Mapping what matters

Mapping what matters

Accelerating urbanisation, climate change and scarcer resources are all factors that mean transport has to change. Expectations about how companies do business in a responsible way are also evolving and reshaping how business success is defined. Scania has identified. 26 topics essential to creating lasting value for stakeholders and ensuring our business develops for the long term.

Adopting an outside-in perspective helps Scania to identify and understand the aspects most relevant to achieving our business aims. The materiality process is also part of our philosophy of continuous improvement.

To identify the topics most relevant to Scania and the stakeholders, our materiality process evolved further during 2015. Through a mapping and analysis process including internal and external stakeholder dialogue, we identified future priorities and actions.

The findings guide our reporting focus as well as inform internal discussions and stakeholder engagement.

Our aim is to develop and strengthen the process in the future in order to continue to be a useful base for dialogues and decisions. During 2016, we will extend the stakeholder involvement to validate the findings.

SCANIA’S MATERIALITY ANALYSIS 2015

IDENTIFY

The starting point was the review of our 2014 list of material topics to align with our operations, in the light of our process towards integrated reporting. The approach also incorporated insight from research, industry impacts, and competitor analysis.

PRIORITISE

Each topic was mapped against the degree of their importance to Scania’s ability to deliver on the business priorities by internal experts and executives.

ACTIVATE

Through surveys and interviews we analysed the topics against the expectations of key stakeholders, weighted according to their influence on — and importance to —the business.

The four key stakeholder groups included in 2015:

  • Existing and potential employees
  • Financial actors (lenders and analysts)
  • Society (regulators and NGOs)
  • Commercial actors (suppliers, customers and transport buyers)

VERIFY

Using the outcome from 2015, we clustered 26 topics into six business-relevant categories. The major change from previous years is the incorporation of a broader scope of topics. These include risks and opportunities facing our business related to macro-economic developments, technical disruptions and our ability to deliver on our strategy in a complex market environment.

Mapping our understanding

Our approach to materiality includes: mapping our understanding of how the world is changing and identifying a universe of topics that are relevant to Scania and our stakeholders; exploring the expectations of groups most influential for our business; analysing our impacts from the perspective of Scania’s business strategy and culture; and assessing these findings against our impacts across the value chain. Through this approach, we arrived at 26 material topics grouped in six categories.

1. PRODUCTS

Scania’s business model focuses on how we can improve our customer’s profitability. Our innovations continue to focus on advancing efficient, low-carbon transport solutions.

Topics:

  • Sustainable transport system
  • Road safety and security
  • Intelligent transport technologies
  • Low-emission technologies
  • Life cycle optimisation
  • Technical shortcomings in products

2. MARKETPLACE

Through our tailor-made applications and our state-ofthe-art low-carbon solutions Scania will continue to build a stable presence in our selected markets.

Topics:

  • Pricing
  • Viability of long-term contracts
  • Changing market conditions
  • Emerging markets strategy
  • Customer satisfaction

3. DIRECTION

Business strategy and leadership are key to our success setting a clear direction backed up by investment, identifying pioneering partnerships, ensuring diligent governance and demonstrating integrity.

Topics:

  • Long-term financial viability
  • Integrity and compliance
  • Identifying threats and opportunities
  • Clear and considered corporate strategy
  • Stakeholder engagement
  • Industry collaboration
  • Investment in R&D

4. OPERATIONS

Workplace operations and systems must be efficient and secure, and throughout every aspect of our supply chain we must apply the highest standards.

Topics:

  • Operational efficiency
  • Interruptions in critical information systems
  • Responsible sourcing

5. EMPLOYEES

It is vital to the future of our business that Scania

approach recruitment strategically, in order to attract and

retain talent by providing a safe and inspiring workplace.

Topics:

  • Safety, health and work environment
  • Attraction and retention of competence
  • Access to talent

6. SOCIETY

We must ensure that value is shared across our supply chain and make a positive connection with local communities wherever we are operating.

Topics:

  • Community impacts and contributions
  • Human rights