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Circular business

At Scania, we believe that being a sustainable business depends on adopting a more circular economic model, where the use of existing resources is maximised and waste is minimised all along the value chain. This transition is supported by many of our existing principles and values. Circular business aligns with our core value, elimination of waste, as well as our lean production system and our modularisation approach.

For Scania, circularity involves every aspect of our business. It challenges us to rethink not just how we design and manufacture products, our impact and knowledge of the value chain, but also how we develop business models and provide value for our customers. Therefore, we are taking actions to gain a deeper understanding of the opportunities of a circular approach in the different parts of our value chain. 


This includes exploring new business models, working with our supply chain, extending the life of our products, optimising the use of resources and energy, maintaining product value as high as possible, remanufacturing spare parts and promoting reuse of components and recycling at the end-of-life product phase. As we move into an electrified transport system, we are also exploring business opportunities around second life applications, recycling and reusing batteries and raw materials. 


In addition to saving natural resources, decreasing CO2 emissions is another key objective for circularity. Circularity is a key enabler for decarbonisation. Virgin material production is energy intense, which is why every time we can avoid producing virgin material, but instead reuse, remanufacture or recycle, we save both natural resources and CO2 emissions.

Our product lifecycle

We seek to create value at every stage of our product life cycle by minimising the negative impacts of our operations and products, and increasing the positive ones.