In recognition of our changing business environment, as well as our commitments to sustainability and responsibility, Scania conducts an annual materiality analysis to understand what the most important areas are for our stakeholders, and to improve how we do business in the future.
Understanding what’s important
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.
We chose to separate the three categories of sustainable transport, responsible business and long term business value, to make clear that they cannot be compared, and that we need to deliver on all three of them.
The results of the prioritisation by categories are shown in the graphs 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.
A safe, healthy and productive work environment is of highest importance, together with human and labour rights, which has increased in importance compared to last year. Responsible sourcing, Resource and energy-efficient operations, Integrity and Anti-corruption measures are also key focus areas, with circular economy being a new up-and coming topic that we will put more focus on going forward. 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 2017 have kept on being in focus during 2018 such as human rights and circular economy.
The result of the exercise shows that our current focus areas are in line with our stakeholders’ expectations. The highlighted areas in the graphs 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 year, 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.