting. The 2024 annual Responsible Raw Material Report can be found here.
The electrification of the transport sector brings with it environmental benefits but also challenges in terms of how it impacts other areas of the value chain. These include the social and environmental impacts relating to the extraction of the raw materials that are needed to manufacture batteries. Mining for battery materials such as cobalt and lithium has an impact on the neighbouring environment and communities and has been linked to poor working conditions and human rights abuses such as child labour. At Scania, we are committed to respecting human rights and the environment in our transition to electric transport.
Furthermore, to promote the responsible sourcing of raw materials and responsible mining practices, Scania and the wider Volkswagen Group joined the Initiative for Responsible Mining assurance (IRMA) in 2022. IRMA is an alliance of enterprises, mining companies and non-profit organisations that work to establish clear standards for improved practices in industrial mining.
Approach to conflict minerals
Scania is committed to the responsible sourcing of minerals from conflict, conflict-affected and high-risk areas, with particular focus on the metals tantalum, tin, tungsten, and gold. To address these, Scania has set out clear requirements for the suppliers concerned, and has structured internal management to support our efforts.
Scania performs annual due diligence checks in alignment with the OECD Due Diligence five-step framework, to identify the source and chain of custody of materials containing the aforementioned metals. This involves tracing the mineral supply chain down to smelter level and verifying that smelters and refiners in our supply chain are listed by recognised programmes that confirm that the metals conform to the required standards.
If suppliers do not meet the related requirements in the Scania Supplier Code of Conduct we engage with them further through the likes of education and capacity building measures. Through the Volkswagen Group, Scania also collaborates with industry initiatives such as the Responsible Minerals Initiative to support smelter outreach activities. You can read more about this in the Responsible Raw Material Report.
